Cryptocurrency explained: Blockchain, Investments & Co.

Cryptocurrency is nothing more than digital money. Here, all the important data around the holder and transaction is encrypted and stored. Instead of storing all this on just one server, the transactions are found in a decentralized network – also called: The Blockchain. This technology makes transactions faster, more secure, and less expensive than they would be otherwise. Sounds like the future? Read our analysis here: cryptocurrency development.

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.

Owning and trading cryptocurrencies brings many advantages. Transactions take place directly between the buyer and seller. It is a decentralized network. So, unlike a bank transfer, exchange and bank fees are eliminated, as are transfer limits and unnecessary waiting times. Bitcoin trading is therefore not only uncomplicated, but also anonymous and secure. Instead of the own name, all crypto assets are managed with an identification code. The blockchain technology also ensures that transactions are constantly checked in advance, making any manipulation and forgery almost impossible. Learn more about the technology, course and trade explained here: BitCoin, cryptocurrency & blockchain.

Reading tip: Which app do I use to buy and sell shares, cryptocurrency & Co. Here is the answer! My recommendation: Trading App.

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And a little tip, Made in Germany:

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Trading with Bitcoin, Ethereum, Litecoin & Co.

The cryptocurrency Bitcoin is now a household name. It is the most popular, but by far not the only one. In the meantime, several new creations have emerged. Some of the others are Bitcoin enhancements. Thus, there are now over 4,500 cryptocurrencies. While that sounds like a large amount, only just under 100 of them achieve a daily trading turnover of $1,000 or more. Other popular cryptocurrencies are Ethereum, Ripple and Litecoin.

Cryptocurrencies – List

Here you can find a selection of interesting digital currencies:

Binance Coin (BNB)

• Binance Coin (BNB)

Bitcoin Cash (BCH)

• Bitcoin Cash (BCH)

Bitcoin (BTC)

• Bitcoin (BTC)

Cardano (ADA)

• Cardano (ADA)

Dash

• Dash

EOS

• EOS

Ethereum

• Ethereum

Ethereum Classic (ETC)

• Ethereum Classic (ETC)

IOTA (MIOTA)

• IOTA (MIOTA)

Litecoin (LTC)

• Litecoin (LTC)

NEO

• NEO

Ripple (XRP)

• Ripple (XRP)

Stellar (XLM)

• Stellar (XLM)

Tezos (XTZ)

• Tezos (XTZ)

TRON (TRX)

• TRON (TRX)

ZCASH (ZEC)

• ZCASH (ZEC)

Questions and answers: cryptocurrency

So now you know what the blockchain technology is, what cryptocurrencies there are and what advantages trading Bitcoin and Co. brings with it. Finally, you will get all the important questions about trading with cryptocurrencies answered:

Which is the best cryptocurrency?

The best cryptocurrencies include the classic Bitcoin, as well as IOTA, Ripple, EOS, Litecoin, Binance Coin and Tether.

Which cryptocurrency has a future?

According to forecasts, Bitcoin, Ethereum, Ripple and NEO have the most potential to increase in value in the future.

Are gains from cryptocurrencies tax-free?

The speculation period for cryptocurrencies is one year. If a profit of 600 euros or more is made during this period, the total profit must be taxed. So if the coins are left in the wallet for at least 12 months and only paid out after the speculation period, no taxes are due.

Should you invest in cryptocurrency?

Only invest in cryptocurrency if you are familiar with blockchain technology, different currencies and wallets. After all, this is a decentralized network based solely on demand. So always be aware of the risks and only invest if you are really sure and familiar with cryptocurrency trading.

Cryptocurrency: reading tips

1. Trading App: Recommendation
2. Trading strategies

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

Did you already know? Open transactions in the blockchain

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!

