Bitstamp Review

Bitstamp is one of the oldest and most respected cryptocurrency exchange platforms. It’s been in operation since 2011.

Bistamp Review Summary

Bitstamp is a veteran cryptocurrency exchange that was founded in 2011 and has been leading the space ever since. The exchange puts an emphasis on quality over quantity, supplying trading options for a limited amount of cryptocurrencies yet maintaining a positive user experience overall. If you’re located inside the EU and are looking to trade Bitcoin, Ethereum, Ripple, Litecoin or Bitcoin Cash, this is probably one of the best choices around.

What’s Good About Bitstamp?

Fiat Trading: Bitstamp allows its users to buy cryptocurrencies with fiat currencies. Fiat currencies are the official currencies of countries. Examples of fiat currencies are the Chinese Yuan (CNY), the US Dollar (USD) and the Russian Ruble (RUB).

Some crypto exchanges — like Bittrex — don’t allow trading with fiat currencies. This is bad for beginners who are buying a cryptocurrency for the first time. With Bitstamp, you can buy cryptocurrency without having to visit another exchange first.

The fiat currencies you can trade with on Bitstamp are the US Dollar (USD) and the Euro (EUR). You can also use Swiss Francs and British Pounds on Bitstamp but you won’t be able to trade with them. They will be converted into USD or EUR before you can trade with them.

Payment Methods: Bitstamp allows users to fund their accounts using credit cards and bank transfers. Some exchanges — like Kraken — don’t support credit card payments. Bitstamp’s choice of payment types makes your first crypto trade a lot more simple!

Security: In January 2015, Bitstamp was hacked and 19,000 Bitcoins (BTC) were stolen. The stolen Bitcoins were worth about 5 million USD! This made a lot of users ask, is Bitstamp safe?

Some platforms — like Mt Gox — have dealt with hacks very poorly. Not Bitstamp though! The team at Bitstamp has always put customer safety first. In the hack of 2015, no customer funds were lost and the platform was completely rebuilt to prevent it from happening again.

Bitstamp has worked hard to become one of the most secure exchanges on the market. Almost all of its funds are kept in cold storage. This means that they are kept offline where hackers can’t get to them! Bitstamp funds are also fully insured.

The exchange also offers its users two-factor verification and text message alerts.

Fees: Bitstamp fees are quite low when compared to the rest of the market. They are also easy to understand, which is great for newbies. Bitstamp fees change depending on which payment method you’re using and where you live so we will look at them in more detail later.

Customer Service: At Bitstamp the customer is King (or Queen!). Bitstamp wants to keep its traders happy. It responds to user emails within three days and has a UK-based helpline for emergencies. Users will find a detailed FAQ page on Bitstamp’s homepage.

Reputation: Few crypto exchanges have a better reputation than Bitstamp. Bitstamp is professional and reliable. It has formed links with financial institutions around the world. Bitstamp is also fully licensed and has been audited by a Big Four accountancy company, Ernst & Young.

So, this Bitstamp review has talked about the platform’s good bits. Shall we have a look at a couple of bad bits?

What’s Bad About Bitstamp?

Coin Selection: Bitstamp only offers five cryptocurrencies for trading. They are; Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH) and Ripple (XRP).

As a beginner, this isn’t a big problem but when you’re a pro trader you might want a better selection. Bitstamp only offers 11 trading pairs. Whereas the Poloniex exchange, for example, offers 97! As a beginner, this isn’t a big problem but when you’re a pro trader you might want a better selection. Bitstamp only offers 11 trading pairs. Whereas the Poloniex exchange, for example, offers 97!

User Friendliness: As a professional trading exchange, Bitstamp can be quite complicated. New users can find Bitstamp difficult to use. The platform is well-designed but is probably too advanced for some newbies. Platforms like Coinbase are sometimes recommended instead of Bitstamp for users with no trading experience.

Bitstamp Fees

Deposits, withdrawals, and trades all have their own fees;

• Credit Card Purchases– A fee of 5% is charged for every credit card purchase.
• Debit Card Withdrawal– A fee of at least 10 USD is charged for withdrawing funds using a debit card.
• International Wire Transfer– A fee of 05% is charged for deposits made with an international wire transfer (the least you’ll pay is 7.5 USD and the most are 300 USD). A fee of 0.09% is charged for withdrawing funds using an international wire transfer (you will pay at least 15 USD and other banking charges may be made).
• SEPA Fees: If you live in the European Union and are using Euros, then you will be charged SEPA (Single Euros Payment Area) fees. Deposits in the SEPA are free. Withdrawals are charged a 90 EUR fee.
• Trading Fees: All trades under 20,000 USD are charged a fee of 25%. For bigger trades, fees go down. For example, trades bigger than 20,000,000 USD are only charged a fee of 0.1%.
• Cryptocurrency: Making deposits and withdrawals using the cryptocurrencies that Bitstamp offers are free of charge.

Who Is Bitstamp For?

Bitstamp is a safe and reliable platform. It has millions of happy users. However, beginners may find the platform difficult to use. The professional design and features of Bitstamp are great for more experienced users but might confuse newbies.

Bitstamp has great security and a team that really cares about its users. Bitstamp is becoming one of the world’s most trusted crypto exchanges. If you can work out the basics, then Bitstamp might be for you.