Bitstamp Review – Features, Fees, Pros, and Cons

Bitstamp Review

Bitstamp is one of the earliest established crypto exchanges in the industry. Operating since 2011, the exchange has had ups and downs but still stands tall among other top crypto exchanges.

If you’re considering starting your crypto trading journey with Bitstamp, then you should read this complete Bitstamp review till the end. 

The Bitstamp review will help you understand the exchange better, especially its key features and offerings, fee structure, pros, and cons. Let’s dive in!

At a Quick Glance

Pug Score3.9/5
Fees (Maker/Taker)0.5%/0.5%
Supported Cryptocurrencies20+
Most Suitable for Beginners

Key Findings

Bitstamp is one of the few exchanges that have stood the test of time, providing a centralized and AML compliant trading platform. Bitstamp is also one of the few exchanges that allow fiat-to-crypto deposits.

Although the exchange offers fewer trading options than its competitors, it is relatively reliable to serve your trading desires. However, advanced traders may not find the exchange preferable because of this.

ProsCons
A reliable exchangeFewer cryptocurrencies and trading options
Bitstamp is regulatedRelatively high fees
Secure exchange for trading cryptocurrenciesNo leverage available
Comprehensive fee structure
Easy to use
Has mobile app
Suitable for beginner traders

What is Bitstamp?

Bitstamp is a global cryptocurrency exchange with offices in London, Luxembourg, Slovenia, and New York. The exchange stands out as one of the most reliable exchanges in the industry, despite offering fewer trading options.

Launched in 2011 by Nejc Kodrič and Damijan Merlak, Bitstamp was a competitor to the then-dominant – now-defunct exchange, Mt. Gox.

The exchange started in Slovenia as a Europe-only exchange but expanded its offices in the present cities to serve a global crypto community.

In 2014, Bitstamp suffered a temporary hack that disrupted its activities for some days. And in 2015, the exchange suffered another major hack which saw about 19,000 bitcoins stolen.

Since its setback in 2014 and 2015, Bitstamp has adopted different approaches to its security protocols, such as blocking VPN access to its platform and conducting regular audits for virtual currencies listed on the platform.

Range of Offering

Bitstamp’s range of offerings didn’t wow us. If you’re an advanced trader, you might want to have a look at exchanges like Binance and Gate.io.

For those of you who are interested in a simple and convenient buy and sell crypto exchange, then Bitstamp is a good fit! Here’s what they got

Bitstamp Buy and Sell Crypto

Bitstamp offers a more flexible, one-click module for buying and selling cryptocurrencies using credit/ debit cards and international wire transfers as a fiat-to-crypto exchange.

Many crypto exchanges are lagging with this offering and have failed to integrate the fiat-to-crypto options without including third-party money services like Simplex or Banxa.

Buying cryptocurrencies on Bitstamp exchange is straightforward, and US residents can use the ACH payment method to deposit funds into their trading accounts.

SEPA jurisdictions deposit and withdraw fiat with zero fees. The UK, too, has their bite of the cake with free GBP deposits. Other jurisdictions outside Europe may capitalize on international wire transfer mediums accepted on Bitstamp.

Bitstamp Trade

On Bitstamp exchange, you can trade over 30 listed cryptocurrencies. Although having about 30 cryptocurrencies is a fewer option when compared to competitor exchanges.

Spot trading is available, and users can trade popular crypto such as BTC, ETH, XRP, USDT, etc., in pairs. You can also trade cryptocurrencies against fiat currencies such as USD, GBP, EUR.

Bitstamp gives Institutional traders additional privileges such as low fee trading, deep order books with one-click features, and account managers. On the markets, you can view all the available cryptocurrencies offered by the exchange.

Bitstamp Earn

Bitstamp Earn is an incentivized offering by the exchange to increase the income margin of its users and investors. It is primarily an Ethereum staking protocol in which users earn rewards when they hold Ether in their wallets.

It is open to all traders, including institutional and pro traders in countries that accept Bitstamp. However, Bitstamp Earn is not available to US citizens at the time of writing this review. Joining the process for Bitstamp staking community can be summarized in these points:

  • Get ETH if you don’t have it already. On Bitstamp exchange, you can swap your digital assets for ETH or buy ETH using your credit card.
  • Next is to select the amount to stake. The minimum you may stake is 0.1 ETH.
  • After staking, you earn monthly rewards of up to 5% APY.

