Bitstamp is a cryptocurrency exchange that can boast a solid, good reputation and relatively low fees. Bitstamp is headquartered in Luxembourg, after the company left Slovenia, the place where it was founded, while seeking fewer regulations with the bitcoin activities. For a short period of time, the company resided in the United Kingdom, but later ended up in Luxembourg. Bitstamp is one of those exchanges that are quite complicated for beginners, and our Bitstamp review will disclose this and many other aspects about this cryptocurrency exchange.
Bitstamp Review: General Overview
|Location||Luxembourg and Slovenia|
|Available Cryptocurrencies||Bitcoin, Litecoin, Ethereum, Ripple|
|Deposit Methods||Bank transfers, credit cards, cryptocurrencies|
|Withdrawal Methods||Bank transfers, cryptocurrencies|
|Fees||From average to low|
|Community Trust||Very good|
Bitstamp tends to be one of the oldest cryptocurrency exchanges, as it was founded in 2011 (Kraken was founded then too) – at day of the bitcoin development. And in many instances, Bitstamp is a really great platform for investing in bitcoins and other cryptos. The only thing that stops Bitstamp for overtaking Kraken and Coinbase is the exchange’s quite difficult interface, which scares off many beginners.
At the beginning, Bitstamp was created as an alternative to Mt. Gox, a Japanese bitcoin exchange that dominated the European market. After Mt. Gox went bankrupt in 2014 (at one point, it had the share of the world bitcoin market of 70%), such exchanges like Bitstamp, Coinbase, and Kraken grew in popularity and gained sympathy and trust from the users.
Now, when Bitstamp became headquartered in Luxembourg, it allows depositing and withdrawing funds in both USD and EUR. For the European users, it is fairly convenient and lucrative (due to low fees) to deposit their funds in EUR via SEPA bank transfers. This partly has led to the fact that Bistamp is one of the largest crypto exchanges in the European market nowadays. One of the advantages of Bitstamp is that this exchange also offers API keys, which allows the users and developers to create data analytics tools and custom software.
When it comes to positive opinions about Bitstamp, the majority of the users (and this Bitstamp review is not an exception) leave very good feedback about the fees at this exchange. Especially that stands for the European clients (depositing money via SEPA wire transfers is free). The trading fees lower than 0.25% are also something that draws many clients to this exchange. Besides, numerous claims of users who confess that the exchange’s support is far better than those of many major exchanges is also a good sign. Besides, the fact that Bitstamp is licensed also evokes confidence and trust.
On the other hand, depositing fiat money with credit cards is not recommended – that can be salaciously expensive. Though, the fact that depositing funds with credit cards can be expensive is a common thing among cryptocurrency exchanges. Considering that many traders have flocked to Bitstamp recently, it shouldn’t be surprising for you that the verification process may take quite a bit of time.
Another criticism towards Bitstamp is the limited amount of cryptocurrencies available for trading. At the present time, Bitstamp allows to trade only 4 cryptos: bitcoins, Litecoin, Ethereum, and Ripple. Though, one must say that Bitstamp was founded as a bitcoin-only exchange, but later went on to introduce other popular cryptocurrencies.
One of the things many Bitstamp clients lament about is the difficulty of withdrawing the funds via wire transfers. That is connected with the fact that many European banks are quite hostile towards bitcoin-connected operations and crypto exchanges. Even though this doesn’t tend to be the fault of Bitstamp, it gets a large deal of the blame for this as well.
Short sum-up this Bitstamp review section: Bitstamp is one of the very few exchanges that are regulated and licensed, and this inspires trust. And while there are many positive things about this cryptocurrency exchange, one should also mention a long account verification process and the difficulties with withdrawing funds through wire transfers.
In the previous parts of our Bitstamp review it has already been mentioned that the fees at this exchange tend to be relatively low. Fees for international wire deposits are around 0.05%, though with a minimum fee of 7.50 USD/EUR. The fees for withdrawals via international wire is 0.09% or, at least, 15 USD/EUR. Both deposits and withdrawals are carried out within 2-5 days.
Bitcoin trading fees start with 0.25%. Though, they can be lower for those traders who have reached certain levels of monthly trading volumes:
- 0.24% if the trading volume is more than $20 but less than $100,000.
- 0.22% if the trading volume is less than $200,000.
