There are quite a lot of so-called crypto brokers around which make it possible to exchange Fiat-Money like Euros or Dollars for different cryptocurrencies. In Europe, the availability of such services is sometimes limited. Additionally, if you're depositing money (maybe a lot), you want to be sure the platform is actually safe. In this article, I will cover two of the largest brokers in Europe Coinbase and Bitpanda.
Bitpanda.com
Bitpanda is a company based in Austria. The platform is quite popular, since it offers a variety of cryptocurrencies in direct exchange for Fiat Money. For some currencies like Ripple (XRP) its quite hard to find a reliable broker, therefore you'd need to buy a different currency like Bitcoin _(BTC)_and use an exchange like Binance or Bittrex in order to get Ripple. For their service, these exchanges take a small portion of you transactions as a fee. While this fee is usually not too high, it can add up to a quite significant amount. If you want to avoid those, you can use Bitpanda to directly buy Ripple.
Of course, Ripple is just an example and Bitpanda offers a lot more currencies. As of March 24th in 2018 the following currencies are available.
- Bitcoin
- Ethereum
- Dash
- Litecoin
- BitcoinCash
- Ripple
Verification
In order to process cryptocurrency payments the most services require some kind of verification. In order to buy currencies on Bitpanda you need the Bronze verification status. In order to get this status, you need to verify your E-Mail address and your phone number. If you want to buy larger amounts, you need get the Gold verification. This needs, in addition to the bronze requirements, a verification of your ID. This is processed by 3rd party and usually involves a video chat with an employee who asks you some questions to check if you are a real human being. This process takes only a few minutes and you only need to go trough once.
If you just want to sell your cryptos in Bitpanda, you don't need verification at all (except for your E-Mail address). But as you increase your verification level you also increase your account security and your payment limits. A simplified overview over the verification requirements.
| Level | Buy limit | Sell limit/month |
|---|---|---|
| Starter | 0€ | 7,500€ |
| Bronze | 50€ | 10,000€ |
| Gold | 300,000€ | 2,000,000€ |
Updated March 24th, 2018. __Please note that Bitpanda also limits the payment methods based on your verification. To get a full overview please visit their site
Security
As soon as money is part of the deal, security becomes increasingly important. Bitpanda offers some features in order to reduce concerns. The site is logging every login, transaction, or deposit of your account, including the IP which performed the action. In addition to the verification process you need to go through, you can improve the security of your account by using a 2FA authentificator app.
Before any transaction is made, Bitpanda will send you a one time code to your phone via SMS which you need to execute the desired action. This makes sure, even if somebody manages to get into your account, they don't have access to your funds.
Availability
According to their Helpdesk selling coins on Bitpanda is possible worldwide. Buying coins on their platform is only possible for EU customers, including Switzerland, Norway and Croatia. In order to get Gold verification you need one of the documents from this list.
Payment methods
Bitpanda offers all of the most common payment options in Europe. These include
| Method | Processing time |
|---|---|
| SOFORTÜberweisung | 10 Seconds |
| Visa/MasterCard | 10 Seconds |
| NETELLER | 10 Seconds |
| Skrill | 10 Seconds |
| GiroPay | 20 Seconds |
| SEPA | 2-3 Days |
NOTE Some credit card providers might charge their own fees.
Fees
Unfortunately, the fees you can expect to pay when using Bitpanda are not very transparent. According to their customer support, the prices they show on their website already include the fee.
Coinbase
Coinbase (referal) is the largest cryptocurrency broker worldwide. The company is based in the United States and operates its service in Asia, Australia, Europe and North America. When compared to other services, Coinbase offers only a few coins. These include
- Bitcoin
- Litecoin
- Ethereum
- BitcoinCash
Verification
The verification process at Coinbase is pretty simple. You just need to take a photo of your ID and upload it to their servers. To simplify this process you can use their official mobile apps. After your identity was verified, this will be shown on your profile.
Security
Since Coinbase is processing money and your identity is connected with your account, the security of this matters even more. To improve the security, Coinbase uses 2FA authentification Apps. Similar to Bitpanda you can use SMS code in order to approve transactions. The service also loggs every action of your account, including failed second factor and sign-in attempts.
Availability
Coinbase operates its service around the world. However, for customers in some countries, the functionality like buy is limited. Unfortunately, Coinbase does not offer buy functionality for German customers. If you want to check if your country is supported, you can check their help documents.
Payment methods
Coinbase officially supports only a few payment methods (availability depends on your region). The Coinbase helpdesk offers a good overview over all possible methods.
Fees
Coinbase fully disclosed how they charge their fees. These depend on your payment method as well as on your country. You can check their help article in order to get more details.