How to Buy Bitcoin in Germany (2025 Guide)

AI summary

Buying Bitcoin in Germany is legal, secure, and straightforward due to clear regulations from BaFin and the EU's MiCA framework. The article provides a step-by-step guide covering exchange selection, KYC, payment methods, tax implications, and safe storage practices, emphasizing the importance of using regulated platforms and hardware wallets like Tangem. With strong consumer protections and tax benefits for long-term holders, Germany is positioned as one of the safest countries for crypto adoption.

Buying Bitcoin in Germany is entirely legal and easier than ever, thanks to clear regulations from BaFin and the new EU MiCA framework. Whether you’re just starting or investing more seriously, the process follows a simple flow: choose a regulated exchange, complete KYC, deposit euros, buy BTC, and store it securely while handling taxes. This guide walks you through every step, enabling you to buy Bitcoin safely, confidently, and in full compliance with German law.

Is It Legal to Buy Bitcoin in Germany?

Yes, buying Bitcoin in Germany is 100% legal. The country treats Bitcoin as a financial instrument, regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).

Under German and EU law:

• Exchanges and custodians must hold a BaFin license to operate legally.
• The new EU MiCA regulation adds consistent crypto standards across Europe.
• Crypto isn’t legal tender, but Canada fully recognizes it as a tradable digital asset.

In short, you can buy, sell, and hold Bitcoin in Germany safely, as long as you use compliant platforms.

Step-by-Step Guide to Buying Bitcoin in Germany Using Tangem

Step 1 – Choose a Bitcoin Exchange

Start by picking a secure and compliant exchange. Germany offers several excellent local and EU-based platforms, as well as international options. BaFin-licensed or German-friendly exchanges:

• Bitpanda – Austrian exchange serving Germany, easy for beginners.
• BISON – By Börse Stuttgart, regulated and simple to use.
• BSDEX – Also part of the Börse Stuttgart Group, with transparent trading fees.
• Kraken – Highly trusted international exchange with strong security.
• Coinbase – Great UI, but higher fees.

See our article on detailed comparisons in Best German Crypto Exchanges.

When choosing, consider:

• Regulation and licensing (BaFin/MiCA)
• Supported payment methods (SEPA, Sofort, PayPal, etc.)
• Trading fees and spreads
• Security and withdrawal options

Step 2 – Complete KYC Verification

Once registered, you’ll complete KYC (Know Your Customer) verification — a legal requirement under BaFin’s anti-money-laundering rules. You’ll need:

• Passport or national ID
• Proof of address (utility bill or bank statement)
• German tax ID

This process confirms your identity and keeps your account secure. Most exchanges utilize automated ID verification, which typically takes only a few minutes to complete.

Step 3 – Deposit EUR Funds

After verification, it’s time to fund your account. Exchanges serving Germany usually support:

• SEPA bank transfer — the cheapest option, with a 1–2 day clearance time.
• Credit/debit card — instant, but with higher fees.
• Sofort/Klarna — very common in Germany, fast and simple.
• PayPal — convenient, though not every exchange supports it.

SEPA remains the most cost-effective method for larger deposits.

Step 4 – Buy Bitcoin

Now you’re ready to buy.

1. Choose the BTC/EUR trading pair.
2. Enter the euro amount you want to spend.
3. Select your order type:
4. Market order → buys instantly at the current price.
5. Limit order → lets you set a target price.
6. Confirm the purchase and check your BTC balance.

You can buy fractions of Bitcoin — you don’t need to buy a whole coin.

Step 5 – Store Bitcoin Safely

Leaving Bitcoin on an exchange is convenient, but it is not the safest option. Hackers can compromise exchanges, and you don’t technically control the coins held there. The safest solution is self-custody — holding your coins in a hardware wallet. That’s where Tangem comes in. Tangem Wallet is a secure, card-based hardware wallet that stores your private keys offline, away from hackers or exchange risk.

Key benefits:

• Instant setup (just tap your phone).
• No registration or cables.
• Military-grade security.
• Built-in backup and recovery.

