Bitpanda

Bitpanda, formerly known as Coinimal is a brokerage website that lets you trade bitcoin, Litecoin, Dash, and Ethereum. The company is based in Austria and covers a large part of Europe. The exchange site accepts commonly used payment methods in Europe like Skrill, SOFORT, and EPA. It is undoubtedly Europe’s fastest emerging exchange platforms owing to its diversity in cryptocurrency exchange. The future looks promising for BitPanda vis-a-vis its plans to extend its operations in other parts of the world. The fully automated website aims at processing payments as fast as possible.

The History behind Bitpanda

Bitpanda’s enthusiasts Christian Trummer, Paul Klanschek and Eric Demuth are the brains behind the revolutionary platform. After one of the biggest waves of bitcoin in 2013, the founders first-handedly witnessed how hard it is to trade bitcoins in Europe. The three founders ceased the opportunity and Coinmal was started.

Cryptocurrencies traded by BitPanda

In July 2017, Bitpanda introduced the all in one Ether wallet. The wallet allows users to access and monitor their funds without leaving the exchange’s interface. Bitpanda supports the following cryptocurrencies and fiat currencies GBP, EUR, CHF & USD

Bitcoin (BTC)

Ripple (XRP)

Litecoin (LTC)

Bitcoin Cash (BCH)

Dash (DASH)

Ethereum (ETH)

BitPanda features some of the key features that make Bitpanda a notable exchange website include:

Secure Buying and Selling

As a financial asset, cryptocurrencies are associated with security compared to other modes of exchange. Using cryptography, they are secure enough as they are, however, they still come with some volatility and some accountability issues. In a volatile and fast-moving environment, a one-stop platform where you can trade cryptocurrencies for fiat currencies and vice versa makes the much-needed difference. BitPanda has innovatively employed the use of decentralized servers which are less vulnerable to cyber-attacks.

Storage

It goes without saying, once you own a bitcoin you will need a place to store it. Whether you are looking forward to a surge in the market prices before you trade or keeping your valued crypto away from unsolicited hackers, decentralizing your storage will make you less susceptible. The pertinent question of whether you should buy a wallet has been replaced with which wallet you should get. Once you create an account with BitPanda, you can attach an external wallet or use one provided by Bitpanda once your account is active.

Favorable exchange rates.

The Bitpanda exchange rates are relatively higher since you trade altcoins and bitcoins which you can chargeback. When trading on the platform you will discover that they charge an extra small fee when exchanging the fiat currencies and cryptocurrencies.

Fast and reliable services

It is often hard to keep up with the customers’ demands on moment’s notice, however thanks to strong API applications, Bitpanda lets you order your currencies within minutes up to 24 hours.

Getting started on Bitpanda

When starting out on the platform, first, verify your email address which is provided alongside other relevant personal information. The verification process also includes a video identification process. The service is provided by partner companies IDNow and IdentityTM. Once your document is ready you are connected to the selected provider. Next, a verification document such as an ID photo is required during a session on a smartphone or webcam.

The platform is fully automated, therefore, as soon as the payment is confirmed the cryptocurrencies are sent to the buyers automatically. This is meant to make the services and processing of payments faster.

Storing your cryptocurrencies

Once you complete your registration Bitpanda provides you with a free wallet. The wallet is custom build in every account for the purpose of storing the crypto before or after a trade is made. However, these wallets are intended to store crypto for only a short time. Within a short span of time exchange sites such as bitpanda transact millions worth of cryptocurrency, which makes them a target for malicious attempts. While the list of hacked exchanges continues to grow, Bitpanda is yet to report such incidences.

The phrase “There are cryptocurrency exchange platforms that have been hacked and those that will be hacked” plainly speak the harsh reality in the industry. Hackers are constantly looking for vulnerabilities and when this happens to Bitpanda you do not want your funds to be in the temporary account. There are numerous options out there you can use to keep your funds protected from “cold wallet” to hardware alternatives, wallets keep your funds safe.

The significance of Bitpanda

Cryptocurrencies are structured to be a decentralized currency, they do not have any central unit controlling their use and are only issued by computer run codes. Cryptocurrencies have become significant and highly valued due to their scarcity and people have agreed that it is more-less equivalent to money, meaning anyone with a computer from all over the world can use it.

This is impressionable for many reasons, however, in some countries, it has become almost essential to trade in cryptocurrencies. Not every country has a stable regional currency as stable as that of the Euro or Pound. Cryptocurrencies allows citizens from any part of the world, sometimes held back by the whims of their corrupt governments, to use an unrelated currency. This makes the transfer of wealth from their home borders to other parts of the world easier.