Staking is generally a good way to earn on every cryptocurrency exchange, and Bitstamp understands this model and uses it to attract clients to its trading platform.

But Bitstamp’s offer is not quite interesting as the minimum amount to stake is quite high. Also, staking rewards attract a withdrawal fee of 15%, which could leave your profits lagging, especially if your ETH holdings are not adequate.

Image Source: Bitstamp

Bitstamp Pro Traders and Automated Trading

Bitstamp offers institutional and professional traders the privilege to create a more intuitive and custom trading experience by granting them free access to its premium APIs.

Pro traders can build unique trading interfaces, integrate algorithm-structured FIX and HTTPS APIs, and connect to Bitstamp’s WebSocket to stream live crypto data.

Bitstamp Customer-as-a-Service

Bitstamp’s customer-as-a-service offering empowers businesses and merchants to elevate their businesses through cryptocurrencies. With this feature, businesses can offer crypto trading services on their ready-made apps and accept cryptocurrencies as a means of exchange.

Bitstamp leverages intuitive products and software to facilitate this offering. Some of the benefits enjoyed include:

  • Payment services
  • Special account managers
  • High security and cybersecurity controls
  • Insurance services
  • Reliable order matching and execution, etc.

Commission and Fee Structure

Bitstamp fees depend on the volume of crypto pairs you trade. Generally, Bitstamp charges 0.5% in commission for trades. However, this may change when you trade at higher volumes and could go below 0.01% when you trade cryptocurrencies above $6 million.

Bitstamp fees for all categories are so comprehensive the newbies on the exchange wouldn’t find it hard to follow. However, you should note that most fees take five decimal places while the exchange rounds them up to 2-3 decimal places.

Asides from trading fees, here are other sections Bitstamp charges fees or commissions:

Crypto Deposit and Withdrawal Fees

Bitstamp doesn’t charge deposit fees for crypto-to-crypto transactions, but withdrawal fees apply, and it depends on the crypto asset you’re withdrawing. 

For instance, unless you withdraw cryptocurrencies instantly with BitGo, Bitstamp charges 0.0005 BTC for all Bitcoin withdrawals, 0.0035ETH, 0.02 XRP, etc.

Image Source: Bitstamp

Credit Card and Transfer Fees

Bitstamp, like Coinbase, is one of the few cryptocurrency exchanges that allow you to purchase, deposit, and withdraw fiat directly using credit and debit cards or international wire transfers.

That said, credit card fees apply for purchasing, deposits, and withdrawals. The credit card service may incur additional charges for card processing fees other than that charged by the Bitstamp. Here’s a further breakdown:

  • 5% goes for card purchases and processing by Bitstamp, and additional network fees may apply.
  • 0.05% and 0.1%, irrespective of the amount of fiat deposited or withdrawn using international wire transfers
  • For SEPA jurisdictions, deposits are free of charge, while 3.00 EUR applies to withdrawals.
  • ACH transfers are free for deposits and withdrawals.

Staking Fees

As stated earlier, Bitstamp charges you 15% when you withdraw staking rewards. Such a sizable fee could tamper with your staking profits. When you compare Bitstamp’s staking fee to other exchanges such as Binance, it is quite high.

It is worthy to note that other fees on Bitstamp exchange may come through in-house purchases, IOU inter or intra-transfers, bank exchange rates, and some non-standard processing fees. So be on the lookout!

Ease of Account Opening

It is pretty easy to open a Bitstamp account and start trading. We’ll walk you through the steps, and in a few easy steps, your account is ready to go.

Step 1 – Creating Your Account

  • Visit Bitstamp.net and click on the green-buttoned “Register” at the top right corner of the landing page.
  • Next, choose between the Personal and Corporate accounts. Be certain of which you go for because once you cannot reverse it once chosen.
Image Source: Bitstamp
  • Next, enter your name or company’s legal name and valid email address; read and agree to Bitstamp’s terms of service, and click continue.
  • Confirm your email address and proceed to verify your account.

