Bitstamp Review – Deep Dive Into Fees, Security, Trading Features
Felix Küster
Let’s be clear from the start of this Bitstamp review:
This is one of the most reliable bitcoin exchanges, and provides secure and reliable service to their customers since 2011.
The platform was founded as a European alternative to then-dominant cryptocurrency exchange Mt. Gox. The company was founded by Damijan Merlak and Nejc Kodrič in their native Slovenia. However, they moved to the UK in April of 2013, and the reason for moving outside of Slovenia was a lack of financial and legal services available in the country.
Meanwhile, the company moved outside of the UK because regulatory authorities told them that Bitcoin was not classed as a currency, so their exchange could not be licensed or regulated, and that’s why they decided to move to Luxembourg in 2016, where the financial authorities have granted it a Payment Institution License. What this licensing deal means for the operator is that it has to fulfill a series of strict requirements, like the implementation of a series of anti-money laundering procedures, it needs to have a mandatory internal auditor, and it has to submit monthly financial reports.
| 📌 Topic | Description |
|---|---|
| 🌐 Bitstamp | Bitstamp is a renowned cryptocurrency exchange established in 2011. Recognized as the longest-standing crypto exchange globally, it boasts low fees, dependable service, and straightforward setup. The platform is accessible in over 100 countries, though some features may be limited in specific regions. A team of 7 seasoned professionals, well-versed in both traditional and decentralized finance, leads the exchange. |
| 🪙 Supported Coins | Bitstamp endorses more than 80 digital currencies, encompassing well-known coins and stablecoins like Tether (USDT). Nonetheless, it’s essential to highlight that Coinbase provides a broader spectrum of cryptocurrencies, supporting over 150 digital assets. |
| 🌍 Supported Countries | Bitstamp’s reach differs from country to country. The Bitstamp mobile application is accessible in countries such as Albania, Algeria, Angola, Antigua & Barbuda, Argentina, Armenia, Aruba, Australia, Austria, Azerbaijan, Bahamas, and Bahrain. Additionally, Bitstamp facilitates immediate credit and debit card acquisitions of cryptocurrencies across all EU member nations. |
| 📌 Trading Fees | For market makers, the fee range starts from 0.3% (from $1k to $10k monthly trading volume) to 0.00% (+ $1 Billion). Taker and maker model based trading fees are determined by two factors: whether you are a market maker or market taker, and your total trading volume over the past 30 days. The minimum fee is $25 USD/EUR/GBP, and your bank may charge additional fees for non-standard processing. |
All these requirements are supposed to make the exchange trustworthy and safe for the authorities under whose jurisdiction it operates as well as for its users. This license also means that they are fully regulated as a legal EU payment institution and that they can do business in all 28 EU member states.
Bitstamp has more than 4 million users worldwide which makes it one of the biggest exchanges in the world. At the time of writing, the exchange sits at the #13 spot in the world, as per Conimarketcap and its ratings.
Due to its longevity in the violate crypto market, we can safely say that Bitstamp cares about its users and their safety and security. Without further ado, let’s jump into details!
What you'll learn 👉
Services & Features
Bitstamp offers some of the crucial features each crypto investor needs – the option to buy crypto, trade, and stake. So, let me break each feature.
Buy & sell crypto
Buying crypto on Bitstamp is pretty much straightforward. Once you create your account, you will be directed to Bitstamp’s homepage where you can see the available coins you can buy. On the right side of the list, there is the “Buy” button.
At the time of writing (December 2021), Bitstamp supports 52 cryptocurrencies you can buy with the most notable being Bitcoin, Ethereum, Tether, Cardano, and USD Coin. Bitstamp supports fiat deposits in EUR and USD which is a big plus for the exchange since it is suitable for complete beginners all around the world.
Of course, before buying crypto you have to deposit funds into your account. Once you do that, tap on the mentioned “buy” button and you will be directed to a new window that will look like this:
Please note that you can’t buy crypto on Bitstamp until you verify your account and enable 2FA (2 Factor Authentification).
Spot exchange and trading
You can trade on Bitstamp with three different platforms: Bitstamp.net, Bitstamp Tradeview, and Bitstamp Mobile. No worries about the different fees though since those are the same in all three places, which is not the case with some notable competitors such as Coinbase.
