I have been fascinated by crypto for a long time now, and I enjoy sharing what I have learned about it on ToughNickel.
What Is Bitpanda?
Bitpanda Is a popular crypto exchange in Europe. It can be used via their webpage as well as their app. The platform is registered in Austria, which means it is available for every citizen of the European Union. Bitpanda is known for being beginner-friendly and has become an alternative to American exchanges like Coinbase for many Europeans. Bitpanda also allows the trading of other assets like gold, fractional stocks, and ETFs.
Which Assets and Features Does Bitpanda Offer?
Bitpanda supports more than 60 different cryptocurrencies, and the list is growing constantly. Most big cryptocurrencies like Bitcoin, Ethereum, and Cardano are available. There are more than enough different cryptos on the exchange for most people who are looking to start investing in the crypto market. However, there are exchanges that offer many more cryptocurrencies that could be interesting for more serious traders.
Bitpanda doesn't just offer individual cryptocurrencies; they also offer crypto indexes that automatically rebalance their funds into the top 5, top 10, or top 25 cryptos by market cap.
For people that are looking for investments outside of the crypto market, Bitpanda offers precious metals like gold and silver. Recently, they have also added fractional shares and ETFs. This makes Bitpanda especially attractive for European retail investors that cannot use platforms like Robinhood. There are currently not many different stocks and ETFs available, but they keep adding new assets.
What I like very much about Bitpanda is that they offer small explanations for each asset they have listed.
Bitpanda has a swapping tool that allows its users to exchange one of their assets on the exchange to any other one directly without needing to turn it into dollars or euros first.
The most useful features are the DCA savings plans that allow users to set automatic buy orders that can happen weekly, bi-weekly, or monthly. This is very useful for long-term investors that don't want to spend all their time predicting the market but instead just want to throw money on an asset they believe in each time they get paid. This DCA tool is available for everything you can buy on Bitpanda.
All of its features can be accessed with both the webpage and the mobile app. Should you experience any issues or have any questions, you can connect with their customer support via their helpdesk. Their support is very quick to respond and help.
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Safety and Fees
The exchange seems to be pretty safe. So far, there have not been any hacks on Bitpanda. They also support two-factor verification for their users. However, their fees are relatively high; they take a 1.49% cut for both buying and selling. If you choose to pay fees with the BEST token, you get a 20% discount. Unfortunately, the fees are not visible when you make an order; they are already included in the price of the asset.
There are no fees for depositing fiat currencies like USD and Euros, but there are small fees for depositing cryptocurrencies. All these fees make Bitpanda rather unattractive for active trading and only useful for buying and long-term holding. For traders, they have Bitpanda Pro, which any Bitpanda user can use with no additional cost. Trading fees there are only 0.1%.
The BEST token
The Bitpanda EcoSystem Token (BEST) is the native exchange token of Bitpanda. BEST serves as the reward program for the platform. By using it to pay for trading fees, you get a discount of 20%, and by holding it on Bitpanda and making at least one trade per month, you can claim monthly BEST rewards of 0.05%-0.15% of your currently held BEST. The percentage you can get depends on how many BEST you are holding and on how many trades you have made in the last month.
If you hold more than 5,000 BEST, then you get access to the BEST VIP voting, through which you can weigh in on various decisions regarding Bitpanda, like which assets they should add next.
BEST has a max supply of 1,000,000,000 coins. Bitpanda frequently burns a portion of the BEST tokens that are used to pay for trading fees. They plan to continue doing this until 50% of the total BEST is burned. This makes the remaining supply more valuable.
As Bitpanda continues to grow and make more and more assets available, demand for the BEST token may rise. With its limited max supply and constant token burning, it could grow a lot in value in the next few years.
There are better options than Bitpanda for more serious investors and day traders, but Bitpanda is very useful for those new to crypto because it is very beginner-friendly. Since it also offers stocks, ETFs, and metals, it also a good all-in-one platform for people that don't want to register on multiple platforms. If the platform continues to grow in popularity, the BEST token could be a very profitable investment.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
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