Bitpanda Review: Low Fee Trading on Various Assets, Including a Cryptocurrency Index Fund
Bitpanda is a cryptocurrency broker based in Europe that also trades stocks, exchange-traded funds (ETFs), and commodities. The United States, alas, do not stock it, nor do they import it. The site is notable for the cheap fees it charges, the crypto index fund it offers, and its user-friendly layout. You should read our comprehensive assessment of Bitpanda to see whether or not this platform is suitable for you.
Full Bitpanda review
European investors who wish to handle all of their assets in one location are the ideal customers for this bitcoin broker.
Pros
• Cryptocurrency-based index fund
• Engages in the trading of commodities and stocks
• Extremely user friendly
• A wealth of useful academic resources
• Bitpanda Visa card
• Very reasonable costs
Cons
• Unobtainable in the United States
• There are no components that can earn you interest.
• Bitpanda Pro only offers a limited selection of crypto assets
Reliability
Although BitPanda is not a regulated exchange, the company maintains a very high level of credibility and, since its inception in 2014, has received very few, if any, customer complaints. The cryptocurrency exchange known as BitPanda has never been the victim of any kind of hacking or theft of assets, and the vast majority of its users have nothing but positive things to say about the company. Additionally, in 2016, the exchange was recognized with an award for being a prosperous startup company.
Buying and Selling Platforms
The trading platform that BitPanda makes available to its customers is extremely basic and restricted in the range of services and capabilities it offers. The platform can, in essence, only be utilized for the purchasing and selling of cryptocurrencies at the price at which they are currently being traded. The sole activity that can take place on the platform is the trading of fiat currency for bitcoin and vice versa. Traders. The site is not used for examining charts or data related to the market; rather, it is utilized solely for the purchasing and trading of cryptocurrency. Having said that, the trading interface is quite well designed and intuitive to operate. BitPanda does a great job of offering newbie cryptocurrency investors with an easy-to-use interface for buying and selling cryptocurrencies.
BitPanda Mobile Trading
BitPanda does not offer a mobile application that can be downloaded to a user’s mobile device; however, because the trading platform is web-based, both the platform and the website can be accessed through mobile devices. The whole trading platform, as well as the website, has been thoroughly optimized for use on mobile devices, including smartphones and tablets. However, the desktop version of the platform is simpler to use, and the mobile version does not even have access to as many functions as the desktop version does.
Top rewards
Because it simplifies the trading of a wide variety of assets, Bitpanda has a lot to offer investors in European countries. The following is a list of some of the significant benefits offered by the platform:
A cryptocurrency index fund
Bitpanda not only provides customers with access to a reasonable selection of cryptocurrencies but also three different types of cryptocurrency index funds. These are compiled of the five, ten, or twenty-five cryptocurrencies with the highest market capitalization, and they make it simple for European investors to diversify their cryptocurrency holdings without requiring them to buy each coin or token separately. The fact that this is a hassle-free way to hold top cryptocurrencies is one of the reasons why I think this is one of the most enticing parts of the site.
Also engages in the trading of stocks and commodities.
In addition to cryptocurrencies, Bitpanda deals in stocks, exchange-traded funds (ETFs), and commodities such as gold and silver. Because of this, it is an excellent choice for investors who want to manage all of their investments in a one location and make certain that cryptocurrency is included as part of a diverse portfolio. In addition, clients can effortlessly trade one item for another of equal or greater value.
Extremely user friendly
The user interface of Bitpanda is really simple and straightforward. Every component of the platform, from the “know your customer” (KYC) authentication to the trading, gives the impression of having been carefully considered and is simple to operate. The information on the fees is both understandable and open. Bitpanda’s mobile apps follow the same pattern as those of its competitors.
The Bitpanda academy is home to a wealth of material that is helpful to investors of all stripes and is organized hierarchically. For instance, novice investors could be interested in learning how blockchain technology operates and what a cryptocurrency wallet is used for. Articles categorized as intermediate discuss topics such as smart contracts and consensus models. Investors will have the opportunity to test their knowledge with a 15-question exam at the conclusion of each lesson.
Bitpanda Visa card
The Bitpanda Visa card is open to applications from residents of nations that have transitioned to using the euro as their primary currency. This debit card has no annual fee and pays rewards on spending ranging from 0.5 percent to 2 percent of the amount spent. It is simple for users to spend cryptocurrencies because they are able to select whatever assets they want to utilize for transactions. However, it is important to keep in mind that spending bitcoin may not be the best strategy for long-term investors who buy and hold.
