Cryptocurrency: What is it? Explanation

The most important thing to get started: cryptocurrency is simply explained by the term “digital currency”. You trade cryptocurrency or digital currency like shares at brokers or online brokers (apps).

The price is determined by demand and supply. Just like in the real world, there is a quantity X of product Y. The more product Y want, the scarcer as the quantity X. Supply, demand. The more people buy a stock or (crypto) currency, the more expensive the price becomes.

Coins are limited. New ones are produced by “mining”, more about that later.

Cryptocurrency: comparison with investment forms

But shares have the advantage that you have a real value behind them. But behind the Bitcoin (and other coins) is no company, no economy, behind digital currency is psychology. Comparable to gold. Theoretically gold has no value, but by us humans measuring value to gold we can trade it. The scarcer the good, the more demand, the higher the price.

In fact, you can compare cryptocurrency more to precious metals like gold or silver. Possibly diamonds as well. Nobody really needs them but everybody wants them.

Cryptocurrency are like diamonds

I find the example of the diamond even more beautiful. Objectively just a stone. But because everyone wants diamonds, they get a value. But diamonds are actually just a piece of carbon, a better piece of coal.

Coin mining through graphics cards:

Is cryptocurrency a currency like dollars and euros!

No.

Cryptocurrency, unlike classic FIAT currencies (US dollar, euro, etc.) is not determined by central banks, but by market mechanism of demand and supply.

Difference to FIAT currencies:

• Crypto price determines supply / demand
• None Central Bank / Committees
• Ergo, no central control through interest rates, money printing, etc.
• No “money printing” possible (mining very costly)

Limitation of coins and blockchain technology

Blockchain technology – Once you trade cryptocurrency, you will automatically hear about blockchain technology. The amount of cryptocurrency is regulated. Simply explained, new coin blocks need to be calculated.

There can be a maximum of 21 million Bitcoins (example). Each block (each calculation task) becomes more complex. Accordingly, fewer and fewer new Bitcoins come onto the market. This creation of blocks is called “mining”. Mining is a complex process, accordingly producing new coins costs a lot of time (computing power, electricity). This makes for a “limited money supply”.

Limited money supply – By limiting the money supply, the typical concept of scarcity of supply prevails here. While cryptocurrencies were still highly speculative at the beginning, they have now arrived in the middle of society. Even international companies like Paypal or Tesla want to accept Bitcoin as a means of payment in the future.

The Bitcoin is currently, so to speak, the leading currency among the cryptocurrencies.

Unsafe, unserious, … ! Bitcoin history and future

Many “old” investors are still afraid of cryptocurrency: unsafe, dubious, … but let’s be honest:

The Bitcoin was invented in 2009. At that time, the coin was available for a few cents. Few predicted the cryptocurrency future back then. Bitcoin, was an absolute “nerd thing”.

I remember the first jump above $1,000 myself, the $8,000 I still remember, as well as the $14,000. Last week it was still at $45,000 and just now bitcoin has jumped to $54,000.

Tonight we will surely see the $55,000 mark and this year we will see the $100,000 mark.

In addition, news from the economy, such as Tesla or Paypal, that the Bitcoin will soon be accepted as a means of payment. News from politics that individual countries are thinking about introducing their own digital currencies.

Meanwhile, digital currencies are on everyone’s lips. Everyone is talking about them and many trade them, just like stocks. Currently, there are about 1400 different cryptocurrencies. However, only a fraction of them reach a trading volume of over $1000 per day.

Want to see all BTC / ETH transactions?

By the way, through the blockchain technology, all transactions can be looked up. In fact, all transactions are stored live in the blockchain.

Here you can see for example the movements of Bitcoin and Ethereum

Everything is set up as a P2P network (peer-to-peer). Data is therefore stored decentrally. All data blocks are linked to that of the predecessor. Within this distributed database, all transactions are actually known!

So the whole thing is a network where cryptography-signed messages are published – technical term: blockchain. You want to take a look at these transactions? Take a look at how individual trades can sell up to 100 Bitcoins and millions of dollars are transferred across the table:

• Bitcoin transactions – live on blockchain.com
• Ethereum transactions – live on blockchain.com

Digital currency as the future?

Due to the pure supply/demand situation, it’s good that we don’t have a digital currency yet, because it could theoretically go almost completely to 0 in seconds. Example: There is a scandal or security breach, a large portion sells, so the price collapses (no regulation), more investors leave the coin. It would be an economic crisis of unprecedented proportions.

But back to investing in cryptocurrencies!

Is there an insider tip?

I would ask, Stephan what is the insider tip? The big secret tip is practice, learn, build knowledge. Get involved with the financial products and with the news.

Crypto Trading? Learn and practice

Tip. In all good trading apps you can also create a “virtual account”. Here you get 100,000 $ play money to practice. Such a virtual account is great, because here you can gain experience, make mistakes and learn without losing money. After all, it’s all about building wealth!

Learn, practice, move on:

Advantages and disadvantages of trading

The key advantages and disadvantages of cryptocurrencies lie in the higher risk that comes with the simultaneous option of higher profits.

Stock exchange opening hours: 24 / 7 buy and sell

One big advantage I really appreciate when trading cryptocurrency, as an entrepreneur, you can do crypto trading 24 hours a day, 7 days a week. Perfect for off times, mornings, nights and just time on the weekends. That’s why more and more individuals are getting into crypto trading, they are earning passive income.

In stock trading, including ETFs and other financial products, you have to follow the individual stock exchange opening hours, from Hong Kong to New York.

Danger: No real countervalue

At the same time, cryptocurrency has the great danger that the fall in the price can be very high. Whereas financial products, like stocks, have a real exchange value, the company, the ideas and patents, the logistics, the products. Digital currency, on the other hand, is 100% determined by supply and demand. So the price can sometimes plunge by 50% or 60% and more.

Benefits of cryptocurrency:

• High profits possible
• No stock exchange opening hours, trading possible seven days a week

Disadvantages of cryptocurrency:

• High losses possible
• No real equivalent value, price losses higher than for shares

Here you see for example the NYSE (New York). All shares traded here can only be bought and sold during the day. The stock exchange is also closed on weekends and American holidays.

NYSE (New York, Wall Street):

Buy cryptocurrency

How do I buy cryptocurrency? How do I invest in cryptocurrency?

Buying cryptocurrency is not difficult. The only hurdle is signing up for an app. Once you have installed a trading app (online broker), you can immediately buy cryptocurrency. The important thing is: always choose brokers without additional fees!

Normal is the margin. As you can read in the trading strategies, you always pay a small surcharge at the broker, from which the platform lives. When you buy cryptocurrency, this margin is 3%.

• Selling price = Current price
• Purchase price = Current price + Margin (3%)

I’m sure you’ve heard the saying, “there’s profit in buying”. It’s the same with trading cryptocurrencies. What strategies there are, where the differences are, how high the risk is, you learn here in the free article on trading strategies.

• 3 Trading Strategies

Sell cryptocurrency

Selling cryptocurrency is just as easy as buying it. Usually you only need two clicks or taps on your smartphone. You always sell cryptocurrency at the market price.

When selling cryptocurrencies, two functions that you can find at any online broker will also help you. More precisely, the Take Profit (TP), which means a targeted profit taking at a certain, positive price and Stop Loss (SL), the automatic sale at a certain negative price value.

• Take Profit (TP): Take profit from price XY $ / %.
• Stop Loss (SL): Stop losses below price XY $ / %.

