Bitstamp Review: User-Friendly Exchange With Competitive Features
Bitstamp is one of the first crypto exchanges still in operation. Earlier this year, in 2011, Nejc Kodri and Damijan Merlak started the exchange. The exchange was sold to NXMH, a subsidiary of the South Korean holding group NXC, in October 2018. The deal’s estimated value was $400 million, while the exact amount was not disclosed.
With competitive trading costs, it now serves traders wishing to purchase and sell a list of 81 cryptocurrencies and counting. Users have the option of trading cryptocurrencies via the active trading platform, mobile applications, or simply an internet trading platform.
Given that the exchange lists fewer coins than many of its rivals, quality above quantity is undoubtedly one of the exchange’s most significant tenets. To give clients better access to the vast world of cryptocurrencies, Bitstamp has been making strides in this area and is currently regularly adding new coins. You may discover various DeFi-related tokens on Bitstamp in addition to popular cryptocurrencies like Bitcoin, Ethereum, and XRP. The names Chainlink, Uniswap, and Aave are just a few. Now, the Bitstamp Review article will delve into the information of the exchange.
This Bitstamp review will go through the key aspects of the exchange so you can decide whether the exchange is the best option for you or whether you’re better off using a different reputable cryptocurrency exchange. Here is a brief summary of the exchange’s advantages and disadvantages.
| Pros | Cons |
| Dedicated in-app customer support | Still doesn’t list as many cryptocurrencies as some of its main competitors |
| Offers major cryptocurrencies and access to popular altcoins | A limited list of supported currencies |
| Great reputation | A very short list of coins supported for staking |
| Strong trading volume and liquidity | No margin trading or lending features |
| Supports U.S. customers | 2015 hack resulted in the loss of $5.2 million worth of BTC |
| Easy-to-use platform | |
| Competitive fees | |
| Long history of supporting cryptocurrency users |
Bitstamp was the first crypto exchange in the world to obtain a national license. The exchange was granted permission to operate in 28 European nations, but because of its affiliate, Bitstamp USA, Bitstamp is also permitted to provide its services to US consumers.
Many traders continue to utilize Bitstamp despite the exchange not supporting a sizable number of cryptocurrencies. For all the accepted cryptocurrencies, the exchnage provides Euro and Dollar pairings, as well as the option to purchase Bitcoin using a credit card or to withdraw money directly to your bank account.
A growing number of cryptocurrencies are presently supported for spot trading by the exchange. Additionally, you may keep and deposit US dollars, British pounds, and euros. A short list of the currencies supported by the Bitstamp platform is shown below:
Even though Bitstamp’s user interface is clearly well-developed, some newcomers could find it challenging at first. There are 5 primary order types that Bitstamp supports:
The exchange furthermore gives users the possibility to place trailing stops and sell at the price of an executed limit order.
Bitstamp fees are typically relatively cheap, beginning at 0.5% on all pairings, however they can vary according to your 30-day USD volume and can decrease if you generate a lot of trading volume.
Purchases made with credit cards incur a flat cost of 5%, and cryptocurrency-specific fees apply to withdrawals. The official fee schedule for Bitstamp may be seen here for a complete list of all costs.
If you traded more than $10,000 in volume during the last 30 days, your fees would be lower. Fees for high-volume traders can decrease to 0% on monthly volumes of $20 billion or greater. Furthermore, there is absolutely no charge if you trade up to $1000.
Bitstamp does not impose any further costs when you use it for staking, but it does take a 15% commission from your gains. You could incur these expenses while financing and maintaining your account in addition to trading fees:
| Payment Method | Bitstamp Fee |
|---|---|
| USD Wallet | No added charge |
| Debit/Credit card | 5% |
| SEPA | No charge on deposit; 3 EUR on withdrawal |
| ACH Transfer | No charge |
| Wire Transfer | 0.05% deposit fee, 0.1% withdrawal fee |
| Crypto Conversion | May apply |
| Purchases | 0.50% or less |
| Trades | 0.50% or less |
| Any other fees mentioned | Fees apply when withdrawing cryptocurrency to an external wallet |
The exchange divides its fee schedule into a staggering 12 levels, which is still among the largest numbers we’ve seen (it was previously 17 tiers). Bitstamp now assesses fees based on whether you’re taking liquidity from the market (as a taker) or increasing it (as a maker) (as a taker). Particularly for modest volumes, Bitstamp’s pricing structure is more beneficial than some others.
| 30-day volume | Maker | Taker |
|---|---|---|
| $0-$1000 | 0 percent | 0 percent |
| $1,000 – $10,000 | 0.30 percent | 0.40 percent |
| $10,000 – $100,000 | 0.20 percent | 0.30 percent |
| $100,000 – $500,000 | 0.10 percent | 0.20 percent |
| $500,000 – $1.5 million | 0.08 percent | 0.18 percent |
| $1.5 million – $5 million | 0.06 percent | 0.16 percent |
| $5 million – $20 million | 0.03 percent | 0.12 percent |
| $20 million – $50 million | 0.02 percent | 0.10 percent |
| $50 million – $100 million | 0.01 percent | 0.08 percent |
| $100 million – $250 million | 0 percent | 0.06 percent |
| $250 million – $1 billion | 0 percent | 0.05 percent |
| $1 billion or more | 0 percent | 0.03 percent |
Bitstamp is one of the few cryptocurrency exchanges that allow you to receive staking rewards on your holdings. Owners receive staking incentives as compensation for their support of the coin. Staking is the act of putting your money on the line to support transaction verification in a certain cryptocurrency. You will receive cash in exchange for committing your holdings and taking on the associated risk.
