Germany is ranked as one of the most cryptocurrency-friendly countries because of its positive embrace of cryptocurrency trading. The country also has sharp observations and policies to protect investors and understands the benefits it will get from cryptocurrency investments. For instance, it adopted blockchain technology and is among the leading countries in the fight against the illegal use of cryptocurrencies. This is evident since Germany is a member of Europol’s Joint Cybercrime Action Taskforce.
With security measures in place, German investors are diving into the cryptocurrency space to try their luck. Note that this doesn’t make trading in Germany easier. You still need to conduct thorough research and market analysis to identify the best cryptocurrency trading tools and strategize. Luckily, this German crypto market overview gives you an insight into how to get started in the German cryptocurrency market and recommends the best and most popular cryptos to choose from.
Top 4 Cryptocurrencies to Buy in Germany
There are many cryptocurrencies you can invest in in Germany. Note that they serve different purposes, thus valued differently in the market. This also means that each cryptocurrency has its own investment risk, and you must be willing to take on those risks to enjoy your experience and maximize your potential to make profits.
That being said, let’s take a look below at some of the most popular cryptocurrencies you should consider putting in your money in Germany.
Bitcoin is not only popular in Germany but globally and can bring about profits with a strategic approach and planning. The asset is used to store value and conduct online transactions, making it valuable in the financial market. With the ongoing March crypto market crash, Bitcoin’s value has declined. This is a perfect opportunity to make a move and make long-term investments. Remember, the asset’s value once dropped in 2021 and had a huge comeback, making investors who had put their money into it reap big.
Note that Bitcoin’s price fluctuates, and identifying the exact entry point can be challenging. In this regard, take advantage of available research resources offered by brokers and crypto exchanges to conduct further analysis and develop a solid strategy.
Being the second most embraced cryptocurrency after Bitcoin, Ethereum is also lucrative in the German market. It operates on the Ethereum network using smart contracts, thus ranking as one of the best-decentralized app platforms. You can either use a BaFin regulated broker or a trusted cryptocurrency exchange to trade and invest in the commodity. Simply ensure that the platform you choose meets your needs.
Like Ripple and Bitcoin, Ethereum’s value fluctuates due to market conditions, including inflation, geopolitical instability, high-interest rates, etc. The ongoing crypto market crash has made its value decline even more — a perfect opportunity to invest in the asset.
Ripple was not explicitly designed for consumers, making it unique and different from popular cryptos like Bitcoin. It is an open-source-based network focusing on digital payments and currency exchange networks for transacting. This technology is fast and eliminates transactions that take days to complete. Ripple’s token XRP was first launched in 2012 and has since risen in value until May 2022 when there was a decline due to the crypto market crash.
Keep in mind that Ripple’s price fluctuates due to market volatility. In this regard, always be careful when tracking the markets and identify trends that could potentially be profitable. You should also decide on the best investment approach based on your findings. This could be taking long-term or short-term positions.
According to the German crypto site Cryptomonday.de, “Obwohl der XRP-Preis im letzten Jahr gestiegen ist, könnte Ripple Kryptowährung immer noch eine kluge Strategie für 2022 sein, da es sich auf Finanzinstitute konzentriert und Pläne hat, mit SWIFT-Zahlungen zu konkurrieren“
This translates to “Although XRP price increased last year, the cryptocurrency could still be a lucrative investment for 2022. This is because its primary focus is on financial institutions and plans to compete with SWIFT payments”.
Cardano’s value has also declined by over 70% with the ongoing market crash. Although its performance in the market is lower than the popular cryptos like Bitcoin and Ethereum, it excels when it comes to the proof-of-stake protocol. It is faster than Ethereum’s, cheaper, and offers more efficient energy. Also, its value is low, thus attracting budget-conscious traders and investors in Germany.
Is the German Cryptocurrency Market Still Growing?
As mentioned earlier, Germany is one of the most secure countries to trade cryptocurrencies. This is not only due to the measures it has taken to curb cyber crimes but because its financial market is regulated by the Federal Financial Services Authority — one of the world-recognized authorities. This means that you need to choose crypto brokers regulated by this authority to invest securely. Moreover, such brokers offer the best trading conditions for a worthwhile experience.
To answer the question above, the German crypto market is still growing, even more so now that there has been a crypto market crash. This means that most cryptocurrency prices are declining in value, thus attracting more investors with the hope that the market will rise again and they will be able to reap good profits. However, you must invest in an asset you are fully familiar with and have conducted a thorough analysis to predict how the future trends will be. Only this way will you maximize your profitability.
If you were skeptical about diving into cryptocurrency investment, we hope you have a clear insight into the market conditions. The above-recommended cryptocurrencies have made many German investors successful. However, make sure you can afford them since their prices vary. Research is a critical element in every investment, so be fully prepared with the right tools and only make moves when the time is right. Lastly, do not depend on other traders’ opinions and avoid getting emotional to maximize your profitability.