Cryptocurrency trading can be a hard task to do. As there are several platforms in the market, it is difficult to decide which one to use. For this reason, we created this Bitstamp exchange review to help people understand more about the exchange before making a decision to register and use it for their digital assets.
To be sure that this is an excellent exchange to start trading your cryptos, let’s take an in-depth look at our Bitstamp exchange review.
Bitstamp Exchange Review
|Available on mobile||Yes|
|Number of supported coins/tokens||27|
|Number of supported trading pairs||91|
|Supported fiat currencies||AUD, CAD, CHF, DKK, GBP, HRK, JPY, NOK, SEK, USD|
Bitstamp began its operations back in 2011, one of the pioneers of the crypto exchange industry. Its founders are Nejc Kodrič and Damijan Merlak and the business was officially based in Slovenia. Moreover, it was among the first Bitcoin exchanges that competed with Mt.Gox during its glory days.
The exchange then relocated to the UK in 2013 and then to Luxembourg in 2016 to obtain the first certification available for crypto exchanges. However, the license issued by the Luxembourg authorities allowed the exchange to operate as a payment institution legally. In addition, Belgian company NXMH in late 2018, acquired Bitstamp.
Simultaneously, Bitstamp holds the title of the first fully regulated crypto exchange in the EU area. Due to the European Union (EU) passporting rules, a financial services provider is legally allowed to operate in one EU member state. Then, the provider can increase its services to all 28 EU states. More on what countries are available later in our Bitstamp exchange review.
The exchange caters mainly to EU-based clientele, but it offers its services to other regions of the globe.
Bitstamp Acquired by NXMH
On October 29, 2018, the exchange announced that NXMH, a Belgium-based investment company, had acquired Bitstamp. However, Bitstamp CEO Julian Sawyer has been inspired by customers of the exchange to keep the firm’s mission, leadership, and vision the same.
NXMH is a subsidiary of NXC Corporation, which also owns South Korean crypto exchange Korbit and the Nexon video game company. Furthermore, Bitstamp was purchased by NXMH for an approximate amount of $400 million. The purchase aims to aid in Bitstamp’s preparations for international expansion. With NXMH providing financial and developmental support, Bistamp has finally moved into the Asian market.
Despite the sale, Sawyer remained as the Bitstamp CEO, and things are expected to stay the same for the company’s customers. At the moment, they have more than 300 employees, with ambitious plans to grow their team further. The buyer’s status, offer, and the many benefits of joining operations have all been given as major factors behind the team according to the sale.
Furthermore, the purchase has been conducted to establish Bitstamp’s positioning for growth. As a result, everyday operations should remain the same, with customers not experiencing any differences in their accounts and trading activity.
Bitstamp Platform Interface
Most platforms have a very unfriendly interface, making a customer make mistakes or achieve little in their endeavors. Having a faulty user interface experience can alarm anyone from staying with a website. Because of this, Bitstamp really upped their game. The Bitstamp platform is known for having one of the most excellent interfaces known in the industry.
Bitstamp does not put its clients through such difficulties. Notably, the exchange platform is easy to use and gets your business done in very little time. It is simple, but it is pleasing in its simplicity. It fits both a beginner and an expert trader. In fact, they both can use it despite their level of knowledge.
Moreover, the current users like the ease of transaction on the platform, which is just very few clicks away. As difficult as most people make the buying and selling of cryptocurrencies, any trader with half a brain can find it easy on their own to buy or sell on the interface.
Exchange Key Features
Bitstamp is a go-to place for trading cryptocurrencies. In fact, It’s already provided an excellent way to perform on-ramp fiat-to-crypto exchanges since 2011.
Its key features include:
Fiat-to-crypto gateway with high liquidity. Bitstamp is one of the best and well-respected crypto exchanges that serve traders from all over the globe.
Regulated exchange. Bitstamp was the first fully licensed European crypto exchange and is regulated by the Luxembourg Financial Industry Supervisory Commission (CSSF).
Ability to buy bitcoin and other cryptocurrencies using a bank card. Bitstamp supports instant crypto acquisitions using your bank card.
Low fee SEPA deposits and withdrawals for Europeans. Aside from getting crypto with a credit or debit card, you can also deposit and withdraw cash directly to your bank account using a wire or SEPA transfer.
Convenient mobile app. Bistamp’s mobile app works on Android and iOS devices, thus making it easy to trade on the go.
Easy to use for beginners. Bitstamp has simplified and advanced trading interfaces, making it easy to buy and sell crypto even if you’re new to this market.
In brief, Bitstamp is a comfortable and reliable crypto exchange for both beginners and advanced traders. It offers many useful trading options, high liquidity, and security tested quite a bit during its nine years of operation.
