BTC is going parabolic again, where to buy it? Purchase is widespread on stock exchanges and marketplaces. However, private trading is also possible. International crypto marketplaces are, for example.
How does the purchase and sale of crypto currencies in a marketplace work?
BTC is all over the news now, once investors have decided to buy digital currency units, the rest of the process is very simple:
- The offer is confirmed by “Buy”, so that it is blocked for other interested parties. No one can now access the selected digital currency units.
- The buyer must transfer the money to the seller. This process is usually carried out automatically with the payment option stored.
- Once the seller has confirmed receipt of the payment, the crypto currency is credited and transferred to the wallet.
Investors, who decide for a crypto stock exchange, do not have this expenditure. Here, trading takes place automatically. The investors merely indicate the desired number of digital currency units and the investment sum. Everything else is taken over by the stock exchange.
Sale of Bitcoin and Co. on a market place
- Anyone wishing to resell the currency units in their wallet can also do so on stock exchanges or marketplaces. How does the process work on a marketplace?
- First, traders decide how many units they want to sell. It doesn’t always have to be whole coins. Fractions of the digital currency are also possible.
- Now the traders determine in which currency the proceeds should be credited. The most common currencies are EUR and USD.
- The traders also determine which payment option they want to use for the transactions.
Trading the crypto currency on the trading floor
Investors who are not interested in buying digital currency units and storing them can still trade the crypto currency. The Bitcoin Group, for example, is represented on the trading floor and can be traded as shares. In 2017, trading in Bitcoin derivative securities was introduced for the first time on the LedgerX crypto exchange. On conventional stock exchanges, crypto currencies (with the exception of Bitcoin) sometimes play no role. However, there have recently been funds for crypto currencies. They have been available from the Swiss Fintech start-up Crypto Finance since January 2018. According to CEO Jan Brezek, this form will “represent the first blue-chip index for crypto currencies”.
CFD trading with the cyber currency
CFD trading is not only possible on stocks, commodities or indices, but also on crypto currencies. Speculative derivatives are offered with a leverage that investors do not have to use. In contrast to shares, the leverage for crypto currency is usually a maximum of 1:50. For comparison: CFDs on shares or commodities can be traded with many providers with a leverage of 1:200 or more. Due to the volatile price development of Bitcoin and Co., brokers want to significantly minimize the risk of a complete loss for their investors.
For this reason, leverage has been reduced. Investors do not acquire any underlying assets here, but merely deposit a security deposit for the trading position. If, for example, the investment amounts to 100 euros and a leverage of 1:20 is used, 2,000 euros are brought into the market instead of 100 euros. Measured by this sum, the potential profit is of course also higher. However, the leverage effect can also be reversed, so that losses can occur to the same extent.
Bitcoin participation certificate
The credit institution Vontobel launches a Bitcoin certificate without a fixed term on the market. It can be traded on the Stuttgart and Frankfurt stock exchanges and represents the Bitcoin price in USD. The certificate corresponds to one tenth of the BTC. The bank had already issued a Bitcoin certificate before, but with a fixed term. The maturity date is 23 July 2018.
The difference between the two certificates lies in the management fee. For the second certificate without a fixed term, a management fee of 1.5 percent/year of the price development is due. In the case of the first certificate with a fixed term, the bank waives this fee.
Bitcoin ETFs do not yet exist
The price of crypto currencies is subject to massive fluctuations. For this reason, the fund companies have so far not used Bitcoin ETFs. Also the US financial supervisory authority SEC expresses its doubts publicly. According to the SEC, there could be restrictions in the liquidity of the digital currency and the valuation of futures contracts (based on Bitcoins).