Welcome my friends, to the wild world of cryptocurrencies! As an economist, I have been keeping a close eye on the market for years, and let me tell you, the past decade has been quite the ride. With so many exchanges and trading platforms popping up, it can be overwhelming to choose the right one. However, in this Bitstamp review, we will explore one of the oldest and most trusted exchanges in the market.
Bitstamp is a cryptocurrency exchange that was launched in 2011, a time when Bitcoin was just starting to be traded in informal ways. Fast forward to today, Bitstamp is still going strong and remains one of the top destinations for Bitcoin and altcoin trading. Bitstamp offers users the ability to purchase and trade foundational currencies, such as Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash, with fiat currencies US Dollars and Euros.
Bitstamp’s advanced web trading platform offers a plethora of analytical tools, making it a perfect place for advanced traders to use fiat currency to deposit and perform transactions. Additionally, Bitstamp charges fees based entirely on trading volume, making it a more cost-effective option for frequent traders. Join me as we delve deeper into this Bitstamp review and discover everything you need to know about this robust trading tool.
What is Bitstamp?
Bitstamp is a cryptocurrency exchange that is headquartered in the UK but registered in Luxembourg. It has been around for over a decade and is one of the most respected exchanges in the market. Bitstamp is an excellent trading tool for both novice and experienced traders. Whether you are looking to buy or sell cryptocurrencies, Bitstamp has got you covered.
The Bitstamp Exchange platform is designed to cater to the needs of all types of investors. You can purchase and sell cryptocurrencies such as Bitcoin, Bitcoin Cash, Ripple, Ethereum, and Litecoin. The platform also allows you to trade these cryptocurrencies against fiat currencies such as the US Dollar, the Euro, and the British Pound. This makes it easy for anyone to buy and sell cryptocurrencies using a currency that they are already familiar with.
One of the most impressive features of Bitstamp is the ability to deposit and withdraw funds using a variety of methods, including bank transfers, credit cards, and debit cards. This makes it easy for you to fund your trading account and get started with buying and selling cryptocurrencies. Additionally, Bitstamp’s advanced web trading platform offers a plethora of analytical tools, making it a perfect place for advanced traders to use fiat currency to deposit and perform transactions.
Bitstamp charges fees based entirely on trading volume, making it a more cost-effective option for frequent traders. The fees are low compared to other cryptocurrency exchanges, which is why it is so popular among traders. Bitstamp is a well-respected exchange that is known for its security and reliability. It uses advanced security features such as two-factor authentication and SSL encryption to protect your funds and personal information. With its easy-to-use platform and wide variety of cryptocurrencies, Bitstamp is an excellent trading tool for anyone looking to get started with cryptocurrencies.
|Minimum trade order
|1 – 2 business days
|Number of Cryptocurrencies Supported
|Number of Crypto Pairs Supported
|Top supported Cryptocurrencies
|BTC, ETH, USDT, ADA, MATIC
|Native Mobile App
|Free Demo Account
|Website, web app, mobile app
|Luxembourgish government and CSSF
Bitstamp Platform Key Features
Introducing a bitcoin trading tool with key features that will leave you excited to start trading on the platform.
Firstly, the platform offers a direct connection between buyers and sellers, without any meddling by the exchange. This ensures a fair price discovery mechanism and maintains the exchange’s integrity.
Secondly, the exchange takes security seriously, storing most of its coins in offline cold storage systems and only a small portion in a hot wallet for transactions. Users can also enable two-factor authentication and receive notifications for every proposed transaction.
Thirdly, the platform boasts of a proprietary trading platform suitable for even large institutional traders, with high liquidity and constant uptime. Deposits can be made through major fiat currencies like USD, Euro, GBP, AUD, CAD, and JPY. Additionally, the mobile exchange app offers similar functionality, ensuring trading convenience.
Moving on, the Bitstamp Earn program is designed to allow you to own crypto and generate a passive income stream. Long-term holders can join the program with their existing assets, with no extra costs, and can compound their returns yearly. However, withdrawals from staking take 10-14 days, or a 5% fee can be paid.
The markets section enables users to see live cryptocurrency prices, trends and market capitalization, all in one place. Furthermore, the blog page provides weekly cryptocurrency news roundups and guides on how to store coins securely, among other related topics.
Finally, the platform has regulatory compliance in place, making it a secure and safe option for traders. Bitstamp allows debit and credit card purchases, enabling instant buys on its mobile app, as well as low fees for SEPA transfers. The mobile app is easy to use and beginner-friendly, with advanced traders able to customize the interface and add extra features for profitable trading.
