Instructions: Buy the crypto currency Bitcoin 2020 via the Binance platform
Crypto currencies will play an important role in the trading world in 2020. Bitcoins and other currencies can be easily purchased via trading platforms. The Binance platform is one of the largest of its kind worldwide.
More than 100 different crypto currencies can be traded on Binance. The crypto exchange, which was only founded in 2017, offers trading of Bitcoin, but also of Ethereum, IOTA, Ripple and other well-known currencies.
Profile of the crypto exchange Binance
- Binance was founded in 2017
- More than 100 crypto currencies can be traded
- Headquarters in Malta
- Worldwide highest turnover (trading volume) of all crypto exchanges
- Market capitalisation: > 1 billion euros
The key figures of the crypto exchange Binance are undoubtedly impressive. Anyone wishing to buy the crypto currency Bitcoin via this platform can be quickly guided to the goal with our Bitcoin Buy Guide.
How did the Binance stock exchange grow so quickly?
- Binance differs from many other platforms by offering a technically sophisticated solution that allows trading of numerous crypto currencies. The platform was financed by an ICO. During the funding phase, investors were able to purchase NBB tokens.
- This raised a total of USD 15 million in cash. The company was founded in Asia, only later the headquarters were moved to Malta. Currently, Binance has branches all over the world.
Buy Bitcoins through Binance with instructions!
The instructions for buying Bitcoins via Binance are quite simple to understand. First you need to register with Binance. Binance customers must confirm that they are at least 18 years of age and accept the terms and conditions of the exchange. To register, only a name and an e-mail address are initially required.
Verification is not required if one wishes to register with Binance and start trading crypto-currencies.
In the third step, money or credit must be deposited in order to participate in trading. It is also possible to send crypto credit balances to Binance from another exchange. As soon as the balance has been deposited in Binance, crypto-currencies can be bought and sold
- Step 1: Registration with Binance (from 18 years) – without verification
- Step 2: Send crypto credit to Binance Börse
- Step 3: Trade Bitcion and other crypto currencies on Binance
The registration with Binance and the trading of crypto currencies is kept very simple. It only takes a few minutes to open an account and start trading.
What fees are incurred when trading Bitcoins on Binance?
If you are interested in trading crypto currencies, you should also consider the costs and fees as well as the collateral. On the Binance platform, fees of 0.1% are estimated based on the size of the trading position.
This is a very low fee compared to traditional shares, ETFs and other forms of investment. For example, if you want to buy bitcoins for USD 500, you have to expect a fee of USD 0.5. For a volume of 1,000 US dollars, a fee of 1 US dollar must be paid. These examples show that the fees at Binance are very low.
A detailed list of the fees can be found in the Fee Schedule:
Tip: If you have Binance Coin, or NBB for short, in your wallet, you can reduce the trading fees by a further 25%.
The fee is deducted from the NBB balance. The discount that can be obtained via the NBB is halved every 6 months. After a period of 3 years there is no longer a discount, even if the NBB can be booked in your trading account.
What advantages does the Binance platform offer its traders?
The Binance platform offers its traders a number of advantages, which clearly differentiate it from other platforms.
- Largest crypto exchange worldwide incl. SAFU insurance
- Over 100 crypto currencies can be traded
- High liquidity even for smaller currencies
- Easy trading in a few steps
- Website also available in German language
- High transparency of fees and services
What collateral does the Binance platform offer traders?
The Binance platform announced on 3 July 2018 that it was offering emergency insurance to its users. Since this date it is known that Binance is a member of the so-called Secure Asset Fund for Users, SAFU for short.
This ensures that users are protected from software problems and errors, for example, as well as from hacker attacks, as has been the case with Binance in the past.
Since July 14, 2018, 10% of all fees paid at Binance are included in the SAFU insurance. The aim is to ensure that users of the platform can be compensated for any loss incurred for the reasons mentioned above.
How do I deposit money or crypto-currencies at Binance at low cost?
Anyone who has opened an account with Binance will naturally ask themselves how they can build up a balance at the lowest possible cost. Deposits in the form of money in euros can only be made using a credit card. This results in a fee of 3.5%.
If you want to avoid the fees, you can deposit crypto currencies directly, e.g. from other platforms. This means that you simply transfer the crypto currencies to your wallet at Binance or send them there. It should be mentioned that fees are to be expected if Binance pays out to another platform.
- Deposit by credit card in euros: 3.5% Fees
- Payment from other crypto exchanges in crypto currencies: free of charge
- Payout: associated with fees (will be shown in detail before!)
Binance users receive an overview of all associated costs before the payout. This means that the fee is displayed before the payout and the payout must also be confirmed by e-mail or text message.
