Bitpanda Review 2021 - In This Guide, We Will Take You Through Of How To Invest In Bitpanda
What is Bitpanda?
Bitpanda is a cryptocurrency exchange that’s found in Austria. It is important to note that Bitpanda only offers its services to customers within the European Union.
Bitpanda was founded in 2014, and over the years, the exchange has undergone tremendous growth to become one of Europe’s leading exchanges for buying and selling Bitcoin.
One of the strengths that Bitpanda leverages on is that it has an easy to use and intuitive user interface for the trading of cryptocurrencies.
Aside from the interface, Bitpanda is also a people’s favorite because of the wide variety of payment methods that it has, which makes it easy for traders to buy cryptocurrencies.
Bitpanda was founded by three crypto enthusiasts, Eric Demuth, Christian Trummer, and Paul Klanschek. This founding team was pushed to start Bitpanda after noticing how hard it was for traders in Europe to acquire cryptocurrencies during the 2013 bitcoin wave.
The three set out to work on coming up with an exchange that would serve the people of Europe. It took the team almost a year consulting and putting together the legal frameworks before launching Bitpanda in 2014.
It is important to note that the exchange was first launched as Coinimal in December 2014.
At the time of writing this, Bitpanda had more than one million registered users and more than 160 team members across 37 countries. Its state-of-the-art security systems and streamlined services are some of the factors that have stimulated the massive growth at Bitpanda.
Is Bitpanda safe?
Well, as a trader, this is definitely one of the things that would be of great concern to you as you decide on the exchange to use. So, is Bitpanda secure?
Yes, it is safe to trade with Bitpanda. The team behind Bitpanda has made security of the platform to be one of their main priorities. One of the reasons why we find Bitpanda to be secure is that it relies on state-of-the-art technology to ensure the safety of its transactions.
All transactions carried out on Bitpanda are encrypted during transmission. It is important to note that Bitpanda enhances its security by storing all funds in secure offline wallets.
Additionally, Bitpanda provides a cold storage for cryptocurrencies which is one of the most secure methods of storage.
In simple terms, this means that all the private keys generated by the Bitpanda wallet are stored in an offline environment. This ensures that they cannot be compromised in any way by a third-party.
2-tier Verification system
This feature helps to boost the exchange’s usability. It has a 2-tiered verification system i.e., non-verified accounts and verified accounts.
Who is Bitpanda For?
This is an exchange platform for everyone within the EU that wishes to HODL or actively trade cryptocurrencies present on the platform. Using the various trading services that Bitpanda provides, even crypto whales can use it to trade.
For you to actively trade on Bitpanda, you first have to sign up on their website. Once you’ve provided all details and an account is opened, you can then deposit funds and start trading. Verification on Bitpanda is made easy, which ensures that you can trade on any digital asset anytime you want.
As with all other functions on the Bitpanda website, trading is also a straightforward process. To buy or sell a cryptocurrency, click on the “trade” button once you’ve logged in, and then select ‘buy.’
You can then proceed to choose the cryptocurrency that you wish to buy, input the quantity you want to purchase, and finish the process by clicking ‘buy now.’
If you want to sell, you will first click on the trade button and then proceed to click on the ‘sell’ button. The next step is for you to select the cryptocurrency you want to sell, what amount and the fiat wallet, and then click on the “sell now” button.
The trading platform offered by Bitpanda is quite simplistic and limited in terms of features that it has. You can only use the platform to buy and sell cryptocurrencies, or exchange fiat for cryptocurrencies.
It is important to note that Bitpanda recently launched Bitpanda Pro in collaboration with TradingView’s charting solutions. This has made it possible to offer virtual trading charts.
It is important to note that the TradingView’s charts are widely used by thousands of trading websites and millions of traders across the globe.
This feature is designed for those traders that wish to increase their trading limits beyond the set default limits. To access this service, you will have first to fill up some forms, and the platform will get back to you on the same.
Some of the details that you will have to submit for the Bitpanda plus include your name, nationality, expected volume for your first trade, verification status, email, and phone number.
If you wish to carry out a trade that exceeds a quantity of one million euros, you can use the Bitpanda OTC. The OTC service is customized to suit every customer. You will be required to fill out the same form as for the Bitpanda plus.
One feature that makes Bitpanda a great exchange for most traders is that it provides a huge range of payment options. You can use online payments such as
Bitpanda is one of the few exchange sites in Europe that allow traders to buy cryptocurrencies using credit cards. For credit card purchases, Bitpanda allows a higher trade limit of €2500 to €10,000.
- Visa debit/credit card
- Mastercard debit/credit card
Or you can use the old deposit way with a online bank transfer
- SEPA – Regular bank transfer for customers from the European Union. Please note that the transfer can take between 2-3 business days.
- EPS – Online bank transfer for customers in Europe with an Austrian bank account. The payment is processed immediately.
- GIROPAY – Online bank transfer for customers in Europe with a German bank account. The payment is processed immediately.
- Ideal – Online bank transfer for users with a bank account in the Netherlands. The payment is processed immediately.
- SOFORT- Online bank transfer for users from Europe. The payment is processed immediately.
