Bitpanda GmbH, commonly just referred to as Bitpanda, is an Austrian-based company that provides a trading platform for cryptocurrency exchange, commodities and securities trading, and ETFs. It is headquartered in Vienna but also has an office in London that was opened in 2018. It has also announced plans of opening an office in Berlin.
Bitpanda was founded in 2014 and it has since tremendously grown. In 2021, it achieved a valuation of over $4 billion after conducting the second funding round in August which raised $260 million. It has over 2.7 million customers around the world.
In 2020, Bitpanda conducted its first funding round where it raised $52 million. Then in early 2021, it partnered with Visa to launch a credit card to allow people to pay for goods and services using cryptocurrencies and commodities.
Initially, Bitpanda only allowed cryptocurrency trading but it later in 2019 launched trading in precious metals and in April 2021, it launched trading in securities.
How it works
Bitpanda is a cryptocurrency exchange that also allows stock, ETFs, and commodities trading. Besides its wide selection of cryptocurrency offerings, it also has a wide selection of stocks and ETFs and fractional share trading that allows users to buy as less as 1 euro of a stock.
Bitpanda has a native cryptocurrency called Bitpanda Ecosystem Token (BEST) which it uses to reward investors. It also has iOS and Android apps that allow customers to use the platform on Apple and Android devices.
Customers can store their cryptocurrencies in a digital wallet on Bitpanda’s platform. Additionally, customers in countries that have adopted the euro can use the Bitpanda Visa card and earn crypto rewards on spending cryptocurrencies on paying for services and goods.
It offers trading discounts and other perks for investors who hold the BEST utility token.
Key features
Some of the key features you will come across when using Bitpanda include its simplistic trading platform, its downloadable mobile trading applications, three types of trading accounts, and the Bitpanda Visa card.
Though limited in the services and features it offers, the Bitpanda trading platform is very simple to use making it a go-to for crypto beginners. The platform only allows for exchanging fiat currency for cryptocurrency and vice versa and does not have chart tools.
Besides the web-based trading platform that can also be used on mobile devices, Bitpanda offers downloadable iOS and Android applications.
When it comes to account types, Bitpanda offers three types of trading accounts each with different limitations and levels of verification requirements.
There is the starter level account that only requires users to verify their email and has daily buy/sell limits of 1,000 EUR, monthly buy/sell limits of 7,500 EUR and total buy/sell limits of 30,000 EUR.
Then there is the Bronze level account that requires users to verify their email and phone number and has daily buy/sell limits of 1,500 EUR, monthly buy/sell limits of 10,000 EUR and total buy/sell limits of 50,000 EUR.
Lastly, there is the Gold level account that requires users to verify their account with a photo of a government-issued ID which is confirmed with IDNow or through video using verify-U and has daily buy/sell limits of 15,000 EUR, monthly buy/sell limits of 300,000 EUR and total buy/sell limits of 1,500,000 EUR.
The Bitpanda Visa card is available for customers in countries that have adopted the euro. The card is fee-free and it offers between 0.5% and 2% in rewards on spending. Visa Card users can choose which asset to use for payments.
BitPanda’s pros and cons
Pros
- Bitpanda offers more than just cryptocurrency exchange. It offers crypto index funds, stock trading as well as commodities trading.
- It has a very user-friendly trading platform that makes it easy for beginners to onboard the crypto space.
- Bitpanda also offers great educational resources through the Bitpanda academy.
- It has a visa card that allows customers to use their crypto holding in paying for goods and services.
- It allows customers to buy crypto using fiat currency.
- It also allows customers to make their withdrawals in fiat currency.
Cons
- The Bitpanda trading platform has limited features since it does not offer charting tools.
- The Bitpanda Pro platform has a very limited range of tradeable cryptocurrency assets.
- Bitpanda is a European-focused crypto exchange and it currently only accepts users from certain European countries, including the UK, France, Germany, Spain, Switzerland and the United Arab Emirates. But US residents cannot use the platform.
- While most crypto exchanges do not charge fees for crypto deposits, Bitpanda does charge a deposit fee through it waives it for deposits that surpass a certain amount.
Why you should use BitPanda
Bitpanda is regulated by the MiFID II investment firm and PSD2 payment institution making it a trustworthy crypto exchange. It is also fully compliant with AML5 meaning funds are well secured.
Its trading platform is extremely easy to use even for newbies. In addition, it only takes minutes to get started. All you need is to go to their official website, sign up for free, verify your identity depending on the account level you want, deposit funds and start trading.
You can also diversify your investment with Bitpanda since it allows customers to invest in more than cryptocurrencies. Customers can choose to also invest in crypto, crypto indices, stocks, ETFs, and metals.
Final Verdict
Bitpanda is good crypto and stock trading platform for investors of all levels. It takes care of both beginners and experienced traders by offering a simplistic trading platform
However, it is currently focused on European investors with the exception of investors from the United Arab Emirates who are also allowed to invest using the platform. This alienates investors from other regions around the world including investors from the US.