Bitpanda vs Coinbase

If you’re thinking about buying, selling, or trading crypto, you need someone to broker the deal. A crypto exchange handles that for you, think of it as a mix between a broker and a money sending service.

When you sign up for an exchange, you need to know what’s in store for your trading career. There are hundreds of exchanges, and each of them has different specialties serving a specific niche within the crypto community.

Some exchanges act like stock exchanges, allowing traders to play in markets like BTC/USD, like forex trading. Other exchanges work solely as brokers, providing a platform to buy currency, but no access to active markets to trade pairs. These exchanges are useful for purchasing crypto to transact with online, or store in wallets as investments.

Your choice of exchange needs to reflect your needs. Your geographic location is one of the most significant issues affecting trading in cryptocurrency. Governments around the world have mixed feelings about crypto. China bans it outright, Japan hassles exchanges, and the US tracks its citizen’s use of the asset class for taxation purposes.

Some exchanges won’t work with Americans or Europeans, while others only allow customers from developed nations. Before you fund your first trading account, you need to find an exchange that matches the regulatory requirements for your country.

In this review, we’ll look at Coinbase and Bitpanda, two of the biggest exchanges in the cryptosphere.

Bitpanda Or Coinbase Market Is Bigger?

Both Coinbase and Bitpanda serve the same market. They’re interested in providing crypto to people that are looking to “HODL,” or hold onto the currency. These individuals might want crypto to complete transactions with retailers online or send money across borders with lower fees than the banks offer.

However, they’re not dealing with traders that actively place orders on the open crypto markets. Still, the distinction between the two is most apparent in the demographic markets that the platforms serve.

Coinbase targets the American market, offering its services in all the states that permit crypto transactions. Bitpanda focuses on the European market and accepts payments in Euros, as well as SEPS transfers.

Both Bitpanda and Coinbase are well-established exchanges, and they have a solid reputation, with no history of hacks.

Is There An Advantage For Bitpanda vs The Coinbase Giant?

As mentioned, you’ll need to use either the Bitpanda Global or Coinbase Pro platforms to access trading markets with crypto-to-crypto and crypto-to-fiat pairs. However, both exchanges rank high in the exchange list, featuring in the top half.

However, you can’t compare the volume and liquidity of the top crypto exchanges to what you get on Coinbase Pro and Bitpanda Global. These platforms don’t have the kind of market share or product range that makes them a super-attractive exchange.

Traders are looking for low fees and variety when trading, and Bitpanda Global and Coinbase Pro rank poorly on that scale compared to others. We think that Bitpanda and Coinbase need to stick to their primary business model and keep the brokerage moving crypto to the hands of people that need it for transactions or investments, rather than trading.

Both Bitpanda and Coinbase are among the few leading crypto exchanges to experience a hack of any kind yet. There were reports of attempted hacks on Coinbase in late 2019, but the company thwarted the hack before the cybercriminals got access to any sensitive data.

Both Bitpanda and Coin base run tight ships when it comes to security. They both use SSL certificates and keep the bulk of the coins in cold storage away from the brokerage hot wallet.

One note about Coinbase is that because it’s a US-facing exchange, it works with the IRS. If you’re an American citizen trading with Coinbase, make sure you’re taking care of your tax liability. Many crypto traders lost their shirts in the market, only to find out they had a huge tax bill with the IRS on top of their losses.

Fortunately, there’s no trading on these platforms, and now leveraged trading products available with Bitpanda or Coinbase.

Which One Is Cheaper? Bitpanda Or Coinbase?

Coinbase trading fees are somewhat high, at 1.49%. They also charge a 3.99% surcharge for depositing using a credit card. Bitpanda also offers a 1.49% charge for buying and a 1.29% fee for selling.

Is Bitpanda More User Friendly Than Coinbase?

Bitpanda and Coinbase act as brokerages buying and selling crypto from the retail market. There is no trading platform available to provide you a market to interact with other traders. As a result, Bitpanda and Coinbase charge a premium above the spot rate, known as the spread.

Bitpanda offers a brokerage service that enables its customers to buy and sell cryptocurrencies. This model means Bitpanda supplies you with the coins directly, unlike a trading platform where you interact with other traders.

Bitpanda provides a bunch of other crypto services for European residents. If you want to start trading with Bitpanda, you’ll have to use the Bitpanda Global platform.

Coinbase has all the same functionality, but it offers Coinbase Pro, which is its trading platform. Coinbase accepts debit and credit card payments, as well as bank transfer and PayPal payments. Bitpanda has a wider variety of payment options, including bank transfer, SEPA, credit and debit cards, Neteller, PaySafe Cards, Skrill, iDeal, PayU, Yandex, and Ukash.

Coinbase only provides access to the top cryptos with the best volumes and liquidity. As a result, they limit you to purchases of Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

Bitpanda supports several assets with more than ten cryptos, including all the big names and others like Zcash.

Can We Trade Via Mobile In Bitpanda And Coinbase?

Coinbase and Bitpanda both have mobile apps available for download on Android and iOS devices. Both apps have a user-friendly interface with a clean dashboard. You can buy and sell coins through the app and check on the prices of your favorite cryptos in real-time.

Bitpanda Or Coinbase Has Better Support?

Both Bitpanda and Coinbase only offer you support via email ticketing. You should receive a reply in 24 to 48-hours. Since neither of these platforms of trading of markets, they don’t seem to invest in live chat facilities.

Both Bitpanda and Coinbase have excellent knowledge databases allowing you to search through troubleshooting articles and FAQ.