Our review of Bitpanda crypto platform: 4.1/5

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Bitpanda in brief

Our opinion of Bitpanda

Bitpanda positions itself as a well-rounded investment platform, offering a diverse selection of assets, including cryptocurrencies, stocks, ETFs, commodities, and precious metals. We liked its clean and intuitive interface, which makes it easy for both beginners and experienced traders to navigate. The ability to trade a wide range of assets in one place is a significant advantage, especially for investors looking to build a diversified portfolio.

Security is a strong point, with advanced encryption, cold storage, and compliance with European financial regulations. We appreciated the platform’s regulatory transparency, which adds a layer of trust for users. Trading fees, however, could be more competitive. While the instant buy feature is convenient, the costs can be higher compared to some global competitors. On the other hand, Bitpanda Pro provides a more cost-effective option for active traders.

The staking service is a welcome addition, allowing users to earn passive income on their crypto holdings. We would have liked to see more decentralized finance (DeFi) features, such as lending and borrowing, which are available on other platforms. Customer support could also be improved, as the lack of live chat or phone support can be frustrating when dealing with urgent issues.

Who is Bitpanda best for?

For Canadian traders, Bitpanda stands out as a solid choice for those who want a secure and regulated multi-asset investment platform. It is best suited to investors who prefer a straightforward user experience and the ability to invest in multiple asset classes rather than just crypto.

Before you zero in in Bitpanda, explore the best crypto trading platforms in Canada:

Let's find out more about our test results on Bitpanda.

Reliability and Security 4.5/5

Bitpanda operates under multiple European financial licenses, making it a regulated and secure platform for investors. However, it is not registered with Canadian regulatory authorities such as the Ontario Securities Commission (OSC), the British Columbia Securities Commission (BCSC), or the Alberta Securities Commission (ASC).

While Canadian traders can use the platform, the absence of domestic regulatory oversight means it may not provide the same investor protections as locally registered brokers.

Security measures on Bitpanda include cold storage for crypto assets, two-factor authentication (2FA), and advanced encryption to safeguard user funds. These features contribute to a strong level of protection against unauthorized access and fraud.

Cryptocurrencies Available 4/5

Bitpanda has positioned itself as a versatile platform with a strong selection of digital assets. It offers a broad range of cryptocurrencies and altcoins, making it a competitive choice for traders looking for variety. While it excels in the number of available assets, it does not currently support NFT trading, which some competitors have begun to offer.

Below is a breakdown of the crypto asset diversity on Bitpanda compared to the market average:

Our opinion on Bitpanda's offerings

Bitpanda’s extensive selection of cryptocurrencies and altcoins makes it a strong choice for traders seeking variety. However, the lack of NFT offerings slightly limits its coverage of the digital asset space.

Services and Tools 4.5/5

Bitpanda provides a variety of investment tools and services designed for different types of users, from beginners to more experienced traders.

• Crypto Card: Bitpanda offers a Visa debit card that allows users to make purchases using cryptocurrencies, fiat currencies, or even precious metals. This feature provides flexibility for everyday spending.
• Staking: Users can earn passive income by staking certain cryptocurrencies directly on the platform. The staking service is straightforward, with no complex technical requirements.
• Automated Investing: The Bitpanda Savings feature enables users to set up recurring investments in cryptocurrencies or stocks, allowing for a hands-off approach to long-term investing.
• Multi-Asset Investment: Beyond crypto, Bitpanda allows investments in stocks, ETFs, and precious metals such as gold and silver, making it a more diversified platform than many competitors.

However, some key features that advanced traders might expect are missing:

• No Crypto Lending: Unlike some platforms that offer lending services where users can earn interest by lending out their crypto, Bitpanda does not provide this feature.
• No Yield Farming: DeFi enthusiasts looking for high-yield farming opportunities will not find them on Bitpanda.
• No Derivatives Trading: Futures and options trading are not available, limiting risk management and leverage opportunities for professional traders.

