A lot has happened since our last review of Bitpanda. Since last time Bitpanda has received two major funding rounds by VC’s which have increased their valuation to a whooping 1.2 billion and consequently Bitpanda has become the first unicorn of Austria.
After this was announce in March 2021 another series-c investment round was announced at 16th of August where Bitpanda received $253 mio. putting Bitpanda at a $4.1 valuation. These investment rounds are going to help Bitpanda to grow to become the biggest neo-brokerin Europe.
Besides increasing their user base to 3 million users, Bitpanda has added tokenized stock to their tradable assets on the platform to reach a wider audience and thereby pursue becoming the leading neobroker of Europe.
In this review we will take a deep dive into the following topics:
- Tokenized stocks, cryptocurrencies and metals
- Products and features
- Trading platforms for web and mobile
- Trading fees, limits
Let’s dive in!
Bitpanda was founded in Vienna, Austria by Eric Demuth, Paul Klanshek and Christian Trummer in 2014. Over the past years Bitpanda has evolved from being a DACH region focused company into being a serious player in Europe for crypto enthusiasts.
Recently Bitpanda received funding from VC firms led by Peter Theil, where Bitpanda first received $50 million and later on $170 million dollars in a series B funding round. This funding round has the primary object of expanding Bitpanda’s reach into becoming the go to investment platform in Europe. This is emphasized with the recent product update where Bitpanda launched Bitpanda Stocks which can be seen as the first step into becoming a Neo broker and capturing more traditional investors.
Bitpanda started as a cryptocurrency company making it easy for everyone to buy bitcoin and other cryptocurrencies. Making purchases of Bitcoin easy and accessible to everyone is the core of Bitpanda. Bitpanda’s products are built with the user in mind and they want to “break down the barriers of traditional finance” so that everyone can invest.
Bitpanda has later on added precious metals and most recently tokenized stocks which lowers the entry to the stock market by offering their user to buy a fraction of a stock.
The wide range of investment products provides the Bitpanda user with a way to diversify their portfolio and thereby lowering their risk.
Bitpanda is continuing to add cryptocurrencies to their platform and where you can buy Bitcoin, Ethereum, Cardano, Ripple, Dogecoin and many many more. You will be able to buy more than +50 different cryptocurrencies and they usually add the ones that are hyped quite quickly.
If you don’t know what crypto to buy but you seek exposure to cryptocurrencies in general then Bitpanda offers 3 crypto indices which hold 5, 10 and 25 of the most valuable assets in the crypto market. These are called BCI5, BCI10 and BCI25.
The Bitpanda indices can be seen as a basket of cryptocurrencies which gives the holder a wider exposure to the crypto markets.
You can learn more about the Bitpanda Crypto Index here.
In traditional investment Gold is often seen as a safe haven. When all other markets seem to stumble then investors flock into Gold. Bitpanda offers their users to buy Gold if they are hit by fear, uncertainty and doubt (FUD). You will also be able to buy Silver, Platinum and Palladium. All metals that you buy on Bitpanda are backed by the real thing and stored in a vault in Switzerland. One thing to keep in mind is that Bitpanda will charge you with storage fees on a weekly basis ranging from 0.0125% - 0.0250%.
Bitpanda has taken investment to the next level with Bitpanda Stocks. By tokenizing traditional stocks, Bitpanda makes it possible for smaller investors to buy a fraction of a stock whereas buying a full stock beforehand would have been beyond their budget.
Take for instance the Amazon stock. It is currently priced at more than $3000 dollars. Many new and young investors do not have $3000 dollars to invest in a single stock, not only is it a lot of money but also risky only to one stock. But this is where the Bitpanda Stocks have the advantage.
By tokenizing the stocks, Bitpanda users can buy a fraction of the Amazon stock and thereby get exposure to the Amazon stocks. Users on Bitpanda are able to purchase as little as €1 per stock. This is lowering the entry barrier significantly for new users and helping them enter the stock market and create a diverse portfolio.
Another barrier in traditional finance is that you can only buy the stocks when the stock exchanges are open. Bitpanda has changed this. On Bitpanda’s platforms you will be able to buy stocks outside of stock exchanges opening hours. When you buy stocks via Bitpanda then they are backed by the real stocks provided by their partner Lang & Schwarz, however if you one day decide to close your account at Bitpanda and move your stocks to another platform then it will not be possible. Then you would have to sell them and repurchase them on the new platform.
Bitpanda has listed 50 stocks across sectors like automotive, tech, pharmaceutical, consumer goods and energy. They will continue to add stocks over the next months.
Bitpanda’s platforms are packed with features and functionalities. In this section we will go through the most useful and noticeable features and products that Bitpanda offers.
A lot of first time investors get very anxious when investing for the first time. Clicking the buy button for the first time can be a mental challenge to overcome, whether it is €10 or €10.000 it can be quite overwhelming. New investors get struck by thoughts like: Will it drop when I buy now? Am I buying at the top? The truth is that no one knows, however Bitpanda has a feature that you can use to remove this anxiety and doubt. That is the Bitpanda Savings plan.