This process is intended to make it more difficult for hackers and fraudsters to enter Binance and to steal credit.
Anyone wishing to find out in detail about trading opportunities and current prices can find them at https://www.binance.com/en/buy-sell-crypto. Live trading of crypto currencies can be carried out directly here.
Overview of fees for a purchase of Bitcoins (as of April 2020, EUR 6,000 per Bitcoin):
Investment Number Bitcoins Fees
- 500 Euro 0,08 0,5 Euro
- 1,000 Euro 0.16 1 Euro
- 2,000 Euro 0.32 2 Euro
- 5,000 Euro 0.8 5 Euro
- 10,000 Euro 1.6 10 Euro
- 20,000 Euro 3.2 20 Euro
Overview: Investment sum vs. Bitcoins vs. fees
What role does the burning process play at Binance?
Binance offers its own currency in the form of Binance Coins or NBBs. At regular intervals a certain proportion of the coins is destroyed. This means that the number of NBB tokens is reduced at defined intervals. As a result, the price of a NBB should be increased significantly.
This process should continue until half of all originally issued tokens are left.
In 2019, the value of the NBB currency has increased significantly and was in some cases well over 30 US dollars per unit.
In 2020, the exchange rate fell sharply, as was the case with most crypto currencies. At times, the price per NBB was quoted at around USD 10 to 15, which was significantly lower than the high in 2019.
New payment channels 2020: what do third-party payment providers offer at Binance?
The Binance platform continues to grow. This growth also includes the integration of new providers for payment transactions. The service providers Koinal, Simplex, Banxa and Paxful are now working with the Binance platform.
It is intended to make payment transactions even easier to implement and to offer additional benefits.
On a separate subpage (see: https://www.binance.com/en/buy-sell-crypto), Binance lists all partners that can be used for the exchange of Fiat currencies into crypto currencies.
Partner for the exchange of Fiat currencies with Binance:
Koinal has its own stock exchange technology, with which the purchase of crypto-currencies should be significantly simplified. Via the platform the purchase of numerous crypto currencies can be offered. The purchases can be made using debit and credit cards.
It should also be noted that classic bank transfers are also possible. The entire process of purchase and payment is secured by our own encryption technology, so hackers have a hard time. The platform Koinal was founded in 2018 and is based in London. It is part of SG Veteris Limited.
Koinal’s services can be accessed in over 175 countries worldwide. It ensures that classic Fiat currencies, such as the Euro, but also US dollars, AUD, CAD or other currencies can be exchanged more easily into crypto currencies and offers the necessary security.
The service provider Simplex also offers the possibility of exchanging funds from Fiat currencies into crypto-currencies with the Visa credit card and the Mastercard credit card without much effort.
- Simplex is an EU Fintech that has the appropriate licenses and can therefore be named as a partner of Binance without any problems.
The TrustToken platform is also used to use money from the personal bank account to purchase crypto currencies such as coins and tokens. Through the Paxos platform, it is possible to buy crypto currencies at a particularly favourable price with the Fiat currency US Dollar. There are no fees or limits when purchasing crypto currencies through Paxos.
Buy crypto currencies through Paxful – what does the innovative platform offer?
Paxful is a modern and innovative platform that enables Bitcoins to trade in real-time. Trading can be done via live chat and with other Paxful members. It should be noted that buying and selling can be done via a variety of payment methods.
The platform has a so called escrow system. This ensures that trading can be carried out in a very secure way and that there is no need to worry about fraud and theft.
The Bitcoins are kept in the escrow system until the entire trade has been successfully completed. All traders and participants in the Paxful system can participate in a feedback system. This means that transactions with other members of the platform can be evaluated.
- Bitcoin trading between members of the platform is possible
- Free wallet from BitGo is provided
- Escrow system prevents fraudsters and ensures secure transactions
- Over 800,000 customers have already traded with Paxful
- Over 7,300 sellers are registered on the platform
- A feedback system offers advantages to all users
The complete wallet is permanently offered free of charge for the crypto currency Bitcoin. The wallet is managed by BitGo – a provider that is very strongly established in the Bitcoin custody market.
There are currently over 7,300 sellers on the Paxful platform. More than 480,000 Bitcoins have been sold so far. The number of customers or buyers on Paxful has grown rapidly in recent years.
Meanwhile the platform counts more than 800,000 customers who have chosen the escrow system and thus benefit from secure trading.
The choice of payment methods for buying or selling Bitcoins is more than extensive. Paxful offers more than 300 different variants that can be traded with Bitcoins. Once you have decided on a trading method you can start trading directly with the other Paxful members.