- 0.20% if the trading volume is less than $400,000.
- 0.15% if the trading volume is less than $600,000.
- 0.14% if the trading volume is less than $1,000,000.
- 0.01% if the trading volume is more than $20,000,000.
Besides, Bitstamp also offers a very useful feature: free bitcoin withdrawals. So if you want to trade bitcoins on other exchanges, you can easily withdraw them from Bitstamp for free. That is achieved in the following way: the company accumulates such requests from many users, withdraws the bitcoins, and then allocates them to those users while covering the fees.
Short sum-up this Bitstamp review section: One of the really great things about Bitstamp is that the users are able to enjoy quite low fees (in comparison with the other cryptocurrency exchanges). If you tend to have higher trading volumes, you may consider switching to this crypto exchange.
Is Bitstamp Safe?
Our Bitstamp review contains quite complimentary words about the safety of Bitstamp, and that’s not surprising. Even though every investment bears a risk (and especially in cryptos), Bitstamp tends to be among the safest cryptocurrency exchanges.
And even though luckless events may happen to any crypto exchange, it is worth taking a note of how the company dealt with them. First of all, the company suspended withdrawals of bitcoins in February 2014, when it was supposed to be attacked by hackers. The same security measure was undertaken in January 2015, when 19,000 bitcoins were stolen – that stands in a sharp contrast from 850,000 bitcoins, stolen from Mt. Gox.
The interface at Bitstamp
Since those events, everything has been more or less smooth at Bitstamp. At the present time, Bitstamp stores over 98% of all the cryptos in cold wallets, thus keeping the funds of its customers offline in secret vaults. The remaining less than 2% of the cryptos are available for trading.
It is worth noting that Bitstamp is among the leaders in the cryptocurrency world in terms of the security measures. At the present time, the following security measures are available at Bitstamp:
- SMS and email alerts.
- Mandatory email confirmation.
- Two-step verification.
- Fully insured cold storage wallets.
- Pretty Good Privacy (PGP) data encryption used for all the files uploaded to Bitstamp.
Short sum-up this Bitstamp review section: While Bitstamp tends to have a pretty strong and solid security system, there have been numerous hacker attacks that targeted this crypto exchange. During those attacks, the company limited withdrawals of cryptocurrencies, and you have to keep in mind that this might happen in the future as well.
Advantages and Disadvantages of Bitstamp
At the end of our Bitstamp review, we would like to summarize the entire article with the list of advantages and drawbacks of this crypto exchange. This can give you a better understanding of where Bitstamp beats its other main competitors.
So, the following advantages of this crypto exchange draw many customers to Bitstamp:
- Large trading volumes, which makes this place a good one for large deals and purchases.
- Allows to buy cryptocurrencies with debit and credit cards.
- Able to boast a very good reputation and absence of prolonged shutdowns in trading.
- Trading and deposit/withdrawal fees are extremely low, if compared to other major cryptocurrency exchanges.
- Tends to be a secure exchange with many advanced security measures.
- Allows the users to obtain API keys.
- Provides the users with detailed graphs and charts.
At the same time, the following disadvantages of Bitstamp make it less attractive for a number of traders:
- The user interface is not that simple and doesn’t suit to beginners.
- Despite being a highly secure exchange, Bitstamp retains control over the private keys to the wallets of its users.
- Depositing funds via credit/debit cards tend to be very expensive.
- Very few cryptocurrencies are available for trading on this platform.
- The exchange is available for users from certain countries, not to everyone.
- The process of account verification tends to be rather long and may exceed 3 days.
- Bitstamp tends to collect extra information about its users, including which competitor services they use.
Short sum-up this Bitstamp review section: Bitstamp is known for its high trading volumes, but can also boast supporting various payment methods, providing quite low fees and solid security measures. Though, there is a limited selection of cryptocurrencies available for trading, and this exchange is not tailored to the beginners.
How to Trade in Bitstamp
As you could understand from what has been pointed out in this Bitstamp review above, this exchange is definitely not aimed at beginners in the cryptocurrency world. Thus, it is logical that you may need a bit of help in order to start trading on this cryptocurrency exchange.
This section of our Bitstamp review is aimed to provide you with all necessary tips, help, and guides on how to get started on this crypto exchange. But apart from that, you will also learn the basics of trading on Bitstamp and a few of other useful things. All in all, stay tuned and follow the guidelines, provided below.