These effects of exchange platforms such as Bitpanda are crucial. In the earlier days of cryptocurrencies, the currency was only accessible through arcane methods or methods that were only available to influential world powers. As a result, people from minor countries were disadvantaged, but with exchange sites like bitpanda the degree of financial independence across Europe and the world has increased.

Pros

Operates in a large part of Europe. Supports eight different cryptocurrencies. Since it’s an automated platform, transactions take minimal time. Accept multiple payment options. Provide cold storage for additional security option.

  • It is a fully automated platform, with instant transactions
  • It provides a wide variety of payment options
  • BitPanda is good for beginners

Cons

  • Only European members can buy the cryptocurrencies from BitPanda
  • It is not an open source
  • The fees are not disclosed to the public
  • There is a lack of hierarchical deterministic (HD) and multi-signature protocol, which raises privacy concerns and security

Users have complained of higher fee charges and lack of transparency. They lack margin trading. It’s not open to US investors. Some emerging coins such as IOTA which is on demand are missing. Claims of unanswered queries from the support team are common.

BitPanda is the leading retail exchange for and selling cryptocurrencies. It is similar to the mother of all cryptocurrencies, Bitcoin. BitPanda has swiftly emerged as one of Europe’s most sought-after, popular cryptocurrency brokers. This Austrian based cryptocurrency broker offers a bevy of payment options. It allows traders to diversify in premier tokens like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ripple, etc. It began as a Coinimal in the year 2014, offering sell-side services worldwide. Currently, BitPanda sells their cryptocurrencies only to European members.

Is BitPanda available worldwide?

Well, technically BitPanda offers sell-side services to countries all over the globe. Like we have already mentioned, it only provides ‘cryptocurrencies’ to the residents of Europe.

What are the payment methods available for BitPanda?

As mentioned earlier, BitPanda offers a wide range of payment methods making is a very smooth and easy way of making transactions. Therefore, we have made a list of the available options for making a payment.

  • Credit card (Visa, Mastercard)
  • EPS
  • SEPA
  • Online Bank Transfer
  • Skrill
  • OKPAY
  • Giropay
  • Neteller
  • SOFORT transfer (available only in Germany, Austria, Poland, The Netherlands, Belgium, Italy, Spain, and Switzerland)
  • Visa/Mastercard Debit or Credit Card

Credit card being the most popular method in BitPanda, the list below compares the credit card exchanges.

  • Exchange: Coinbase, Fees: 3.75%, Countries: USA, Europe, Canada
  • Exchange: Coinmama, Fees: approximately 6%, Countries: Global
  • Exchange: BitPanda, Fees: 5%, Countries: Europe
  • Exchange: CEX.io, Fees: 3.5%, Countries: Global

Is using BitPanda safe?

BitPanda offers good security protocols to its customers, with a two-factor authentication process and an ID verification for enabling credit card payments. However, security is not as good as the other cryptocurrency service providers like Bitcoin.

What are the options for limits and liquidity?

The company offers different levels of verifications based on the amount of information you provide them with.

  • Verified Email: A user with only a verified email cannot buy bitcoins but can sell up to 1000 EUR worth of bitcoins per day. It can exceed up to 7500 EUR monthly.
  • Verified Ph. Number: A user with a verified mobile phone number can purchase bitcoins via any payment methods, besides a credit card. The user can buy up to 50 EUR per day.
  • Verified ID proof: A user with a verified ID proof can purchase bitcoins with a credit card up to 350 EUR per day and 10,000 monthly. And for other payment methods, a user with a valid ID proof can purchase up to 5,000 EUR worth of bitcoins and 75,000 EUR monthly.

What are the other factors of BitPanda?

Let’s begin with its speed.

Speed: BitPanda has various payment methods for making a transaction, giving users an instant option to buy and get their bitcoins delivered.  However, SEPA users take about a day to complete and a user will have to wait for it to arrive in their wallet.

Reputation: The company was previously named Coinimal. In two years, it had garnered a trustworthy goodwill and a good reputation for doing business, earning a start-up award in the year 2016. Since then there has been no stop to it. The company has now emerged to be one of the most sought-after cryptocurrency dealers in all of Europe and is leading the market.

Fees: The company has low fees but they are not disclosed to the public. These fees are included in the buying price of the customers when checking out the buying and selling options.

Customer Support: The company has a good customer support service for requests and complains. They are solved quickly, without any delay via the support request forms on their websites. It is easily accessible.