Fees and Commissions 4/5

Bitpanda positions itself as a user-friendly platform with a transparent fee structure. Instead of using a standard maker-taker model like many exchanges, it applies a premium to market prices for buying and selling cryptocurrencies. While this makes transactions straightforward, the fees can be higher than those of competitors, particularly for altcoins.

Below is a comparison of trading fees for some of the most commonly traded cryptocurrencies:

Other Fees

• Deposit Fees: No fees for deposits via bank transfer, credit card, or e-wallets.
• Withdrawal Fees: No fees for fiat withdrawals, but crypto withdrawal fees vary depending on the network.
• Conversion Fees: A spread applies when exchanging one asset for another, but the exact percentage depends on market conditions.
• Inactivity Fees: No inactivity fees, which is beneficial for occasional traders.

Our opinion on Bitpanda's fees and commissions

Bitpanda’s straightforward fee model makes it easy for beginners to understand costs upfront. However, its trading premiums are higher than many competitors, particularly for smaller cryptocurrencies, which may make it less appealing to frequent traders.

Customer Reviews 3.8/5

Bitpanda has a Trustpilot rating of 3.8/5 based on 12,232 reviews, reflecting primarily positive feedback on its user-friendly interface and asset diversity, but also criticism regarding high fees, customer support response times, and limited features for advanced traders.

Here are some recent reviews from Canadian users:

• Michael T (January 15, 2025): "I started using Bitpanda a few months ago to invest in crypto and some stocks. The platform is really easy to navigate, and I like that I can buy different assets in one place. The deposits were fast, and staking rewards were credited without issues. However, when I had a verification issue, customer support took three days to get back to me, which was frustrating. Other than that, it's been a smooth experience."
• Sophie L (December 2, 2024): "I signed up for Bitpanda because I wanted a simple way to invest in crypto and gold. The interface is super user-friendly, and I love how easy it is to set up automated savings. I had no issues with deposits or withdrawals, and the staking rewards are a nice bonus. My only complaint is that the trading fees are a bit higher than what I'm used to, especially for altcoins, but the convenience makes up for it."
• Ryan D (November 20, 2024): "I wanted a platform that let me invest in both crypto and stocks, and Bitpanda seemed like a great choice. The verification process was fast, and I was able to fund my account within minutes. I did run into an issue with a delayed withdrawal, but after opening a support ticket, it was resolved in two days. Overall, I like the platform, but it would be great if they had a live chat option for faster support."

How does Bitpanda compare to other Crypto brokers?

Bitpanda is a multi-asset platform offering cryptocurrency trading alongside stocks and commodities. However, its high fees and lack of certain features place it at a disadvantage compared to other exchanges. Below is a comparison with three other well-known platforms:

Conclusion of our analysis of Bitpanda

Bitpanda offers a user-friendly platform with a diverse range of services, including staking, a crypto card, and automated investing options. Its extensive selection of over 120 cryptocurrencies caters well to investors seeking variety.

The absence of NFT support and higher trading fees compared to some competitors may be considerations for potential users. Additionally, while Bitpanda is regulated within the European Union, it lacks specific Canadian regulatory oversight, which could impact its appeal to Canadian traders.

Overall, Bitpanda stands out for its comprehensive service offerings and asset diversity, making it a viable option for those prioritizing these features.

Before opening an account on Bitpanda, compare the best crypto brokers and platforms in Canada:

What types of accounts are available with Bitpanda?

Bitpanda offers different account levels, each with varying access to features, limits, and verification requirements. Below is a breakdown of the available accounts:

Bitpanda's account structure is tiered, providing more benefits as users verify their identity or hold higher trading volumes.

Basic Account

A Basic Account requires only email registration, allowing access to limited crypto trading features. However, fiat deposits and withdrawals are not available, and users must complete identity verification (KYC) to unlock the full platform.

