Bitcoin, the champion of cryptocurrency, in the last year, has seen an increase in the price of approximately 400%. Today, 7th of January 2021, the digital coin has achieved an all-time high of $40,000 raking in huge profits to investors who chose to invest in it. Asides from Bitcoin, the remaining top-19 cryptocurrencies in the crypto market have also attained their respective all-time highs.
This feat, in recent weeks, has seen investors showing immense interest in the digital coin and other various altcoins. This is so because it is now clear to investors and traders that cryptocurrencies are a great means of achieving financial success. Even with these alluring feats, it is crucial to note that the cryptocurrency market comes with its risks most especially now that the volatility is on the extreme.
As an intending investor, captured by the prospect of various digital coins and looking to venture into the cryptocurrency market, it is required that all your investments are done via an exchange platform. This is so because the cryptocurrency market is designed to rely on exchange platforms. A good exchange platform is responsible for providing its customers with rapid and valid information, basic trading tools, immediate and credible support when required.
As a crypto trader, one thing you must always seek is information. As the saying goes a trader is as decent as the information he possesses and that is why you must endeavor to choose the right trading platform that provides accurate and timely information.
As a newbie investor, it would not be surprising if you think choosing an exchange platform is straightforward and simple but I assure you, it is quite the opposite. The everyday inflow of new investors has stemmed from an inflow of numerous exchange platforms both legitimate and scams.
Today, there’s an endless number of exchange platforms obtainable in the cryptocurrency market. Most of these exchanges advertise decent offerings, promising investors mouth-watering benefits but most fail to always come through. To find a decent and adequate exchange platform that meets your trading needs, you must then put in some work. Study into the benefits, services, running, and features of various exchange platforms must be conducted before you can choose out of so many.
In all honesty, carrying out this research can be a daunting task, hence, we have taken it upon ourselves to help you carry out these researches so you can concentrate more on acquiring more knowledge about the cryptocurrency market.
In light of charging ourselves with this responsibility, we will be making reviews on the benefits, services, activities, and features of several exchange platforms one can find in the cryptocurrency market. And one of such reliable exchange platform in the cryptocurrency market that comes to mind is Bitvavo.
This review will be honest, putting all sentiments aside, and mainly directed at offering insights into the workings of the Bitvavo exchange platform. After reading this review, you should be able to make a conscious and informed decision as to whether or not the exchange platform is best for you.
|Trading pairs||EUR/crypto, BTC/altcoin, crypto/EUR and altcoin/BTC|
|Payment Method||Bancontact, EPS, Giropay, MyBank, iDEAL, SEPA transfer, and Credit Card|
|Customer Support||Live chat, e-mail, Telephone, and FAQ|
In 2017, Bitvavo was established to bring together various cryptocurrencies and fiat currency using the “one-stop stop” strategy while providing convenient and good prices, moderate variety of cryptocurrency, and low margins. Within a year after its establishment, Bitvavo saw itself expanding its broker services to all of Europe. By the year 2019, in March to be precise, Bitvavo broadened its operations from being a broker and has moved to become an exchange platform, which saw it to be the cheapest exchange with their cheap cryptocurrency offering.
The exchange platform is equipped with a user-friendly and adequately functioning interface making it easier for both experienced and amateur traders to navigate around their website. To be a step ahead of its competitors, Bitvavo developed a mobile app suitable for both Android and iOS devices to better serve their clients and intending investors. The mobile app is fast, simple, reliable, and straightforward.
Also, some changes in the legislation governing exchange platforms across Europe have seen Bitvavo make some adjustments. Bitvavo, as with other exchange platforms, complies with this new legislation seeing it registered under the De Nederlandsche Bank (DNB). The new legislation ensures that the financing of terrorism and money laundering is curbed within the Netherlands. Some of these legislations include monitoring and tracking of transactions, validation of registered customers, and confirmation of source of assets.
Bitvavo is likewise a member of the Verenigd Bitcoin Bedrijven Nederland (VBBN), which sees that all members follow strictly the rules of approach. As a result of this association and supervision, Bitvavo can be said to be a credible exchange. However, let us zoom up close to better understand its offerings.
