Bitstamp was established in 2011, and as such, it’s one of the oldest and most-trusted platforms for cryptocurrency exchange. It provides users with a means of seriously trading in vast sums of cryptocurrencies at a relatively low fee.
Bitstamp was founded by Damijan Merlak and Nejc Kodrič in Luxembourg. However, it’s currently based in London. As such, it’s ideally suited for the European markets, though it’s also functional on a global scale. As a trusted exchange platform, it has drawn massive investors such as Pantera Capital and Fortress Investment Group.
As amazing as Bitstamp is, it’s not ideally suited for beginners because of its complicated functionality and sophisticated features. As such, if you’re a beginner in the world of cryptocurrencies, maybe you can start off with simpler – but no less reliable – alternatives such as Coinmama and Coinbase.
In this Bitstamp review, I’ll give you a detailed review of the platform so that you can make an informed decision about whether to use it.
PART 1: Is Bitstamp Safe?
Bitstamp is one of the most reliable and safe cryptocurrency exchange platforms in the market. The fact that it has drawn an investor such as Pantera Capital is a testament to its reliability. And the fact that it’s one of the pioneering cryptocurrency exchanges means there’s plenty of track record for it.
The user account is also kept pretty secure using a 2-factor authentication which requires a phone number and an email address. Furthermore, it needs to be changed every 90 days.
They are also extremely transparent in all of their dealings, and you can know exactly where your information is used, or what information they gather using cookies.
98% of all the cryptocurrencies are stored in cold wallets in offline sources, and only 2% are held for live trading purposes.
Having said that, Bitstamp has been subject to a hack in the past. In 2015, 19,000 Bitcoins were stolen from their online sources. While this might raise a red flag for some people, they have made concerted efforts to win back the trust of its users and they have largely succeeded in doing so.
PART 2: What Makes Bitstamp Different?
There are three aspects that make Bitstamp stand out amongst all of its competitors:
- Public Faith : Bitstamp was one of the first two cryptocurrency exchanges to have ever been established (Mt. Gox was the other). As such, there’s an immense faith they have generated amongst users, one which has even survived a major hack. As such, you never need to worry about legitimacy with them.
- Cheaper than Most : It’s certainly not the cheapest exchange available, however, with a transaction fee range of 0.05% to 0.25%, it’s certainly one of the cheapest.
- Finally, there are no transaction limits at all for verified users of the platform. All other platforms impose certain limits in this matter.
PART 3: Trading Information
Bitstamp supports the major cryptocurrencies – Bitcoin, Ethereum, Litecoin, and Ripple. This isn’t the most expansive set of cryptocurrencies, but all the essentials are here. If you want a really expansive set of cryptocurrency compatibility, you should check out Bittrex.
In terms of fail currencies, Bitstamp supports Euros and US Dollars.
Bitstamp is available throughout the world through credit/debit cards. However, it’s most easily accessible in Europe and the US, where you can even use bank transfers as a payment method, thus avoiding the credit card fees.
Bitstamp is one of the cheapest exchange platforms in terms of transaction fees. They only charge a 0.05% fee for deposits.
The trading fee ranges from 0.10% for values over $20,000,000, to 0.25% for values under $20,000.
However, if you’re using a credit card, the transaction fee can be pretty high, going as high as 8% for values under $500.
You can check out a detailed fee breakdown in this Bitstamp Fee Schedule.
Instant Order on Bitstamp
An instant order for cryptocurrency can only be placed with a credit/debit card payment method. However, that incurs an incredibly high transaction fee going as high as 8%, as already mentioned earlier.
There are no transaction limits for verified Bitstamp users.
If you want to learn how to use it, you can watch this YouTube video:
PART 4: Bitstamp Customer Support
Bitstamp can be reached via email. They usually respond within 24 to 72 hours. In case of emergencies, you can also call their UK office. However, before availing of either of these options, you should go through their FAQ section, which does address a large range of questions and problems.
PART 5: Bitstamp Compared (and other Alternatives)
Bitstamp is an extremely powerful platform for serious cryptocurrency traders. However, if you’re a beginner, you might easily get overwhelmed with its interface. Furthermore, if you’re from anywhere but the EU or the US, you’ll have to incur heavy transaction costs using your credit cards.
If that isn’t an issue for you, that’s good. However, if you want to avoid such heavy costs, or if you want a more beginner-friendly alternative, you can try Coinmama or Coinbase. You can check other alternatives below:
|Coinbase Review||3.75%||Great||Email+ Coinbase “Community”||Buy|
|LocalBitcoins Review||1.0%||Good||Quick responses to online support tickets||Buy|
|Paxful Review||0% from buyer, 1% from seller||Good||Forum,live chat and email.||Buy|
|BitPanda Review||1.0% to 4.0%||Good||Buy|
|CEX.IO Review||0.5% to 2.0%||Great||Buy|
|Bitbond Review||1.0% to 2.5%||Good||Buy|
PART 6: Bitstamp Review Conclusion – Is it a Good Choice?
Bitstamp is a reliable cryptocurrency exchange that’s meant for advanced traders of cryptocurrencies, specifically in the EU. It comes with an extremely low transaction fee and has no ceiling on its withdrawal or deposit limits, all of which makes it quite ideal for serious traders.
However, it has its drawbacks as well. It’s not meant for beginners at all, and incurs a high transaction fee for those using credit/debit cards.
As such, you can gauge your own position and see whether it’s ideal for you or not meant for you at all. Do comment down below and let me know about your experience with Bitstamp, or feel free to ask if you have any other questions.
Bitstamp offers the lowest transaction fee in the market and is highly secure. However, they have a limited variety of altcoins for trading and slow support.
- Low transaction fee.
- Highly secure.
- Complicated User Interface.
- Slow support.
- Limited cryptocurrencies supported.