Step 2 – Verifying Your Account

Bitstamp will require you to provide a quality photograph of the following documents:

  • Valid ID (international passport, national ID card, or driver’s license)
  • Proof of residency (government-approved document or utility bill bearing your home address)
  • Bank account statement

If these details are available, you may proceed to verify your personal account thus:

  • Locate “Personal Account Verification
  • Fill out the form provided with the required details and upload the necessary documents, then submit and wait for approval from the Bitstamp team.

For the corporate account:

  • Locate the “Corporate account verification” column
  • Fill out and upload the required documents in the form provided, then wait for the approval. It may take a couple of workdays.

Step 3 – Funding Your Account

Funding your account is easy. You must first have crypto in your Bitstamp wallet. You can achieve this using an external wallet funding method, international wire transfers, or your debit/credit card:

  • Log in to your Bitstamp account
  • Locate “Accounts,” select “deposit,” and choose the purchase option that best suits you from the menu.
  • For card purchases, choose the cryptocurrency you want to buy, and select the currency and how much to purchase.
  • Enter your credit or debit card details, and confirm your entry.

As a mobile user, you can deposit fiat thus:

  • From the dropdown menu at the top-right corner of your app, select a trading pair and click on “Trade.”
  • Choose “Buy with card” and enter the amount you wish to buy
  • To confirm your purchase, click on “Preview Buy.”

Step 4 – Trading

Trading involves creating matching orders in the spot trading section. You may need a basic knowledge of trading and technical analysis to trade cryptocurrencies successfully.

Deposit and Withdrawal

Bitstamp offers one-click deposits and withdrawal mechanisms. You can deposit crypto directly to your account using fiat and withdraw directly to your bank account or money wallet. It is available for all Bitstamp users globally.

A few crypto exchanges can boast of this, and this is where Bitstamp stands out in its offerings. Also, there are varieties of options to deposit and withdraw funds in and out of your account.

US residents can preferably use the automated clearing house method (ACH) to deposit funds into their accounts. It is free for both deposits and withdrawals. Otherwise, crypto-to-crypto deposits are the easiest and best methods to deposit cryptocurrencies on Bitstamp.

Image Source: Bitstamp

Platform User Interface and Trading Experience

The Bitstamp exchange UI and trading experience are one of the best. It is so comprehensive that newbies on the platform can navigate through without external guidance.

Bitstamp adopts an advanced TradeView charting system that allows users to customize, execute, and save strategies beneficial to their trades.

There are indicators and other trading tools at your disposal, and the trade section shows crypto data in real-time. Plus, you can easily switch between light and dark modes for clock-round trading.

Bitstamp spices its web portal with nice fonts and colors that are compatible with the mobile web version. There is no desktop app available for the exchange as all your trades will be on the web portal.

Mobile Application

Bitstamp is one of the few exchanges that have a standalone mobile application. Others include Binance, Coinbase, eToro, Poloniex, etc.

Bitstamp’s mobile application is quite intuitive and easy to navigate through. It is alternatively called a “pocket-sized exchange app” that allows you to run transactions very fast and easily.

The app has a QR code scanner that also allows the interoperability between it and that of the web platform. As it is with the web app, the mobile app has light and dark modes for easy use during the day and night.

Most crypto newbies may find the mobile app easy to use because it has lesser features and offerings, and in one click, they can execute transactions. Plus, the app answers the question of “is Bitstamp a wallet?” Yes, because it could stand in as one.

However, pro traders may criticize Bitstamp’s mobile app heavily because of its scanty looks and lack of credible resources and trading tools like Binance and Coinbase.

Supported Cryptocurrency

Bitstamp is behind in terms of trading options. The platform roughly trades about 35 cryptocurrencies at the time of this review, with top-volume and popular cryptos such as Bitcoin, ETH, XRP, USDT, etc., included.

On the mobile application, cryptocurrencies are fewer than in the web portal. However, Bitstamp may list more crypto assets with time. You can always check the exchange’s market section to confirm when it lists new cryptocurrencies.

Educational Tools

There are few educational tools available on Bitstamp; they include Bitstamp direct Blog and Medium pages. The blog section, alternatively known as “Bitstamp News,” houses various information and announcements about Bitstamp team activities, updates, and integrations. 

Neatly outlined are subsections you can visit to get further insights into cryptocurrency market activities and Bitstamp products and features.