What aspects could use some work?
It is not available in the United States.
Austrian-based Bitpanda is a cryptocurrency exchange with a focus on the European market. At this time, registrations can only be processed from users located in specific European countries, such as the United Kingdom, France, Germany, Spain, and Switzerland. Residents of the United Arab Emirates are eligible to submit an application as well. This platform is not available to anyone living in the United States.
Bitpanda Pro only supports a limited number of crypto assets.
Bitpanda provides two different trading platforms, one for novice traders and the other for more experienced traders. The Pro platform has cheaper fees than the standard platform, but it only has a restricted number of cryptocurrencies to choose from. The majority of these can only be traded for euros and cannot be traded with any of the other currencies listed here. Customers of the basic platform, on the other hand, have the ability to trade cryptocurrencies for equities or commodities and vice versa.
Crypto deposit fees
The vast majority of platforms do not charge a fee for users to deposit cryptocurrency, which is convenient given that users typically have to pay a fee in order to withdraw their funds. The costs aren’t too bad, and if you deposit more than a specific amount, Bitpanda will even waive them for you (which varies per crypto). On the other hand, it would be preferable if this price were completely done away with.
Possible alternatives to think about
If you are looking for a cryptocurrency broker that operates in the United States, you should know that SoFi Invest offers many of the same features as Bitpanda. These features include the ability to trade stocks, ETFs, fractional shares, and cryptocurrencies. If you wish to manage a diverse portfolio in a single location and it trades more than 30 different cryptocurrencies, you should give it some consideration.
If you are looking for a cryptocurrency platform that is situated in the United States and provides free cryptocurrency deposits and withdrawals, Gemini is a popular pure cryptocurrency exchange. It does not sell stocks or any other types of investments, but it does list a large variety of cryptocurrencies. It is one of the very few exchanges that will let you withdraw a predetermined amount of crypto for free on a monthly basis.
The operation of BitPanda
In addition to dealing in cryptocurrencies, Bitpanda is a broker that deals in equities, exchange-traded funds (ETFs), and commodities such as gold and silver. It offers a diverse range of stocks and exchange-traded funds (ETFs). In addition to that, it provides trading in fractional shares, which enables investors to purchase as little as one euro’s worth of a company. Customers that use dollar cost averaging are able to set up recurring purchases, which is another option. Because I have a recurring buy scheduled for one of the index funds, I will be able to acquire cryptocurrency at predetermined intervals on its own. Bitpanda also has its own native token, known as the Bitpanda Ecosystem Token, which it uses to reward investors (BEST).
Bitpanda does not maintain its own private cryptocurrency wallet at this time. On the other hand, it does support the sending and receiving of cryptocurrencies among its users. This distinguishes it from other other cryptocurrency brokers. Both the iOS and Android versions of its Bitpanda software have received high ratings: 4.8 and 3.5 stars, respectively.
Bitpanda also provides certain users with the ability to spend their cryptocurrency by allowing clients who reside in countries that have embraced the euro to apply for a Bitpanda Visa card. This debit card not only makes it simple to spend cryptocurrencies and other assets, but it also awards users with cryptocurrency for their spending. Be aware that there may be tax repercussions associated with the spending of cryptocurrency and other assets. Buy-and-hold investors who do not like to use their investments for day-to-day spending might instead top up their holdings with fiat currencies if they do not want to use their investments.
Fees overview
Trading fees on Bitpanda are comparable to those of some of the cryptocurrency exchanges that offer the best value, particularly on the sophisticated trading platform. In addition to this, it provides investors who hold the BEST utility token with discounts on trades as well as other benefits. The trading, deposit, and withdrawal fees are all broken down here for your convenience.
Transaction costs
Both advanced and novice traders can use the trading platforms provided by Bitpanda. The cost of using the basic trading platform is higher, but it is simpler and easier to use for novice traders. It has a cost of 1.49%, which is already factored into the price that you see. A transaction fee of 2.98 euros would need to be paid on the basic platform if you wanted to purchase Bitcoin (BTC) worth 200 euros.
