If you’re at the cryptocurrency space you may possibly have known about Bitstamp. Bitstamp is a cryptocurrency market with customers across the globe. Can Bitstamp have what your cryptocurrency trading requirements? Read our review on Bitstamp and learn most of their pros and cons before enrolling.
As among the oldest inventories in the cryptocurrency space, Bitstamp has been bringing users around the entire world to make use of their own services. What causes this market therefore reputable, and have their services evolved with the years?
A Brief History of Bitstamp
Bitstamp was set in Slovenia, by Damijan Merlak and Nejc Kodri, at 2011. The job was geared toward providing European clients a more competitive treatment for Mt. Gox, which has been (at that time) the controlling market to purchase and sell Bitcoin. Together with Mt. Gox function as key exchange (handling up to 70 percent of most Bitcoin trades ), users usually had to wait for extensive intervals to get their trades to finish, since Mt. Gox’s business methods weren’t fundamentally practical. Bitstamp appeared on the scene to enhance the bar for the way Bitcoin and also other cryptocurrencies should really be traded. Nathaniel Popper’s “Digital Gold” comes with a cameo of this Bitstamp team, since Bitcoin’s ancient history is diverging from the cryptic start to the beginning of its adoption, also it’s a recommended read for everybody interested at cryptocurrency.
Since their beginning, Bitstamp has opened their doors to global customers, starting offices within the UK at 2013, Luxembourg in 2016, in addition to current offices in New York and London. In its summit, Bitstamp was possibly the major exchange from the distance, trading over $700 million each day. Now, with a rising quantity of markets starting from the business, Bitstamp isn’t as popular, but still remains a valid exchange for anyone needing a reliable exchange to purchase and sell crypto shares.
Opening an Account on Bitstamp
To open an account on Bitstamp, simply click on the green “Register” button found at the top right-hand corner of Bitstamp’s front page. From there, Bitstamp will ask if the account is for Personal Use, or for Corporate Use; click the proper option.
After providing the required credentials, Bitstamp will send an email containing a verifying link; once the user clicks the embedded link to verify the account, Bitstamp will then allow the user to produce a password.
After creating a password, Bitstamp will issue a unique User ID, which is used to login to the site. Before users will be able to access their accounts, they will be required to enter and upload personal documents, financial information, and enable security functions. This request may seem hefty, but this information is required to meet AML/KYC regulations.
Once all of the required information is submitted, the user can deposit funds and begin to use the platform. Bitstamp currently offers their services to all 28 member countries of the EU, as well as support for well over 50 countries outside of the EU, including the U.S., South Korea, and Australia. Bitstamp has a minimum order size of 25.00 USD/EUR for all USD/EUR trading pairs, and a 0.001 BTC minimum order for any trading pair with BTC as the denominator.
Bitstamp Product Offerings
There are currently 6 tradable shares on Bitstamp, offered in different pairs. Bitcoin is tradable as BTC/USD and BTC/EUR. Litecoin is tradable as LTC/USD, LTC/EUR, and LTC/BTC. Ethereum is offered on the platform as ETH/USD, ETH/EUR, and ETH/BTC. Bitstamp also offers Bitcoin Cash as BCH/USD, BCH/EUR, and BCH/BTC; as well as XRP as XRP/USD, XRP/EUR, and XRP/BTC. A unique offering that Bitstamp makes available is a USD/EUR trading pair, allowing customers to swap fiat currencies. Bitstamp allows users to buy/sell instantly, as well as placing Market, Limit, and Stop orders.
Bitstamp operates on a sliding scale Fee Schedule, starting at 0.5% per trade for transactions totaling $10,000 or less over a 30-day period, with a 0.1% fee for $10 billion traded over 30 days. Users will be moved to the next tier immediately after meeting the volume requirements over a 30-day time span.
SEPA deposits to the exchange warrant no fee from the user, however, a SEPA withdrawal will incur a 3.00 EUR fee. Credit Card purchases have a 5% fee on all purchases, not including any additional fees that may be added by the credit card company.