The whole thing is therefore a network in which cryptographically signed messages are published – technical term: blockchain. You want to have 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

Orderer principle – currently only valid for rentals

Since the introduction of the buyer principle, potential tenants are relieved of paying a broker’s commission. Previously, this fee was payable in addition to the rent deposit, which is also payable on conclusion of the contract and provides the owner with security against loss of rent. If you are buying a property, include the commission for the estate agent in your incidental purchase costs. Although the buyer principle has long been under discussion for house purchases, it is currently impossible to predict if and when it will come.

At the same time, politicians have voiced a proposal to incorporate into law a limit on the brokerage fee to a maximum of 2 percent of the purchase price. In both cases, the ancillary purchase costs for potential owners would be reduced, but if the principal pays, fewer sales would be made via estate agents. Buyers have been waiting for some time for the introduction of the purchaser principle, which has significantly reduced upfront costs for tenants.

Calculation of the brokerage commission

The commission, i.e. the broker’s fee, is a calculated percentage amount that depends on the purchase price. When selling a house, there is no legal regulation on the amount of the broker’s commission, so it is a freely negotiable value.

The usual commission payments to the real estate agent range from 3.45 to 7.14 percent of the offer price and are a component of the ancillary purchase costs. On the Internet you will find a lot of information about the fact that in most federal states the commission is shared and not borne solely by the buyer. In reality, the owner usually does not share in the commission and leaves the payment of the brokerage solely to the buyer. The percentage of the commission depends on the demand of the real estate agent and the usual brokerage fees in the federal state.

Negotiation of the commission

Negotiations about the commission are possible, but usually only lead to success if it is a difficult-to-broker property with low demand. Before you purchase a property and confirm the conclusion of a contract for brokerage services, you can compare the different commissions by state, as well as the different practices in the payment of the brokerage.

When must commission be paid?

In general, a brokerage contract always consists of two agreements, one of which is concluded with the owner, and the other agreement is made with the prospective buyer. According to §126 BGB, a brokerage contract and thus the basis for the commission payment is only valid in written form. Verbal agreements remain unaffected and have no binding position for either the client or the buyer. Many prospective buyers wonder when the contract between them and the real estate agent actually comes into being and how it can be valid before a handwritten signature is made. The fact is that you must agree to the contract before a real estate agent will act on your behalf. This consent does not require a written signature, but is confirmed by the buyer by accepting the agent’s terms and conditions.

German Civil Code (BGB) § 126 Written form
(1) If written form is prescribed by law, the document must be signed by the maker in his own hand by his name or by a notarially certified hand sign.
(2) In the case of a contract, the signature of the parties must be on the same document. If the contract is recorded several identical documents, it is sufficient for each party to sign the document intended for the other.
(3) The written form may be replaced by electronic form, unless the law provides otherwise.
(4) The written form shall be replaced by notarial certification.

A commission is only due when the purchase contract is concluded and the real estate agent’s services have been fully rendered. If you decide against the favoured property after a viewing, no fees are due for the brokerage service provided up to that point. Only when you sign the purchase contract are you bound to the brokerage fee known from the first glance at the exposé and pay the commission within a period of 7 to 14 days after the due date of the property price.

Broker commission for private purchase: New law

The broker’s commission is not clearly regulated in Germany. In recent decades, it has become customary for the buyer to pay the broker’s commission when purchasing real estate. This means that 100% of the costs are passed on to the buyer.

The new law, effective December 23, 2020, now decides that the seller must bear at least half of the broker’s commission.

Private purchase, non-commercial real estate trade

However, the new regulation only applies to private purchases. So if you buy a property commercially, you are not subject to this innovation in the BGB. The §§ 656c and 656d only apply if the buyer is a consumer. Read more, including BGB innovations, about the broker’s commission here : New law (external).

For private real estate buyers, this changes a lot, after all, the brokerage fee makes up a large part of the ancillary purchase costs. With the house purchase in addition, with the flat purchase and property purchase, with it up to 7.14% for the buyer become due.

Broker commission usually at 7.14%.

• Find out more about the broker’s commission for private purchases here.