By utilizing the Bitpanda Pro platform, experienced traders are able to lower the fees associated with trading. The maker and taker fees can reach a maximum of 0.1% to 0.15% here. On the Pro platform, the highest that it would cost to purchase an amount of Bitcoin equal to 200 euros would be 0.30 euros. When there is a greater volume of trades, pro fees are decreased. The difference in fees stems from the fact that Pro customers are able to trade at market prices, but the standard platform only provides a price guarantee for 60 seconds.
Deposit and withdrawal fees charged in fiat currency
It is quite simple to deposit fiat money using a bank transfer, credit card, debit card, or any of the other available options on Bitpanda. The user interface is unambiguous, and the fees are presented in a way that is open and simple to comprehend. The minimum deposit of fiat cash ranges from about 25 euros to 50 euros, depending on the currency.
Fees charged for deposits and withdrawals of cryptocurrency
The fact that Bitpanda levies fees on cryptocurrency deposits sets it apart from other exchanges. The majority of exchanges provide this service at no cost to their customers. The charge is not exorbitantly high and is typically somewhere about $5. However, considering the fact that you will typically be required to pay a fee in order to withdraw it from the initial place, the additional cost should be taken into consideration.
If you deposit more than a particular quantity of cryptocurrency, you won’t have to pay the cryptocurrency deposit charge. Although the minimum varies from cryptocurrency to cryptocurrency, the fee-free level is typically somewhere around $150. Avalanche (AVAX), with a minimum of about less than ten dollars, and Bitcoin, with a minimum of approximately two thousand dollars, stand out as notable exceptions.
The fees required to withdraw funds from Bitpanda are also different for each cryptocurrency. This is due to the fact that different cryptocurrency networks impose unique fees on transactions. When you remove cryptocurrency from your Bitpanda account, the fees might range anywhere from a few cents to more than fifty dollars.
Commissions and Spreads both play a role.
Although BitPanda does impose transaction fees, these costs are not made abundantly evident when one goes to buy or sell cryptocurrencies. The fees are already factored into the price, although they change based on the type of payment option that is used. On the other hand, they charge an average of about 5% for each transaction. You can easily determine how much you are paying in fees by comparing the exchange rate offered by BitPanda to that offered by BitStamp. The difference between the two rates is the fee that is built into the price offered by BitPanda.
Bonuses and Special Offers
Unfortunately, BitPanda does not provide any sort of benefits or promotions to its users in exchange for using their site. It would appear that BitPanda attracts a sufficient amount of attention and customers as a result of the fact that it is one of the most user-friendly and accessible places in Europe to buy and sell cryptocurrencies.
Assistance to Customers
BitPanda makes use of a support ticket system, which requires customers to fill out an online form before it can be emailed on to the company’s support specialists. This kind of support is pretty quick and is available at all times of the day and night. The website provides customer service via email, but it also features a help center where traders may examine queries and their solutions that have been neatly grouped under various subjects. Traders can access this center by clicking on the “Help” tab on the website.
The Good and the Bad
Pros
• A very high degree of liquid assets
• An intuitive user interface
• A diverse selection of options for deposits and withdrawals
• Transactions with fiat currencies, including deposits and withdrawals
Cons
• There is a mandatory requirement for verification for withdrawals
• A limited selection of assets denominated in bitcoin that can be traded
• There is not a sophisticated trading platform.
• Fees that are somewhat high in comparison to those of certain other exchanges.
Alternative cryptocurrencies to consider.
Bitpanda offers a good variety of coins and tokens because to the fact that it supports more than 150 different cryptocurrencies. It provides a list of the majority of the top 20 cryptocurrencies in terms of market capitalization, including Bitcoin, Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Cardano (ADA), and Solana (SOL). Additionally, it engages in the trading of many stablecoins, including Tether (USDT) and USD Coin (USDC).
It is important to note that the variety of cryptocurrencies offered by Bitpanda Pro is more restricted, and the platform also offers fewer trading pairings. On the more complex platform, there are a lot fewer cryptocurrencies available, and the majority of them can only be coupled with euros as opposed to any other cryptocurrencies.
Index of Bitpanda’s Crypto Assets
The Bitpanda Crypto Index is undeniably one of the most fascinating aspects of the platform as a whole. Bitpanda provides investors with access to three different cryptocurrency index funds, each of which is rebalanced once every month to reflect the state of the market.
• BCI5: This index consists of the five cryptocurrencies with the highest market capitalization. Approximately 70% of the fund is comprised of Ethereum and Bitcoin.
• BCI10: This fund invests in the top 10 cryptocurrencies based on market capitalization. Ethereum and Bitcoin account for approximately 60% of the fund’s total value.