Bitpanda To Go
This is a service on Bitpanda that makes it possible for customers to buy cryptocurrencies using cash. With Bitpanda To Go, you won’t have to transfer money to your Bitpanda account, and this makes it very convenient if you do not want to incur the bank or credit transaction fees.
To use Bitpanda To Go, visit one of their posts, and buy a voucher code for the amount of Crypto you wish to purchase. You can find a branch near you from the Bitpanda website.
With the code, you can redeem any cryptocurrency that you are interested in. There is no verification required to use Bitpanda To Go as the amounts involved are small; all you will need is an email address.
Fees for buy & selling cryptocurrencies
It is important to point out that the fees on Bitpanda are somewhat high because it uses third-party payment services that charge more fees. The exchange charges 1.49% for buying cryptocurrencies and 1.29% for selling.
It is important to note that these fees are already included in the price of the digital asset you want to buy, and the exchange provides a real-time update of the prices you will pay.
Deposit fees for fiat currency
It is worth to notice the fees on deposit fees is from 0% to €1 + 3.60%. We have listed below each deposit options fees.
- SOFORT – 1.99%
- SEPA – FREE
- Visa – 1.50%
- Mastercard – 1.50%
- EPS – incl. € 0.25 + 2.00% Fees (Max: € 2.00)
- GIROPAY – incl. € 0.25 + 2.00% Fees (Max: € 2.00)
- Ideal – €0.30
- Neteller – €0.90 + 3.60%
- Skrill – €1 + 3.60%
- Bitpanda to go – 2.99%
Non-verified vs Verified Accounts
For these accounts, owners can receive crypto deposits and trade in Crypto while only paying small transaction fees. Traders can also withdraw fiat currency, but the withdrawals are of low daily value limits.
If you wish to enjoy the full range of Bitpanda’s benefits, then you can choose to verify your account. The verification process is short, and you will only have to verify your identity.
However, it is essential to point out that a third-party partner conducts the verification process, and you will have to do a video verification.
The video verification can be inconvenient, uncomfortable, and may feel like an invasion to your privacy.
Features of Bitpanda platform
Bitpanda provides an online wallet that allows traders to trade and store their cryptocurrencies on the platform. You will get access to the wallet immediately you make your first purchase, and from then henceforth, you can use the wallet to store and transfer fiat and crypto-assets.
However, it is important to point out that online wallets are not secure, and as such, you are advised only to hold some currencies of fiat there if you plan on making a trade. Your crypto and fiat assets are more secure if they are stored in a cold storage wallet.
In terms of security, the wallet is only accessible through the web browser, that’s SSL encrypted. The wallet also allows you to activate two-factor authentication to beef up the security of the wallet.
Additionally, Bitpanda’s online wallet is integrated with SegWit (segregated Witness) to help eliminate the possibility of some recipients intercepting and modifying transactions initiated by the sender, so that they can get more coins.
With the Bitpanda savings, you can invest automatically on digital assets without having to watch the market.
If you wish to diversify your investment portfolio, this service will suit you. It allows you to invest in metals such as gold, palladium or silver.
This service provides you with a secure way to exchange one digital asset for another, for example, Gold with Crypto. There is no set limit for the swaps in terms of transaction size.
The Bitpanda Ecosystem Token, otherwise referred to as BEST offers you with great rewards and benefits for being a member of the Bitpanda ecosystem. Once you invest in BEST, you will start receiving a 25% reduction on the trading premiums and other rewards that Bitpanda will create.
Bitpanda has its own app that provides all the features found on its website. You can use it to store fiat currencies and cryptocurrencies. It supports more than ten payment methods, which makes it quite convenient. The app is available for android and iOS users.
The Bitpanda Pay service allows Bitpanda users to pay bills using funds in their account. You can pay rent, shop, or send money to friends within the European Union and beyond. Bitpanda Pay is provided by the Bitpanda Payments, which is regulated under the regulation PSD.
What countries is Bitpanda available in?
As we’ve already indicated, Bitpanda is only available to people living within the European Union and the United Kingdom. Here’s a list of the countries where Bitpanda can be accessed.
- Czech Republic
- United Kingdom
Bitpanda has not announced any plans to expand its operations into the USA or China. Though this limits their operations, it is an important decision.
It gives Bitpanda the chance only to serve a demographic that it has a good understanding of, rather than expanding services to several countries across the world and sacrificing quality services in the process.
Bitpanda provides highly competent and fast support for its traders. The exchange utilizes a support ticket system where users fill out a form that’s sent to the customer care team via email.
The ticket system is fast and can be accessed 24/7. Bitpanda also provides a FAQ section on their webpages that answers most of the questions that customers commonly ask.
There are several bitcoin and other crypto exchanges in the market within Europe. But the number of exchanges that are easily accessible, affordable, and highly secure, is limited.
Bitpanda falls in the minority group of the exchanges that are secure, accessible, and well-managed. However, due to its high fees, it is not certain whether Bitpanda will be able to remain at the forefront of the cryptocurrency revolution across Europe.
Nonetheless, Bitpanda is an excellent option for you to invest in. Generally, Bitpanda is a highly credible exchange platform and which may not fail anytime soon. We strongly recommend it for your crypto and fiat investments.