In summary, the key features of this bitcoin trading tool are:
- Direct buyer and seller connections
- Institutional grade security
- Proprietary trading platform
- Bitstamp Earn program
- Markets section
- Bitstamp Blog
- Regulatory compliance
- Debit and credit card purchases
- Low fees for SEPA transfers
- Mobile app with user-friendly interface and advanced customization options.
Bitstamp Technical Overview
Bitstamp is a well-known cryptocurrency exchange that offers access to various digital assets. It provides customers with access to over 50 cryptocurrencies, including Bitcoin, Ethereum, XRP, Litecoin, and Cardano. These coins can be traded with each other or fiat currencies like USD, GBP, and EUR. The platform offers a range of cryptocurrency pairs that can be traded, including BTC/USD, BTC/EUR, ETH/USD, ETH/EUR, and XRP/USD, to name a few.
Bitstamp does not offer leveraged trading at the moment. However, it has partnered with Silvergate Bank to allow pre-approved institutional clients to trade with margin funding collateralized by Bitcoin. The pilot program for this is currently underway and may be extended to other traders in the future.
Bitstamp does not offer any spreads (fixed or variable) nor does it make any money through them. All spreads on the exchange are a function of the liquidity of the markets, and the exchange does not interfere or conduct market-making activities. It simply matches available bids with offer orders.
Despite providing access to a range of cryptocurrencies, Bitstamp’s offering is relatively limited compared to some of the other big cryptocurrency exchanges. However, the platform has listed 75 digital assets so far as of mid-2022, which includes popular names like Bitcoin, Ethereum, Shiba Inu, Ripple (not available in the US), Cardano, Wrapped Bitcoin, Avalanche, Polygon, Litecoin, Uniswap, and FTX Token.
It’s important to note that Bitstamp does not offer any derivative or futures instruments on its exchange. This means that traders can only buy and sell the underlying cryptocurrency assets.
To get started with Bitstamp, users need to sign up for an account and complete the necessary KYC/AML verification process. Once verified, they can deposit funds using their preferred payment method, such as a bank transfer or credit/debit card. The platform offers a user-friendly interface that is easy to navigate, making it ideal for both novice and experienced traders.
Is Bitstamp Safe?
Bitstamp has taken great strides to ensure that their platform is safe and secure for their users. Despite being the victim of a cyber attack in 2015, the platform has implemented several security measures to prevent any such occurrences in the future.
One of the key security features of the platform is offline storage. Over 85% of all digital assets held on the platform are kept offline in cold wallets, which are not accessible online. This means that they are safe from any potential cyber threats.
Furthermore, Bitstamp has also implemented multi-signature wallets that require several private keys before any transaction can be authorized. This ensures that it is much harder for hackers to gain access to a user’s wallet and perform transactions that send all the money to themselves.
Regular auditing of the platform’s finances and liquidity is carried out annually by one of the Big Four accounting companies to ensure that the exchange’s finances and liquidity remain in a solid position.
The platform also encourages users to implement 2-factor authentication, which ensures that financial transactions can only be completed after being confirmed with a code that can only be found within the Google Authenticator mobile application. This makes sure that wallets and accounts are protected from having transactions conducted on them by unauthorized parties, as long as the unauthorized party does not have access to the device that the user is using.
Additionally, Bitstamp offers its users an intuitive and user-friendly trading platform. This platform offers access to some of the leading cryptocurrencies, which can be paired with fiat currencies like USD, EUR, and GBP. Furthermore, Bitstamp does not charge any fixed or variable spreads and does not engage in any market-making activities. This ensures that their users are getting the best possible rates without any hidden fees.
Based on these factors, it can be said that Bitstamp is a safe and secure platform to use for trading cryptocurrencies. Their emphasis on security measures ensures that users can conduct their transactions without having to worry about the safety of their digital assets.
Is Bitstamp Scam or Legitimate?
When it comes to the legitimacy of a trading tool, the safety and security of the platform are critical factors to consider. The good news is that Bitstamp, the bitcoin trading tool under discussion, has implemented advanced security technologies to keep its clients’ personal data safe and secure. They have also taken significant steps to protect their clients’ crypto assets from cyber attacks.
Bitstamp’s multi-sig technology is one such feature that ensures the safety of clients’ crypto assets. It prevents breaches on the Bitstamp hot wallet where a small portion of crypto assets is kept, and the rest is stored safely offline on cold storage systems. Over 85% of all of the digital assets held on the platform are kept offline in wallets known as “cold.” By storing them in a location that is not accessible online, they cannot be accessed digitally and are, as a result, protected from any potential cyber threats.
In addition to offline storage, Bitstamp introduced multi-signature wallets as part of their revamp of the exchange’s security systems after the 2015 cyberattack. These wallets offer an added layer of security to the platform, as they require several private keys before any transaction can be approved. This makes it harder for hackers to gain access to someone’s wallet and make crypto transactions sending all the money to themselves.