Generally, trading in the crypto market involves a significant amount of risk. The high volatility of the crypto market can see investors lose all their funds if they are not careful enough. Asides from this investment risk, exchange platforms are also susceptible to hacks from various cyberattacks seeing clients lose all their investments in the twinkle of an eye.
The number of successful cyber attacks continues to grow because mediocre exchange platforms are unable to adequately protect their clients’ information and investments. This is why a lot of investors and traders tread carefully when choosing an exchange platform, making security their primary criteria as to why they choose a specific exchange platform.
Bitvavo has then made sure that a good number of standard and latest measures of security are in place to protect its clients’ sensitive information and investment. The exchange platform makes use of the following security measures to protect clients trading accounts, investments, and personal data;
2FA 6-digit (Authy app or Google Authenticator).
Two-factor authentication (2FA) is the most basic security measure any exchange platform should have. The electronic authentication gives traders access to their account only after providing two-pieces of evidence; possession (an item only the user has), inherence (something the user is), and knowledge (a thing only the user knows).
The 2FA primarily protects investors and traders from a third party trying to hack their way to have access to their data like financial assets and personal identification details.
Cold wallets with multi-signature for storage
A huge number of digital assets entrusted with Bitvavo is stored in cold wallets. This implies that these funds are kept offline in safe locations and need manual actions that are governed by stringent policies to be moved.
To further strengthen security, Bitvavo’s cold storage is stored in bank-grade vaults with adequate security and constant monitoring. All vaults are used to fulfill the stringent regulations of safety category 4+ which is the highest category of security in the Netherlands. Bitvavo’s cold storage instruments are further spread out in various geographic locations, to safeguard against likely disastrous physical risks like floods, fires, and various environmental disasters.
Other security measures put in place include;
- Device and IP management.
- Integration of SSL technology.
- Whitelist management.
- Approval through an e-mail notification for withdrawal.
- Anti-phishing code in the e-mail communication.
- Support page devoted to security.
With all these security measures put in place, clients of the Bitvavo exchange platform are well assured of the safety of their personal data and financial assets.
Limits and Verification
To be able to sign up for the Bitvavo trading account and utilize the exchange platform, intending traders must meet the minimum age requirement of 18 years while also residing in the European Economic Area. Putting into consideration the aforementioned rules and legislation, Bitvavo makes use of three tiers of verification which are the Starter, the Intermediate, and the Pro with each having its own prospects and constraints. Let’s have a look at each of them.
To have access to the Bitvavo exchange platform, the first thing you need to do is finalize an email confirmation by opening an account filling in your last name, first name, password, and email address. The starter is very limited and does not give traders access to trade.
To have the chance to trade with Bitvavo, traders must then take a step further by going through a process of verification of identification and personal data and. This verification is important so to prevent money laundering, financing terrorism and fraud, and.
For the verification process, you can make use of your driver’s license, identity card, or passport. The entire process is simple and straightforward with approval likely to happen the same day. It is also worth mentioning that a bank verification must have been done before you can start earning or carry out your crypto transaction. This verification links your Bitvavo account to your personal bank account.
Are you looking to be a big investor calling the shots in the cryptocurrency market? Then to do that, you will need to take a step further by upgrading your account to the Pro. The Pro account enables traders and investors to have the chance to trade, deposit, and withdraw unlimited crypto and fiat currency (€). To sign up for the Pro account, you are required to provide proofs that verify the source of your assets. This document can either be an annual statement, salary slip, tax return, and so on.
Based on the documents you choose to provide, there’s a possibility that the thresholds of the intermediate account only get improved and you won’t get access to the full benefits of the Pro account.
Traders and investors can store, sell, buy, trade, and withdraw more than 60 cryptocurrencies on the Bitvavo exchange platform. Furthermore, investors will continue to get more assets to trade as the offer are constantly updated. Traders can decide to trade major digital could like Bitcoin, Litecoin, and Ethereum or go for the less popular found such as Vechain and Chainlink.
