Uncomplicated payment in everyday life is the key to Bitcoin adoption - we at BitBucks are convinced of that. But in order to pay with BTC at friends' houses, in retail stores or restaurants, users first have to be given the chance to buy Bitcoin. In the coming weeks, this will become possible via BitBucks: The functions of the iOS and Android apps will be expanded so that buying and selling Bitcoin can be handled directly in the app.
In line with the philosophy of our startup BitBucks - complete transparency towards the user - a comparison between BitBucks and other relevant trading platforms will help Bitcoin beginners to find their way into the world of digital currencies. By the way, a good overview of which fees are charged by which providers is available here from Blocktrainer.
With our market analysis on the topic of Bitcoin wallet or Bitcoin exchanges, we want to provide a holistic picture of the different services. Fees, functions, operation and more: Which Bitcoin wallet or Bitcoin exchange can convince when buying Bitcoin?
Coinbase - Exchange for Cryptocurrencies
The US company is also one of the oldest and largest trading platforms for cryptocurrencies. On this platform, users can exchange Bitcoin as well as other cryptocurrencies such as Litecoin or Ethereum against the official currencies US dollar, euro and the British pound. Coinbase has a large user base and offers crypto newbies, among others, a good opportunity to invest in Bitcoin easily and directly.
However, as simple as the principle of Coinbase may sound, there are often problems with the operation. Moreover, the support is only available in English. The fees for a purchase or sale of Bitcoin amount to 1.5 percent plus a one-time fee for a SWIFT transfer of 5 euros. Thus, for a purchase of BTC worth 200 euros, the fee would amount to 8 euros. In addition: The so-called spread, the possible difference between the lowest sell bid and the highest buy bid, is 0.5 percent. Coinbase is thus clearly geared towards investing in Bitcoin.
Bison App - Buy Bitcoin at the Börse Stuttgart
In Germany, the Bison app is one of the best-known providers for buying and selling cryptocurrencies. The app for iOS and Android is subordinated to the Stuttgart stock exchange, convinces with an easy handling and allows to invest in Bitcoin, Litecoin, Ethereum and Co. within a few steps. After successful verification via Video-Ident, users can fund their Bison account - which is equivalent to a real bank account at Solaris Bank - via bank transfer for free. However, the app does not offer much more than exchanging crypto with real currencies - a payment function is not included, for example.
When buying or selling Bitcoin via Bison, however, the user has to reckon with a spread of 0.75 percent, which poses great risks with sometimes extreme exchange rate fluctuations. What does this mean in concrete terms? Currently, the value of a Bitcoin is around 47,000 euros. This means that when buying by Bison 1 Bitcoin must be purchased for 47,300 euros, but the sale brings in only 46,700 euros. If you buy 200 euros worth of Bitcoin, the effective fee is currently a little more than 1 euro. Another point of criticism : Transactions to other Bitcoin wallets, as well as shipments via blockchain to the Bison Wallet sometimes take several days. As a means of payment for cryptocurrencies, the Bison app is therefore rather unsuitable.
Bitwala - bank account for Bitcoin & Co.
In addition to the Bison app, Bitwala is also one of the German providers that enable the buying and selling of Bitcoin. The Berlin-based company offers users a regular checking account with all the usual functions (e.g. SEPA transfer), which is expanded to include an account for cryptocurrencies and a Mastercard (debit card). Although there are no account maintenance fees with Bitwala, a fee of 1 percent is charged for the purchase and sale of Bitcoin - which is carried out via a separate app. That would mean a fee of 2 euros for a purchase amount of 200 euros in BTC. This makes Bitwala one of the best providers in terms of trading fees.
In addition to the bank account, Bitwala also has a full-fledged Bitcoin wallet that allows sending and receiving Bitcoin via blockchain transactions. With the BitGo-powered wallet, which is multi-signature secured like BitBucks, the user has two of the three crypto keys, giving them full control over the wallet. For crypto novices, however, these details mean that they first l have to acquire the necessary basic knowledge about storing Bitcoins, which puts at least a slight damper on the user-friendliness of the service.
Binance - Bitcoin & Crypto as Investment
Binance is considered the world's largest trading platform for cryptocurrencies. Besides Bitcoin, other cryptos such as Ethereum, Ripple or the own Binance Coin can be bought and traded within the service. Unlike the competition, there is no fee for deposits via SEPA transfer (via credit card: 1.8%). Further fees only incurred when the "real" trade with the cryptocurrencies begins.
