Buying Bitcoin: step by step

Your first purchase often feels bigger than it is. We’ll go through it with you from start to finish, using a fictional ‘Example exchange’ whose screens are laid out like those of most regulated providers. We give example amounts in US dollars; your app will usually show euros or your local currency, but the process is the same.

What you need

• a valid ID card or passport,
• a smartphone with a camera and an authenticator app,
• a current account in your own name,
• your tax identification number (in Germany, it’s on your tax assessment notice, for example),
• a provider you have checked – what matters is covered in Choosing the right provider,
• an amount you can do without for the long term.

Two examples from our overview – a Bitcoin-only appTermBitcoin appA smartphone app you can use to buy, save and often also store bitcoin.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary →AdLicensed providers with a paid linkProviders from our comparison21bitcoinBitcoin app · MiCA (FMA, Austria)No paid link for your country · Profile →RelaiBitcoin app · MiCA (AMF, France)No paid link for your country · Profile →BISONExchange · MiCA (BaFin, Germany)No paid link for your country · Profile →All 4 compared – including non-partners →*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.× and an exchangeTermExchange (crypto exchange)A trading platform where buyers and sellers trade bitcoin with each other via an order book.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary →AdLicensed providers with a paid linkProviders from our comparisonKrakenExchange · MiCA (Central Bank of Ireland)Visit Kraken* (paid link, opens in a new window)BitvavoExchange · MiCA (AFM, Netherlands)Visit Bitvavo* (paid link, opens in a new window)CoinbaseExchange · MiCA (CSSF, Luxembourg)Visit Coinbase* (paid link, opens in a new window)All 7 compared – including non-partners →*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.× that also offers other crypto assets:

You’ll find more authorised providers, including ones we have no partnership with, in the provider overview.

The process at a glance

1. Download the official app or open the website

   Only from the official app store or via a bookmark you saved yourself. The European supervisory authorities advise installing apps only from trusted app stores and not scanning unknown QR codes.^[7]

2. Create an account and confirm your email

   Email address, a unique password, country of residence, then a confirmation code.

3. Enter your details and verify your identity

   Personal details, source of funds, ID document and a selfie or video identification.

4. Secure your account with two-factor authentication

   Connect an authenticator app, write the backup codes down on paper.

5. Deposit money

   By SEPA transfer from an account in your own name.

6. Buy Bitcoin

   Enter the amount, check the price and fee, confirm.

7. Save the statement

   You’ll need the receipt later for your taxes.

Part 1: Opening an account and verifying your identity

Regulated providers must know who you are – this is called KYCGlossaryKYC (Know Your Customer)The obligation of regulated providers to identify you before the business relationship starts and to ask, for example, about its purpose and, where necessary, the source of your money. In Germany, the legal basis is the Money Laundering Act (GwG).In the glossary →× (know your customer). Under Germany’s Money Laundering Act (GwG), your identity is checked using a valid official photo ID or electronically, for example with the online ID function.^[1] With video identificationGlossaryVideo identification (video ident)A process in which you identify yourself with your ID document via video chat instead of visiting a branch. Providers use it for the legally required KYC check; scammers abuse it to open accounts in other people’s names.On the learning path: Stage 6 · Step 2 – Spotting scams →In the glossary →×, a trained member of staff asks you to tilt your ID in front of the camera so they can check its security features.^[2]

The provider also asks for your tax ID. In Germany, under the Crypto-Asset Tax Transparency Act (KStTG), it reports your data and transactions to the Federal Central Tax Office every year, starting with 2026 and for the first time by 31 July 2027.^[3] Other EU countries have similar rules under DAC8 – see DAC8 & reporting obligations.

Germany’s Federal Office for Information Security (BSI) advises using two-factor authenticationGlossaryTwo-factor authentication (2FA)Logging in with two independent proofs, such as a password plus a code from an authenticator app. For accounts with exchanges and Bitcoin apps, 2FA is a must – and SMS codes are the weakest option.On the learning path: Stage 6 · Step 2 – Spotting scams →In the glossary →× wherever it’s offered. SMS codes shouldn’t arrive on the same device you log in with. A hardware security key (FIDO) protects you even better, if your provider supports one.^[4] If scammers take over your phone number through SIM swappingGlossarySIM swappingFraudsters get your mobile number transferred to their own SIM card and so receive your text-message codes. They use this to take over accounts that are only protected by SMS. Protection: 2FA via an app or security key instead of SMS.On the learning path: Stage 6 · Step 2 – Spotting scams →In the glossary →×, SMS codes go to them – codes from an authenticator app don’t.

