Crypto in Germany: The Ultimate Guide

Germany is at the forefront of cryptocurrency in Europe. Demonstrating clear leadership at a regulatory level, crypto is completely legal in the country, legislated under the European Union’s Markets in Crypto-Assets Regulation (MiCAR).

Germany was also the first country to officially recognize Bitcoin as a legal “unit of account” back in 2013, allowing for transparent and regulated business operations from the very beginning.

Thanks in part to this legal clarity the blockchain industry is on an upward trajectory across the nation, with signs that awareness and adoption are now accelerating at pace. 

Here Ledger Academy tells you how to buy, sell and hold crypto assets safely and securely in Germany. We also take a look at NFTs, the state of Bitcoin mining in Germany and any potential tax implications. 

How to Buy Crypto and Bitcoin in Germany

With over 13% of Germans already holding digital assets—and more than half planning to increase their exposure—crypto adoption is clearly on the rise. 

Buy Crypto in Germany: Step-by-Step Guide

Learn how to buy crypto in Germany with Euro using trusted platforms and secure methods.

Step 1: Choose a crypto exchange 

There are many ways to buy cryptocurrency including Bitcoin in Germany. One popular method is by centralized exchange (CEX).

Binance, Bitpanda, Coinbase, Kraken, Bison and Bitcoin.de are all popular in the region.

Step 2: Register and complete the KYC process

To utilize the services of a CEX you’ll need to register and complete all mandatory Know Your Customer (KYC) requirements.

The registration process begins by providing basic personal details including full name and date of birth, and contact details including residential address, phone number, and email address.

Personal identity must be confirmed with a photo of government-issued identification such as a passport, national ID card, or driver’s license. A photo of a recent bank statement or utility bill is also necessary to prove residence.

You may also be required to take a selfie of yourself holding these documents or to make a video call depending on the specific exchange.

Step 3: Deposit funds

Next, deposit some Euros into your account under the Wallet or Deposit section.

In Germany there are a multitude of options for this. You can choose from Bank Transfer, Credit/Debit Card and in some instances PayPal or Apple Pay depending on the exchange.

Step 4: Choose the crypto you want to buy

Finally, you’ll need to decide what crypto you want to start stacking. There are many popular choices to begin your journey. Some of the most common are Bitcoin, Ethereum and Solana, but there are many more to choose from. Do your own research and decide which crypto is best for you. 

Buy Crypto and Bitcoin Securely

Self-custody is becoming the norm in Germany as 61 percent of holders now use personal wallets to safeguard their assets. It gives users full control and protection from third-party risks.

Self-Custody Your Digital Assets

While buying digital assets through CEX is one of the most popular methods, you risk losing the control and custody of your assets to a third-party should the exchange be compromised.

In February 2025, the Bybit exchange suffered a $1.5 billion hack, which disrupted customer withdrawals in its wake. In May, law enforcement raided German-based exchange eXch, seizing $38 million before closing it down. According to authorities eXch was involved in laundering stolen funds from the Bybit exploit. Sadly, most of the funds lost during the Bybit hack are unlikely to ever be recovered. Not your keys, not your coins.

This history of crypto is littered with numerous other examples where customers lost funds such as Mt.Gox and Quadriga. They all point to the same self-evident truth. Not your keys, not your coins.

Manage Your Crypto on a Self-Custody Wallet

There are two main types of self-custody wallets you can use to store your crypto. Software wallets and hardware wallets. Software wallets are a step up from exchanges because you retain the keys. They do have a downside however; due to the fact they remain connected to the internet it is still possible that certain types of malware may exploit them.

For this reason it is still advisable not to hold too much crypto in a software wallet. The safest type of wallet is a hardware wallet.

Hardware wallets including the Ledger Stax or Ledger Flex are the most secure form of self-custody wallet on the market. In over ten years of operation with over 8 million devices sold, a Ledger wallet has never been hacked.

Alternative Way to Buy Crypto in Germany with Direct Self-Custody

Many German users can easily access crypto, but not all platforms offer true ownership. For those who prefer full control from the start, here’s how to buy crypto directly into your own wallet.

Step 1: Set up your Ledger self-custodial wallet

For best in class safety and security, purchase Ledger Stax or Ledger Flex – the world’s first secure E-ink touchscreen devices. 

You’ll need to initialize your Ledger wallet once it arrives. First install the Ledger Live app supported on Windows, Mac, Linux, Apple or Android.

