Introduction

Bitpanda is a European multi-asset broker that allows customers to invest in cryptocurrencies, metals, commodities, stocks* and ETFs*. The Bitpanda Group follows European laws it’s BaFin regulated and fully compliant with AML 5, and is SOC2 with 10 european licenses and regulations. With over 4 Million users, Bitpanda is one of the largest cryptocurrency brokers. Here’s all you need to know about this broker, including key features, fees, and most importantly, the safety and security standards. Bitpanda is only available in Europe to European residents.

Key Features

Traditional stock exchanges like the New York Stock Exchange, Euronext, London Stock Exchange, the Tokyo Stock Exchange, which are the biggest in terms of numbers, operate fixed hours and only on weekdays. Bitpanda offers 24/7 trading services, owning an impressive suite of available assets and investment products and features.

Bitpanda offers over 300 cryptocurrencies, a good selection of precious metals, commodities (oil, gas, etc), stocks* and exchange traded funds (ETFs)* are all available on this versatile broker. While Bitpanda offers payments, staking and swapping services, the features that stand out are Bitpanda Spotlight, Bitpanda Crypto Indices, and Savings Plans.

Bitpanda Spotlight: 

This feature allows users to invest in new coins and projects at the time of their launch or coin distribution phases. Identifying new projects is not easy because of the frequency at which new projects are being launched. Using Bitpanda Spotlight, one can save effort and time and be among the first to invest in budding projects. Investing in fledgling projects is cheaper and has the potential to offer big rewards.

Bitpanda Crypto Index:

According to the website, ‘It auto-invests in a predefined and diverse portfolio of the leading cryptocurrencies by market size and liquidity.’ 

Bitpanda offers 7 different indices. The composition of the user’s portfolio will change depending on the performance of the index, which ensures that gains are always captured (or losses minimized as far as possible), irrespective of the market conditions. Smart contract, DeFi leaders, media and entertainment and infrastructure are the non-coin indices. Others are BCI5, BCI10 and BCI25.

Savings Plan:

You can choose a savings plan for any asset or even any of the Bitpanda indices. Once chosen, Bitpanda will purchase the selected asset at a fixed time. Plans can be paused and resumed any time, and multiple plans can be opened.

Bitpanda Cash Plus:

Apart from these stand-out features, Bitpanda offers a Cash Plus program that allows customers to earn yields on their EUR, GBP and USD earnings. Deposits can be withdrawn at any time; pay-outs are made at a fixed time.

Trading

EUR, USD, GBP, CHF, TRY, PLN, HUF, CZK, DKK and SEK are supported on Bitpanda. Non-supported currencies can also be deposited, however, the user will have to consider the fees charged by the provider for that currency.

The withdrawal and deposit fees, processing charges, and the limits could be different for each currency depending on the regional rules and transaction amounts. Users are advised to consider the limits and other information for each currency.

Stocks* and ETFs*

An important factor users may have to consider is ‘Spreads’. Spreads, in the case of stocks* and ETFs*, refers to the difference between the “Bid” price and “Ask” price. Trading in stocks* and ETFs* is not charged the same as cryptos, as the spreads will account for Bitpanda’s charges depending upon the size of the transaction.

Bitpanda facilitates investing in blue chip stocks like Apple, Google, Microsoft to name a few through its derivatives trading system. Investors don’t need to buy the whole stock*, but can invest in fractions. Of course, the whole stock* can also be purchased.

Crypto

In case of cryptocurrencies, the chart price and the buying/selling price will differ because of premiums. Before a trade is made, the price of the crypto will reflect the premium charged for that transaction, while the wallet will reflect the current fiat price of the crypto.

Precious Metals

While buying metals, you will have to pay premiums on the trades, apart from storage fees. Gold, Silver, Platinum and Palladium can be traded on Bitpanda.

Security

Bitpanda is SOC 2 Compliant

Bitpanda has a SOC 2 Type 1 report for its information security management system (ISMS). Published by the independent body called American Institute of Certified Public Accountants or AICPA, it is a high level security certification for a security system. Essentially, Bitpanda’s security system has been independently verified and the certification is publicly available.

After securing Type 1 certification, Bitpanda aims to secure a Type 2 certification. Type 2 certification would prove that Bitpanda maintained the robustness of its security infrastructure consistently, over time.

From its official website: ‘Bitpanda GmbH is a registered virtual asset service provider (VASP) with the Austrian, French, Spanish, Italian, Czech, Swedish and Norwegian competent authorities and in 2022, we became the first European retail investment platform to receive a full license from the German regulator BaFin for custody and proprietary trading of crypto assets.’

Notably, its payments arm has a payments system license under Payment Service Directive 2 or PSD2. PSD2 license implies Bitpanda has a robust customer authentication process in place. This is a European Union (EU) requirement.

Summary

Established in 2014, with 700 employees, Bitpanda is a convenient and secure way to invest. Investors can earn well in a passive or active way, depending on the assets and investment programs preferred. 

Our favorite features: Bitpanda Indices allows one to invest in the top performers – cryptos, DeFi leaders or even smart contract leaders; the Spotlight enables one to track and invest in upcoming (and verified) projects in a rapidly evolving industry; and the Savings program allows one to set up automated savings plans with the option to opt out at any time.

Supporting 10 European currencies, Bitpanda is SOC2 and BaFin compliant and it has been verified as a VASP by competent authorities from 7 European countries including France, Spain, Italy among others. Its services are available in over 40 countries across Europe. It also holds the PSD2 and the MiFID II license.

Bitpanda is a great way to invest in both cryptocurrencies and stocks* and other popular assets that it offers. It has the highest security certifications from multiple authorities, has many firsts to its name and is hungry for more. It is a shame that Bitpanda operates only in Europe.

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