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

Der Beitrag Crypto Trading: Buy, Invest & Trade Cryptocurrency erschien zuerst auf ℄ Real Estates.

Construction financing – comparison of different providers is important

If you would like to find out about the options and details of construction financing, real estate agents offer you individual advice. Our guide helps: real estate broker. If you would like to sell your property, real estate agents are there to help with a package of services. Estate agents know their way around the market and bring experience to the job. You benefit from individual support and a stress-free sale of your property. When it comes to construction financing, an agent can also help you with your planning.

Individual construction financing from various components

Many property buyers avail construction finance as the amount cannot be settled in one lump sum. The financing for a property should be safely planned in advance. Take advantage of an individual consultation, because a financing plan is always adapted to the situation of the builder. It stands on various pillars. This means that a property is not usually financed with just one loan. A combination of existing equity, a development loan, a building savings contract and the classic bank loan are the components of a financing. It is important to compare the different providers during the planning phase.

Construction financing: Interest

Construction financing is characterised by long terms. If the interest rate is only a few percentage points after the decimal point more favourable, this can result in a four-digit saving for the entire term. The monthly instalments are lower and the interest payments are not as high. The offers from the area of subsidised loans should also be compared before concluding the contracts. A building savings contract that is ready for allocation can reduce the monthly instalments, as can equity capital or the provision of personal contributions. Ultimately, it is important that the construction financing is set up so that it can be borne over the entire term. In addition to comparing the various offers, advice is very important.

Read also:

• DSL Price
• Natural gas price
• Fixed Deposit
• Investment
• Current account
• Heating oil price
• Credit cards
• Electricity price
• Call money

Incidental costs for building and moving into your own house

The financing is not completed with the purchase price for the property. You have to reckon with further costs. When buying a house, you will have to pay fees for the notary and for the estate agent. As a builder, you will pay insurance and you should expect to pay the first instalments for the new house and the rent in parallel. Before moving in, you may need to buy heating oil. Depending on the size of the tanks and the current market price, this can run into four figures. Also factor the cost of moving into the financing. This is especially true if you are moving to another city and cannot organize the move yourself.

Financing can also include components that are not directly related to the construction of the house. It is advantageous if you bring equity and can liquidate a cash investment or deposit to reduce the cost of the loan. Comparing the offers on the market will bring you an additional saving on the cost of your construction financing.

More information on home building and financing:

DSL Price

An Internet connection is now standard in every household. More than 95% of all households have concluded a contract for the use of the Internet. The charges are part of the fixed costs of running the household. The internet has entered many areas of life and has become indispensable for many people. As a property owner, you are responsible for getting a connection to your home.

The standard for Internet use in Germany is the DSL connection. The expansion of the high-speed network has not yet been completed. Nevertheless, DSL is also available in remote regions of Germany. However, the speed at which you can surf is lower than in metropolitan areas or large cities. Since DSL is now part of the infrastructure, you should already take this into account when choosing a building plot. You can influence the laying of the lines in your house, but not the expansion of the DSL network. If the network is slow, it may take a few years before you can surf at high-speed. Take this into account when you decide to buy a property or build a house.

• More information about the DSL price.

Natural gas price

The price of natural gas is set by the energy supplier. For decades there was a monopoly of the regional suppliers, so that you as a customer had no possibility to influence the natural gas price. This has now changed. The monopoly has fallen, and you can have a say in the price by making comparisons and choosing a cheap supplier in your area. There are utilities that offer their services nationwide. Others operate exclusively on a regional basis.

If you want to know which natural gas price is the cheapest at your address, carry out a comparison. You can call up the comparison calculator on the Internet and use it free of charge. After entering your address, your household size and your annual average consumption, you will be shown all the relevant suppliers. The cheapest offer will be at the top. However, don’t just compare the prices, but also the conditions and additional terms. It is advisable not to commit yourself to one supplier for too long. Opt for a short term if you want to be able to react flexibly to price adjustments. This applies to both price increases and decreases.

• All information about the price of natural gas.

Fixed Deposit

The term fixed-term deposit refers to an investment that is tied to a specific term. You agree this term with your bank in advance. Periods of between twelve months and six years are common. The term is the most important distinguishing feature between fixed-term deposits and overnight money. While you can dispose of the credit balance in an overnight deposit account at any time, the money in the time deposit account is not available.

If you want to receive the agreed interest, it is necessary that you do not touch the deposit during the entire term. If you urgently need the money, you can terminate the time deposit account. The deadlines for such a termination are one to three months. Therefore, transfer money to the fixed deposit account only if you are sure that you will not need it during the entire term.

• Learn all about the fixed deposit.