Take Profit allows you to take targeted profits just before psychological price limits.

A typical example here would be every 10,000 steps in bitcoin. As soon as bitcoin reaches a level of 40,000, 50,000, many traders take profits. Accordingly, the price goes down. If you really want to trade actively, you should definitely deal with TP / SL.

How do I buy / sell? Example

Here is a small example of how I trade cryptocurrency. I trade actively, so use TP / SL in the trade, so I can take price jumps or profits.

So that I can calculate selling & buying quickly, I made myself a simple spreadsheet. It automatically calculates for me at which point I have to or want to buy again after the price falls at a certain psychological limit. You can also download the table here for free and then use a trading!

Tip: I have also included stocks in the table. With traders like eToro you usually pay a margin of 0.2% (much less than with cryptocurrency).

• Sell / Buy – Table, Download

The table contains:

• Calculation margin sale / purchase for cryptocurrency (% at eToro)
• Calculation margin sale / purchase for shares
• Calculation of lifting effect (spreadsheet 2)

How does the calculation work? Simply enter the target value (market value) for your sale in the “Sell” line. The table automatically calculates at which price you should re-enter. The price value here is realistic, about 6% below the high. That means 2x margin.

In addition, I set up a price alert in the trading app, so I know shortly beforehand and can actively intervene in what’s happening if I want to. As soon as the price high is reached, the price drops and I trigger a new order at a specific, lower price value. I take the value from my table.

Advantage of this crypto trading strategy

The advantage of this trading strategy, I use the falling price, sell and then buy again cheaper. Thus I take the price jump, up to the previous price high, as a profit. Traders who “only” hold, do not take this gap: “Quantum interest”.

Also at this point again the tip, you can learn more about selling cryptocurrency here:

• 3 Trading Strategies

Cryptocurrency Trading Platform Germany

Where can I trade cryptocurrencies? I’d best summarize that point for you quickly. After a lot of practice, training, and time with real trades in all forms, I would summarize the market from trading platforms right now:

• Classic banks, also with online broker and app with fees
• Online broker with fees
• Online broker without fees (my recommendation!)

Traditional banks: custody fees, order fees, …

Traditional banks – house banks do not have the most modern systems. Some do not even have an app. More importantly, the depot registration takes a long time and often the fees are very high. You pay e.g. custody fees, but also order fees, for each individual purchase of financial products. Of course, many are still traditional with your bank and get here shares or ETF savings plans. I would express my recommendations but clearly for online brokers, for those without fees.

Disadvantages:

• Registration takes a long time, mostly contract, verification, everything via mail
• Deposit fees for account management
• Order fees per trade

Tip. Trade with an online broker (browser / app)

Online brokers / apps with fees

Online brokers with fees – Most online brokers have fees, just like banks. However, the fees are usually much lower. The account maintenance fee here is usually not in the triple digits, but maybe only $10 or $20 a year. Many also charge an order fee, usually in the amount of $5, on each individual purchase of securities. Therefore, when choosing your trading platform, make sure that there are no fees other than margin (explanation above).

Tip, always pay attention to this:

• No custody fees
• No order fees

Online Broker Apps / without fees (recommendation)

Online Broker without fees (my recommendation) – The best trading app? The best trading app is the one that costs nothing! So when choosing your trading platform for cryptocurrencies, make sure that you don’t pay any custody fees and no order fees. Especially if you are doing strategies like the high/low trades described earlier. So you would have to pay an additional +$5 with each trade. With 20, 30 trades a day already 100 $, 150 $. Only the margin is what the online broker should earn on the trade.

What do I trade my cryptocurrency with? Read more about mine here:

• Trading App

Cryptocurrencies and rates

As mentioned at the beginning, there are now over 1,400 different digital currencies. Keeping track of them is not that easy! So that you have an overview of which digital currencies are currently interesting, I have a big list and overview for you:

• Cryptocurrencies: List

Accordingly, when you buy and sell cryptocurrency, you are no longer just trading bitcoin. You have the choice between different types of investments. Accordingly, you can diversify your investment portfolio, just like in stock trading. For example, you can bet on new coins that cost less than $1! You can also bet on the established coins, such as Bitcoin, Ethereum, Litecoin or Dash.

Popular cryptocurrencies currently include, for example:

• Binance Coin (BNB)
• Bitcoin Cash (BCH)
• Bitcoin (BTC)
• Cardano (ADA)
• Dash
• EOS
• Ethereum
• Ethereum Classic (ETC)
• IOTA (MIOTA)
• Litecoin (LTC)
• NEO
• Ripple (XRP)
• Stellar (XLM)
• Tezos (XTZ)
• TRON (TRX)
• ZCASH (ZEC)

How such a diversification of your crypto investment portfolio can look like, you can see in this article:

Trading strategies: buy, hold and sell

When to invest in cryptocurrency? Which cryptocurrency to invest in? Buying and holding cryptocurrency is the big challenge for many beginners and novices.

The mistake I made is short-term thinking. The price goes down, instead of profit, you make loss and already you sell! Wrong!

Tip: Read more about my trading experiences and mistakes here.

If you already know how to trade stocks, you have a lot of advantages in crypto trading. Because, you already have the peace of mind to hold values. Price fluctuations in the stock market are quite normal and happen every trading day. Sometimes the prices fluctuate more, sometimes less. Important, keep patience.

Just as the share price can fall by 13% today, it can also rise by 13% tomorrow, or perhaps even by 26%, and your loss has already turned into a 100% profit.

Trading cryptocurrency is accordingly like trading stocks, only on the fly.

The downside of crypto trading, you can’t base your information on economic, financial and political news. The market and psychology play a big role. If the price suddenly drops by 10%, many get weak kneed, sell, the price drops further and further. This happens much faster in cryptocurrency trading than in regular stock trading. Here, the strategies are set for a longer term. Want to learn even more about trading strategies? Then be sure to check out this free guide from me.

• Cryptocurrency: Trading Strategies

ETF Cryptocurrencies: Bitcoin to ZCash

Many then ask the question, isn’t there an ETF for cryptocurrencies? If you’ve never heard of “ETF”, here’s a quick explanation!

So-called ETFs (Exchange Traded Funds) bundle several individual stocks into one financial product.

ETF example: Tesla or e-car sector

Instead of 1 product with 100% risk, you have 1 product that contains many individual stocks that minimize the risk of your investment. Instead of “Tesla”, in the example of stock trading, you buy an ETF that deals with electric automobility and contains, for example, in addition to Tesla also values such as Nio (electric cars from China) and Niu (scooters). The risk is distributed.

In the stock market, ETFs are therefore even called ETF savings plans. Trading with ETFs is therefore about solid asset accumulation with little risk. Individual stocks, as well as shares but also cryptocurrencies, can experience strong price fluctuations due to effects, news. If you are not just in front of your trading app and learned of the news, you lose money quickly.

Risk minimisation through diversification

As described, ETFs bundle various individual stocks into one financial product. This has the advantage that you invest simultaneously, for example, in 30, 40 or 50 shares. If a single stock suffers a strong price loss, it only makes up a part of your portfolio. Thus, a 30% price loss becomes only 1, 2% loss, in the portfolio. This low-risk form of trading stocks is what makes ETFs so interesting for asset managers and private wealth accumulation.

Now back to the question:

Is there an ETF for cryptocurrency?