Part 2: Depositing and buying Bitcoin

Depositing via SEPA

The cheapest way to deposit is a SEPA transferGlossarySEPA transferA standardised euro bank transfer within the European SEPA payment area. For buying bitcoin, it is usually the cheapest way to get money to the provider; as an instant transfer, it arrives within seconds.On the learning path: Stage 4 · Step 4 – Setting up a savings plan →In the glossary →×. As an instant transfer, the money reaches the recipient within ten seconds, around the clock.^[5] Since 9 October 2025, banks in the euro area have been checking, for euro transfers, whether the recipient’s name matches the IBAN.^[6] If your banking app reports a mismatch, cancel and check the details in the provider’s app.

Paying by card costs more: BISONProvider · ExchangeBISONCrypto app from the Boerse Stuttgart Group: no trading fee, but a spread – withdrawals to your own wallet: €0 fee (as of 09/2026).Licence: MiCA (BaFin, Germany) · reviewed Sept 2026Costs: no trading fee, average Bitcoin spread 1.25% per buy or sell (as of Sept 2026)On the learning path: Stage 4 · Step 2 – Choosing a provider →Our profile →Official website ↗×, for example, charges 2.49% for deposits by card, Apple Pay or Google Pay (as of September 2026)^[8] – just over $6 on $250.

Instant buy or limit order?

In Bitcoin apps you usually buy via an instant buy: the price shown is valid for a few seconds, and you confirm. On exchanges you have a choice:

• A market orderGlossaryMarket orderAn order that is executed immediately at the best available price in the order book. You get speed but no price guarantee: with large amounts, the price can differ from the last price shown.In the glossary →× is executed immediately at the best available price.
• A limit orderGlossaryLimit orderA buy or sell order with a price limit: it is only executed at your price or better. That secures the price, but not the execution – the market may never get there.In the glossary →× is only executed at your chosen price or better – possibly not at all.

KrakenProvider · ExchangeKrakenLarge crypto exchange with an EU licence from Ireland: simple in-app buying or an order book, withdrawals via Lightning too.Licence: MiCA (Central Bank of Ireland) · reviewed Sept 2026Costs: App 1% plus spread; Kraken Pro 0.40% maker / 0.80% taker (as of Sept 2026)On the learning path: Stage 4 · Step 2 – Choosing a provider →Our profile →AdVisit Kraken* (paid link, opens in a new window)on kraken.com*Paid link: if you sign up or buy through it, we earn a commission. Your price stays the same. How we make money →18+ · Crypto assets are highly volatile; you could lose all your money. No deposit protection.× shows what this costs (as of September 2026): in the Kraken app, an instant buy costs 1% plus a spreadGlossarySpread (bid-ask spread)The difference between the buy and sell price. With many apps, the spread is the real fee – it just doesn’t appear as a separate item on your statement.On the learning path: Stage 4 · Step 2 – Choosing a provider →In the glossary →×, a mark-up built into the price. On Kraken Pro, an order executed immediately costs 0.80% in the entry tier, and a limit order that waits in the order book to be filled costs 0.40%.^[9] On $250, that’s $2 instead of $1. All types of cost are explained in Understanding fees.

The example screens use a round example price of $80,000 per BTC; the current price is $86,292.

After the purchase

Keep your receipts. In Germany, if you sell bitcoin within one year of buying them, the gain is taxable if your private disposal gains for the year add up to €1,000 or more. After more than one year, it’s tax-free under current law.^[10] Whether that stays the same for future purchases is politically open; the reform tracker follows the latest state.

The tax office can ask for records. If you buy through a platform whose operator is based abroad, you must obtain the records yourself; missing records count against you, even if the data is lost through the exchange’s insolvency or a hack.^[11] So download your statements regularly. More in Bitcoin & tax in Germany; if you live elsewhere, Bitcoin tax around Europe shows where to look. This is general information, not tax advice.

Check your account. In the settings, check whether two-factor authentication also applies to withdrawals and whether new withdrawal addresses have to be approved first. If possible, switch both on. The security check shows in a few questions how well your account is protected overall.

Plan your custody. Your bitcoin are now held by the provider. That’s fine to begin with, but think about the amount above which you’ll transfer them to your own wallet. Your first withdrawal to your own wallet shows how.

Quick check