The Medium blog section offers additional information on the exchange and the market activities of cryptocurrencies and how they relate to Bitstamp.

Image Source: Bitstamp

Customer Support

Unless you apply as an institutional or high-volume crypto trader, customer support on Bitstamp is relatively poor, especially on its mobile app. That said, there are various means Bitstamp interacts and connects to its users and investors. They include:

  • FAQs: Common in all exchanges and crypto platforms, Bitstamp uses FAQs to answer random or perceived queries its users may encounter while using its products and features.
  • Help Center: The help center includes Bitstamp hotlines, support tickets, and email addresses. You can contact the Bitstamp customer support team through these media to resolve your complaints. 

Note that hotlines may not be an effective method for different regions owing to timezones and regulatory rules. 

However, emails are the most effective method of reaching out to the support team but could take 1-3 working days for you to get feedback.

Bitstamp’s support emails are thus:

For phone customer support you may use:

  • London line: +44 20 3868 9628
  • Luxembourg line: +352 20 88 10 96
  • US line: +1 800 712 5702

Support tickets are another means used to resolve instant queries. It works like a live chat. Still, you may need to report advanced queries through emails or use the FAQ section.

  • Social Media: Bitstamp is active on social media channels such as Facebook, Twitter, and LinkedIn. But its teams do not respond to social queries, which may give the exchange a bad image in terms of customer support.

Regulation and Security

Bitstamp is a regulated exchange with a license to operate in Europe from Luxembourg. The exchange’s license appeal in the US is still pending. However, Bitstamp operates in the US under Incorp Services, a registered agent of the Delaware Secretary of State, New York.

So you should have no doubts about trading cryptocurrencies on the Bitstamp exchange. Also, Bitstamp is a centralized exchange, meaning that it is AML and KYC compliant. As such, it reserves the right to close down an account that does not conform to its policies.

The exchange is available globally, but some jurisdictions may not use some features. Credit/ debit card payment methods aren’t available in war-prone regions and some African countries.

In terms of security, Bitstamp adopts cold and hot storage mechanisms, which means that the exchange stores investors’ funds in an offline wallet, limiting hackers from penetrating its database. 

The hot wallet holds funds required for the day-to-day running of the exchange, such as providing liquidity and crypto payments. Both are, however, security protocols that help keep the exchange active and safe always.

Is Bitstamp Safe?

Yes. Bitstamp is safe for trading. It conforms to the regulatory policies of various jurisdictions, including the US and UK. Virtually anyone from around the world can trade on the exchange.

Conclusion

Analyzing Bitstamp from its age-long history, we can say that the platform is reliable for trading cryptocurrencies. Although it has limited trading options, it still serves the crypto trading industry with the desired security, regulations, and ease of trading services.

Frequently Asked Questions (FAQ)

Is Bitstamp Legit?

Bitstamp is legal and licensed temporarily in the UK and fully regulated in Luxembourg. As such, you can buy, sell, and trade cryptocurrencies without fear of breaking any crypto laws on Bitstamp. Ensure you read the exchange’s terms of service before you start trading.

Is Bitstamp available in the US?

Yes, Bitstamp is available in the US. However, US citizens may not have access to all of Bitstamp’s services, such as trading XRP, etc.

Does Bitstamp Require KYC?

Yes. Bitstamp is a centralized exchange and therefore is fully KYC compliant. You must verify your identity to enable you to buy and sell cryptocurrencies using credit cards or international wire transfers.

Is Bitstamp Regulated?

Yes, Bitstamp has a license from Luxembourg’s financial regulator, CSSF; otherwise, Commission de Surveillance du Secteur Financier. As of 2021, it has a temporary license to operate in the UK until March 2022.

Does Bitstamp Accept Fiat Currencies?

Yes, Bitstamp is one of the few crypto exchanges like Coinbase that accepts direct fiat deposits. You can buy crypto and withdraw funds directly to your bank account using your credit or debit card.

Is Bitstamp Easy to Use?

Judging from Bitstamp’s UX, it is pretty easy to use Bitstamp. However, some variations may make the exchange overwhelming, especially in terms of fee structures and trading.

Bitstamp Review 2021 - Read This Before Signing Up With Bitstamp!

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