In short, Bitpanda’s savings plan helps you to slowly invest into an asset over time. You can set up a savings plan to buy Bitcoin, on a monthly, weekly or even daily basis. If you invest in an asset like Bitcoin with small amounts but consistent over time then you also lower your risk of buying at the top.
If you are interested in lowering your risk and read more about Bitpanda Saving plans?
When you have made a fortune on investing in Bitcoin or other cryptocurrencies, metals or stocks on Bitpanda’s platforms. Then why not also treat yourself with something nice. The Bitpanda card is free of charge and available to all Bitpanda users who are residents in a country in the euro area. With Bitpanda card you can select the asset that you want to spend when you use your Bitpanda card in a shop or online. If you have made a fortune on Ethereum’s surge in the beginning of 2021, you can set it up to spend Ethereum when you pay for your goods. The neat thing about using your card is that you get up 2% Bitcoin in cashback on every transaction.
Back in 2019, Bitpanda launched the Bitpanda Ecosystem Token (BEST). The BEST token can be used to vote on new asset listings, pay your trading fees and get lower deposit and withdrawal fees. All of this depends on how many BEST you have on your account. In 2020 Bitpanda introduced BEST rewards.
Based on the amount of BEST you have and how much you trade will determine how much BEST you will receive as rewards at the end of each month. With compound interest, BEST holders will be able to get up to 12.78% of their current holdings in BEST rewards.
If you want to learn more about BEST and how to claim your BEST rewards then click here.
You can access your Bitpanda account using any browser on mobile and desktop, however if you use mobile then it is recommended that you download the Bitpanda app for Android or iOS.
In the native apps for mobile you have the same features and functionality as you would get when you access Bitpanda on your computer. Keep in mind, if you are using Bitpanda Card then you will only be able to set up the card using one of the iOS or Android apps as this is a “mobile only” feature.
All users of Bitpanda’s products will need to verify their account and go through the “Know your customer” (KYC) process in order to buy or sell any asset. As part of the verification process, users will be required to go through the 5th EU Anti-Money Laundering Directive (AML5). This a simple 5 step questionnaire where the users are asked into their personal finances. This is a standard process that all financial companies are required to do in the European union. For larger transactions customers might also be asked to provide “Proof of funds” in order to prevent money laundering. Users should see these steps as a good thing even though it can be a hassle. By having every user on the platform to identify themselves it will prevent fraud and money laundering to happen on Bitpanda’s platforms.
Once users are verified on Bitpanda they can make use of a wide variety of payment methods to deposit FIAT currencies. The most notable are:
- Credit/Debit card
- SEPA transfers
- Swift transfers
- EFT Havale
In general it is recommended to use bank transfers as they are often very cheap or even free. However you should be aware of a transaction fee from your bank. If you use a SEPA bank transfer then Bitpanda will not charge you any fees.
Read more about bank transfers.
Depending on the payment method, users can deposit between 2500 - 10000 euro on a daily basis.
|Bank transfer (SEPA)||€49.999,00||€5.000.000,00||€100.000.000,00|
|Bank transfer (SEPA)||€5.000.000,00||€5.000.000,00||€10.000.000,00|
Bitpanda is not the cheapest platform out there. However it is one of the most user-friendly. Especially for new investors Bitpanda has put a lot of effort into making sure the process of buying Bitcoin or your first Tesla stock is as smooth as possible. If you are a new investor then Bitpanda is definitely a good platform to begin your investment career.
Bitpanda fees are not shown directly in the interface. When you complete a purchase the fee will be provided in the spread. A spread is the difference in the current market price and the price that you get for your purchase.
Here is an example.
Let’s say you want to buy 100 euro worth of Bitcoin. On the Bitpanda platform the current price of Bitcoin is say €30.000,00. The price displayed will be slightly higher than the market price (spread). So when you complete your purchase you will have a bit less Bitcoin compared if you would have brought on cheaper platforms like Bitpanda Pro or a competitor.
Bitpanda Pro is Bitpanda’s professional trading platform built for the more experienced traders. You can read a full review of Bitpanda Pro here and find out if Bitpanda Pro is a platform for you.
When depositing and withdrawing cryptocurrencies on the Bitpanda platform, you should be aware that there are some transaction costs associated. The transaction fees on Bitpanda’s platforms are pretty standard. One should only transfer larger amounts and only when it is absolutely necessary. Transferring cryptocurrencies frequently between wallets and exchanges will be costly in the long run.
Bitpanda’s trustpilot score is at the time of writing 4.5. Which is significantly higher than Binance, Kraken and Coinbase. This shows the users really like what the Viennese unicorn has built.
I am a big fan of Bitpanda and their products. Bitpanda’s products are solid and provide a super user experience. I use Bitpanda because it is a European based company and therefore they have to comply with regulations. This gives me comfort that my funds are safe with Bitpanda.
Another reason for using Bitpanda is that it is one of the only platforms where you can purchase Bitpanda’s BEST token. I really enjoy getting the monthly rewards.
I would like to see Bitpanda adding staking in the future as this is something that differentiates them from the competition.
Kraken is for the professional and more experienced crypto traders, who wants a more technical platform and with many different trading pairs and a “Best in the industry” security.