Bitpanda review and test – Is it worth the fees?
(4.7 / 5)
From 0.1% commission
Experienced traders are always on the lookout for a more convenient cryptocurrency exchange – and if you’re one of them, you’ve probably come across Bitpanda before. The exchange offers many crypto assets and metals and allows traders to pay for them in about a dozen different ways. The interface is neat, and signing up is relatively easy.
It also allows you to create savings plans and offers nifty features like a Bitpanda card that you can spend with at any store that accepts Visa. However, Bitpanda charges slightly higher fees than other exchanges on the market. Also, most features it offers are limited to traders in the EU.
But is it worth the higher fees? Our in-depth review of the exchange will help you find out.
What is Bitpanda? – Introduction
Bitpanda GmbH was initially known as Coinimal and was founded by three cryptocurrency enthusiasts Eric Demuth, Paul Klanschek, and Christian Trummer, in 2014. In 2013, during one of Bitcoin’s bigger surges, the trio found out just how difficult it was to buy crypto in Europe. They saw that the European crypto market was lacking a premium exchange and decided they’d be the ones to bring one to the table.
It took a lot of work and consultation with the country’s authorities, but after a year of work, Bitpanda was finally a reality. It didn’t take long for Bitpanda to become Europe’s top retail broker for cryptocurrencies like Bitcoin and Ethereum. The Austrian exchange changed its name to Bitpanda in 2016, when it added new features like the crypto wallet to their website.
It now has over 1.2 million users and is worked on by a team of 250+ members. Besides enabling customers to buy crypto, Bitpanda works with PSD2 payment service providers and has recently expanded services to invest in metals like silver and gold. Bitpanda is one of the few crypto exchanges in the world that have never been hacked. It is a testament to how seriously the company takes security.
On its website, Bitpanda mentions that its mission is to bring financial products to the 21st century, and so far, the company has seen nothing but success.
(Risk Warning: Your capital can be at risk)
Who it is for – Important features of Bitpanda
The exchange allows you to buy over 50 different crypto assets, including Ethereum and Ripple. It accepts multiple fiat currencies, including Swiss Francs and Turkish Liras, making it one of the most diversified exchanges out there.
Bitpanda also has a native currency – BEST – which you can use to pay fees on the exchange. BEST-adopters get several benefits, the most notable of which is a 20% discount on trading premiums and fees.
But there are several more features that make Bitpanda impressive:
Bitpanda Pro trading platform
Bitpanda and Bitpanda Pro are different platforms – but they offer a lot of the same features. Bitpanda is meant for new crypto investors, whereas Bitpanda Pro is a trading platform for more experienced traders. It is powered by TradingView, which both powerful and developer-friendly.
One of the best things about using Bitpanda is to transfer your currencies between Bitpanda and Bitpanda Pro for free. However, it is important to note that such internal transfers can only be initiated on Bitpanda Pro.
You don’t need to make different accounts to use the two platforms – the same credentials will work on both.
See the screenshot of the Bitpanda Pro trading platform:
Bitpanda Crypto Index
If you don’t know much about cryptocurrency but want to invest money into the fast-growing market, you can use a Bitpanda Index.
It offers three indices – BCI5, BCI10, and BCI25, which have the top five, ten, and 25 cryptocurrencies in them, respectively. The indices are rebalanced every month, ensuring that your portfolio only ever has the top currencies in it.
Besides the convenience this offers, it also offers peace of mind. The indices reflect the market’s performance, and your money will multiply exponentially the longer you use the indices.
Using the indices also diversifies your portfolio, ensuring that not all of your eggs are in one metaphorical basket. You can invest in a predefined selection of coins in one click.
Other notable features:
- Bitpanda To Go: It enables you to buy cryptocurrency with cash if you’re in Austria. You can walk to your nearest post office and get your hands on a cash-equivalent coupon of cryptocurrency. You can then use the coupon code to add money to your crypto wallet on Bitpanda.
- Bitpanda Savings: If you always struggle with putting away money, this feature enables you to commit a certain amount each month. The savings plan works by buying Bitcoin or another cryptocurrency of your choosing.