To ensure accurate and timely information is provided for each coin, Bitvavo went ahead to create a page for each digital coin where prices, market trends, and other relevant information are displayed. Traders can then compare various digital to one another in terms of prices and volatility.
Commissions and Fees
One of the vital factors investors look out for when choosing an exchange platform is the fees and commissions charged. No investor in his/her right mind would choose an exchange platform with a very high commission. The commissions charged by exchange platforms in the cryptocurrency market are mostly on trades, deposits, and withdrawals, and spreads.
While handling their own order books, Bitvavo attends to two kinds of trading fees; the taker and the maker.
A maker fee is the amount charged when an investor creates an order via the requested transaction. On the other hand, a taker fee is the amount charged when an investor’s petitioned transaction enters an order.
On each transaction value, a percentage of 0.15% is charged as marker fee and 0.25% for the taker fee. Furthermore, you likely get eligible for a discount provided your transaction volume is high. Investors get to have a discount of 0.01% and 0.04% for the marker and taker fee respectively.
Immediately after you finalize a transaction, a transaction summary is displayed containing vital information like time and date, trading cost, order type, exchange rate, paid amount, and several euro or crypto received.
Spread is the variation between the selling and buying price. It is often indicated in percentage to show how big or small the difference between the selling and buying prices. It is evident that the amount of spread and trading cost charged by an exchange platform determines if it is costly or cheap. Bitvavo charges on an average a spread of 0.60% which is quite cheap compared to all other platforms. This low spread causes investors to make more profit on their trading.
Cost of withdrawal and deposit
Bitvavo offers several payment methods to withdraw and deposit funds. A total of eight payment methods are offered. Each payment method has its own maximum amount of transaction and some methods of payment do charge extra fees during fund deposits.
The Giropay and EPS payment method option charges an extra fee of 1.99% while MyBank charges an extra fee of 1.55%. The remaining payment methods like iDEAL, SEPA bank transfers, and Bancontact are free to use.
Withdrawals and Deposits
Without the deposit of an initial investment, trading cannot commence and as such, you will not be able to partake in the cryptocurrency market. Furthermore, making withdrawals also holds as much importance as making deposits because that’s the whole idea of traders coming to invest in the crypto market; making high profits and withdrawing them.
Bitvavo has made both deposits and withdrawals simple and straightforward. As mentioned earlier the exchange platform offers a total of 8 payment methods so clients can choose the one that best suits them. These payment methods are;
- SEPA transfer
- Credit Card
Traders and investors that own the intermediate account can withdraw and deposit fiat currency up to € 25,000 each day, € 50,000 each month, and €90,000 each year. In the case where traders will be withdrawing and depositing cryptocurrency they can do so up to a maximum amount of €15,000 per day, €30,000 per month, and €45,000 per year. If you’re looking to invest more than these, you will have to upgrade from the intermediate to the Pro account that offers unlimited deposits.
The withdrawal and deposit options offered by Bitvavo are of very high ratings, however, traders can not deposit dollars but only in Euro as Bitvavo majorly targets clients in the European Union.
The Bitvavo exchange platform offers great and timely customer support to all its clients. In the case where you have some questions, we recommend you check first the FAQ section as most questions are already answered there and there’s a good chance you find what you’re looking for there.
If you’re not satisfied with the answers provided in the FAQ section, you can then go head to reach out to the Bitvavo support team. You get in contact with the support team through email and via live chat. The support team is available from 9:00 am to 5 pm on Mondays to Fridays and 10:am to 6:00 pm on Saturdays. Traders can still communicate with the support team even after these hours via email however a phone call won’t work.
As an investor residing in the European Union and looking to purchase major cryptocurrencies such as Bitcoin and Ethereum, then Bitvavo might be your best bet. However, it isn’t the best choice went it comes to purchasing altcoins as the exchange platform does not have a lot of varieties and only provides trading pairs of Bitcoin/altcoin.
Nevertheless, putting into consideration the low trading fees combined with low fees on fiat withdrawals and deposits, Bitvavo is one of the incredible cryptocurrency exchange platforms for buying, selling, and trading major cryptocurrencies in the European Union.