Investment

A cash investment is taken out when there is an amount left over after all monthly expenses have been deducted. You can transfer a one-off amount into a cash investment, or you can opt for regular monthly payments. Banks and savings banks offer various forms of cash investment. These differ primarily in their availability. The aim is to earn interest on the money. In addition to traditional savings accounts, you can also opt for securities as an investment. The interest rates are higher. The disadvantage, however, is that you cannot count on the money as well.

You do not know in advance how interest rates will develop, because they depend on prices on the capital markets. The classic investment of money in the form of a savings account, a call money or a time deposit account, on the other hand, can be precisely predicted. However, the interest rate can be significantly lower than if you invest in shares or securities.

• More information about the investment.

Current account

A current account is used to handle your daily financial transactions. You use it as a salary account, for purchases and for all transfers and debits that become necessary in everyday life. Current accounts are offered by all banks and savings banks. Before opening a current account, it is strongly recommended to compare the conditions. The offers differ greatly in their price-performance ratio. There are current accounts where account management is completely free. However, with many banks you pay fees. Before opening, you should find out for yourself which services of the bank you need and what you can possibly do without. In many cases, a free checking account is sufficient. Sometimes, however, you are limited in the options for obtaining cash.

Online banks offer favourable conditions. However, they do not have their own network of ATMs and you have to do without personal advice. Not all of the cheap online banks issue a Girocard. You get a credit card and a Maestro card. The use is free of charge. Since especially smaller shops in Germany only accept Girocards, you will have to resort to cash. Therefore, analyse your payment behaviour in advance before you open a current account at a bank or savings bank.

• Everything about the current account.

Heating oil price

Heating oil is an alternative to natural gas. It burns environmentally friendly, but does not belong to the renewable energies. Modern heating stoves that use heating oil as a fuel are convincing with their low consumption and are considered energy-efficient. Many building owners choose heating oil because they are independent of an energy supplier. The heating oil is stored in tanks. The size of the tank can be freely chosen during installation. It is possible to connect several tanks together to be able to use a larger supply of heating oil. As a prerequisite for the installation of an oil heating system is that there is enough space for the tanks. You choose the size of the tanks when you install them. Theoretically, it is possible to expand the tanks afterwards. However, this will cause additional costs. For this reason, a new heating system should be well planned in advance.

• Learn more about the heating oil price.

Credit cards

Credit cards are considered a very popular means of payment on the market. Originally they come from the USA. They are widely used there and in many other countries around the world. In Germany, the acceptance of credit cards has increased significantly in recent years. The reason for this is that the fees for their use have been lowered by the operators. In other countries, however, acceptance is even higher. In this country, smaller shops in particular do not accept credit cards. The same applies to snack bars, market stalls and small restaurants. Especially in structurally weak regions and in the countryside, the credit card is largely excluded as a means of payment in Germany. And while in other European countries you can even pay for your coffee or ice cream at the beach with your card, in this country you are dependent on cash.

Nevertheless, the credit card is also a popular means of payment among Germans. The desire to travel remains high in Germany and the credit card is often used abroad to pay for purchases and bills, but also to obtain cash. There are different types of credit cards, which differ in their billing and in the possibilities of use.

• Learn all about the credit card.

Electricity price

The price of electricity is subject to very strong fluctuations. For many decades, there was an energy monopoly of individual regional suppliers. Customers had to conclude their contract with the supplier that was located in their town. There was no choice. Since the monopoly was opened up, you have a choice of many different suppliers. Some are still regionally based. Others offer nationwide contracts. The price of electricity has not become cheaper as a result of the opening of the market and the greater competition it has brought. In fact, the opposite is true. Electricity prices have risen continuously in recent years.

You benefit from the switching option because you can look for another electricity provider. However, you often have to be prepared to switch suppliers on a regular basis. The reason for this is that many electricity providers calculate particularly favourable prices for new customers. In addition, there are bonuses that apply only to new customers. These additionally reduce the price. If you can no longer take advantage of these bonuses after the end of the first contract period, it will be significantly more expensive for you. However, since you can always cancel your contract after a price increase, you will have a new switching option.

• Everything about the electricity price.

Call money

The term already describes the fact that call money is a short-term investment. In this respect, call money differs from time deposits or savings bonds, which are tied to a term. These investments can only be terminated at a loss and subject to a period of notice. With call money, you can have the deposit transferred to the linked account on a daily basis. For this reason, call money accounts are very suitable for construction financing. There are no fluctuations and no currency risks. You know in advance how much money is in your call money account and can plan accordingly. This is very important for a construction financing, because you have to pay the open amount on the due date.

However, there is also a disadvantage, and that is the low interest rate. Because call money is available at such short notice, many banks concede interest rates that are only marginally higher than the European Central Bank’s base rate. Nevertheless, the call money for a construction financing is often the only alternative if you need the deposit in the short term.

• More information on call money.

Der Beitrag Construction financing: comparison, components, ancillary costs erschien zuerst auf ℄ Real Estates.