Well, that is all for BitPAnda. If you are looking for an alternative then you should check out CEX.io, Coinmama, Coinhouse, and Coinbase to choose from. All of which are based on different parts of Europe and has the same servic

Conclusion

Popularity of cryptocoins has risen over the years and as a result, the trade exchange has significantly risen. Despite there is comparatively fewer exchange platforms, Bitpanda has proven to be highly secure, affordable and in the long term adequately managed. They have managed to stay on the forefront of Europe’s market and all for a good reason, to say the least. Moreover, Bitpanda is a stable exchange platform that is unlikely to fail in terms of security and finances. The merits of confidence shown by its users are impressive considering the highly competitive trends emerging.

Lending Club is a peer-to-peer platform that lets investors invest in other people’s debt. Simply put, this platform lets you rent out your money to other people to use. In turn, borrowers receive loans at a better rate, whereas the investors enjoy higher returns. Unlike in the olden days where lending someone money was a pretty big risk unless provided collateral, Lending Club lets you spread out and minimize your risk by lending money to multiple borrowers across the Platform.

It also offers the possibility of higher returns compared to traditional fixed-income investments. That said, it is important to note that investing with Lending Club is a long-term commitment and is not without risk of borrower default.

How does Lending Club work? The Lending Club offers loans to borrowers across the United States. It uses state of the art technology to evaluate risks, find out credit ratings and charge appropriate interest rates to borrowers. For investors, you start by selecting the notes you want to invest in to earn monthly revenue. Investors can invest a minimum of $25 per note which allows them to spread out and minimize the risk. You are also given a chance to assess each loan to ascertain which ones you want to invest in.

Loans graded as “A” have the least risk of nonpayment on the platform based on various factors such as the borrower’s creditworthiness. These attract the lowest rates. As you move further down the grades B, C up to G, the loans get riskier. However, the riskier a loan, the higher the rate it fetches.

Loans graded as “A” have the least risk of nonpayment on the platform based on various factors such as the borrower’s creditworthiness. These attract the lowest rates. As you move further down the grades B, C up to G, the loans get riskier. However, the riskier a loan, the higher the rate it fetches.

Who is Lending Club For? This club is highly recommended for; •DIRA investors •DHands-off and hands-on investors •DRisk Takers •EDiversification •EFeatures of the Lending Club

Minimum Investment for Taxable Accounts Lending Club allows a minimum investment of no less than $1,000.

Investment Length Lending Club’s investment length range anywhere from 36 to 60 months.

Interest Rate Lending Club offers a fixed rate for the term on the loan.

Lending Club App Lending Club investors can access their accounts through iOS and Android mobile apps.

The minimum investment for IRAs Lending Club requires investors to deposit a minimum of $5,500 to open an IRA.

Types Account The Lending Club offers investors a range of accounts to choose from, including Individual, Joint, Trust, Corporate, Custodial, Traditional IRA, Simple IRA, Roth IRA, and Rollover IRA.

Lending Club Borrowing Process All Lending Club loans must be applied online. To qualify for this loan, an investor must have a FICO score that is above 660. Note that not all loan applicants get approved, which is part of the company’s risk management strategy.

Individual borrowers can apply for a loan amount of from $1,000 to a maximum of $40,000. The interest for these loans is determined by the Lending Club, based on your credit rating. However, their rates are rather competitive compared to traditional banks, starting as low as 6.16% APR and a high of 35.89% APR. The best APRs are available to borrowers with excellent credit scores. The lending club also offers loans for refinancing autos, medical expenses, and small businesses.

What are the Note Terms? The loans are available in three and five-year terms. All their loans are unsecured and no different than credit card loans. Any defaults on payment are reported to these three credit rating agencies; TransUnion, Experian, and Equifax.

How Lending Club Works First, you need to sign up as an investor, which takes a few minutes to complete. You can fund your account either via mailing a check or electronic transfer directly from your bank. The lending club requires you to invest at least $25 per note.

Minimal Requirements for Investing with the Lending Club Lending Club is not available to all investors. As needed by the SEC and each state, the platform has set up minimum net worth and income requirements that one should meet to join the club.

Income level To become a member of the Lending Club in most states, you are required to have a gross annual income of at least $70,000 and a net worth of at least $70,000. In California, the rates are a little different with investors required to have a gross annual income of at least $85,000 and a net worth of $85,000.

Approved States Lending Club is available to investors in most states except Pennsylvania, Ohio, Alaska, North Carolina, and New Mexico.

Net Worth If your net worth is over $250,000 ($200,000 in California), there is no annual income requirement. In the state of Kentucky, an investor must qualify as an “accredited investor” under the Securities Act of 1933.