How to Register Account on Bitstamp
In order to start trading on the Bitstamp exchange, you have to register an account on this crypto exchange in the first place. The entire procedure is quite simple and will not take more than a couple of minutes of your time. So, here you have got the instructions on how to sign up for the Bitstamp exchange step by step:
- First of all, you should launch your browser and access the following website: https://www.bitstamp.net/.
- After you have entered the Bitstamp website, you should look for the “Register” text button, placed in the right-upper part of the page (right below the upper menu). Click on that text button.
- Following it, you will get to see a notification, showing that your customer ID and the password of your account have been sent to your email address.
- Go to your inbox. There, find a letter from Bitstamp and open it.
- In the letter that you have just opened, you will get to see your client ID and password. Open the Bitstamp webpage in a new window and click on the “Log in” button.
- On that page, there will be displayed a sign in form. You have to copy your client ID from that letter and paste it in the first field of that form. Then, you should copy your password from the given letter and paste it in the second field. After doing so, you should click on the “Log in” button.
- Following it, you will immediately log in to your Bitstamp account.
- Right after that, you will get to see that your password is too old, so you will be offered to change it. Copy the password from the letter and paste it in the first field of that form. Then, make up a reliable password and type it in the remaining two fields. After doing so, click on the “CHANGE PASSWORD” button.
- The password will immediately be changed, and you will get logged out of your account. On the page that you have just got to see, enter your client ID in the first field and your new password in the second field. Then, click on the “Log in” button.
- Then, you will get to see a notification that your password has been successfully changed.
- Don’t forget to write down your client ID – this is the ID that you will have to use every time you will try to log in to your account on the Bitstamp exchange.
How to Verify Account on Bitstamp
Before you will be able to start trading on the Bitstamp exchange, you should verify your Bitstamp account. Actually, that should be among the first things that you have to do on this crypto exchange. The processing time of your account verification actually depends on how quick the customer support is – sometimes it may be done within a few hours even.
This is the way how you can verify your Bitstamp account step by step:
- In the first place, you have to open your browser and copy the following URL into its address line: https://www.bitstamp.net/. Then, you should hit the “Enter” button.
- Once you have accessed that website, you should click on the “Log in” text button, placed in the right-upper corner.
- After you have got to see the Bitstamp sign in form, you should enter your client ID in the first field of that form and your password in the second field. Then, you have to click on the “Log in” button.
- Immediately after doing so, you will get to see the dashboard of your Bitstamp account. You will get to see your account’s menu on the left, and you have to click on the “Verify Account” option.
- Following it, there will be displayed a page that allows you to verify your account. There, you should click on the “Personal account verification” button.
- After doing so, you will get to see a page where you can verify your Bitstamp account.
- The first thing you should do on that page is to fill in the form with personal information. In particular, you should type your first and last name in the first two fields, your address, postal code, city, country of residence, and nationality in the following fields. At the end of that form, you should also specify your birthdate.
- Following it, you will have to specify a few other things in the next form. In particular, you should place a tick near “Yes” or “No” in order to specify whether you are a US citizen, whether you are a US resident alien, and whether you are a US tax person.
- After doing so, you should upload the photo of your ID document. Click on the “Choose File” button under the “Photo ID Document” section and upload the photo of your ID document. Then, click on the “Choose File” button under the “Back Side Photo ID Document” and upload the cover side of your ID document.
- Then, specify the issue and expiration dates in the next fields. After all, select the ID document type and enter its document number.
- At the bottom of the page, you should click on the “Choose File” button and upload a proof of residence in order to verify your address. The following documents can serve as a proof of residence: a bank account statement, a utility bill, and other documents issued by the government.
- Once you are done with filling in this form, you should check whether all the data you have provided is correct. If everything seems okay for you, you should click on the “Submit verification request” button.
- After it, you will get to see a notification that your application has been submitted. If the data you have provided is correct, the customer support will review your application and grant your account a status of a verified one.
How to Enable 2-Step Verification on Bitstamp
Once you have signed up for the Bitstamp exchange and submitted an application for the account verification, there are a few other things you should do before starting to trade on this cryptocurrency exchange. We highly recommend you to turn on the 2-step verification feature for your account as soon as possible, as this feature will highly enhance the security of your account.