- Bitpanda Swap: You can exchange one cryptocurrency for another on Bitpanda using Bitpanda Swap. The lower fees make it a handy feature, and there are no limits on the swap’s size either.
- Bitpanda Pay: With Bitpanda Pay, you can send money to your contacts and pay your bills using your account’s balance.
Other than that, you can create price alerts for any cryptocurrency and other digital assets on the platform. You can choose to be notified via email when the price falls or rises above what you’ve set.
If your friends also use Bitpanda to trade, you can send and receive crypto from them at zero cost. Making the transfer is fast and easy, which is fantastic. The platform is just as pragmatic as it is easy to use, making it perfect for both new traders and experienced ones. However, if you’re in the USA or China, you cannot use the platform.
Bitpanda regulation and safety – How safe is the platform?
As mentioned earlier, the exchange allows you to trade around 50 different cryptocurrencies. It has 1.2 million users and boasts a daily trading volume of $12 million.
Keeping its users’ funds and accounts secure is of prime importance to the company, and it takes a lot of steps to uphold security.
Bitpanda is a high-security trading platform. The following safety features you can see below:
Bitpanda uses state-of-the-art technology to protect its reserve of funds. The funds are stored offline, in AML5-compliant wallets. Since these aren’t connected to the internet, the funds remain safe from the reach of hackers.
Whenever a user logs in from a new device, the login must be confirmed using the link in their email. Bitpanda also enables you to see which devices and sessions you’re logged in from, and you can remotely close a session from any device.
Whenever you send cryptocurrencies or attempt to make a fiat withdrawal, you will receive a confirmation email. Only after you authorize the transaction from your email will the transaction go through. This acts as an additional layer of security.
If you (or a hacker) decide to change the email address, phone number, or the two-factor authentication on your account, the Bitpanda support team will contact you over the phone to confirm the changes.
DDOS & SSL protection
The company’s servers are protected from DDoS attacks – the chances of the site going down are extremely low. Furthermore, all of your communications with the site are encrypted using Secure Socket Layer technology.
Hacking attempts and security slip-ups
Since it was founded in 2014, the company has never once been hacked – which is a good sign. Bitpanda affirms on its website that it employs a vast range of state-of-the-art security measures.
Bitpanda isn’t the most regulated exchange you can sign up for. However, it does have an excellent reputation in the industry. There haven’t been many complaints against the platform since its launch in 2014, and Bitpanda has never lost funds.
It has also won several awards – the most recent being the FinTech Austria Award in 2019.
One of the hard-to-ignore facts about cryptocurrencies is their history of use for illicit transactions. Bitpanda does not operate in the United States, and consequently, does not have the famous BitLicense. However, it is certified by the Financial Market Authority in Austria and abides by the PSD2 law in Europe.
Trading conditions for customers:
Bitpanda is not an anonymous exchange. To use Bitpanda, you will need to prove your age and also upload your passport so the company can verify your identity. Besides your documents, you need a laptop or a phone with an internet connection to use Bitpanda to trade crypto.
Bitpanda accepts several different payment methods, and every mode of payment requires you to pay a different fee. What you need to know is chargeback modes of payment like credit cards attract a higher fee than non-chargeback methods like wire transfers.
If you use Bitpanda to buy or sell Bitcoin, you will need to pay a 1.49% fee. Bitpanda isn’t the cheapest in the market, but it’s not the most expensive either. If you choose to trade using Bitpanda Pro, you’ll need to pay a maximum fee of 0.1%. The platform follows a maker/taker system, so you will need to pay a fee for both buying and selling.
However, the 0.1% fee makes it on par with Binance, an exchange known for offering excellent features and reasonable fees.
- 1.49% fee for buying and selling cryptos
- 0.1% maker and taker fee on the Bitpanda Pro platform
Bitpanda Limits and Liquidation
Like some other exchanges that have level 1 and 2 accounts, Bitpanda also has account levels. If you haven’t verified your identity, you will have to make do with the lower limits it offers.
