Buy bitcoin from a bitcoin broker?

If you bought Bitcoins for a few hundred euros or dollars a few years ago, you could make a fortune. Bitcoin is the most important cryptocurrency of all. But how can you invest in Bitcoin as an investor, where can you buy or sell Bitcoin and why can Bitcoin trading still be interesting for investors and speculators?

Important to know

• Bitcoin is a digital unit of value intended to serve as a decentralized currency. They only exist on computers, smartphones or storage media such as hard drives. Until now, you cannot pay for purchases, taxes or rent with Bitcoins.

• Bitcoins are not backed by a state or a central bank, but by a computer network, the so-called blockchain

• The Bitcoin price can fluctuate greatly because the market is very speculative. The price of Bitcoins is based on supply and demand

• Where is the best place to buy bitcoin and how much does bitcoin cost?

• First, let's explain the difference between crypto exchanges and crypto brokers. Both crypto exchanges and crypto brokers are trading platforms where you can invest in Bitcoins. However, it is important to note that you buy real cryptocurrencies on crypto exchanges and trade certificates through crypto brokers. 

• The price of Bitcoins is based on supply and demand 

  Due to increasing media attention, interest has steadily increased in recent years. At the same time, the supply is limited because the Bitcoin network can only gradually produce new coins and there is a limited number of coins.
  

  Buy bitcoin from a bitcoin broker?

  You can speculate on Bitcoin prices through a broker using various derivatives such as CFDs (“Contracts For Difference”) ( 4 ) . You can think of a Bitcoin CFD as a security that reflects the Bitcoin price. Instead of buying cryptocurrencies like Bitcoins directly, you can buy other derivatives like options or certificates in addition to CFDs to go “long” or “short”. A “long” trade is a bet on rising prices, while a “short” trade is a bet on a falling price.

  Derivatives have the advantage that you can buy them with leverage. For example, if you buy bitcoin for $500 with a leverage of 3:1, you will get a bitcoin certificate for $1500. But if you prefer to buy Bitcoins on a crypto exchange, invest $500 and get exactly the same amount in Bitcoins for $500. Leverage allows you to take advantage of the volatility more with the same stake. However, you also have a higher risk because the leverage works both ways, IE profit and loss.

  Another advantage of brokers is that you can rest assured that your investment is safe as the brokers are audited by the financial supervisory authority. We recommend the Plus500 Bitcoin broker.

  Advantages of Plus500

  • I can trade both Bitcoin and cryptocurrency

  • I can trade on a trading platform

  • I don't have to worry about the safekeeping of the Bitcoins

  • I want to deposit via PayPal

  • Low rates and high security

  Both test winners Plus500 and eToro convince with their advantages.

  Buy Bitcoin through crypto exchange?

  Here on crypto exchanges you don't trade with derivatives, but you buy real cryptocurrencies, which you can then cash out to your secure “wallet” 

• The big advantage is that with real coins you can be sure that the cryptocurrencies are your property. What you should know, however, is that the entire responsibility for keeping the coins safe is transferred to you.

  In any case, you should have your bitcoins paid into your own wallet after purchase, because unfortunately there are abuses on the stock exchange from time to time. Sites like eToro offer more security because eToro is also subject to financial regulations.

• Conclusion

  Bitcoin continues to gain popularity and fame every year and worldwide. If you want to buy Bitcoin online, you can do so through special marketplaces or so-called crypto exchanges. If you don't want to trade bitcoins, but only speculate on the price trend, you can trade with Contracts For Difference.

  If you want to trade Bitcoin, you need a wallet in which the coins can be kept. Buying Bitcoin is therefore a good investment and is also suitable for beginners in this field.