If you are seeking how to enable 2-step verification for your Bitstamp account, this is a way how you can do it:
- The first thing you should do is to launch your browser and copy the following URL into its address line: https://www.bitstamp.net/. Then, you have to hit the ”Enter” button.
- Following it, you will get to see the main webpage of the Bitstamp website. On that page, you will notice the “Log in” text button, placed in the right-upper part of that page. You have to click on that text button.
- Once you have done it, there will be opened a page with a sign in form that you have to complete in order to access your Bitstamp account. There, you have to enter your client ID in the first field, your password in the second field, and click on the “Log in” button.
- After doing so, you will get to see the page of your Bitstamp account. Right on that page, you will get to see a notification, saying “LOW ACCOUNT SECURITY. PLEASE ENABLE TWO-FACTOR AUTHENTICATION.” You should click on that notification.
- On the next page, you will be able to turn on the feature of 2-step verification. That page will display two buttons to you: the “Enable Two-Factor Authentication” button and the “Download PDF Guide.” You need to click on the “Enable Two-Factor Authentication” button.
- On the following page, you can do a few things. First of all, you will get to see the authentication key – you need to write it down (or print it), as you will use it in case if you will lose access to your mobile phone.
- You need to access the Google Authenticator app on your smartphone. There, you should click on the “+” button and select “Scan a barcode.”
- Scan the QR code that you have got to see on the Bitstamp page.
- Now, you have just successfully enabled the two-step verification feature on Bitstamp.
How to Make a Buy/Sell Order on Bitstamp
If you have verified your account on Bitstamp and enabled all the recommended security features, you can actually start trading on this exchange. When it comes to trading on this crypto exchange, there is really nothing difficult about it. Indeed, the Bitstamp trading platform has a number of advanced trading features, but you simply may not use them.
This section of our Bitstamp review actually shows how to post a buy or a sell order on this crypto exchange:
- First of all, you have to launch your browser and enter the following webpage: https://www.bitstamp.net/.
- On the Bitstamp website, you have to find the “Log in” text button (it is placed in the right-upper corner) and click on it.
- After doing so, you will get to see the page with a sign in form. There, you should enter your client ID in the first field and your password in the second field. Once you have done that, you should click on the “Log in” button.
- Once you have got to see the dashboard of your Bitstamp account, you can start buying or selling cryptocurrencies. You have to click on the “Buy/Sell” menu option that you can find in the top menu.
- Now, you have just accessed the page where you can make a buy or a sell order. On the left, you will notice a menu of order types: Instant Order (Simple), Limit Order (Advanced), Market Order (Advanced), and Stop Order (Advanced). If you are a beginner, we recommend you to use the first two types of orders.
- The difference between an instant order and a limit order is that the execution of the latter order would be carried out only at a certain price. Thus, we recommend using the limit order for buying and selling cryptocurrencies.
- So, click on the “Limit Order” option.
- On the following page, select a cryptocurrency you want to buy or sell.
- Now, you have just got to see the forms where you can configure buying or selling a selected cryptocurrency. Depending on whether you need to buy or sell a cryptocurrency, start filling in a suitable field.
- You need to enter the amount of cryptocurrencies you want to buy (or sell) in the first field. Then, you should specify the price for which you want to buy or sell a selected cryptocurrency (it means that the order will not be executed until the market price will reach that limit).
- Once you have done that, you should click on the “Buy” (or “Sell”) button.
- Your new order has just been posted.
This Bitstamp review showed that this crypto exchange can boast to have a reputation of a reliable company, and a large number of positive user reviews just certifies that fact. Among the benefits of this exchange, one should definitely mention that the users are able to enjoy different payment methods and cryptocurrencies available. The exchange is tailored to the advanced traders, whereas its trading platform comes with advanced trading tools and complex charting. After all, the security system of Bitstamp tends to be quite a strong one.
On the other hand, the users are able to enjoy only a very limited selection of cryptocurrencies, and this is a pretty solid drawback for advanced traders. Bitstamp also provides its services only to the users from a limited selection of countries. The verification process typically takes more than 3 days, and this is something that annoys many users. All in all, one should carefully weigh on the exchange’s pros and cons before starting to trade on Bitstamp.