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Germany’s capital, Berlin, was dubbed as the Bitcoin Capital of Europe by British publication The Guardian thanks to the widespread acceptance of the cryptocurrency in the city.⁽²⁾ Not surprisingly, Germany is a leader in Bitcoin adoption as various developments suggest. For instance, over 25% of the young Germans surveyed by the German Consumer Center were willing to invest in cryptocurrency.⁽³⁾

A new law passed by Germany’s parliament in April 2021, will allow institutional investment into the cryptocurrency market. Under the legislation, wealth and institutional investment fund managers, known as Spezialfonds (special funds), will be able to invest up to 20% of their portfolio in crypto, allowing as much as €350 billion (~$425 billion) to be invested in cryptocurrency.⁽⁴⁾ Since Germany is a strategic player in the European Union this type of acceptance could occur in other countries. Other signs that show acceptance of cryptocurrencies is Deutsche Bank announcing its intentions to offer custody and brokerage services to its institutional clients by December of 2021.

The new law allows banks to get a license to deal in crypto, but as of October 2022 only 4 licenses have been issued and 14 provisional permits granted. Germany continues to be among the world's most crypto-friendly countries with favorable tax rules and stable regulations.

One of the easiest ways to buy Bitcoin in Germany is through cryptocurrency exchanges. There are several exchanges offering Bitcoin in Germany, allowing you to select one based on your requirements and preferences using our guide. Different exchanges have different transaction fees, withdrawal limits, payment modes, and verification processes that need to be considered before selecting one.

Additionally, Bitcoin buyers need to keep in mind that certain exchanges might require you to get a wallet of your own before being able to buy the digital currency. Even if there is no requirement, it is recommended to have a wallet of your own for security reasons (preferably a hardware wallet). If you don’t have a wallet, refer to our guide on the Best Bitcoin and Cryptocurrency Wallets to choose one.

Another way to buy Bitcoins in Germany is through automated teller machines (ATMs). These ATMs allow users to instantly purchase the cryptocurrency using cash, and most of them don’t require any verification either, thereby ensuring the buyer’s anonymity. You can locate Bitcoin ATMs in Germany using our Bitcoin ATM Map, though there are only three of them available for now in the cities of Berlin, Stuttgart, and Munich.

As far as spending Bitcoin is concerned, we have already seen that the scenario is a positive one in the country as evident from the Tourism Board’s decision to accept payments in Bitcoin. In fact, a closer look suggests that there are quite a few businesses accepting Bitcoin payments in Germany’s major cities such as Munich and Berlin.

In all, Germany has a thriving Bitcoin environment that could get better in the future, assuming that the government takes positive steps toward protecting investors’ interests.

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Call Centre Scam

In October 2021, German and Georgian authorities raided a scam call centre. The fraud ring had set up 6 companies in Georgia targeting people living in Europe. The companies offered various financial instruments, including cryptocurrencies with assurances of a solid profit. Authorities reported that the scheme involved €9.5 million and so far 7 people have been arrested.

Reputable businesses will never call you to solicit buying crypto. To avoid scams, individuals should always use reputable exchanges like those listed above for investing in bitcoin.⁽⁵⁾

Karatbars

Karatbars was a German based cryptocurrency pyramid scheme that enlisted the faces of some of Germany's biggest soccer stars, Lothar Matthäus, Roberto Carlos and Patrick Kluivert to promote its scam.⁽⁶⁾

Here is what the home page of the scam looks like; not exactly something that inspires confidence.

Karatbars would sell what it called "cryptonyzed gold" to prospective affiliates who would then bring in their friends and earn a commission. The coins were allegedly backed by gold bars out of a mine in Madagascar operated and owned by Karatbars.

The company managed to raise $100 million through sales of the coin. The claim was that once so many people owned this crypto, it would revolutionize the economic system.

Unfortunately for Karatbars, German regulators swiftly swooped in and demanded that the scheme be shut down.

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Does Coinbase work in Germany?

Coinbase does NOT support customers in Germany as of September of 2020.

Where Can I Find a Bitcoin ATM in Germany?

You can use our Bitcoin ATM finder tool to find the one nearest you.

How do I cash out of bitcoin in Germany?

Any exchange with a Euro trading pair will allow you to sell your Bitcoin for fiat currency. Bitpanda and Bitcoin.de has EUR trading pairs for many popular coins.