Bitstamp does not support margin or future trading.
As already mentioned, Bitstamp supports the easy buying and selling of crypto assets. If you want to trade, just go to the “Markets” section on the top of the homepage, and you will be directed to the trading section that looks like this:
However, more advanced traders would probably want to go to Tradeview, Bitstamp’s main trading platform with more advanced charts, a live updated order book, depth chart, and quick trading forms.
Bitstamp Earn
For those of you confused with the term “earn”, that is actually staking. So, Bitstamp offers you to earn rewards in crypto if you hold assets for a certain amount of time. Once you decide to hold crypto on Bitstamp in order to get rewards, you will not be able to withdraw or trade that asset for a certain period of time.
If you want to stake crypto on Bitstamp, just go to the “earn” tab on the top of the homepage. At the time of writing, only two crypto assets are available for staking on Bitstamp – Etehreum (ETH), and Algorand (ALGO). As per Bitstamp’s website, more staking options might be available in the future.
You can earn up to 5.35% on an annual basis if you stake ETH and you can earn up to 3.95% on an annual basis if you stake ALGO.
Bitstamp supported coins
One of the features most traders complained about when it comes to Bitstamp is the number of supported coins on the platform. To be honest, I do not see this as a big issue at the moment, since Bitstamp currently supports 50 cryptocurrencies.
Here is the list of focal assets supported by Bitstamp: Bitcoin (BTC), Ether (ETH), Tether (USDT), Algorand (ALGO), Litecoin (LTC), USD Coin (USDC), Ripple (XRP), Polygon (MATIC), Uniswap (UNI), Cardano (ADA), Bitcoin Cash (BCH), The Sandbox (SAND), Stellar Lumens (XLM), Axie Infinity (AXS), Basic Attention Token (BAT), Hedera Hashgraph (HBAR), etc.
Bitstamp deposits & withdrawals
Bitstamp, as big as cryptocurrency exchange it is, has to offer a variety of deposit and withdrawal methods to its users. Some of these methods are and the time they should be completed are:
- Bank wire transfer: 2-5 days to complete
- SEPA bank transfer: Eurozone only, 1-3 days to complete
- Credit/debit card deposits: near-instant
- Cryptocurrency deposits and withdrawals: up to an hour, time depends on the cryptocurrency and network congestion
Fiat currency you can use to deposit funds can be both EUR and USD. Two sections “Deposit” and “Withdrawal” are fairly easy to find in the top corner of the homepage. Keep in mind that you need to verify your account in order to deposit or withdraw from Bitstamp.
If you have any issues with deposits or withdrawals on Bitstamp, please reach out to their customer support via support@bitstamp.net.
Fees
Deposits on Bitstamp are free of charge no matter if you deposit fiat money or cryptocurrency. However, international transfers have a fixed 0.05% fee per deposit and 0.1% per withdrawal. If you want to buy crypto with your credit card, you have to pay a 5% service fee.
Moreover, ACH withdrawals are free of charge, and SEPA withdrawals incur a fee of 3 EUR, while international withdrawals attract a 0.1% fee. Bitstamp has pretty much competitive fees, but keep in mind that they have a fee schedule that is updated from time to time. Please check it out here.
When it comes to crypto withdrawals, as on each other exchange, it depends on the coin. For instance, 0.0005 BTC per BTC-withdrawal, 0.005 ETH per ETH-withdrawal, or 0.0001 BCH per BCH-withdrawal.
Limits
There are limits when it comes to purchasing crypto with a credit card:
- Daily: 2500 USD/EUR/GBP
- Monthly: 20000 USD/EUR/GBP
- Minimum purchase amount: 50 USD/EUR/GBP
Keep in mind that the limits may depend on your country of residence and can’t be increased even if your account is verified.
