If you want to invest in cryptocurrencies, you should pay particular attention to low fees and security. Even small differences in trading fees add up over time. We compare the most important regulated providers for buying Bitcoin and co.
Risk warning: cryptocurrencies are highly speculative. Total loss is possible. Only invest money you can afford to lose. The fees stated are representative (as of October 2026); spreads come on top.
Crypto exchange vs. crypto broker
On a crypto exchange (e.g. Bitvavo, Kraken) you trade directly on the market and can usually withdraw your coins to your own wallet. With a broker (e.g. Trade Republic, Bitpanda) you can often buy conveniently alongside shares and ETFs – but the choice of coins and features is sometimes smaller. For beginners, brokers and beginner-friendly exchanges are often simpler; active traders tend to benefit from the lower fees of genuine exchanges. Note: with some providers the simple in-app purchase costs much more than the pro view of the same exchange (e.g. Kraken: 1% instant buy vs. 0.40%/0.80% on Kraken Pro).
Regulation: what MiCA means for you
Since 30 December 2024 the EU Markets in Crypto-Assets Regulation (MiCA, Regulation (EU) 2023/1114) has applied. Crypto service providers now need authorisation as a CASP (crypto-asset service provider) from a supervisory authority in the EU; with this licence they may operate in all EU countries. The national transitional periods expired by 1 July 2026 at the latest.
Examples: Bitpanda was authorised by BaFin, Bitvavo by the Dutch AFM, Kraken by the Central Bank of Ireland and Coinbase in Luxembourg. MiCA governs authorisation, capital requirements, custody and transparency – but it does not protect you against price losses, and coins are not deposits covered by deposit guarantee schemes. You can check whether a provider is authorised in ESMA's CASP register.
Crypto and tax in Germany
- Holding period: gains from selling or swapping cryptocurrencies held privately are tax-free if more than one year passes between purchase and sale (Section 23 of the German Income Tax Act). Staking or lending does not extend the holding period.
- €1,000 exemption limit: since 2024, gains realised within a year remain tax-free if they total less than €1,000 (previously €600). It is an exemption limit: if gains exceed it, the full amount is taxable – at your personal income tax rate, not the flat-rate withholding tax.
- Staking income: rewards from staking or lending are taxable as other income when received (Section 22 No. 3, exemption limit €256 per year).
- Crypto ETPs held in a securities account are classified differently: the bank often withholds flat-rate tax and the one-year rule then does not apply – the treatment of individual products is partly disputed.
- Provider reporting: since 2026, crypto service providers in the EU must report customer data to tax authorities (EU directive DAC8, first reports in 2027). This is not tax advice – for larger amounts, a tax adviser is worthwhile.
What to look out for when choosing
- Fees – trading fees, spread and withdrawal fees add up. Even a 1% difference makes a big difference over the long term.
- Regulation & security – use providers with MiCA authorisation and enable two-factor authentication.
- Choice of coins – do you only want Bitcoin & Ethereum or smaller altcoins too?
- Withdrawability – can you transfer your coins to your own wallet?
- Tax – in Germany, crypto gains are tax-free after a holding period of more than one year; a good provider supplies clear reports with purchase date and cost basis.
How cryptocurrencies work technically
Cryptocurrencies such as Bitcoin or Ether are digital units of value recorded on a blockchain. This is a decentralised ledger maintained jointly by many computers, in which every transaction is permanently recorded. There is no central bank that issues or can recall coins. Ownership is proven by cryptographic keys: whoever holds the private key can dispose of the coins.
With an exchange or broker, the keys are usually held by the provider, who safekeeps the coins for you. That is convenient but means you have to trust the provider. With your own wallet, in which you manage the keys yourself, you keep full control but also bear full responsibility: if the recovery phrase is lost or falls into the wrong hands, the coins cannot be recovered.
As in other markets, the price results from supply and demand, around the clock on every day of the week. Prices can swing sharply within a few hours. Unlike shares, most coins have no company profits or dividends from which a value could be derived. That makes price forecasts particularly uncertain.
Comparing costs: worked example with sample values
Crypto providers charge several types of cost: the stated trading fee, the spread as the difference between buying and selling price, possible fees for deposits and withdrawals, and network fees when transferring to your own wallet. The stated fee is therefore not always the cheapest route, because a provider with a low fee may charge a higher spread.
A worked example using freely chosen sample values, not the current terms of any provider: you buy €1,000 once, the trading fee is 0.25% and the spread 0.50%. You then pay €2.50 in fees and about €5 through the spread, roughly €7.50 in total. With a savings plan of €50 a month and assumed total costs of 1.5%, that is €0.75 per instalment and €9 a year on €600 paid in. If withdrawal or network fees are added, the calculation changes.
You will find the current fees in each provider's price list. Also check whether minimum fees apply to small amounts, since they make up a relatively large share of savings plans with low instalments. Comparing the trading fee alone is not enough if you pay in and out regularly.
Risks and typical pitfalls
The most important risk is total loss. Crypto assets can lose a large part of their value within a short time, and unlike bank deposits no statutory deposit guarantee protects you. BaFin, the German financial regulator, regularly points out to consumers that crypto assets are highly speculative. Only use money whose loss you can bear, and note that this text is not investment advice.
Fraud schemes are another danger. They include fake trading platforms, alleged guaranteed profits, callers who pressure you into installing remote-access software, and romance scams in which a supposed acquaintance recommends crypto investments. BaFin maintains a warning list of unlicensed providers. Before registering, check whether the provider is listed in the MiCA register of the European Securities and Markets Authority (ESMA) or with BaFin.
Also note the transfer rules: since the EU Transfer of Funds Regulation for crypto assets (Regulation (EU) 2023/1113) applies, providers must collect details of sender and recipient for transfers. For withdrawals to your own wallet you may therefore be asked to prove that the wallet belongs to you. Allow some time for this before you plan to move larger amounts.