I would like to answer this question with a yes and a no. There are crypto portfolios that resemble an ETF. But I also want to tell you that the risk of crypto portfolios, whether they are colloquially called “ETF” or not, remains high.

Read more here, with comparison bitcoin / crypto portfolio of my current investments:

• ETF Cryptocurrencies

Buy crypto for small and medium businesses

Speaking of ETFs and relatively safe investments: Doesn’t investing in cryptocurrency then also increasingly make sense for companies?

• Paypal News: Bitcoin is accepted as a means of payment
• Tesla News: Tesla invests 1.5 billion USD in Bitcoin

Just as this article is also for beginners and beginners, mentioned again:

Invest only “play money” in speculative trades!

Especially as entrepreneurs and business owners, a core competence is most likely not the financial products, but in other areas. As an entrepreneur myself, I trade most mornings, nights or weekends – believe me, you don’t have the time for day trading! Between new business, employees, taxes, only invest the money you have left. But if you have profits to spare, crypto trading is an interesting option for your wealth building.

If you look at the performance of stock prices, stock markets in general, over the last few decades, you can see that there are profits to be made over the long term.

Cryptocurrency has now been around since 2009, over a decade. Prices have steadily increased from a few cents to $1, $10, $100, a thousand and maybe soon it will be $100,000. Digital currency is the future. So why not invest some of your profits in cryptocurrency?

• Buy crypto for small and medium businesses

Cryptocurrency or shares

Cryptocurrency or stocks? As previously described, stocks have significantly less risk of default. Stocks are not only subject to the pure market mechanisms of demand and supply, they have substantial goodwill behind them.

Here’s the strategy I use at my company:

In regular times, I invest a maximum of 20% in cryptocurrency.

In case of news and expected price increases, my investments in the cryptocurrency portfolio also increase once up to 40%. Such news are e.g. messages from PayPal that the Bitcoin will soon be accepted as a means of payment. Such news also comes from Tesla, which recently invested 1.5 billion dollars in the Bitcoin.

Cryptocurrency future

Which cryptocurrency is the future? Here is another analysis, looking back at the last 12 months and the cryptocurrency list. With all the digital currencies you should have on your radar if you want to buy, hold and sell cryptocurrency. How has digital currency performed over the last 12 months? An analysis:

• Cryptocurrency future

Cryptocurrency: What is it? Explanation

The most important thing to get started: if you haven’t had any experience trading cryptocurrencies, such as Bitcoin, Litecoin, Ethereum and others, I highly recommend reading through this article: Cryptocurrency Explained.

You can’t compare cryptocurrency to stocks!

Today everyone wants a diamond ring: learning from history

You can’t compare cryptocurrency to stocks, rather to a commodity that people attribute a high value to. For example, diamonds. Actually, diamonds are “only” colorless stones. But ever since Tiffanys made the engagement ring the absolute standard in the 70s, everyone knows the “value” of diamonds.

It is similar with cryptocurrency, for example, there are only 21 million Bitcoins. In the meantime, a whole generation has grown up with digital currency, bitcoin has existed since 2009. More and more are investing in digital currency, even countries are thinking about their own digital currencies. The triumph of cryptocurrency! Also described here, in my article on the future of cryptocurrency.

Is it worth investing in cryptocurrency?

Imagine you bought $5,000 worth of Bitcoins exactly 4 years ago (price at $1,000). Today, the price is $53,000. If you sold it today, you’d have $265,000 in your pocket. That’s a whole $260,000 in profit! Even after deducting capital gains tax (profits from capital transactions must always be taxed in Germany) of 25%, you would still have a net profit of $165,000, even after taxation. In case you haven’t paid any capital gains tax yet, this only accrues with your annual financial statements, so not directly when you sell the cryptos.

Example calculation: 24 months Bitcoin – 1,000 % profit

Even 24 months ago, you would have made + 1,000%. Here, the price was exactly $5,000, which would have bought you 1 Bitcoin. Today, you would get $54,000 right away, + $49,000 profit.

Example calculation: 48 months Bitcoin – 5,300 % profit

If you had invested today, exactly 4 years ago, you would have made a profit of 5,300%.

Profit in a few years:

• Buy for $5,000 at $1,000/ 5 Bitcoins
• Current price $53,000 * 5 coins = $265,000 value
• Profit: $260,000
• Profit (after tax): $195,000

PS: As I write this article, the price has already risen above $54,000. Direct update:

Profit in a few years:

• Buy for $5,000 at $1,000/ 5 Bitcoins
• Current price $54,000 * 5 coins = $270,000 value
• Profit: $265,000
• Profit (after tax): $198,750

So during the article, my profit would have increased again by +$5,000.

Now every entrepreneur starts to calculate!

Target price $100,000 ? Bitcoin and alternatives

Now you can say, that will soon stop! And believe me, I hear that very often. However, I also heard that five years ago, three years ago, two years ago, last year. Yet bitcoin keeps going up. Currently, there is speculation on the $100,000 mark. Reason enough to think about investing profits not only in stocks, ETFs and other financial products, maybe cryptocurrency is something for your investment portfolio too!

All cryptocurrencies have advantages and disadvantages.

Trade individual coins (currencies)

If you look at the development of share prices, of the stock markets in general, over the last few decades, you will see that there are profits to be made in the long term, as described in detail above in the example calculation for 24 and 48 months.

Cryptocurrency has now been around since 2009, over a decade. Prices have steadily increased from a few cents to $1, $10, $100, a thousand and maybe soon it will be $100,000. Digital currency is the future. So why not invest some of your profits in cryptocurrency?

ETF Cryptocurrencies: Crypto Port Foil

So-called ETFs (Exchange Traded Funds) bundle several individual stocks into one financial product. Instead of 1 product with 100% risk, you have 1 product that contains many individual stocks that minimize the risk of your investment. Instead of “Tesla”, in the example of stock trading, you buy an ETF that deals with electric automobility and, for example, in addition to Tesla, also contains stocks such as Nio (electric cars from China) and Niu (scooters). The risk is distributed.

Advantage: You have to invest much less time

Especially as entrepreneurs and business owners, a core competence is most likely not the financial products, but in other areas. As an entrepreneur myself, I trade most mornings, nights or weekends – believe me, you don’t have the time for day trading! Between new business, employees, taxes, only invest the money you have left. But if you have profits to spare, crypto trading is an interesting option for your wealth building.

Read more about “Crypto ETFs” here:

• ETF Cryptocurrencies

Trading App: Buy, Hold and Sell Crypto ETFs

With what you can easily trade individual cryptocurrencies but also such “crypto portfolios”? Lots of questions of course: what app do you trade with, what do I recommend? So today I want to share my favorite trading app, with you, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn here step by step about the app, fees and much more. Of course, with all the criteria of valuation, costs and all trading options, from stocks to ETF, index fund, currency, cryptocurrency and commodities. Plus the ultimate eToro advantage: you can copy successful traders! Keyword “Social Trading”. In the end, you’ll know the app inside out for your first trades.

Read more about my recommendation here:

• Trading App

New cryptocurrency with potential?

Which cryptocurrency is the best? The question is also asked so often that I have written a practical, simple overview of the world of cryptocurrencies for you here:

• Cryptocurrencies

Also interesting, what does the future hold? How have the prices of coins performed recently? Read the analysis here:

• Future cryptocurrency

Cryptocurrency & Coins: Function, History and Future

No investment advice or purchase recommendation!