But after you’ve verified your account, you can use every feature of the exchange. The company allows verified users to withdraw €5 million a day using a SEPA transfer – it is one of the only exchanges with such exceptionally high limits.
(Risk Warning: Your capital can be at risk)
Test of The Bitpanda Trading Platform
The Bitpanda interface makes buying and selling crypto extremely easy. Most crypto exchanges have a clunky and unattractive UI – but Bitpanda isn’t one of these exchanges. The interface is clean, responsive, and very intuitive – it won’t take long for you to get used to it.
See the normal Bitpanda web-platform:
The colors make it eye-catching, and the dashboard gives you access to almost every function you will need. You can access the wallet section with ease and access both the crypto and the fiat wallet sections. While there’s also a charts section, it isn’t as feature-loaded as the charts section Bitpanda Pro has.
However, you can check the daily, weekly, and monthly charts of the listed cryptocurrencies.
Bitpanda Pro’s interface is just as clean, but it has a lot more features than Bitpanda.
See the Bitpanda Pro platform:
You can change markets with the menu on the top and jump to the exchange view by clicking on the Bitpanda Pro logo.
Placing orders is made easy using the column on the left, and the order book gives you a glimpse of what traders are buying and selling the currency for. The “My Orders” section on the bottom allows you to see both your open and filled orders.
But the best thing about the interface is undoubtedly the chart. You can change the presentation, add indicators, draw on it, add text and lines, zoom in and out, and even take a screenshot of it.
You can also trade when you’re on the move using the Bitpanda mobile app. It is available on both Android and iOS.
How to trade with Bitpanda?
Using Bitpanda to buy or sell crypto is extremely simple.
Step #1: Select the details of your trade
After logging in, you must click on the trade button on the navigation bar. Let’s assume you want to buy cryptocurrency. You must click the “Buy” button.
Next, you must select the cryptocurrency you want to buy. There are over 50 different cryptocurrencies available on the platform. You could also select one of the indices the company offers or buy precious metals like gold or silver.
Step #2: Enter the amount
There are primarily two ways you can choose the amount of crypto you want to buy or sell. You can either enter the amount you want to buy in fiat currency – for instance, 100 Euros – or enter the amount of the crypto you want to buy – like 0.1 BTC.
You will also see a third option on this screen that enables you to pay using Bitpanda’s native currency BEST. You get a 20% discount when you pay for your trades using BEST.
Regardless of which option you use, you must click on the “Go To Summary” button.
Step #3: Finalize The Purchase
You will be navigated to a summary screen. After you ensure that your transaction’s details are correct, you can click on the “Buy now” button to complete the transaction.
Trading crypto with Bitpanda Pro is just as simple. If you’re an experienced trader, you’re better off using Bitpanda Pro to trade. You must choose between the “Buy” and “Sell” options on the trading section on the left side of the screen first.
You can then set the amount you want to trade and select the type of trade you want to make. Advanced trading types are also available, and you can use whatever strategy you want to make money. After entering and double-checking your order’s details, you must click on the “Buy” or “Sell” button at the bottom of the column. The order will open and appear in the My Orders section on the bottom of the screen.
How to open an account with Bitpanda?
- Navigate to https://www.bitpanda.com/en.
- Click the “Get Started” button on the top-right corner of the screen.
- Enter your name, email address, and password into the fields.
- Click the “Create account” button.
After following these steps, a confirmation email will appear in your inbox. Click on the link in the email to complete the account creation process.
To use all the features of Bitpanda, you need to verify your account with the company. Follow these steps to verify your account:
- Log into your Bitpanda account.
- Click on your user icon on the top-right corner of the screen.
- Click the “Verify now” button on the screen that appears.
- Enter all of the personal details that the website asks for. Confirm that the data you’ve entered is accurate, and then click “Save and continue.”
- A verification code will be sent to your phone number. Enter it on the next screen.
- Choose your citizenship and your preferred language for verification. Next, select the type of identification you intend to upload and click “Continue.”
You will be redirected to one of Bitpanda’s partner companies. Follow the instructions on the site – and remember that you will be asked to upload a picture of your passport. Make sure you have it handy.