If a user buys Bitcoin on Binance, a trading fee of 0.1 percent is due in addition to the network fee for blockchain transactions - which can currently be in the double-digit range. If one currently invests 200 euros in Bitcoin on Binance, the fees amount to just under 17 euros due to the high network costs. The trading fee, in turn, can only be reduced by means of a VIP status, which highly frequented investors can achieve. The acquired Bitcoin are stored in the Binance Trust Wallet and can be sent from there to any other Bitcoin wallet.
Bitcoin.de - Online Marketplace of the Fidor Bank
The use of the account and the associated Bitcoin.de wallet is free of charge. Fees only arise when trading cryptocurrencies, then they range between 0.8 (express trading) and 1.0 percent (SEPA transfers) per transaction and are shared by the buyer and seller. Here lies a special feature of Bitcoin.de: namely, only Bitcoin that are offered by other users can be purchased on the marketplace. Thus, buyers have to wait for a corresponding offer - for example, in the amount of 200 euros in BTC - before they can make an investment. In this case, the fee for the buyer is 1 euro.
BitPanda - Buying Bitcoin fast and simple
The Austrian provider BitPanda has been offering the purchase and sale of cryptocurrencies since 2014. BitPanda users have full control over their Bitcoin wallet and can determine the desired security level themselves. This high level of personal responsibility might deter crypto newbies in particular.
While the user-friendliness in custody is geared more towards experienced users, the service for trading Bitcoin shows itself to be extremely simple. On the fully automated platform, digital coins can be bought and sold quickly and easily. With the Bitcoin Wallet, the acquired coins can also be sent on the blockchain without any problems, but at high costs,.
The fees, which are not openly communicated by BitPanda, are critical. These are already included in the purchase price, which is why the Bitcoin exchange rates sometimes differ significantly from the competition. On average, the exchange rate can deviate by about two percent from the usual market price.
BRD Wallet - easy handling, high fees
As a pure mobile wallet, BRD also offers the possibility to buy, sell and safely store Bitcoins. The BRD Wallet impresses with its ease of use and also offers the possibility to invest in the cryptocurrency Ethereum in addition to BTC. In addition, users can use the app to invite new users into the Bitcoin world by creating a paper wallet of any amount with BRD Wallet.
As a payment method, users can choose between Apple Pay or credit card in addition to the regular bank transfer via SEPA. If a user opts for the former, however, the fees are steep: for a purchase value of 200 euros in Bitcoin, users currently have to pay a fee of 16 euros (as of 10.03.2021) - including the network fee.
PayPal - Buying and selling Bitcoin
Last fall, the US payment service PayPal caused a real upswing in the price of BTC with its announcement that it would include Bitcoin in its corporate portfolio. Since the end of 2020, US citizens have been able to buy and sell Bitcoin with their PayPal account. In 2021, the European market is to follow, first Great Britain, later in the year also Germany.
The announcement of the payment service also focused on the 26 million merchants worldwide who will be able to accept Bitcoin as a means of payment in the future. However, PayPal still lacks a payment function that allows the purchased Bitcoins to be sent. In addition, transactions to other Bitcoin wallets cannot be carried out with the PayPal wallet, which means that BTC currently remains an immovable investment with PayPal.
PayPal charges a fee of 2.3 percent (4.60 euros for a purchase value of 200 euros) when buying and selling Bitcoin. If bitcoin payments to merchants are also enabled in the near future, they will have to pay 1.5 to 3 percent per transaction. These high fees are one of the reasons why PayPal has already been very unpopular with merchants, especially in Germany.
BitBucks - the perfect Bitcoin Wallet
Getting started with BitBucks' Bitcoin wallet is very straightforward and user-friendly. After registration via phone number and free verification via video, users can deposit already existing Bitcoin and then use it as a means of payment in sushi restaurants, kiosks or other retail stores. The storage as well as the payments are free of charge for the end user, only when withdrawing to another Bitcoin wallet a fee of 2 percent is due.
The infrastructure of the Bitcoin wallet guarantees the user that the coins are safely stored and protected from external attacks. If the Bitcoin portfolio is to be expanded, this will be possible directly in BitBucks in the future. A fee of 1.5 percent is charged for the purchase and sale of Bitcoin, which means a fee of 3 euros for a purchase of Bitcoin worth 200 euros. Afterwards, the Bitcoins and Satoshis are available for free use.
Unlike other providers, BitBucks focuses on the uncomplicated use of BTC in everyday life. Instant payments in cafés and restaurants, to friends or relatives are not associated with any costs; for the transfer, the recipient only needs a BitBucks account and a phone number.