At the time of writing this Bitstamp exchange review, the platform supports 27 cryptocurrencies. Generally, Bitstamp stores all available assets to buy, sell, withdraw, and deposit on its platform.
|Bitcoin (BTC)||XRP (XRP)||Litecoin (LTC)|
|Ethereum( ETH)||Bitcoin Cash (BCH)||Stellar Lumens (XLM)|
|Paxos Standard (PAX)||Chainlink (LINK)||OMG Network (OMG)|
|USD Coin (USDC)||Aave (AAVE)||Basic Attention Token (BAT)|
|UMA (UMA)||Dai (DAI)||Kyber Network (KNC)|
|Maker (MKR)||Ox (ZRX)||Gemini Dollar (GUSD)|
|Algorand (ALGO)||Audius (AUDIO)||Curve (CRV)|
|Synthetic (SNX)||Uniswap (UNI)||Yearn.Finance (YFI)|
|Compound (COMP)||The Graph (GRT)||Tether (USDT)|
TRADING FEES (ALL PAIRS)
Fee ranges are based on your total trading volume over the past 30 days. Fortunately, trading volume is calculated across all trading pairs and is expressed in USD.
You will be moved into a new fee tier a few minutes after reaching the requirement for that tier.
|Fee %||30 days USD volume|
In this Bitstamp exchange review, we will talk about Bitstamp fees in more detail. Deposits, withdrawals, and trades all have their fees;
Credit Card Purchases: Every credit card purchase has a fee of 5% charged.
International Wire Transfer: A fee of 0.05% for deposits made with an international wire transfer. The minimum payment is just 7.5 EUR/USD, and the most is 300 USD—a fee of 0.1% for withdrawing funds using an international wire transfer. In addition, you will pay at least $25 and other banking charges.
SEPA Fees: You will pay Single Euro Payment Area fees (SEPA) if you live in the European Union and use Euros. However, deposits in the SEPA are free, but there is a 3 EUR charged withdrawal.
Trading Fees: All trades under 10,000 USD a fee of 0.5% charges. For bigger trades, fees go down. For example, for trades bigger than $20 million, a fee of 0.1% is the only charge.
Cryptocurrency: Deposits are free of charge (withdrawals are not free of charge, details can be seen in their website)
Privacy and Security
Bitstamp, as a regulated exchange, complies strictly with global AML and KYC regulations. It is free to create an account at Bitstamp.
However, you need to undergo a verification process before you are allowed to deposit or withdraw from a Bitstamp account. Usually, the verification method is done automatically and it doesn’t take long (under 15 minutes for a personal account).
However, after the 2017 meteoritic increase in the value of Bitcoin, Bitstamp has been encountering an upsurge in verification requests. In fact, it is averaging up to 100,000 accounts daily. As such, if the automatic verification is not successful it may take longer (a few days) to complete as the account has to be verified manually. Nevertheless, once confirmed, there are no limits imposed on the account concerning deposited or withdrawal amounts.
Meanwhile, Bitstamp has experienced hacking attempts in 2014 and in 2015. However, the exchange now takes the security of its exchange very seriously. The funds are now stored in cold storage, and its customers’ wallets are protected with 2-factor authentication.
Pros and Cons
Here are some pros and cons of Bitstamp exchange you need to know before diving in.
|Accepts debit/credit cards and bank transfers||Unable to go-short|
|Available to all countries (if depositing with crypto)||Expensive trading and deposit fees|
|24/7 phone support||No live chat facility|
|Good selection of charting tools||Limited number of countries supported for debit/credit card deposits|
|Quick and easy to use||Major hack in 2015 followed by the theft of 19,000 Bitcoin|
|Good reputation||Slow verification|
|98% of coins are kept in cold storage wallets||–|
|Nice trading platform||–|
|High volume and liquidity||–|
- Services offered: 4/5
- Reputation 5/5
- Cryptocurrency support: 4/5
- Fees: 4/5
- Security: 3/5
Review Score: 4 / 5
At the time of writing, Bitstamp currently supports 27 tokens.
Bitstamp does not allow you to short cryptos, meaning that you don’t have many choices to make a profit if you think the markets will go down in value.
Unfortunately, Bitstamp doesn’t have a live chat facility, which is frustrating when using the platform. If you need to contact the Bitstamp support team, you’ll either need to call them or send them an email.
Every time you buy or sell crypto on Bitstamp, it will charge you a 0.25% trading fee. You can get this down to 0.10%. However, in a single month, you need to trade a minimum of $20 million, which is out of reach for most traders.
The Bitstamp platform is relatively simple to use. The process of opening an account, verifying your identity, and depositing funds is easy. The trading platform itself is slightly more complex. However, the platform offers a variety of guides to show you how everything goes.
Bitstamp only asks for identity verification if you want to deposit and withdraw funds with a real-world payment method. Such as via debit/credit card or bank account. This will require you to upload a copy of a government-issued ID and proof of residencies, such as a bank statement or utility bill.
It is important to remember that you won’t withdraw your funds back to the card. Instead, you need to withdraw funds back to a bank account or via cryptocurrency.
To learn about the latest news and updates about Bitstamp, follow CoinQuora’s Exchanges News section.
Disclaimer: This material must not be used as the basis for making any investment decisions. This serves only as helpful material about the crypto exchange. Trading digital assets involve risk and can result in the loss of investment capital. Hence, always make sure to do in-depth research before engaging or investing in any crypto assets