Connect your Ledger wallet to your laptop or desktop. In Ledger Live click Get Started and then Initialize As New Device. Set a PIN and record your 24 word recovery phrase in a safe place. Never store the 24 word recovery phrase on an internet-connected device. 

Step 2: Install Apps and create accounts

For each crypto you intend to hold you’ll need an appropriate account. On the left side of the Ledger Live screen click Portfolio, then Add Account.

For Bitcoin select and install the Bitcoin app. For Ethereum of ERC20 tokens add the Ethereum app. For Solana or SPL tokens add Solana. It really is that simple.

Step 3: Buy crypto via Ledger Live providers

We partner with third-party providers so German users can enjoy the very best coverage. Our providers include PayPal, MoonPay and Coinify.

As part of the service Ledger Live will assist you in finding the right provider for you. Here’s how it works:

1. Go to the Buy/Sell page. 
2. Click on Find the Right Provider For You.
3. Find the cryptocurrency you wish to purchase.
4. Enter the purchase amount.
5. Click Confirm Amount.
6. Select Germany for your nation.
7. Choose a payment method such as Bank Transfer or Credit Card. Other options such as PayPal and Crypto.com Pay may also be available depending on the provider.
8. Click Find Eligible Providers
9. Select the provider that suits you best.
10. Complete the purchase. 

Top 5 Crypto Exchanges & Apps in Germany for 2025

These are the top platforms Germans use to buy, sell, and manage their Bitcoin and other digital assets.

Ledger Live

• No of currencies: 15,000+
• KYC required: The app can be used without KYC, but third party service providers may require KYC
• Trading Fees: Ledger Live charges no fees, but network fees apply
• Deposit Fees: No
• Withdrawal Fees: No
• Pros: Ledger Live is your one stop shop for purchasing cryptocurrency, allowing you to buy, trade and hold your coins safely and securely.

Bitpanda

• No of currencies: 200+
• KYC required: Yes
• Trading Fees: 0.99% for Bitcoin, 0-2.49% on other trades
• Deposit Fees: 0
• Withdrawal Fees: 0
• Pros: User friendly interface
• Cons: Higher fees than some competitors

BISON

• No of currencies: 27
• KYC required: Yes
• Trading Fees: Spread trading fees of around 0.75%
• Deposit Fees: 0
• Withdrawal Fees: 0
• Pros: No upfront fees, but differences between the buy and sell prices of assets act as an alternative fee mechanism
• Cons: Small number of tradable assets.

Bitcoin.de

• No of currencies: 10+
• KYC required: Yes
• Trading Fees: 0.5%
• Deposit Fees: N/A
• Withdrawal Fees: N/A
• Pros: Simple, flat fee structure
• Cons: Limited choice of coins

Coinbase

• No of currencies: 240+
• KYC required: Yes
• Trading Fees: 0.5-4.5%
• Deposit Fees: Typically free
• Withdrawal Fees: 0
• Pros: One of the most popular exchanges with a great selection of coins
• Cons: Occasionally slow customer response times

Is Crypto Legal in Germany?

Yes, crypto is legal in Germany and is regulated under the Federal Financial Supervisory Authority (BaFin). The primary legislation governing crypto assets in the country is the European Union’s Markets in Crypto-Assets Regulation (MiCAR).

Is Crypto Mining Legal in Germany?

Crypto mining is legal in Germany. Commercial mining operators that offer financial services require a licence, but small scale private users do not.

How to Mine Bitcoin in Germany?

Let’s take a step-by-step look at how to mine Bitcoin in Germany.

Step 1: Choosing the Right Hardware

The type of crypto mining hardware you choose will depend on the crypto you intend to mine. The two main types of hardware used for crypto mining are Graphics Processing Units (GPUs) and Application-Specific Integrated Circuits (ASICs). 

GPUs are generalized processors found in most desktops and laptops and can be used to mine cryptos such as Monero or Zcash. ASICs are mining specific hardware used only for mining cryptocurrency, especially in the case of Bitcoin.

The prevalence of ASIC miners on the Bitcoin blockchain has muscled out GPU miners, making it impractical and unaffordable. If you want to mine Bitcoin an ASIC is the only way to go.

Step 2: Installing and Configuring Mining Software

Once you’ve purchased the right mining hardware for you, you’ll need to find software compatible with your mining rig.

Whatever software you choose, make sure to download only from official sources to avoid malware risks.

Step 3: Joining a Mining Pool

For new miners the chances of successfully mining a block and receiving a reward are incredibly slim. This is why many miners join mining pools, contributing computing power to a collective group that shares rewards among its members. 

