2024-07-19 07:54:27
In the big comparison test
Crypto exchange comparison: Where it is worth buying Bitcoin
19.07.2024 – 07:20 a.m.Reading time: 4 min.
Anyone who trades in digital currencies such as Bitcoin wants a provider that will keep their tokens safe. “Finanztest” tested nine platforms – some with major differences.
Almost five million people in Germany have invested money in cryptocurrencies such as Bitcoin, Ethereum, Cardano or Solana. Many believe in a replacement currency like gold that protects their money from inflation. Others speculate on finding a second Bitcoin that will increase a thousandfold within a decade.
In its current issue (8/24), “Finanztest” tested nine different platforms on which people can trade cyber currencies. Those who are aware of the enormous risks will find some of the providers examined offer good conditions, write the testers.
The large crypto comparison test shows what is important so that your investment in Bitcoin & Co. is safe and cost-effective, at least from a consumer perspective.
Even if it is still pure speculation today, cryptocurrencies could become part of the financial establishment in the not too distant future, according to “Finanztest”. While the prices of cryptocurrencies cannot be influenced, investors have the power to compare different providers when it comes to trading costs.
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The nine crypto exchanges tested offer even beginners convenient, largely intuitive access to digital currencies. Investors must first choose a platform and open a depository account there. They can then buy, sell or exchange Bitcoin, Ether and other cryptocurrencies transparently and inexpensively.
This is preferably done via smartphone. Apart from N26, all providers selected by “Finanztest” also allow trading on the PC via browser.
All platforms tested met the minimum requirements for secure use: The providers must have a license from the German Federal Financial Supervisory Authority (Bafin) for crypto custody and offer a clearing account that is subject to deposit protection and is held in euros.
The Bafin license is intended to minimize the risk for investors of falling into dubious or fraudulent brokers. Criminal actors keep cropping up on the Internet who rip off investors with promises of high returns. The custody of cryptocurrencies was introduced as a financial service in December 2019 as part of the latest EU Money Laundering Directive. Anyone who offers the exchange of virtual currencies into legal tender and vice versa has since been considered a financial service provider. This also applies to the exchange of one virtual currency into another.
The number of tradable cryptocurrencies ranges from 10 (BSDEX) to over 420 (Bitpanda). For specialists who are aware of the very high risks, it could be attractive to rely on a platform with a large selection of cryptocurrencies, write the authors of the comparative study.
However, normal investors would be well advised to stick with the established currencies Bitcoin and Ethereum if they venture into this type of investment. Especially since it is not clear for many currencies whether they will hold their ground on the market.
In order to compare the pricing models of the crypto platforms, the testers calculated the total costs for various Bitcoin orders worth 500, 1,000, 5,000 and 10,000 euros. They took into account both the order fees of the banks and brokers as well as the so-called spread costs.
The spread is the difference between the buying and selling price – and the main cost factor for customers of Bison, Finanzen.net Zero, Justtrade and Traders Place. The so-called neobrokers Justtrade and Trade Republic, together with the Börse Stuttgart Digital Exchange (BSDEX), offer particularly favorable conditions for trading in cryptocurrencies.
According to a “Finanztest” study, investors at Justtrade pay only 30 euros for a 10,000 euro order, while the total costs at Coinbase add up to almost 200 euros.
The comparison test showed that there is no real lower limit for the investment amount between the providers. In some cases, trading is possible from as little as one cent.
Coinbase and Bitpanda are the only platforms examined that also offer so-called staking. With staking, owners of digital currencies receive a kind of dividend if they deposit their tokens as collateral and cannot sell or exchange them for a while.
Transferring coins to your own wallet is only possible with Bison, Bitpanda, BSDEX and Coinbase.
Investors can also set up savings plans for cryptocurrencies. According to a comparison by “Finanztest”, this is possible with Bison, Bitpanda, Coinbase, Finanzen.net Zero and Trade Republic. The costs for this range between 0.4 percent at Trade Republic and 1.99 percent of the order volume at Coinbase.
Investors who do not want to invest in individual cryptocurrencies have so-called ETPs (Exchange Traded Products) at their disposal. Since Bitcoin ETFs are not permitted in Germany, investors can use ETPs to participate indirectly in the performance of digital currencies. ETPs on cryptocurrencies can be bought and traded at Bison, Finanzen.net Zero, Justtrade and Traders Place.