Bitstamp Latest Review-England Based Regulated Crypto Exchange Best For Europeans
Bitstamp began operations in 2011, not long after the creation of Bitcoin, and it has since been positioning itself as a top European cryptocurrency exchange, while expanding its user base across the globe. In addition to its global user base, it also has offices in Luxembourg, London and New York.
In this Bitstamp review, we will take you through the Bitstamp platform step by step. We will also take a deeper look at important features, security procedures, fees and customer support.
In 2011, Damijan Merlak and Nejc Kodric founded Bitstamp in Slovenia to cater to European Bitcoin enthusiasts. At the time the exchange was meant to be an alternative to the dominant Mt. Gox exchange.
As Bitstamp grew it later opened offices in the U.K. in 2013 and then in Luxembourg in 2016. Since then it has also added a London and New York office to continue providing excellent service to its growing global user base.
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Bitstamp is most popular with intermediate and experience cryptocurrency enthusiasts, and is used as a way to purchase more established cryptocurrencies with fiat currencies. Bitstamp offers low fees, and has been acknowledged as an excellent way to exchange large amounts of digital currencies.
Exchange safety is one of the most important questions for the user. Cryptocurrency exchanges are prime targets for hackers and we have seen quite a few examples recently from Mt Gox to Coincheck.
This is also a particularly touchy point for Bitstamp as they also suffered hacks in 2014 and 2015. In the 2015 Hack, the attackers managed to extricate 19,000 BTC which is actually one of the biggest cryptocurrency exchange hacks ever.
Although these hacks did happen, they were as a result of phishing attempts that managed to dupe exchange employees. They were not as a result of technological failures.
Moreover, it is important to look at the steps that the exchange has taken since then and how they have improved their security. Let’s take a look at some of the security policies of Bitstamp.
Bitstamp uses some of the best practices when it comes to cold storage of their cryptocurrency assets. What this basically means is that they keep the majority of their coins off line in an air-gapped state.
This means that they inaccessible to hackers as they are not connected to the internet. These will only ever be accessed and withdrawn from when they are running low on coins that they keep in their “Hot Wallet”.
Hot wallets are those wallets that are connected to their servers and facilitate transactions for the users. In terms of the security procedures that are implemented in this case, they make use of advanced multi-sig wallets.
This means that these wallets can only ever send a transaction if they are signed by multiple keys. Essentially, there will have to be a number of staff at Bitstamp that will sign these transactions.
This is also why the hackers would not be able to steal funds again in the case of a phishing attempt. They would have to obtain all of the keys from all of the participants to sign out the transactions.
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