The platform also undergoes regular auditing, which helps to ensure that the finances and liquidity of the exchange are stable. This yearly audit is carried out by one of the Big Four accounting companies, providing confidence in the platform’s stability and transparency.
Furthermore, users of the platform are strongly encouraged to enable two-factor authentication on their accounts, which ensures that financial transactions can only be completed after being confirmed with a code that is only available on the Google Authenticator mobile application. Therefore, this protects the wallet and the account from transactions being made by anyone unless they have access to the device of the user themselves.
Taking these features into account, it’s easy to conclude that Bitstamp is a legitimate bitcoin trading tool that takes security very seriously. The platform has taken steps to ensure that customer data and assets are safe from cyber attacks. The platform’s multi-sig technology, offline storage, regular auditing, and two-factor authentication make it a secure platform that customers can trust. Therefore, if you’re looking for a safe and reliable platform to buy, sell, and store your bitcoin, Bitstamp is an excellent option to consider.
Bitstamp Pros & Cons
Let’s take a look at the pros and cons of this Bitcoin trading tool.
- Automated trading allows both new and experienced traders to participate with ease.
- 24/7 customer support is available for any issues that may arise.
- Some versions of the tool come with a dedicated accounts manager to help users.
- No prior trading experience is necessary to use the tool.
- Low minimum deposit requirement makes it accessible for all.
- Some versions claim a high success rate, which could be beneficial for profitability.
- Certain versions support trading in multiple assets, including cryptocurrencies, stocks, forex, and CFDs.
- Quick processing of deposits and withdrawals for efficient use.
- GDPR compliance and SSL encryption help to ensure the security of user information and data.
- Built-in demo mode for testing strategies before investing actual funds.
- Payment and withdrawal options are not clearly defined in some versions.
- Some versions have unverified profit claims, which may not be accurate.
- Some versions do not have mobile app functionality, limiting accessibility.
- Developers may be anonymous, which may raise concerns about trustworthiness.
- Some versions may have limited crypto options for trading.
- Higher commission fees may be a disadvantage for some users.
- Some versions may require trading experience to use advanced features.
- In some versions, a minimum trading capital of $250 may be a financial barrier for some users.
- Withdrawals may take up to 48 hours in some versions.
How to start trading with Bitstamp
- Safety Overview Before you begin using the website, take note that your safety is of utmost importance. Ensure that you are using a secure internet connection, preferably with SSL encryption. Also, take note of the trading fees and make sure you are comfortable with them before proceeding.
- Register for an Account To use the website, you will first need to create an account. Click on the “Register” button on the homepage, or enter your details in the sign-up form. You will need to provide your name, email address, and phone number. Once you have completed this step, you will be redirected to your profile page.
- Verify Your Account After registering, you will need to verify your account by speaking with an advisor. This might involve a KYC process (proving your identity, address, income, trading knowledge, etc.) depending on your paired broker’s registration protocol. Make sure to have the necessary documents ready.
- Deposit Funds Once you have completed the account verification process, follow the instructions provided by the website to deposit the minimum amount of fiat currency required to start trading. Keep in mind that all users must pay $250 to begin trading with this platform.
- Try the Demo Account If you are new to the platform, it is recommended to use the demo feature to get a better understanding of how the trading bot works. This will allow you to practice your trading techniques and assess the likelihood of profits before risking your funds.
- Make Your First Trade Once you are comfortable with the trading platform, you can initiate your first trade. Input your trading criteria and let the automated trading system deal with your broker to find the best deals for you. To access your bot, simply log in to your brokerage account at any time.
How it works
Bitstamp is a popular crypto trading platform with a tiered fee system that is based on the trading volume of users over a 30-day period. This means that you pay less in fees when you trade more. While this may sound attractive, the reality is that the zero-fee system is only feasible for large investors and institutional clients.
In addition to trading fees, Bitstamp also charges deposit and withdrawal fees based on the selected payment methods. You can buy Bitcoin with bank accounts, debit cards, and credit cards, but fees vary. Deposits on SEPA, ACH, and Faster Payments are free, while card purchases are charged 5% per transaction. International wire transfers are charged 0.05% for deposits, while direct crypto deposits are free.
Withdrawals work in a similar manner, with SEPA withdrawals pegged at €3, ACH transfers being free, and Faster Payments (UK) incurring a £2 base charge. International withdrawals are subject to a 0.1% fee.
Bitstamp also charges a 15% commission fee for staking assets on its platform, covering the costs and fees associated with staking and unstaking.