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Since March (11 months), the gains have been extreme:

• BitCoin (BTC) 453.9%
• Ethereum (ETH) 376.2%
• Binary Coin (BNB) with 428.5%

The view becomes even more blatant if you double the period round about again, to 24 months. If you had invested 2 years ago, you would make + 1,000% profit today. 24 months ago, the price stood at exactly $5,000, with which you could have bought 1 Bitcoin. Today, you would immediately get $54,000 for it, + $49,000 profit.

Coin (BTC) price in the course: What if?

What if you had invested in 2013? At that time, the price was still around $120 in October. Half a year later, Bitcoin was at $140 and at the end of 2013, in December, Bitcoin reached the $1,000 mark for the first time. Initially, the Bitcoin was at a few cents for a long time.

You want to trade yourself? Trading has never been so easy! Buy from 1 euro with these apps:

Download (Android + iOS): eToro

And a little tip, Made in Germany:

Download (Android + iOS) Trade Republic

Development of the cryptocurrency

Many still think very critically about cryptocurrency, especially those who have not yet had their own, long-term experience. Many customers I have conversations with also view cryptocurrency critically. They prefer to invest in stocks, index funds, art.

Don’t invest in cryptocurrency! Risky, dangerous… really?

But anyone who has been interested in the subject from an early age has experienced the unstoppable triumph of digital currencies, or cryptocurrencies, for themselves. From the first “have you ever heard of bitcoin?”, to “wow, bitcoin is at $100”, to today’s “unbelievable, $45,000”. What’s next? Many are already speculating on the next target, the:

100.000 $ Bitcoin exchange rate

For more than 10 years, we have been hearing “risk, dangerous…”, but history shows that digital currency is becoming increasingly established. Not only in the minds of people, but also in business (see payment method Paypal, Tesla) and also in governments, which are testing the first digital currency models.

Honestly – While in the beginning you thought every week it will be over soon, it turned into months and years. Now cryptocurrency, especially for the new generation, is often more present than classic financial investments. Today, there is no longer just bitcoin and few other alternatives but a whole pool of cryptocurrencies. Software companies, banks, governments, everyone is now talking about digital currency. Business giants like Paypal and Tesla accept them as a means of payment.

Are we only at the beginning of the digital age?

Economics is psychology. Just like digital currencies

Those who were there have now experienced an entire decade, i.e. 10 years. Bitcoin went “online” in 2009.

So if you’re 30 years old or younger, you’ve known digital currencies for half your life. Anyone born after 2000 has never known the world differently.

In fact, after more than 10 years, a psychological stability is emerging. People trust the digital currency

Critics and first movers: Isn’t the stock market always risky?

Cinema used to be demonized, as were television and the Internet. New things cause fear – and opportunities for those who are brave (Frist Mover).

Critics say: Too much risk, too much fluctuation. But isn’t it always like that when you think of shares? Of course, shares are something else, there is a concrete countervalue behind you (brand, products, inventory, etc.). But fluctuations are quite normal on the stock exchange, at the latest with leverage products. If you only have a short-term view, you will naturally only see something up and down. Those who think in the long term can build up their assets.

Therefore, I want with this small special, not only a look at the development of the large, well-known cryptocurrencies such as Bitcoin, Litecoin, Ethereum & Co. overturn, but also on new alternatives.

Cryptocurrency quickly explained

Never heard of the structure behind cryptocurrency?

Here once briefly, very simply explained, how the concept cryptocurrency works. Normal currencies, so-called FIAT currencies, such as the euro or on the US dollar are determined by the individual central banks. That is, individual bodies, people decide what happens.

Cryptocurrencies and coins, on the other hand, are determined only by supply and demand. Bitcoin, like other cryptocurrencies, is therefore free from government supervision and is determined only by the market (supply/demand).

Anyone who was involved with cryptocurrency just five years ago would have noticed next to nothing about it in the media. In the meantime, it is standard that banks, auditors, but also governments present more and more papers and strategies, some countries even explore the active use of cryptocurrency in their own financial system.

Blockchain: “Linked data packets”

Cryptocurrency itself is, simply put, a coded chain of data. The so-called blockchain.

How does cryptocurrency work?

Everything is set up as a P2P network (peer-to-peer). Data is therefore stored in a decentralized manner. All data blocks are linked to that of the predecessor. Within this distributed database, all transactions are actually known!

So the whole thing is a network where cryptography-signed messages are published – technical term: blockchain. You want to take a look at these transactions? Here you can see live how individual trades sometimes sell up to 100 Bitcoins and how sums in the millions go over the table:

• Bitcoin transactions – live on blockchain.com
• Ethereum transactions – live on blockchain.com

Trading volumes rise and rise: Digital currencies

Just this week, the news has rolled over, after PayPal has already announced that it wants to accept Bitcoin as a means of payment, Tesla has also produced big news this week. On the one hand, Bitcoin is to be accepted as a means of payment, and on the other hand, Tesla itself has invested 1.5 billion dollars in Bitcoin. Tesla probably made more money from the subsequent jump in the share price than from all electric cars (link for to article “Tesla killer” Nio) combined. The price spoke after the announcement by about $20,000 upwards, almost 100% of the market value.

Bitcoin is the most recognized digital currency after its first decade. Besides Bitcoin, there are a few other representatives that have been around longer. These include Ethereum, Litecoin and Bitcoin Cash.

Today new coins are coming after, interesting as an investment?

Coins under $5: Bitcoin Alternatives

Now before we get to evaluating the rates, here’s a look at an investment strategy that is emerging as digital currencies become more diversified. Why do I find coins under $5 so interesting? Question 1: Short-term development +/- 6 months:

• A) What is the probability that bitcoin will double in the next few months? So from currently ~ $45,000 to $90,000
• B) What is the probability that new coins, for under $5 will double in the same time period?

Read more about this and 2 other crypto trading strategies here.

Interesting at the moment are coins like

• Ripple (XRP) ~ $0.58
• Cardano (ADA) ~ $0.90
• IOTA (MIOTA) ~ $1.23
• Stellar (XLM) ~ $0.55
• EOS ~ $4.70
• TROM (TRX) ~ $0.05
• Tezos (XTZ) ~ $4.74

Still skeptical? What if… 24 months investment

In my new article I have opened an example calculation, which I also wanted to show quickly here. The assumption:

What if you had invested in bitcoin 2 years ago?

Imagine you bought bitcoins a few years ago for €5,000. Today, the price is $53,000. If you sold it today, you would have $265,000 in your pocket. That’s a whole $260,000 profit. Even after deducting the capital gains tax (profits from capital transactions must always be taxed in Germany) of 25%, you are left with $165,000 net profit, even after taxation. If you haven’t paid any capital gains tax yet, it will only be due when you close your year, so not directly when you sell the cryptos.

Example calculation: 24 months Bitcoin – 5,300 % profit

If you had invested today, exactly 2 years ago, you would have made 5,300% profit now

Profit in a few years:

• Buy for $5,000 at $1,000/ 5 bitcoins
• Current price $53,000 * 5 coins = $265,000 value
• Profit: $260,000
• Profit (after tax): $195,000

PS: As I write this article, the price has already risen above $54,000. Directly an update:

Profit in a few years:

• Buy for $5,000 at $1,000/ 5 bitcoins
• Current price $54,000 * 5 coins = $270,000 value
• Profit: $265,000
• Profit (after tax): $198,750

So during the article, my profit would have increased again by +$5,000.