Bitcoin price forecast 2021 to 2025 – how can the crypto currency develop?
Based on the current development of the Bitcoin exchange rates it is difficult to make a forecast for 2021 to 2025. The past months have shown that Bitcoin is also subject to a high degree of volatility. In concrete terms, this means that the price per Bitcoin can fluctuate very sharply at times.
In the course of March and April 2020 it became apparent that Bitcoin could be bought for 4,300, but also for around 6,000 euros. This shows that a price difference of 30% within a few days can be expected quickly if the crypto currency is chosen.
Such massive price movements had already occurred more frequently in the recent past. It is quite conceivable that the crypto currency Bitcoin will also show corresponding price movements in the future.
Period Price per Bitcoin
- 2015 200 to 440 US dollars
- 2016 440 to 950 US dollars
- 2017 830 to 17,500 US dollars
- 2018 3,300 to 15,000 US dollars
- 2019 3,400 to 11,600 US dollars
- 2020 Currently from 5,740 US dollars
Overview: Bitcoin price range in US dollars
In plain language, this means that from a 2020 perspective, Bitcoin could also be a clearly speculative investment for 2021. Anyone who expects prices to rise further in the coming months could easily enter the market at an avoidably low price.
However, there is no guarantee of low prices. In the long term, the Bitcoin price could rise if, for example, the total economic output rises again, or if, for example, more use cases are set up for the crypto currency Bitcoin.
In concrete terms, this means that practical applications must be created for Bitcoin that contribute to a general understanding of a positive development of the Bitcoin price.
It is almost impossible to make a forecast for Bitcoin for the year 2025 from today’s perspective. It is conceivable that the crypto-currency will have gone through one or the other hypothesis by then. However, it is just as possible that the exchange rate of the currency has dropped significantly and nobody is interested in the crypto currency Bitcoin anymore because other things have come into the focus of investors.
What returns can I achieve with the crypto currency Bitcoin?
Anyone who wants to invest in the crypto-currency Bitcoin can possibly achieve very high returns. In concrete terms, this means that more than 100% profit is possible if you have bought Bitcoin at a correspondingly low price. The fact is, however, that losses are also realized very quickly.
Examples of possible profits in the Bitcoin Rally:
The following examples are fictitious. This means that they are intended to show with example values which yields are possible in the Bitcoin area. They are not purchases made, but opportunities that existed in the past.
Example 1: Purchase March 2020 – Sale April 2020
- In the period March 2020 to April 2020, the price of a Bitcoin has risen from around EUR 4 500 to 5 000 to around EUR 6 000. In concrete terms, this means that the price has risen by EUR 1,000 to 1,500 per coin.
- Expressed as a percentage, it would have been possible to achieve a return of 25% with a purchase at 4,500 euros and a sale at 6,000 euros. Even with a purchase at EUR 5,000 per coin and a sale at EUR 6,000 per coin, a return of around 17% would have been possible.
Example 2: Purchase April 2019 – Sale July 2019
- In April 2019, the Bitcoin price was quoted at around EUR 4 400 to 5 000 per coin. By July 2019, the price per Bitcoin had risen to around 10,000 Euro. This means that one could make a profit of around 5,000 euros.
- In concrete terms, it was therefore possible to realize a return of 50% on the sale in July 2019 after a previous purchase in April 2019. Those who bought Bitcoin at a slightly lower price towards the beginning of April 2019 were able to realize a return of more than 50% within less than 6 months.
The fictitious examples show that a lot happens in the world of crypto currencies and Bitcoins. High returns, but at least as high risks of loss are possible.
Do I have to pay tax on my Bitcoin profits?
Anyone who trades Bitcoins always asks themselves whether their profits have to be taxed. People from both Austria and Germany pay tax on their dividends, yields and interest if they are regular investments.
However, Bitcoins and other crypto-currencies are not legal tender. This means that the income and yields cannot be compared with other means of payment.
The tax office in Germany assumes that the profits are comparable with profits that are made, for example, by trading in valuables. It may sometimes be the case that profits from trading in Bitcoins may be tax-free. The decisive factors here are, on the one hand, the profit made with the Bitcoins and, of course, the period during which the Bitcoins were owned. Whoever buys and resells the Bitcoins within 12 months can keep the Bitcoins tax-free up to 600 Euros profit. If you owned the Bitcoins for more than 12 months, you can keep the entire profit tax-free, regardless of the amount.
In Austria you can find information on the official homepage of the Federal Ministry of Finance about how to deal with profits from trading crypto currencies, but also from mining.
INFO: You trade at your own risk, the purchase of crypto-currencies as well as the volatile market development bear the risk up to a total loss of your capital. Do your own research!