Bitcoin, Litecoin, Ripple (XRP), Ethereum, and Bitcoin Cash deposits do not have any deposit fees. There is a 0.0005 BTC fee for withdrawals from the platform, or a 0.1% fee using BitGo Instant to withdraw. Litecoin’s withdrawal fee comes at 0.001 LTC; XRP’s withdrawal at 0.02 XRP; Ethereum at 0.001 ETH; and Bitcoin Cash’s withdrawal fee set at 0.0001 BCH.
Bitstamp’s Platform and Tools
Bitstamp’s trading platform allows customers to spot-trade in any of the pairs of the 6 shares offered. The trading window is found by clicking the Tradeview button. The trading window features a sleek design on a dark-colored background. Users can select their desired share in a drop-down button found beneath the header bar at the top of the screen.
between the window, a candle chart equipped with TradingView’s plethora of tools is offered to the user, optimizing the trading experience. The trading history for the selected share is found on the left-hand side of the window, with a current order book located under the chart. The order book is switched to a depth chart with the click of a button. Users can place their orders to the right of the window, with their open orders found beneath the order terminal. At this time, Bitstamp does not offer leveraged margin trading or contracts.
Bitstamp does offer a mobile application for trading on-the-go. The features of the application are nearly identical to the desktop version of Bitstamp. The app is supported by both Apple and Android phones and is found in the App Store/Google Play.
Bitstamp’s Customer Service
For any questions that a customer may have, an FAQ is provided, featuring answers to any common questions that may arise. Most of the question/answers provided are fairly basic in nature. For anyone that may have problems larger than what the FAQ covers, users are encouraged to email Bitstamp’s support team. Their email is found in the Contact section, located at the bottom footer section of their web pages, on the right-hand side.
What Sets Bitstamp Apart From Other Exchanges?
Bitstamp offers users a straightforward way of spot-trading a small amount of crypto shares. While the list of shares offered is small, those certain cryptocurrencies tend to have more volume, allowing the customers to execute their orders with ease. Back in the days of cryptocurrency’s infancy, Bitstamp offered users the ability to trade Bitcoin a lot of like traders on Wall Street, without having to deal with Mt. Gox’s faulty business practices. It could be said that Bitstamp helped pave the way for how exchanges operate in the industry today.
How Trustworthy is Bitstamp?
Bitstamp requires the use of 2-Factor Authentication to use their website, as well as full identity verification to make deposits and trades on their exchange. This certainly does not do a lot to protect users, however, their Customer Support does tend to resolve issues. Many users on Trustpilot have given Bitstamp a mid-grade level, with many people claiming to be locked out of their funds. Sites like these can make it hard to discern fact from fiction, as many companies pay for reviews (good reviews for them, or bad reviews against other competing companies). Regardless, these issues should be taken into account.
The exchange has suffered some fatal blows in its history as an exchange. The before all else came in 2014, in which the exchange was attacked with a distributed denial-of-service, with the attackers demanding 75 BTC from the exchange. Bitstamp was suspended for multiple days. Kodri, the CEO, refused to pay the ransom, as complying with “terrorists” was against company policy. The second came in 2015, in which Bitstamp suspended all of their services for a week, after nearly 19,000 BTC was stolen from the exchange. These types of attacks were almost common occurrences on many exchanges in the early days of Bitcoin.
In the infant days of Bitcoin, Bitstamp offered a viable solution to the travesty of Mt. Gox. The exchange worked their way to the top of the food chain, trading top volumes across the industry. Today, however, Bitstamp’s popularity is waning in the wake of the booming number of cryptocurrency exchanges that have a larger amount of tokens and trading tools to offer to users.
- Sleek design on trading window
- Ease of use
- The unique USD/EUR trading pair allows users to swap fiat currencies.
- Bitstamp's offerings are dwarfed in comparison to those offered by other exchanges
- Hefty and rigorous KYC/AML requirements before account is used is almost overkill compared to other exchanges
- Spotty reviews regarding Bitstamp's lack of customer service is concerning.