Verified Account

A Verified Account requires full identity verification, allowing unrestricted access to all Bitpanda services, including fiat deposits, withdrawals, staking, and savings plans. This is the standard account for most users.

Bitpanda VIP

The Bitpanda VIP program is designed for high-volume traders and users holding large amounts of Bitpanda tokens. VIP members receive higher trading limits, priority customer support, and fee discounts, making it the best option for active traders.

Good to know

Bitpanda's tiered account structure allows users to select the level that best fits their trading needs and investment strategies.​

How do deposits and withdrawals work with Bitpanda?

Bitpanda offers multiple deposit and withdrawal options, but fees vary depending on the method used. Below is a summary of the available options, supported currencies, processing times, and associated fees:

Bitpanda’s variety of deposit and withdrawal options makes it competitive with other brokers, particularly due to its free bank transfers and instant funding through credit cards and PayPal. However, the deposit fees on some methods, such as credit cards and e-wallets, can be higher than what some competitors offer. Additionally, while withdrawals through bank transfers are free, crypto withdrawals are subject to network fees, which vary depending on blockchain congestion.

Overall, Bitpanda offers a solid range of payment methods that cater to different trader preferences. The ability to deposit and withdraw using fiat currencies, PayPal, and cryptocurrencies makes it more versatile than some platforms that only support bank transfers or crypto transactions. However, traders who prioritize fee-free transactions may find better options elsewhere.

Does Bitpanda offer crypto staking?

Bitpanda offers staking services, allowing users to earn passive income on select cryptocurrencies. Staking rewards vary depending on the asset and staking duration. The platform provides flexible staking, meaning users can unstake their assets at any time, but the yields are generally lower compared to other exchanges.

Below is a summary of the staking options available on Bitpanda:

Bitpanda’s staking program is simple and accessible, but its yields are lower than what some competitors offer.

Watch out!

Bitpanda does not offer crypto lending services, meaning users cannot lend out their assets to earn interest as they would on platforms with lending pools. This limits passive income opportunities, especially for users looking for yield-generating alternatives beyond staking.

How are revenues generated by Bitpanda taxed?

Taxation of Crypto Trading on Bitpanda in Canada

In Canada, income generated from cryptocurrency trading on Bitpanda or any other exchange is subject to taxation under the Canada Revenue Agency (CRA) guidelines. The tax treatment depends on whether the activity is classified as capital gains or business income.

• Capital Gains Tax: If you buy and sell crypto as an investment, only 50% of your profits are taxable. This applies to activities like selling crypto for fiat, swapping one cryptocurrency for another, or converting crypto to a stablecoin.
• Business Income Tax: If you engage in high-frequency trading, margin trading, or operate as a professional trader, the CRA may classify your earnings as business income, meaning 100% of your profits are taxable at your personal or corporate tax rate.

How to declare your crypto trading income in Canada

• Keep Records of All Transactions: This includes buying, selling, staking rewards, and any crypto-to-crypto trades. The CRA requires details such as dates, amounts, and fair market values in CAD.
• Report on Your Tax Return:
• Capital Gains: Declare on Schedule 3 of the T1 tax return under "Capital Gains (or Losses)".
• Business Income: Report on Form T2125 if trading is considered business activity.
• Staking and Rewards: Report staking and other rewards as income at the time of receipt. If sold later, capital gains may apply.
• Consider GST/HST Registration: If your crypto trading is classified as a business and earns over $30,000 annually, you may need to register for GST/HST and charge tax on certain services.

Tax Implications for Bitpanda Users

Since Bitpanda is not a Canadian-regulated exchange, it does not automatically report transactions to the CRA. However, Canadian traders are still legally required to declare their crypto income. Using crypto tax software or working with a tax professional can help ensure compliance, especially for traders engaging in staking, margin trading, or frequent transactions.

Watch out!

Failure to report crypto income can result in CRA audits, penalties, and interest charges, making accurate reporting essential for Canadian users.

Contact: How to contact Bitpanda customer service?

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