Even 24 months ago, you would have made + 1,000%. Here, the price stood at exactly $5,000, with which you could have bought 1 Bitcoin. Today, you would immediately get $54,000 for it, + $49,000 profit.

Courses in the pandemic: analysis and evaluation

Here is a look at a few courses as examples. Did you know? There are now over 1,400 digital currencies. However, only a fraction have trading volumes over $1,000/day. These ones move hundreds of millions:

BitCoin (BTC)

Ethereum, ETH, Bitcoin, BTC, EOS, comparison, analysis, Covid-19, Corona, pandemic, currency trading, forex trading, cryptocurrency, coin, digital currency, price gains, rate, price history – an overview.

Price high immediately before / after Corona:

• Price high (beginning of 2020): 10,200
• Price high (beginning of 2021): 46,300
• Difference: +36,100
• Price level: 453.9%
• More about: Bitcoin

BitCoin (BTC) / USD

BitCoin (BTC) / EUR

Ethereum (ETH)

Price high immediately before / after Corona:

• Price high (early 2020): 311
• Price high (beginning of 2021): 1170
• Difference: +859
• Price level: 376.2%
• More about: Ethereum

Ethereum (ETH) / USD

Ethereum (ETH) / EUR

Binary Coin (BNB)

Price high immediately before / after Corona:

• Price high (beginning of 2020): 28
• Price high (beginning of 2021): 120
• Difference: +92
• Price level: 428.5

Binary Coin (BNB) / USD

Binary Coin (BNB) / EUR

EOS

Price high immediately before / after Corona:

• Price high (beginning of 2020): 5.4
• Price high (beginning of 2021): 4.3
• Difference: -0.9
• Price level: 79.6

EOS / USD

EOS / EUR

Trading: Reading Tips

1. Trading App: Recommendation
2. Trading strategies
3. Cryptocurrencies: List

Trading App: Recommendation

eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share with you my favorite trading app, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn about the app, fees and more here step by step.

• Trading App

Trading strategies

Whether it’s crytocurrency, currency trading, stocks, commodities or precious metals, these 3 strategies will help you understand the basic stock market game. I developed these 3 strategies to help beginners and novices understand the mechanics in a nutshell. Since I grew up with Bitcoin rather than stocks, here in particular a strong reference to digital currencies. But the mechanisms or strategies are the same for these 5 investment types: crytocurrency, currency trading, stocks, commodities or precious metals. I would exclude ETFs and index funds, as the risks and price fluctuations are significantly lower here.

• Trading strategies

Cryptocurrencies: List

BitCoin, BitCoin Cash, Ethereum, Litecoin, Dash, Ripple, Zcash or Binarcy Coin: They are considered the answer to traditional means of payment. Through the digitalization and decentralization of money, banks become superfluous. Only buyers and sellers are responsible for the control and security of their digital money. You want to invest in Bitcoin & Co. too? We have an overview of the most popular cryptocurrencies here.

• Cryptocurrencies: List

NFT: Digital Art / Crypto Art

Digital art, a new phenomenon. Here you’ll learn everything: What is an NFT? How do you buy NFTs? What marketplaces are there and how is the art market developing for investors. Meanwhile, higher prices are being achieved in the digital art market than in the physical one. Collections like “CryptoPunks” , “Bored Ape Yacht Club” are just two of the most famous works of digital art. The work “5,000 Days” made the artist overnight the 3rd richest living artist (sold at the price of $69 million at Christies). Buy, sell, collections and picture frames of digital art.

• Digital Art / NFT

How can you invest in cryptocurrency? Investment Strategies

For beginners and novices, I would summarize the stock market in general and digital currency in particular, like this:

1. Defensive – buy and hold portfolio of “well-known” brands
2. Defensive – buy and hold portfolio of “new” brands
3. Active trading with TP, SL and order placement

Reading tip: Which app do I use to buy and sell shares, cryptocurrency & Co. Here is the answer! My recommendation: trading app. Trading has never been so easy!

No investment advice or purchase recommendation!

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Strategy 1: Well-known brands, hold for the long term

Strategy 1 is simple and the “safest” form of investment on the stock market. Bet on known values. The easiest way to do this is through ETFs (index funds). These bundle several values from one area. For example, the DAX, it contains the largest, German, listed companies. If you invest your money here, you spread your capital on different companies from Germany. This minimizes your risk.

But you could also buy shares yourself that have been successful in the long term. Classics from the DAX, for example Daimler, Adidas, Bayer or Deutsche Wohnen.

In the field of cryptocurrencies comparable – Important: Much higher risk – with Bitcoin or Ethereum. You then hold these purchases in your portfolio for 1 year, 3 years or 5 years.

Strategy 1 summarized:

1. Buy known, solid (< 5 years) values
2. Hold your portfolio for a long time (> 1 year)

Strategy 2: New coins and broad investment portfolio

Why do I find coins under $5 so interesting?

My second strategy, which I want to present to you, deals with coin alternatives. By this I mean coins that have only appeared in the last 1-3 years. Another factor, they must be listed with large, reputable brokers. Because, the price of cryptocurrency is created by supply and demand. This means that only when sufficient demand is generated (range of brokers), the investment is profitable. The third central aspect is of course the price development itself, in the long term and in the short term.

1. Listing with major brokers
2. Relatively new (< 3 years)
3. Share price development

Bitcoin or alternatives? Here is a brief explanation of what makes the alternatives so attractive to me personally as an investment opportunity. As I said, economics is psychology. Coins are based purely on supply and demand.

Question 1: Short-term development +/- 6 months

• A) What is the probability that bitcoin will double in the next few months? So from currently ~ $45,000 to $90,000
• B) What is the probability that new coins, for under $5 will double in the same period?

Important for Beginners – It is not about whether a single stock makes $1.24 or $1.13 profit / loss. Ultimately, it is about relative changes (percent), just as with stocks. Which paper / currency / coin / etc. goes up 5%, 6%, 7%, etc. in 30 days. Ultimately, wealth building and profit maximization is not about specific values. You can easily compare the percentages of different investments.

Question 2: Long-term development +/- 12 months

• A) What is the probability that bitcoin will reach ten times its value? After 10 years on the market.
• B) What is the probability that a relatively new cryptocurrency such as XTZ (Tezos), TRX (TRON), EOS or XLM (Stellar) will increase its value tenfold, in the same time period?

Risk awareness: Price fluctuations

What you definitely have to be prepared for when investing in cryptocurrency is very high price fluctuations. While a stock might regularly lose 5 or 10%, cryptocurrency can go down up to 30, 40 or 50%.

If you have invested 10,000 euros and in the morning – 5,000 is in your account, stay calm!

Tip – Stock market always means strategy. Strategy means “a precise plan for a behavior”. That means for you simply said:

You sell at a profit. As a rule, you are not impressed by short-term price fluctuations.

Cryptocurrency Trading Tips: My top 3

For the reasons stated above (risk), it is so important (for individuals):

1. View cryptocurrency as a long-term investment strategy (3 months to 3 years).
2. Cryptocurrency is part of the investment portfolio (5 to 10%)
3. Diversify your crypto portfolio, just like you would with stocks in an ETF (spread a capital across multiple coins)

Investment portfolio: Shares, ETF, Commodities, Precious Metals & Co.

Briefly on diversifying your investment portfolio:

Cryptocurrencies are still very close to each other. With bitcoin as the perceived reserve currency, prices go up and down. If you spread a stock portfolio across several public companies, usually only a fraction of your stocks go in down, so a few papers, not all. With cryptocurrencies, market movements are closely linked.