• BCI25 is the most varied index fund because it holds 25 different cryptocurrencies. Ethereum and Bitcoin account for approximately 35% of the total, whilst lesser-known cryptocurrencies such as Sandbox (SAND), Fantom (FTM), and Chainlink (LINK) each account for less than 2% of the total.
Cryptocurrency index funds can be a useful tool for constructing a diversified investment portfolio. However, investors have less influence over the individual securities in their portfolios as a result.
Is it safe to store your cryptocurrency with Bitpanda?
There is a potential for extreme risk and volatility within the cryptocurrency asset class. Due to the fact that it is a relatively young business that offers less investor protection than other asset classes, it is even more essential to search for platforms that safeguard your interests.
Bitpanda claims that it places a high priority on customer safety and has a number of safeguards in place to protect its users. For instance, it stores assets offline in cold storage, which makes it significantly more difficult for hackers to gain access to them. An independent audit of Bitpanda’s reserves was carried out by the accounting firm KPMG in the previous year. It was discovered that the platform had more than sufficient capital to cover the assets of its users.
Additionally, it provides a number of precautions for the user. Two-factor authentication and the sending of confirmation emails to authorize withdrawals are two examples of these security measures. On the other hand, it would be wonderful to see some more security features added, such as protections against phishing and insurance against third parties. A few of the largest cryptocurrency exchanges have obtained third-party insurance to compensate users for any funds lost in the event that the exchange itself is compromised.
Which nations are supported by the BitPanda platform?
Bitpanda users from all over the world can sell cryptocurrencies and receive rewards through the Single Euro Payments Area (SEPA), NETELLER, or Skrill.
On the other hand, users in Europe who are part of the Single Euro Payments Area (SEPA), which includes the vast majority of countries that are members of the European Union (EU), as well as Iceland, Liechtenstein, Norway, Switzerland, and Monaco, are currently able to purchase cryptocurrencies through Bitpanda.
The following are the supported payment methods on Bitpanda:
Because its primary mission is to simplify the process of buying and selling cryptocurrencies in Europe, Bitpanda supports a wide number of payment methods. BitPanda allows users to trade in EUR, GBP, CHF, or USD.
To be more specific, the following are some of the accepted forms of payment:
• Credit card (Visa, Mastercard)
• SOFORT transfer
• EPS
• Giropay
• Neteller
• Skrill
• Online Bank Transfer
• SEPA
• Bitpanda to go is an interesting solution; nevertheless, it only supports EUR transactions.
SEPA is one of these payment ways, and it takes a day to confirm the payment. On the other hand, transactions and settlements are completed far more quickly using the other payment methods.
FAQ
• Does the government oversee BitPanda?
BitPanda is not a cryptocurrency exchange that is regulated by any of the financial regulatory agencies currently in existence.
• Where is BitPanda’s headquarters located?
BitPanda calls Austria home for its headquarters.
• How does BitPanda generate revenue for itself?
The trading and withdrawal fees that customers are required to pay enable BitPanda to turn a profit.
• What are the steps for making a deposit into my BitPanda account?
Deposits of cryptocurrencies are welcome on the BitPanda exchange, in addition to Euro payments made using Mastercard, Visa, Sofort, EPS, Giropay, Neteller, Skrill, and SEPA transfer.
• How do I go about taking money out of my BitPanda account?
The same methods that are used to deposit funds can also be used to withdraw monies from BitPanda.
• How do I get started with BitPanda by creating an account?
Simply providing an email address and deciding on a password is all that is required to set up an account at BitPanda. After that, you will be needed to provide information that verifies your identity in order to make deposits or withdrawals.
• Is BitPanda reliable?
Yes, many people from different parts of the world put their faith in BitPanda because of its dependability and security.
• Does BitPanda use MetaTrader?
BitPanda does not utilize any third-party trading interfaces; rather, they use their very own uncomplicated one.
• What exactly is leverage in BitPanda?
The greatest leverage that can be obtained with BitPanda’s services is 1:1.
• Is BitPanda a scam?
No. Despite the fact that it is not regulated, BitPanda is not a fraudulent exchange.
• How secure is the BitPanda platform?
BitPanda is a dependable cryptocurrency exchange because it utilizes the most recent encryption software to protect its website from cybercriminals and provides two-factor authentication for user logins and withdrawals.
