Bitcoin (BTC) is the first crypto asset to ever exist and was first described in a white paper in November 2008. Bitcoin is a purely digital asset and, unlike currencies issued by states, is not controlled by any entity such as a central bank or government and is therefore decentralized.
Bitcoin is virtual money, also called cryptocurrency. The underlying technology (especially blockchain, proof-of-work and cryptography) makes Bitcoin counterfeit- and fraud-proof. Trust among transaction participants is no longer necessary. The mechanisms and decentralized organization of Bitcoin prevent an individual or small group from gaining control and effectively banning Bitcoin, for example, or simply "printing" more Bitcoin.
There are no physical Bitcoins, only units documented on the Bitcoin blockchain, which - along with all Bitcoin transactions - are verified for authenticity and accuracy through elaborate calculations and can be transparently viewed and verified by any person.
Although the Bitcoin monetary system has only been in operation since 2009, it is very popular. Today, many millions of people, publicly traded companies, and even nation-states around the world put their trust in Bitcoin. Bitcoin's success has inspired the creation of other virtual currencies (so-called altcoins).
Ethereum is an open-source blockchain that includes the native and second largest cryptocurrency by market capitalization, Ether (ETH). Ethereum aims to enable the creation, management and execution of smart contracts (see Smart Contract).
Based on this blockchain, there are now a large number of so-called DApps (decentralized applications), which, unlike normal apps, are not stored and verified on a single device but in a network of machines. One branch within DApps is the financial sector, which is known as DeFi (Decentralized Finance) and enables innovative decentralized financial services.
Dogecoin (DOGE) is a peer-to-peer, open-source cryptocurrency and the first and most popular "meme" coin. The founders created the cryptocurrency in 2013 as a joke or non-serious project. Despite its satirical nature, some consider the cryptocurrency a legitimate investment opportunity. Dogecoin features the face of the Shiba Inu dog from the meme "Doge" as its logo and namesake. Since its inception, an online community developed around the cryptocurrency, which reached a market capitalization of over $85 billion US on May 5, 2021.
The underlying technology is derived from the crypto asset Litecoin. Special features of Dogecoin include its low price and unlimited supply.
Crypto assets are exempt from VAT in Germany. For the wallets as such, the full VAT rate of 19% applies.