General:

Diversify your portfolio!

Don’t just buy 1 coin, divide your equity among several. Crypto should only make up 5-10% of your portfolio. The rest is made up of investment alternatives like stocks, ETF, commodities, precious metals, possibly FIAT currencies, etc.

Strategy 3: Hochtief Trading

Wealth accumulation with less risk, prefer long-term investment strategies. If you want to maximize your profit, you have to trade daily and stick with it.

Here’s some insight on how you can act even more “professionally.”

Traders who are aware of high risk use all their capital to make trades that are risky but have high profit. One possibility is cryptocurrencies, precisely because the price fluctuations are so high.

The higher the price fluctuation, the faster the deal

So it’s about daily, hourly, buy and sell. Unlike stock trading, this requires full attention as the price is subject to constant fluctuations. Your goal:

Taking targeted profits from differences in highs and lows

Trading explained: profit taking, loss stop and margin

These 4 aspects are particularly important here:

1. Margin (profit margin of the broker)
2. Take profit (TP)
3. Stop Loss (SL)
4. Buy planned in advance

Simply explained, it works like this.

Margin: Broker fees on purchase

First of all, let’s talk about “margin”. As you have already learned, the margin is the profit margin of your broker (provider of the platform, website or app). Some brokers take an additional order fee of 5 to 10 €. With most “modern” apps, you no longer have to pay this, only the margin.

Tip! Trade without order fee and without Marin? If you have your residence outside of Germany, then you can trade with Robin Hood (no advertising link)! The highlight: Robinhood is free of margin trading. I would also like to, unfortunately I have my residence in Germany. Unfortunately we can’t do that in Germany. Not yet. I myself trade, after I really tested all apps, everything from stocks to ETF and Crypto with Etoro.

This fee for the purchase, is usually about 2% of the price. The selling price is the actual value. The purchase price is the actual value plus the broker’s margin.

• Sell: $100 (price)
• Buy: $102 (including margin of $2)

Take Profit: Take profits

As soon as you buy, you usually set 2 values as a trade. Your TP, i.e. “Take Profit” indicates when your order should be sold again.

A simple example is psychological values, like $10,000 price value, $10,200 price value, $11,000 price value, etc., when we talk about bitcoin. For a stock like Tesla, this would be just $880, $890, then $900 again.

When, which jump is how high, you can not predict, but you can guess. The biggest jumps are usually on

• X.5 – something like $9.50 or $15
• X,0 – even values like 10$ or 200$

The fluctuations are smaller for X.1 steps.

Once a stock or other tradable asset reaches these levels, many traders take the profit, why? Because many do. As a result, the price goes down. Reminder: supply and demand.

If this downward price jump is greater than the broker’s margin, the automatic sale through the take profit (TP) is worthwhile.

This way you can buy the coin again at a lower price directly after the price collapse. With this purchase, you then directly set a new TP and can use even small price fluctuations to maximize your assets.

Calculation example: profit taking

This is how the game of “Take Profit” and “Margin” works.

• You buy for $150, have $147 value
• Price goes to $200 (some sell through TP automatically, you do too).
• Profit: 53$, assets increase to 200$
• Price drops to $180
• You buy for 200$, have 196$ value
• All others now have $180 value

This way you try to take only price increases. In this way, your capital increases step by step without being reduced by falling prices.

Because of your increased capital, you now hold a higher value.

Portfolio increase: + $ 16

You repeat this step over and over again.

This way you protect your capital from falling prices (if your price targets, within the investment strategy, are reached).

Your assets have increased by +$16 (despite re-investment), i.e. a whole +10.6%.

Profit + $16
Relative + 10.6 %

This profit is not taken by the majority of investors. This is where you get the extra profits.

Stop Loss (SL): Stop losses

The principle is quickly explained. Stop Loss(SL) protects you from too high losses.

Stop Loss is the counterpart. If the cryptocurrency falls below a certain value, the position is automatically sold. In regular stock trading, you might set your stop loss at 60%, 80%. That is, if the paper is at 60 or 80% of the purchase value, it is sold.

You can define the values at any time. Either as a concrete contribution, or as a percentage value.

Plan ahead for purchases: Buy cheap at lows

Do you know the saying: In the purchase lies the profit?

You can buy financial products directly, i.e. execute a “Direct Order” or place an order.

• Direct order (immediate)
• Placed order (pre-planned)

You can buy cryptocurrency directly or plan your purchase in advance. So, if you expect the cryptocurrency to fall below a certain price, you can schedule the purchase in advance to drive your profit further up.

Let’s say bitcoin is currently at $45,300 and stagnating. You have time to trade, but you think that the price will go below 45,000 today, maybe even 44,800, because there is hardly any momentum in the market. Instead of buying directly at the price of $45,300, you place an order at the price of $44,950. Should the case occur, you will have made 0.77% extra profit.

With the high-low strategy, you can generate even more profit in combination. If this pre-order works 5x, your fortune increases additionally by itself by the fortune increase in each individual trade. So to speak, compound interest, only as profit.

1. Trade – 0.77 %
2. Trade – 1.55 %
3. Trade – 2.33 %
4. Trade – 3.12 %
5. Trade – 3.91 % (+0.06%)

Sell + Buy: Trading Tip

With my articles and guides, I want to help you save money! In my first trade, I made -5,500 euros in 1 hour. Why? I wanted to practice quickly. Because besides my companies, I only have the morning and the night for trading.

What is the Quint Essence?

“Quantum interest” explained: take short-term profits

I came up with the term “quantum interest” to clarify the concept. We do not wait for the big end, we also use small jumps (price movements) to take interest (profits).

A quantum leap is often perceived as something big. In fact, however, a quantum leap is the smallest possible unit in physics, simply put. Smaller than any virus, smaller than any atom, smaller than a proton, even smaller than an electron.

As you have already learned in the article on trading strategies, taking profit from small movements, is a good strategy to build your wealth further. Because that’s how you take:

1. Gains from long-term increase in share prices and
2. Gains from short-term price fluctuations

Time sale and schedule new purchases

I have built this table myself to calculate when I re-enter after a TP (Take Profit; selling the stock/currency/etc.). For this I subtract the margin x2 (i.e. the trading fee of the trader). At eToro, for example, you pay round about the following fees (margin) per trade:

• Cryptocurrency: 3%
• Shares: 0.2 %

Download: Sell / Buy Table

In my table, the whole thing looks like this. In the line “Sell” you enter the rate at which you have set your TP. Of course, the table is also available for you and the community as a free download:

• Sell / Buy – Table, Download

The table contains:

• Calculation margin sale / purchase for cryptocurrency (% at eToro)
• Calculation margin sale / purchase for shares
• Calculation leverage (spreadsheet 2)

Price Alert for Realtime Trading

In addition, I set up a price alert. This is then always slightly below the price, usually 0.5 – 1% before my TP. So I can reorder directly after the sale.

Tip! You can also “buy” automatically! To do this, you do not place your order directly, but buy at a certain price value. You can do this easily when buying the cryptos, stock, etc..

Leverage effect explained (Leverage)

What does leverage mean for financial products?

Leverage means increased capital / risk.

For pretty much all products you can use leverage in trading apps and with brokers. Simply put, a short-term loan from the broker. This increases the profits and (!) the risk. You give $1,000, take a leverage of 10, and you have $10,000 of capital tied up.