If any machine in the pool successfully mines a block, the rewards are split among the participants based on their contribution. The greater your contribution to the pool, the greater your distribution of rewards.

Step 4: Setting Up a Bitcoin Wallet

You will need to designate an appropriate wallet to receive your mining rewards. We covered this in the ‘Install Apps and Create Accounts’ section above.

Crypto Tax in Germany

Understanding Germany’s stance on crypto taxation ensures you stay compliant and avoid surprises.

Is Crypto Taxed in Germany?

Yes, crypto is taxed in Germany under Income Tax rules. If you sell a cryptocurrency for a profit within a year of buying it, then it counts towards your taxable income for the year. There is however, an exception to the income tax rule. If you hold a cryptocurrency for more than a year before selling it for profit, those gains are exempt from any tax.

What is the Crypto Tax Rate in Germany?

Crypto tax rates fall under income tax rules. In Germany anyone who makes under €12,096 (including any crypto profits) pays no tax.

When Does the Crypto Tax Rate Apply in Germany?

The rate you pay on your earnings depends on your tax bracket. 

• Under €12,096: 0%
• €12,097 – €68,429: 14 – 42%
• €68,430 – €277,825: 42%
• Over €277,826: 45%

The variable tax rate means additional earnings are taxed at a higher level.

How to Calculate Tax on Crypto in Germany?

Calculating income tax in Germany is complex and depends on multiple factors including your marital status and whether you have any dependents. If you need further help there are dedicated tax calculators online.

How to Buy NFT in Germany?

Before you can purchase an NFT, you’ll need a secure crypto wallet to manage and store your digital collectibles.

Step 1: Set up a Crypto Wallet

For German collectors the first step to buying a Non-Fungible Token (NFT) is to create a crypto wallet. You can set up a wallet with a software wallet or a hardware wallet, although the latter is the more secure option. We covered how earlier in this article.

Step 2: Buy Cryptocurrency

NFTs can be bought with Euros using a credit or debit card at some galleries, but the more usual way for crypto natives is with cryptocurrency. Solana and Ethereum are popular blockchains for NFTs so these are good choices. 

Every NFT marketplace has its own list of coins it supports. OpenSea supports Ethereum, Polygon, Arbitrum, Avalanche and Base among others. Check the marketplace you are using for a full breakdown of supported cryptos.

Step 3: Choose an NFT Marketplace

There’s a lot of choice when it comes to NFT marketplaces. Some of the most popular include OpenSea, Blur, Magic Eden, Rarible and SuperRare.

Step 4: Browse and Select an NFT

Browsing through an NFT marketplace is a lot like taking a stroll through your favorite art gallery. Take your time, soak it in, and only when you’re ready should you decide to make your purchase. Just click on the artwork that catches your eye to take a closer look.

Step 5: Buy or Make an Offer

Some artworks may be available to buy. If so, you can press the Buy button and select a payment method. 

Other artworks may already be owned by another private collector. In this instance you may be able to place a bid on the NFT, but you’ll need to make your offer sufficiently tempting to persuade the collector to part with it. Good luck!

Conclusion

Crypto adoption is growing in Germany with an ever increasing number of citizens unlocking its potential. Even better, crypto adopters who hold their funds over the long term can avoid paying any taxes on their profits when they sell. But holding crypto on an exchange for any length of time is a very bad idea – not your keys, not your coins. For best in class security and peace of mind, always store your crypto on a hardware wallet such as the Ledger Stax or Ledger Flex.

Frequently Asked Questions about Crypto in Germany

Is Bitcoin Legal in Germany?

Yes, Bitcoin is absolutely legal in Germany and falls under the jurisdiction of BaFin.

Do You Pay Tax on Crypto in Germany?

Yes, you pay tax on crypto profits as part of your personal income tax. If however, you hold a crypto for more than a year before selling it, you pay no tax on the profit of this sale. It really does pay to hold in the German crypto market.

Can You Mine Cryptocurrency in Germany?

Yes, you can mine cryptocurrency in Germany without any problems.

What is the Best Cryptocurrency to Invest in Germany?

That’s a matter of opinion. Popular choices include Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Sui (SUI).

In our series of Country Guides, Ledger Academy walks you through the steps of how to buy, sell, and hold crypto assets safely and securely in various jurisdictions across the globe. We also take a look at other aspects of crypto like NFTs, the regulatory landscape, the state of Bitcoin mining, and any potential tax implications of owning crypto.

For similar guides covering other regions, check out our comprehensive crypto guides for Turkey, Thailand, and India.