Challenger Bank N26 launched a new trading feature in its N26 Crypto app. Users can easily trade crypto assets using their N26 account balance. Behind the scenes, N26 works closely with Bitpanda to manage trading and storage.
N26 is gradually rolling out N26 Crypto across Europe. Initially, only a few users in Austria were able to access this new feature. Other countries are expected to receive this feature in the next six months.
With N26 you can buy, sell and store over 100 different crypto assets. The startup plans to add 94 more crypto assets later. And I believe the company will soon expand into equities and other asset classes.
N26 Crypto can be accessed via the second tab called "Finance". This screen is where you will find your area. They are secondary accounts that allow you to deposit funds into separate pockets. The storage space can be used as a shared account with other people.
Below your list of locations is the new trading area with your cryptocurrency wallet. N26 lists all your crypto assets, the value of your positions and how they changed in the last 24 hours, weeks, months or years.
Whenever a user wants to buy or sell a cryptocurrency, they can click the “Buy” or “Sell” button, select (or search for) a crypto asset and deposit funds. N26 shows the exchange rate and the fee you paid.
Photo credit: N26
N26 plans to charge 1.5% for Bitcoin transactions and 2.5% for all other cryptocurrencies. This is the same price that users pay on the Bitpanda app. Users paying €16.90 per month for N26 Metal pay 1% and 2% transaction fees for Bitcoin and other cryptocurrencies, respectively.
The main advantage of N26 Crypto is that it is directly connected to your existing bank account. No need to put funds into a separate trading account, just open the Bitpanda app (or any other app) and start trading. Likewise, when you withdraw with N26, you will receive Crypto Euro to your main N26 account, you don't need to transfer money to your bank account.
N26 is not the first fintech startup to create deep integration with Bitpanda. French payments app Lidia partnered with Bitpanda last year to introduce the ability to trade stocks, precious metals, cryptocurrencies and ETFs on its app. In my experience it works very well.
Last week, N26 announced its financial results for 2021. While total revenue increased by 50% to over 180 million euros, operating expenses also increased more rapidly with a net loss of 170 million euros. Euro.
Of course, the N26 also raised several million euros. With those deep pockets, companies have plenty of time to figure out how to get more revenue from their users while keeping operating costs under control. Since N26 and Bitpanda may have agreed to share N26's cryptocurrency revenue, this new feature is expected to increase the company's profits.