The companies Bitpanda is partnered with rarely treat ID cards as a valid document for identification. You can find out whether Bitpanda will accept ID cards for verification in your country on this page.
(Risk Warning: Your capital can be at risk)
Bitpanda privacy for customers
The data you share with Bitpanda is shared with several third parties for verification and marketing purposes.
However, Bitpanda implements several security measures to ensure your data remains safe:
- All of the data transferred from your computer to Bitpanda is encrypted using SSL technology.
- You can enable two-factor authentication right after signing up.
- Systems used by Bitpanda are completely encrypted.
- Personal data is anonymized and pseudonymized.
- Entry to offices and access and transfer control of the systems is restricted.
- Backups and other methods for rapid recoverability of personal data are used. In the event of a physical or technical incident, your data will remain safe.
- Prevention of enumeration and other design details ensure your data is safe.
- The effectiveness of the technical and organizational parts of security measures are reviewed and evaluated continually. The bug bounty program helps ensure maximum security.
Does Bitpanda offer demo accounts?
No, the company does not offer demo accounts. You cannot apply your strategies on the platform without spending real money. But the minimum trading amount is 10 EUR, so you can experiment without losing a lot of money.
Is there a Negative Balance Protection in Bitpanda?
No, there is no negative balance protection in Bitpanda. If your balance dips below zero, you will need to pay the balance before you can continue using the exchange.
Bitpanda deposits and withdrawals
If you haven’t verified your account, you will not be able to make a fiat deposit on Bitpanda at all. However, there are no limits on cryptocurrency deposits and withdrawals.
After you verify your account, you can deposit as much as you want and withdraw up to €500,000 in a day. The company allows new users to transfer funds to other users if they want to for free. However, for unverified users, the transaction is limited to €2500. After the first transaction, this limit is lifted.
Next to a lot of cryptocurrencies for deposits and withdrawals, Bitpanda offers a huge variety of fiat money deposit options:
- Bank transfer
- Credit cards
- Debit cards
Support and service
The company has active communities on all social media; however, Bitpanda does not offer support on the platforms due to security reasons. Regardless, the communities are a great way to engage with other traders on the platform. General questions and feature requests are allowed in these communities, but sharing personal information and queries about support tickets is discouraged and sometimes results in a ban.
If you need help with your account, the fastest way to get it is to make a request using the contact form. Ensuring that you provide as much detail as possible and select the right category decreases the processing time drastically.
You can also check out the company’s help desk. It is loaded with answers to frequently asked questions, and there’s a good chance you will find the answer to your query there.
Accepted countries and forbidden countries
Only residents of the EU can currently buy cryptocurrencies using Bitpanda. Additionally, you must be a resident within the SEPA – meaning if you live in Iceland, Liechtenstein, Norway, Switzerland, or Monaco, you can use Bitpanda.
However, users outside the SEPA can only use Bitpanda to store and transfer crypto. Selling crypto and receiving payouts is also allowed.
Bitpanda does not operate in the USA or China.
Conclusion of our Bitpanda review: Very good exchange for beginners
Bitpanda offers everything: great security, decent customer support, excellent interface, and loads of coins to trade. However, it is slightly more expensive to use than other exchanges. The platform is very good for beginners. For professional traders who often use margin trading, the function is not offered.
If you don’t want to use features like Bitpanda To Go, Bitpanda Savings, and Bitpanda Pay, it isn’t worth paying the slightly higher fees to use the platform. Also, most of its features aren’t available to users outside of the EU, limiting its function. If you’re in the EU, though, Bitpanda is the best exchange you can trade cryptocurrencies with.
Advantages of Bitpanda:
- Very user-friendly interface
- Buy crypto with fiat
- Secure trading platform
- Prepaid card
- Offers metal trading
- Crypto indexes
- Huge variety of assets
Bitpanda is a suitable cryptocurrency exchange for beginners. It is easy to buy and sell coins on this platform. (4.7 / 5)
(Risk Warning: Your capital can be at risk)