How to buy Bitcoin in Germany

Germany was one of the first countries to regulate cryptocurrencies and recognise Bitcoin as a financial instrument (unit of account). So, if you buy Bitcoin in Germany, you can use it for payments just like you would with gold or EUR. Bitcoin has been considered “private money” in Germany since 2013.

Germany is a pioneer in cryptocurrency and blockchain adoption. The country doesn’t treat Bitcoin as an equivalent to foreign fiat currencies, but it doesn’t see digital coins as a threat to the national currency either. So, your funds are safe in this country, as there are no plans for heavy-handed laws in the cryptocurrency market.

So, how do you buy Bitcoin in Germany?

Use an exchange to buy Bitcoin in Germany

When looking to buy Bitcoin in Germany, there are many options in place, as most global cryptocurrency exchanges are available to German users. Moreover, as this country uses the SEPA system, buying Bitcoin with bank wire transfers is an option readily available to you. Other ways to include debit card, credit cards and online bank transfers.

To choose the right exchange for your needs, decide whether you want to go down the fiat route explained above or whether you want to buy Bitcoin with another cryptocurrency. Also consider the levels of liquidity, customer service and the competitiveness of spreads available. Security and speed should also be at the top of your priorities.

Buying Bitcoin with cash

In Germany, you can also purchase Bitcoin with cash from ATMs. The country currently has over 20 machines in Berlin, Hamburg, Stuttgart, Munich, and Würzburg. Buying Bitcoin from ATMs isn’t the best way due to the very high fees. However, it may be an option for cryptocurrency buyers who want to maintain their anonymity.

A cryptocurrency tax haven

Germany has a favourable tax policy for cryptocurrency owners and investors. The German Finance Ministry has a relaxed approach to cryptocurrency capital gains.

Owners who hold digital coins for more than a year are exempt from taxation. It’s a rule that encourages long-term investment in cryptocurrencies — a sign that German authorities consider Bitcoin and other digital assets a long-term investment.

Moreover, some purchases with Bitcoin are exempt from VAT when the value of private sales stays under €600.

Final thoughts

Germany encourages cryptocurrency investments through clear laws and tax exemptions. You can buy Bitcoin in Germany using a wide range of payment methods. Almost all popular exchanges are available in Germany, but you can also buy Bitcoin with cash from Bitcoin ATMs.