As the saying goes: not your keys, not your coins.

Best Payment Methods to Buy Bitcoin in Germany

Here’s how standard payment methods compare:

SEPA remains the go-to for most investors due to its low fees and wide support.

How Much Does It Cost to Buy Bitcoin in Germany?

Buying Bitcoin isn’t just about the price of BTC — it’s about total cost, including fees and spreads.

• Trading fees: Usually 0.1–1.5% depending on the platform.
• Spread: The difference between the buy and sell price (hidden cost).
• Deposit/withdrawal fees: SEPA transactions are usually free; card transactions incur a 1–3% fee.
• Network fee: A small BTC transfer fee applies when withdrawing.

Example: If you invest €1,000 in BTC on a typical exchange:

• Deposit via SEPA → €0 fee
• Trading fee/spread → about €10–20
• You’ll receive BTC worth roughly €980–990 after fees

Always compare total effective costs, rather than just headline trading fees.

Taxes on Buying and Selling Bitcoin in Germany

Germany treats Bitcoin as private money, rather than a currency or a security. That’s actually good news for long-term holders.

• Held > 1 year: Any profit is entirely tax-free.
• Sold within 1 year: Profits over €600/year are taxed as income.
• Trading frequently may be considered a commercial activity (consult a tax advisor).
• Mining, staking, lending: Often taxed as income when earned.

Example: Buy 0.1 BTC for €4,000 in 2024 → sell for €6,000 in 2025 (held > 1 year) → no tax.
Sell earlier (within 1 year) → €2,000 profit taxed at your personal rate. Check out our detailed tax guidance on Crypto Tax Rules in Germany.

Safest Way to Buy and Hold Bitcoin in Germany

For maximum security:

1. Buy through a BaFin-licensed exchange.
2. Withdraw your BTC immediately after purchase.
3. Store it in a cold wallet, such as Tangem.
4. Use 2-factor authentication for all accounts.
5. Keep a record of purchases for tax and audit purposes.

Tangem combines hardware-grade protection with everyday usability, making it ideal for both beginners and experienced investors.

Alternatives to Buying Bitcoin on Exchanges

If you prefer not to use a traditional exchange, you still have options:

• Peer-to-peer (P2P) platforms: Direct trades with other users, but with more risk.
• Bitcoin ATMs: Found in many German cities, and fees can range from 5% to 10%.
• Fintech apps (PayPal, Revolut): Convenient for small buys, but often don’t allow Bitcoin withdrawals.

These can work for small purchases, but exchanges remain more cost-efficient and transparent for regular investing.

Future of Buying Bitcoin in Germany

The crypto landscape in Germany continues to evolve rapidly.

• The EU MiCA regulation introduces unified standards and enhances consumer protection.
• Banks like Commerzbank are exploring regulated crypto custody services.
• Once launched, the Digital Euro (CBDC) could alter how institutions and users transfer euros between traditional and digital finance, but Bitcoin will remain beyond central control.

Germany’s strong regulation and open market make it one of the safest and most forward-thinking countries for crypto adoption.

FAQ About Buying Bitcoin in Germany

Is Bitcoin legal in Germany?

Yes, it’s legal to buy, sell, and hold Bitcoin under BaFin regulation.

What’s the cheapest way to buy Bitcoin in Germany?

SEPA bank transfer on a BaFin-licensed exchange is typically the lowest-fee method.

Can I buy Bitcoin with PayPal in Germany?

Yes, some exchanges and apps support PayPal, but not all allow withdrawals to personal wallets.

What’s the safest Bitcoin exchange?

BISON, Bitpanda, and Kraken are reliable, with BaFin oversight or equivalent EU regulation.

Do I pay tax on Bitcoin in Germany?

Only when you sell or spend your Bitcoin. Hold it for more than a year and your gains are tax-free.

Final Thoughts

Buying Bitcoin in Germany is a straightforward, regulated, and secure process when conducted through authorized channels. Use BaFin-licensed exchanges, complete KYC properly, fund via SEPA, and store your BTC securely in a Tangem Wallet.