Bitstamp is a reliable and secure platform that offers various trading options, deposit and withdrawal methods, and reasonable fees. To use the platform, simply create an account, deposit funds, and start trading. Keep in mind that fees vary based on the chosen payment methods and trading volume. Overall, Bitstamp is an excellent choice for anyone looking to trade crypto in a safe and efficient manner.
How to use Bitstamp, best ways to trade
Now that you’ve learned how to get started with Bitstamp and how to buy and sell cryptocurrencies, let’s take a look at some best practices to keep in mind when using this platform.
- Do Your Research Before investing in any cryptocurrency, it’s important to do your own research and understand the risks involved. Take the time to learn about the crypto market, the various coins available for trading, and the potential benefits and drawbacks of each.
- Start Small It’s best to start with a small investment when you first begin trading on Bitstamp. This will allow you to get a feel for the platform and the crypto market without risking a large amount of capital.
- Set Realistic Goals While the crypto market can be volatile and unpredictable, it’s important to set realistic goals for your trading activities. Don’t expect to make a huge profit overnight, but instead focus on consistent, steady gains over time.
- Use Risk Management Tools Bitstamp offers a variety of risk management tools to help you minimize your losses and protect your investments. These include stop-loss orders, which automatically sell your assets if the price drops below a certain level, and limit orders, which allow you to set a specific price at which you want to buy or sell a particular asset.
- Keep Your Assets Secure When you trade on Bitstamp, it’s important to keep your assets secure. Use a strong, unique password for your account, and consider enabling two-factor authentication for an extra layer of security. Additionally, consider storing your cryptocurrencies in a cold wallet, which is not connected to the internet and is therefore less vulnerable to hacking.
By following these best practices, you can make the most of your Bitstamp trading experience and minimize your risks while investing in the exciting world of cryptocurrencies.
Yes, Bitstamp is regulated and licensed by the top Luxembourg financial watchdog, CSSF, and it follows all regulatory guidelines. The platform upholds the highest level of AML policies, making it a trusted platform.
Yes, Bitstamp is an excellent platform for beginners to trade crypto as it is user-friendly and easy to navigate.
Yes, US residents can use Bitstamp. However, they can only buy Bitcoin using their debit cards as credit card purchases are not supported in the country. Also, Ripple trading is not available for US residents due to ongoing legal issues with the Securities and Exchange Commission (SEC) over its token sales.
Bitstamp charges a lower trading fee of 0.5% for a 30-day trading volume compared to Coinbase, which charges between 0.5% to 5% depending on the underlying assets, selected payment methods, and network fees.
Both Bitstamp and Binance are top crypto exchanges, and each has its pros and cons. Binance has a larger library of assets and is cheaper in terms of fees, while Bitstamp stands out for its user-friendliness and high AML policies.
Yes, Bitstamp is licensed by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, and it follows all laid-down AML guidelines.
Can you earn profits using Bitstamp?
Yes, you can earn profits using Bitstamp. However, the profitability of your trades largely depends on your expertise and experience in the crypto space. Bitstamp offers an algorithmic trading service that helps users automate their trading processes, lock in profits and mitigate losses.
The platform creators have effectively guided against the many potential ways to lose money on Bitcoin Lifestyle. They have included features like take profit and stop loss to help significantly reduce the risks of losing during a trade. However, if there is any loss, it can only be due to the users’ incorrect platform usage.
Having reviewed the data on Bitstamp, I can confidently say that it is a reputable and trustworthy trading platform for cryptocurrency. Bitstamp is regulated, licensed, and follows strict regulatory guidelines. The platform ensures the highest level of AML policies, and the majority of its digital assets are stored offline, protected by BitGo.
Bitstamp offers multiple order types, real-time charts, and analytical tools, which are useful in assessing transactions. Additionally, the platform charges competitive fees for trading and provides excellent support for a variety of payment options. Bitstamp has excellent customer care, which is quick to respond and highly helpful.
Bitstamp is a great option for beginners as the trading interface is easy to navigate, and buying or selling cryptocurrency is a straightforward process. Experienced traders can also use the Tradeview platform, which has multiple tools. Furthermore, Bitstamp offers staking programs for investors looking to hold crypto long-term, including BTC, USDT, and ALGO, among others.
While Bitstamp has been hacked before, it has taken necessary measures to prevent further incidents. Bitstamp also lacks educational resources on its site, but this should not be a deal breaker for anyone serious about trading crypto.
Overall, Bitstamp has earned its reputation and is one of the most well-known trading platforms for cryptocurrency in Europe. If you’re looking for a reliable and trustworthy platform, Bitstamp is an excellent option. So, what are you waiting for? Give it a try and see how it fits your trading needs!