Lending Club Investing Risks Just like any other investment, there is always a risk. Here are some possible risks when investing with Lending Club.

Default Risk Lending Club loans are not insured by the FDIC. They are also not equivalent to bank CDs or Treasury Notes.

Inflation Risk Due to their fixed rates, you have a higher risk of inflation eating into your returns. However, due to their high return rate, this risk is unlikely to affect you.

Management Risk Although Lending Club’s annual rate is and has been 1% for the longest time, it could increase in the future.

Marketplace Risk This is the risk that Lending Club could go bankrupt. Although it is unlikely, taking into consideration the Lending Club’s history, it is not impossible.

Callable Risk If a loan is paid early and in full, your returns will be affected and you may need to find another loan to replace it.

Diversification Risk Even if you have a small loan amount of less than $100, a single default can dramatically affect your overall return.

Liquidity Risk Although loans can be sold on the secondary market, it will take some time to unwind each note.

Economy Risk A recession is highly likely to increase the overall defaults of the individuals within the Lending Club, causing your return to decrease.

Pricing Risk The Lending Club assesses the borrower’s risk to default and prices the loan accordingly. However, you can minimize this risk by picking loans that you can fund. If the terms are not ideal, do not invest in that note and pick a different one.

Lending Club Taxes Lending Club’s taxable account is inefficient, especially for high-income earners majorly due to the government’s income requirements. In the US, Lending Club investments are not considered as passive investments. Therefore the IRS taxes any returns as ordinary income.

In this case, you are better off choosing the self-directed IRA accounts as they are much more tax efficient.

Lending Club Investing Strategy These are some of the commonly used strategies used for investing with Lending Club that has borne favorable returns. Just make sure to use them as you see fit and do your research before applying them into your trade.

Interest Rate The A, B and C notes have some of the best rates. Just make sure you do not invest in A notes with rates lower than 7.5%.

Length of Employment The longer the employment when investing with the Lending Club, the better the returns. Always choose a length of employment that is greater than 1 year.

Debt Refinance Opt for people looking to pay off higher interest rates as opposed to riskier types of loans like a start-up business.

Loan Term We highly recommend a 3-year loan term. The additional 2% plus or minus return for 5-year notes is in our opinion not worth the additional risk.

Loan Purpose In this case, we tend to look at borrowers looking to get better rates and reduce their debt. When choosing clients whose loan’s purpose is to refinance Consolidate Debt, Credit Card debt and Home Improvement Projects consider the following:

Loan Purpose In this case, we tend to look at borrowers looking to get better rates and reduce their debt. When choosing clients whose loan’s purpose is to refinance Consolidate Debt, Credit Card debt and Home Improvement Projects consider the following:

•ElDelinquencies: None within the last 2 years •EIMaximum debt to income ration: 30% •EICredit Score: A FICO score of 675 or more •EIReview Status: Consider customers who have been reviewed by the Lending Club. This gives a better chance that the loan details are legit. • Although these filters provide a good basis for choosing a client, it is crucial that you always look at the bigger picture, which in this case is will the client pay back the loan?” If you have any doubt in an applicant, skip and move on to find a better note.

If you don’t find a good note, wait for a few days and check again. There is no need in rushing the process as you don’t want to get stuck with a bad note. Remember, once you purchase a note, unloading it is not easy. And, although you have a secondary market, ideally, the goal is to hold the note until maturity.

To achieve this, start by building up a portfolio of at least 200 notes. The more notes you have, the more your portfolio will be. They also help stretch out the risk to many loans should one default. Also, when building your notes. consider manually investina as opposed to automated investment options as this aives you more

Secondary Market This Market, also known as FOLIOfn, is for investors looking to unload a loan. This market can prove useful if you have a poorly performing loan, or are in need of cash for other investments. It is also a great place to pick up notes from other investors.

Pros

•EINlo prepayment penalty

•Potentially higher returns

•No hidden fees

•ElMany filtering options

•ElAutomated investing

•El Improved secondary market

Cons

•ElLong-term investment

•111Returns are not fixed

•111Not everyone can invest

•E11% annual fee

•❑Gains are taxed as ordinary income

•❑Revised lower returns

•❑Unsecured loans

•❑Manual investing requires a lot of maintenance

•❑Revised lower returns

•❑Unsecured loans •❑Manual investing requires a lot of maintenance

The bottom line, we highly recommend investing with Lending Club as it gives you a chance to earn more revenue compared to other other investments that hold comparable risk. You will also be earning consistent profits that are not subject to the fluctuating stock market. However, you need to understand that it is a risky venture and requires frequent diligence to invest wisely.

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