The exchange facilitates your staking and subsequently transfers the net staking reward to you after deducting its 15% charge. In contrast to other competitors, the exchange explicitly spells out the charge structure for you, while others try to hide their expenses by having you pay a “little fee” that isn’t mentioned.
At the present time, it only supports Ethereum and Algorand for staking rewards. Customers throughout the United States can buy them, with the exception of those in New York, Nevada, Hawaii, and Louisiana.
Customers of Bitstamp can make deposits of fiat currency via a credit card, an international bank deposit, or SEPA. International wire transfers have a deposit cost of only 0.05% and a minimum charge of 7.5 USD/EUR. On Bitstamp, you may also use a credit card to acquire cryptocurrencies; however, credit card purchases are subject to a flat-rate charge of 5%. Deposits made through SEPA are free of charge.
The exchange also enables a Bitstamp IOU service with a fixed cost of 0.2% because the exchange serves as a gateway to the Ripple network.
Both Android and iOS users may download a mobile app from Bitstamp. The app contains several functions that are also available on the desktop and a clear, straightforward design. You may turn on a secret mode that conceals your balances, get notifications for open orders, or remotely deactivate the app.
Over 5,000 reviews with an average rating of 4.5/5 have been submitted for the Bitstamp app. Because the software is so simple to use and adds extra protection, users highly commend the user experience.
You can check your portfolio and place trades even when you’re not at your computer, thanks to a good mobile app. Positive ratings on the App Store and Google Play are available for the Bitstamp app, which offers complete trading capability.
The Google Play Store and App Store both provide mobile apps for Bitstamp that are compatible with iOS and Android smartphones. For a trading experience that fits in your pocket, its applications offer all the capabilities you receive with the main Bitstamp web-based trading experience.
The Bitstamp app allows you to send and receive cryptocurrency to save in a Bitstamp account, in addition to buying and trading anywhere you have a secure internet connection.
Like the majority of cryptocurrency businesses, Bitstamp has received both positive and negative reviews from customers. Slow withdrawal times and unsatisfactory customer service interactions are the main complaints.
Like the majority of bitcoin exchanges, it offers little service, so you should anticipate taking care of the majority of your account’s needs on your own. Starting off with Bitstamp might be challenging if you’re not confident managing your account and don’t have prior online trading expertise, such as using a brokerage account.
In a competitive industry of cryptocurrency exchanges where the degree of service often ranges from moderate to inadequate, Bitstamp stands out for its customer care. You’ll find at Bitstamp what is typical of cryptocurrency exchanges: a self-help section on the website, a support ticket system, and email. However, you’ll also get phone help every day of the week, which is uncommon among cryptocurrency exchanges.
With regard to other cryptocurrency exchanges, Bitstamp offers phone help, which is very uncommon. Give Bitstamp more thought if you value having a phone line with a support representative.
You might be better off looking elsewhere if you like text-based customer service. Although Bitstamp does not provide live chat help, you can email a support ticket.
Due to the one-way nature of crypto transactions, if your account is compromised, your losses could not be recoupable. Use strong security measures while using Bitstamp or any other cryptocurrency exchange, including a special password and multi-factor verification, ideally using third-party authenticator software.
Bitstamp keeps the majority of customer cash in cold storage and adheres to strict security procedures. The software lets you set up and utilize multi-factor authentication when you create a new account to increase security.
As with any other cryptocurrency exchange, you should exercise caution while adding money to your Bitstamp account, making withdrawals of fiat money or digital currency, and managing your account’s general upkeep.
One of the safest cryptocurrency platforms is Bitstamp, which offers great security. 98% of the assets are kept in cold crypto storage by the exchange offline. This sort of crypto storage is the safest since offline storage shields money from hackers. Daily trading is done with the modest amount of money that Bitstamp keeps in hot storage (online connectivity).
With crime insurance coverage that covers theft, Bitstamp provides an additional degree of security. Its insurance covers theft when the exchange itself is compromised, but it excludes your own account if your login information is compromised.
Bitstamp offers extra security methods, including address whitelisting and two-factor authentication (2FA) to protect accounts and client assets. You must log in using your password in addition to another form of authentication, such as a code delivered to your phone, according to the 2FA. You may choose which addresses can receive withdrawals from your account using address whitelisting.
There are several cryptocurrency exchanges, therefore, Bitstamp has stiff competition worldwide. Conversely, there aren’t many exchanges that accept fiat payments. For instance, Binance allows customers to purchase a few cryptocurrencies using money, but it does not provide trading pairings for fiat.
Given that the exchange provides trading pairs in fiat currency and enables customers to purchase cryptocurrencies using money, Coinbase would be a good analogy. Coinbase offers relatively comparable costs and does provide more trading pairs. The fact that Coinbase is situated in the US and must abide by US federal and state legislation is one issue that users have with the exchange. When it comes to regulating cryptocurrencies, the US has been extremely strict.
The exchanges listed below can be viewed as rivals to Bitstamp: Coinbase, Kraken, Gemini, Binance, and Bybit.
An established exchange with a reputation for professionalism and security is Bitstamp. Although there aren’t many cryptocurrencies accepted by the exchange, it does provide EUR and USD trading pairs on all supported cryptocurrencies with rather low costs. Furthermore, even in the US, you may purchase Bitcoin using your credit card.
Even while Bitstamp isn’t necessarily a platform for new traders, if you already own and trade cryptocurrencies, you could discover that the platform’s expert interface proves to be quite helpful for seasoned investors.
For those just entering the cryptocurrency world, Bitstamp may be a wise choice. It provides access to several well-known altcoins in addition to the top cryptocurrencies.
This can be an excellent option if you’re searching for a user-friendly cryptocurrency exchange with reasonable costs or if you want to trade cryptocurrency on your computer and phone. Hopefully the Bitstamp Review article has helped you understand more about the project.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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