Risk notice

Information, not advice

Our content is for general information and education. It is aimed at all readers equally and does not take into account your personal financial situation, goals or risk tolerance – we do not know them. It is therefore not investment advice, not advice on crypto assets, not tax or legal advice, and not a solicitation to buy or sell.

This also applies to our tools: calculators, the goal compass and the security check help you organise your thoughts. They do not recommend whether, how much or with which provider you should buy bitcoin. Provider lists are the same for everyone – regardless of what you enter into a tool.¹

We do not answer individual questions such as “Which exchange suits me?” or “How much should I invest?” personally, not even by email. That would require a licence – and advice that knows your whole situation.

What we do not do

We do not accept orders, hold crypto assets or access credentials, or carry out transactions for you. You make all purchases and sales yourself, directly with the respective provider. We only feature providers whose authorisation under the EU MiCA regulation we have checked – how, is described in our methodology. This check does not replace your own.

Strong price swings

The price of bitcoin fluctuates strongly and without warning. Since 2013 it has fallen six times by more than 50% from its previous high – measured on daily closing prices in US dollars. Within a day, the lowest prices were sometimes even lower.²

Anyone who bought exactly at the peak in 2013, 2017 or 2021 was at times around 77 to 85% down and had to wait 28 to 39 months until the price was back above their entry price – and only if they did not sell in between.² So ask yourself honestly beforehand: could you sit through such a decline without panic-selling?

More: Return and risk, honestly.

A total loss is possible

A loss up to and including a total loss of the money you invest is possible – through falling prices, custody mistakes, fraud or the failure of a provider. Only invest money you can do without in the long term. Build an emergency fund first, pay off expensive debt first and never buy on credit or with leverage.

More: Financial basics first.

The past is no forecast

Past price performance is not a reliable indicator of the future. This also applies to the results of our calculators: the savings-plan calculator shows what would have happened in the past; the future calculator works with scenarios derived from past price history. Both are simulations, not forecasts. We do not publish price targets.

Transactions are final

A bitcoin transaction cannot be reversed. If you send bitcoin to a wrong address or to fraudsters, there is no bank to reverse it and nobody who can help. Always check addresses carefully and send a small test amount to new addresses first.

Custody risks

With a provider

If you leave your bitcoin with an exchange or app, you only have a claim against that provider. Hacks, technical failures, account freezes or insolvency can mean that you temporarily or permanently cannot access your bitcoin. MiCA requires authorised providers to keep client assets separate from their own.⁵ In Germany, crypto assets held for you by a custodian are deemed to belong to you and can be segregated in insolvency.⁴ This is real protection – but segregation can take time, and it does not help against hacks or fraud.

In your own wallet

If you hold your bitcoin yourself, you bear full responsibility. If you lose your seed phrase and your device, your bitcoin is lost – nobody can restore it. If someone else gets hold of your seed phrase, they can steal your bitcoin. Think about emergencies too: without a plan, your heirs may not be able to access your bitcoin.⁷

More: Understanding custody and Backing up your seed phrase.

Fraud

There is a lot of fraud around bitcoin: fake apps and websites, fake support staff, investment scams promising dream returns, “recovery services” for lost coins, romance scams and groups in messengers. Legitimate providers – and we – will never ask for your seed phrase.

More: Recognising and avoiding scams.

No deposit protection

Bank deposits in the EU are protected by law up to €100,000 per person and bank. As a rule, this does not apply to crypto assets.^3,7 Whether a euro balance you keep with a crypto provider is protected depends on the bank where the provider holds it – check this with the respective provider.

Regulation and tax

Laws and rules on crypto assets change. A provider can lose its licence, discontinue services or block your country. Tax treatment can change too: currently, in Germany, gains from selling privately held bitcoin are tax-free after a holding period of more than one year; within one year there is an exemption limit of €1,000 per year.⁶ Changes to these rules are being debated politically – we follow the debate in our reform tracker. You are responsible for your own taxes – our tax articles do not replace tax advice.

More: Bitcoin and tax in Germany.

Technical risks

Bitcoin is software. Bugs in wallets, apps or devices, splits of the network (forks) or future technical developments can affect your bitcoin. Keep your software up to date, only download it from official sources and follow the manufacturers’ advisories.

Other crypto assets at our partners

Many of our partners are exchanges that offer numerous other crypto assets besides bitcoin. We only explain and assess bitcoin. What else you buy at a provider is your decision. Other crypto assets often carry additional risks – such as an issuer who can change the rules, low trading volumes or complex products like staking, lending and leverage. We do not cover these risks; please research them yourself, and thoroughly.

Costs

Fees, mark-ups on the price (spread) and network fees reduce your result – especially for small amounts and frequent purchases. Compare the total costs before choosing a provider.

More: Understanding fees and our fee calculator.

Your decision

Before you buy bitcoin, answer these questions honestly:

• What is my goal – and does bitcoin fit it at all?
• How long will I definitely not need this money?
• How much loss could I bear without my daily life suffering?
• Do I have an emergency fund and no expensive debt?
• Do I understand how to keep my bitcoin safe?

If you are unsure, get independent advice from a licensed professional, for example fee-only advice. Take your time: nobody has to buy bitcoin today.

Food for thought: Goal first, strategy second and our goal compass.