July 14, 2020

Market News

The big test for the Stuttgart Digital Exchange (BSDEX)

Investors who want to invest in Bitcoin quickly get to the offers of the established CFD brokers and crypto exchanges. Most of these impress at first glance with an extensive and attractive range. However, they often have disadvantages: they are hardly or not regulated at all and are based abroad. The Stuttgart Digital Exchange (BSDEX) goes different ways here and delivers quality and reliability according to German standards.

Intuitive platform meets high quality

Investors have been able to trade on the BSDEX Bitcoin since September 2019. The trading venue fulfills the regulatory requirements of Section 2 (XII) of the Banking Act. The user-friendliness was also convincing in the test.

To this day, the Stuttgart Stock Exchange is a constant when it comes to innovations in the financial sector. One of these innovations is the Stuttgart Digital Exchange. As a banking partner, solarisBank takes care of the processing of payments and the safekeeping of customer funds in euros. Each user receives a free BSDEX clearing account, which is covered by the statutory deposit guarantee scheme in Germany.

Advantages and disadvantages of BSDEX:

+ Easy registration

+ Börse Stuttgart Group brings experience

+ Transparent and affordable fees between 0.2 – 0.35%

+ Free clearing account

+ Free deposits and withdrawals in euros and BTC

+ Excellent customer support

– Margin trading currently not possible

– Only tradable EUR / BTC

BSDEX convinces with transparency and reliability

The reliability of a platform is of particular relevance for Bitcoin investors, because trading the coins should be simple and smooth. What is particularly remarkable about BSDEX is that there is the necessary transparency in all relevant categories.

In addition, the trading center is professionally set up with the Baden-Württembergische Wertpapierbörse GmbH as operator. The technical operation is carried out by Boerse Stuttgart Digital Exchange GmbH, a joint venture between the Stuttgart Stock Exchange, Axel Springer and Finanz.net.

EUWAX AG, a subsidiary of the Stuttgart Stock Exchange, donates liquidity to BSDEX and provides buying and selling prices. Blocknox GmbH, which also belongs to the Stuttgart Stock Exchange, takes care of the free storage of BTC in trust.

This is how the Stuttgart Digital Exchange works

Now that we have covered the basic properties of BSDEX, we would like to go into more detail about the first-time registration and the first steps into buying Bitcoin.

Registration with the BSDEX

Before you can use the Stuttgart Digital Exchange trading venue, you have to register once. The process is very simple and understandable. As a user, all you have to do in the first step is to enter your first and last name, your email address and a password. Then you have to accept the mandatory terms and conditions and the data protection declaration of the Baden-Württembergische Wertpapierbörse GmbH. Just a few seconds after the data was confirmed, the confirmation email arrived, which is necessary to continue the registration. Click on the link in the mail to go directly to the registration area. With your previously assigned login data, you will be taken directly to the BSDEX dashboard.

Complete verification

Once you are on the dashboard, you need to verify your identity. Clicking the corresponding button takes you to the KYC process. Here you have to state your citizenship – it is mandatory to be an EU citizen.

BSDEX registration

You must also provide your date of birth and your tax number. Then confirm the terms and conditions and data protection declarations of the companies involved.

BSDEX registration

In addition, the BSDEX must carry out some queries to record the investor's level of knowledge. Finally, indicate whether you have a valid ID document with or without an address for video identification. If your ID document does not list an address, you will also need a current invoice in your name.

The Stuttgart Stock Exchange Digital Exchange uses the IDnow service for verification. Accordingly, users can choose between app-based verification and the alternative in the browser. During verification, you must have your ID document checked and confirm that you are acting on your own account and responsibility. The employees also check your personal data and send you a PIN to confirm your legitimation.

Once you have gone through the process, you can access your new BSDEX account after a few seconds.

Explore the BSDEX dashboard

After registration, the dashboard of the BSDEX can be used. In particular, investors who have already gained experience with other crypto trading venues can look forward to the simple and manageable design.

Even beginners can find their way around quickly – in addition, the FAQ is particularly well thought out. In our opinion, the FAQ contains all important points and is written very understandably. However, if your own problem is not solved here, you can contact German support.

We took advantage of this opportunity for testing purposes and can state that the employees are very friendly and helpful – we already knew this from the support team at Stuttgart Stock Exchange.

In the dashboard itself, investors can find their wallet, current market data and a separate mask for transactions. Only the currency pair BTC / EUR is currently listed. For technical analysts, the trading area also offers some indicators and various display options.

Make your first deposit

In the dashboard you will also find a simple overview of your current balance on the clearing account and the amount invested in the wallet at a glance. By clicking on "Deposit" you can transfer money directly to your clearing account and deposit euro credit. You can also transfer BTC to the integrated BTC wallet.

The daily limit for a transfer is 20,000 euros. You can transfer up to 200,000 euros per month – these generous limits should not be a particular restriction for ordinary investors.

It is a pity that there are currently no further options for depositing investment capital. It took around two days for the first money to buy bitcoin to be credited. If you want to regularly invest in the cryptocurrency, you should always have enough capital in your account to trade short-term price movements.

Buy real bitcoins

In addition to the integrated account, you can also buy Bitcoin directly. Clicking on Trade – this function is in your wallet – takes you directly to the Trading Room. Here you can see the current price for BTC, the change compared to the previous day, the daily highs and lows and the amount of BTC traded. Below the chart you will find a well represented mask for buying and selling BTC.

BTC trading at BSDEX

You can carry out your purchase or sale as a limit, market or stop order. Basically, trading by limit order is recommended, since a market order is simply executed at the currently valid price. However, if you want to ensure that your order is executed immediately, the market order is an interesting alternative. With the market order, you only have to specify the net amount to be invested. The gross amount that must be in your account includes the net amount and the transaction fee.

In general, the transaction fees at the Stuttgart Digital Exchange are very fair. The maker fee is 0.2% and the taker fee is 0.35% of the order volume – the transaction fee is at least EUR 0.01.

Once you have placed your order, it will be displayed in your overview of the open orders. As a rule, this is only relevant for a limit order, since experience has shown that market orders are executed immediately. For traders, there are numerous technical indicators in the chart area. However, there is currently no margin trading, so other platforms are the better alternative.

Conclusion on the BSDEX trading venue

The BSDEX has created an interesting offer for Bitcoin investors. A round end product has been created, which can be optimized in some corners. So a function for margin trading would make sense from the perspective of traders. Alternative payment methods would also add meaningful functionality to the account.

Above all, the good presentation stands out positively. The complete account is easy to manage even for a beginner. The coins can be stored on the integrated wallet. In addition, the deposit in euros is covered by the statutory deposit guarantee scheme. Overall, we can recommend the BSDEX as a platform for buying Bitcoin.