X10 = from 1.000 you make 10.000

Examples of levers:

Also, some mapped index funds automatically have leverage, such as the China 50.

Strategies for trade: risk assessment

You are probably already aware of the risk of the 3 forms of trading.

1. Defensive – buy and hold portfolio of “well-known” brands
2. Defensive – buy and hold portfolio of “new” brands
3. Active trading with TP, SL and order placement

Strategy 1 is defensive, you bet on “known brands” and hold the individual stocks for a long time, i.e. at least 6 months, maybe even 3 or 5 years. The risk is lower in relation to strategy 2 & 3.

Strategy 2 focuses on new values. No matter if cryptocurrency or stocks. For cryptocurrencies, this means that you buy Bitcoin (BTC), Ethereum, Litecoin (LTC), Dash, but also XTZ (Tezos), TRX (TRON), EOS or XLM (Stellar) in the portfolio. By diversifying across different assets, you try to minimize the risk for individual failures. The principle of an index fund. As an example and comparison to stock trading, here you would bet on new brands like Nio or Niu in addition to Tesla as an electric car manufacturer.

Strategy 3 requires your constant attention. You have to keep an eye on the prices, their origin, course and current values. Only then you can estimate how individual values will develop. The risk for mistakes is accordingly large if you want to trade “on the side”.

Now for the big question:

Can you make a lot of money with trading?

My trading strategies currently look like this, that I have 2 portfolios. My return in the investment account 1) is about 3.41% and in 2) currently about 8.56% per month.

1. Investment account (Strategy 1)
2. Trading Training Account (Strategy 2/3)

My current trading strategy: 50 / 50

50 / 50 means – One “serious” with stocks and ETFs and a second with stocks, ETFs, cryptocurrency and sometimes commodities / precious metals. So to say: 1) my investment account and 2) my trading training account. In both are about 50% of my capital.

As described, my return in the investment account 1) is about 3.41% and in 2) currently round about 8.56% per month. Your first important learning of the trading strategies above is also back: %-values are more important than Euro or US Dollar.

Accordingly, you can express the question, can you make a lot of money with trading? but also in numbers.

Development: Long-term trading

Thus, an investment of $10,000 grows in one year, with a monthly return of 3.41%.

• Investment: $10,000
• Capital after 1 year: $13,983.81
• Increase: + $ 3,983.81
• Yield / month: 3.41
• Yield / year: 39.84

Development: Daily Trading

Thus, a $10,000 investment grows in one year, with a monthly return of 8.56%.

• Investment: $10,000
• Capital after 1 year: $22,735.18
• Increase: + $12,735.18
• Yield / month: 8.56
• Yield / year: 127.35

Warning: You can only achieve such returns with 1) practice 2) significantly higher risk and 3) constant “readiness” in trading.

Cryptocurrency: reading tips

1. Trading App: Recommendation
2. Cryptocurrencies: List
3. Cryptocurrency future? History

Trading App: Recommendation

eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share with you my favorite trading app, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn about the app, fees and more here step by step.

• Trading App

Cryptocurrencies: List

BitCoin, BitCoin Cash, Ethereum, Litecoin, Dash, Ripple, Zcash or Binarcy Coin: They are considered the answer to traditional means of payment. Through the digitalization and decentralization of money, banks become superfluous. Only buyers and sellers are responsible for the control and security of their digital money. You want to invest in Bitcoin & Co. too? We have an overview of the most popular cryptocurrencies here.

• Cryptocurrencies: List

Cryptocurrency future? History

The world is increasingly sent into lockdown by the new Covid-19 virus. March 2020 was the month in which stock market prices also plummeted. Papers like those of Lufthansa fell to ~ 1/5 of their pre-value. Minus 80% losses in a few weeks. This happened to almost all sectors, except e-commerce and online trading. In contrast, the price of Bitcoin and other cryptocurrencies is holding up. What makes cryptocurrency stand out? Why im wanting to buy more cryptocurrency? Since March, BitCoin (BTC) has reached 453.9%. Ethereum (ETH) 376.2% and Binary Coin (BNB) at 428.5%. Currency trading is attracting more and more investors, including individuals. The phenomenon is strong in forex, but more investors are also getting involved in the stock market, as seen recently at GameStop. A look at the development, 12 months after the start of the pandemic, in mid-February; with the consequences of the lock down in March.

• Cryptocurrency future?

Share, ETF, Crypto: My experiences / mistakes

Stocks, ETF, Forex, Cryptocurrency, Social Trading – Here’s a little list of a few learnings that cost me money but are so simple you should know them! You want to buy stocks, index funds, cryptocurrency like Bitcoin or Ethereum, foreign exchange (currencies)? You’re thinking whether house bank, direct bank, online broker or app? Trading all on your own at risk or new options like social trading via app? My experiences and mistakes!

• Share, ETF, Crypto: My Experience

Barcelona, Mallorca, Ibiza & Co. – The most beautiful places in Spain

If you are currently looking for a property on the coast, Spain would be ideal for you. In addition to places on the mainland, the country has some beautiful islands with stunning houses, apartments or villas. In this article you will get an overview of the most beautiful places like Barcelona, Mallorca or the jewel of Spain: Formentera. We’ve done the research for you and found the best places to live. Do you prefer the city of Barcelona? The luxury and party lifestyle in Ibiza or do you prefer it quieter in Formentera? Here you will find all the facts about the top. 5 places in Spain! Read in and find the ideal location for your holiday home.

Living in Barcelona, Palma & Co? – Living in Spain

You already have a precise idea of your dream island/city or would like to get detailed information about the individual areas? Here you can find further articles about the respective places:

• Living in Barcelona
• Living in Mallorca
• Living in Palma de Mallorca
• Living in Ibiza
• Living on Formentera

Barcelona: metropolis with beach on the Spanish mainland

Barcelona is a city with over a million inhabitants in Spain and is located in the northeast of the country. The city is located directly on the Mediterranean Sea and has its own airport (BCN). Barcelona has an area of 101.9 km² and 1.6 million people live in the city center. Including the neighbouring districts, the population rises to a full 5.6 million people. The big city is a metropolis in Europe and especially known for its art and architecture scene. Real estate in Barcelona is also highly sought after. The most affluent districts include Eixample, Les Cortes and Sarrià-Sant Gervasi.

• Population: 1.6 million
• Area: 101.9 km²

Eixample: expensive real estate in the trendy district of Barcelona

The Eixample district is particularly affluent and stands out for its ideal location, exceptional architecture and a special art scene. The district is located in the middle of Barcelona and you are, depending on the location, in a few minutes at the airport BCN or at the beach. Eixample is above all a first-class residential and shopping area in Barcelona and has a lot to offer. Besides some designer shops, you will also find a distinct art scene, the best restaurants and extraordinary architecture. Those who own a villa or a penthouse here have a lot of privacy and, above all, security, which is why this district is particularly popular.

• Price for a villa: 2 million to 3.5 million.
• Price for a penthouse: 500.000 to 2 Mio.

Les Cortes: residential and business district with shopping facilities

The Les Corts district is a very affluent residential and commercial area in Barcelona and is located in the northwest of the city centre. Also from here you will be very centrally located with a property and quickly be at all important places such as the airport or the stand. Les Cortes is surrounded by skyscrapers and office buildings. There are also two large shopping centers including designer boutiques and dining options such as sushi or tapas.

You want to know more about the life and the different districts of Barcelona?

• Living in Barcelona

Mallorca: Real estate on the popular Balearic island

Mallorca is probably the most popular Balearic island of the German it is a dream of many to own a holiday home here. Especially in Mallorca there are some luxurious and exclusive neighborhoods including golf courses, marina, boutiques and the most beautiful beaches. When buying a luxury property, one should in any case value peace, security and privacy. Here we show you which neighbourhoods are best to look at and where it is best to live.

Real estate in the noble district of Son Vida: villas, golf & beaches

Son Vida is known as a posh area near the island’s capital Palma de Mallorca and is considered one of the most expensive and exclusive residential areas in the whole of Europe. The village is located in the south of the island and west of the capital at the foot of the Tramontana mountains. In 15 minutes you can reach the city centre of Palma and in about 20 minutes the airport PMI. Pass the time on one of the three golf courses or in the expensive marina “Puerto Portals”. Enjoy your luxury lifestyle in your property in Son Vida Hills.

Price for a property: 2 million to 22 million euros

Puerto de Andratx: private properties with impressive views

Porte de Andratx is a seaside town, located in the southwest of the island and the expensive properties are some of the highest in Mallorca. The town is about half an hour from the city of Palma and PMI airport. Many of the properties have large plots, infinity pools, modern architecture and impressive views over the sea. Also in this town you will find a golf course, high class restaurants, bars, boutiques and a yacht club. Puerto de Andratx is not a tourist resort and the society is considered particularly colorful. Because of this, celebrities such as Brad Pitt or ABBA singer Anni-Gried Lingstand also have a property in this place.

• Beautiful landscape
• Cultural society
• International. many celebrities
• Quiet and private

Are you interested in buying a property on Mallorca and would like to find out more about life on the island?

• Living in Mallorca

Palma de Mallorca: Real estate in a special location on the beach

Palma de Mallorca is the capital of Mallorca and is located in the southwest of the island. Besides some famous sights, shopping and restaurants, you will also find the airport PMI in this city, from which you can arrive and depart. Especially in Palma you will find some exclusive neighbourhoods with different societies, lifestyles and a mixed culture. Here we present some of these neighbourhoods and places so that you can make the perfect choice for the location of your property.

Santa Catalina: up-and-coming trendy district with mixed culture

Santa Catalina is known as Palma’s trendy neighbourhood and has become increasingly attractive for couples and young families in recent years. In this district of Palma you will find a varied offer of cultural events and leisure activities to live out your personal lifestyle. Santa Catalina is located to the west of the city centre and you can be in the city centre in a few minutes. The focal point of the neighbourhood is an indoor market, which is a traditional feature of the city and a cultural meeting place.

Around this hall you can find various shops, bars or restaurants with international specialties. It is modernized and renovated more and more, which is why the society here is becoming more and more prosperous.

• Price villa: 1 million to 2.5 million euros
• Price penthouse: 600,000 to 1.5 million euros

Portixol: Real estate hotspot and cultural meeting place

The district of Portixol of Palma was once a poor fishing village and has established itself in recent decades as a trendy real estate hotspot. Located to the east of the island’s capital, it has an ideal location and accessibility. The neighbourhood has a very unique and liberal atmosphere and is considered a cultural meeting place for locals and visitors alike. The society and architecture is diverse and international. Here you will find a small, exclusive marina as well as designer shops, beach clubs and high-priced restaurants.

Want to know more about life in Palma de Mallorca?

• Living in Palma de Mallorca

Ibiza: exclusive and expensive real estate on the Balearic island

Ibiza is known worldwide as a luxury and party island. Here you can meet many celebrities, DJs and stars and party with them in the hottest clubs on the island. But what else is behind the party island and what does it have to offer? Ibiza belongs to the Balearic Islands, is located in the Mediterranean Sea and can be found east of Spain. Here we present the wealthiest and most exclusive residential areas and show you where you can find properties away from the party tourism and with a lot of privacy.

• Population: 148,000
• Area: 573 km²

Talamanca: Real estate in ideal location and many leisure possibilities

Talamanca is a small town on Ibiza and is located northwest of the island’s capital Eivissa. You can reach it in 15 minutes by foot. In addition, the airport IBZ can be reached in 10 minutes by car. Also the 800 meter long sandy beach with turquoise water is very well known and is one of the biggest on the island. There is a wide selection of restaurants, cafes, water sports and a beach club.

Talamanca is considered a recreational place and tourism is not very pronounced. During the day you can relax in the sun and have lunch. During the evening hours you have the possibility to visit a high class restaurant and start the nightlife. The famous club “Pacha” is only about 10 minutes away.

Sant Josep de sa Talaia: private and prosperous municipality

The village of Sant Josep is one of the richest municipalities in Ibiza and is considered a hotspot for the elite. The village is located in the southwest of the island and is about 15 kilometres from the island’s capital. Sant Josep is located at the foot of the mountain “sa Talaia de Sant Josep” and properties on the mountain offer a beautiful view of the sea and the island. If you are currently looking for a suitable luxury property, it would be advisable to take a look at what is on offer in Sant Josep. Surrounded by the most affluent people, this municipality offers you the chance to relax and enjoy some private days on the island.

Price for a property: 1.5 to 10 million euros

Want to know more about life and real estate in Ibiza?

• Living in Ibiza

Formentera: Holiday home & white beach jewel of Spain

Formentera is an island of the Balearic Islands and is located south of Ibiza. This small island is often called the Caribbean in the Mediterranean and the jewel of Spain. Due to the special landscape and impressive nature, this Formentera is particularly popular. White beaches, turquoise-blue water and few tourists make this jewel. Also the approach is exclusive. As the island does not have its own airport, Formentera can only be reached by sea. For this purpose, several ferries from Ibiza approach the small island every day to transport tourists and locals. The crossing takes about 25 minutes and on the way you will pass between numerous small islands.

• Population: 12,200
• Area: 83.2 km²
• Coastal kilometres: 70
• Capital of the island: Sant Francesc

La Savina: marina, white beaches and turquoise waters

The port of La Savina is located in the northwest of Formentera and is the place on the island where you arrive or leave the island. Especially in the summer months and high season, there is a lot of coming and going and there is a lot of hustle and bustle around the port. However, if you go further into the island, you will feel the special charm and tranquil atmosphere that Formentera exudes.

In addition to the tourist hub, La Savina also has a large marina with private boats or boats for rent. Furthermore, you will find a wide range of restaurants, bars, boutiques and nature areas. Stroll through the small streets and visit shops or stalls with handmade souvenirs. If you own a boat and want to see the sea, you can leave the marina and sail over to Ibiza, for example.

Conclusion: Where is the best place to live?

You now have an overview of all the major islands and cities in Spain. Now you can decide for yourself where you would like to live or buy a holiday home. Spain has a lot to offer and what could be better than spending a few days, weeks or months on the coast soaking up the sun? If you have a property in one of these locations, you can always visit to holiday or work from. Invest in your holiday home in Spain and enjoy all the benefits that this beautiful country has to offer.

Overview: Top. 5 places in Spain

• Living in Barcelona: Eixample, Sarrià-Sant Gervasi & Les Corts
• Living in Mallorca: Puerto de Andratx, Son Vida, Bendinat & Deià
• Living in Palma de Mallorca: Son Vida, Santa Catalina & Pertixol
• Living in Ibiza: Talamanca, Sant Josep & Jesús
• Living in Formentera : La Savina, La Mola, Sant Ferran & Sant Francesc