Bitstamp Trading Fees
Bitstamp initial trading fee (for all coins) is 0.5%. However, the fee can be lower depending on your 30-days volume. Let me break Bitstamp’s trading fees structure:
| Fee % | 30 days USD volume |
| 0.50% | < $10,000 |
| 0.25% | < $20,000 |
| 0.24% | < $100,000 |
| 0.22% | < $200,000 |
| 0.20% | < $400,000 |
| 0.15% | < $600,000 |
| 0.14% | < $1,000,000 |
| 0.13% | < $2,000,000 |
| 0.12% | < $4,000,000 |
| 0.11% | < $20,000,000 |
| 0.10% | < $50,000,000 |
| 0.07% | < $100,000,000 |
| 0.05% | < $500,000,000 |
| 0.03% | < $2,000,000,000 |
| 0.01% | < $6,000,000,000 |
| 0.005% | < $20,000,000,000 |
| 0.0% | > $20,000,000,000 |
Does Bitstamp require KYC?
Yes, Bitstamp does require a mandatory KYC (Know Your Customer) verification process. Keep in mind that you can’t make any deposits or withdrawals from your account until you verify it. I am a big fan of KYC since it increases the security of your account and decreases the chance for scammers and frauds. In order to complete the KYC process on Bitstamp, you have to go through a few steps:
- Where are you from? – Country, Home Address, City, Postal Code
- Enter your phone number – Country will be selected automatically based on what you provided in the previous step
- Verify your phone number – they will send you a 4-digit code
- Provide an official photo of either one of these ID documents – Passport, Driver’s license, ID card
The whole process is user-friendly and you will finish it within a few minutes.
Bitstamp supported countries
Bitstamp supports more than 190 countries. Keep in mind though that instant card purchases are available in the EU and US (“Available in most states, but may require additional identity verification”)
Other supported countries include the UK, Switzerland, Norway, Monaco, Montenegro, Serbia, Turkey, Andorra, Moldova, Gibraltar, Iceland, Greenland, Liechtenstein, Isle of Man, Faroe Islands, Åland Islands, San Marino, Hong Kong, China, Singapore, Taiwan, South Korea, Australia, and many others.
I would say it is hard that you are located somewhere in the world where Bitstamp is not supported. Please note that purchases with a card are allowed only for personal accounts.
Are US investors allowed on Bitstamp?
Yes, Bitstamp definitely allows US investors. In fact, Bitstamp has an office in the US:
Bitstamp USA Inc., 27 Union Square West, Suite 205, New York, United States.
How to start with Bitstamp? (steps like registration, activation, verification, etc)
Let me break down the registration process on Bitstamp in a few simple steps:
- When you open the Bitstamp website, tap on the “get started” button in the top right corner
- The exchange will then ask you if you need a personal or corporate account, as seen below
- When you choose a personal account, the exchange will ask you to provide your first and last name, email, and to agree to their terms and conditions
- Then you have to confirm your email with the link they sent you
- Once you are done with confirming your email, the platform will ask you to provide a password
- Finally, the platform will ask you to go through the mandatory verification and protection process. You need to provide info and documents, basic financial information and enable extra security measures
Does Bitstamp have a Native Token?
No, Bitstamp does not have a native token. To be honest, since Bitstamp has been around since 2011 and still has not launched a native token, I do not believe they will ever do it.
Is Bitstamp legit and safe?
As already mentioned, Bitstamp is considered one of the oldest crypto exchanges in the world. It has been around since 2011 and has more than 6 million users – these are remarkable numbers. But, what does that have to do with the legitimacy and the safety of the platform?
First of all, Bitstamp would never be around for so long and with so many users if it is not a legit and safe platform. The longevity proves it.
Secondly, Bitstamp takes some effective protection measures in order to keep its users safe. For instance, Bitstamp offers:
- Cold storage – 98% of assets are stored offline where no one can access it
- User security measures such as 2FA (2 Factor Authentification)
- SSL Encryption – Bitstamp’s website uses AES 256-bit encryption to make your connection to their servers secure.
Keep in mind though that Bitstamp did have two big hacks, back in 2014 in 2015. 2015 was not a pleasant one since hackers stole 19,000 Bitcoin from the platform. This was the main reason why the team around Bitstamp decided to store most of the assets offline. Regardless, it seems that these days are behind Bitstampd and we can safely say that Bitstamp is a completely legit and safe platform.
Is Bitstamp Regulated?
Bitstamp pays a lot of attention to regulatory compliances to make sure its users feel completely legit. The exchange has all the licenses needed to operate in the US and EU. Moreover, Bitstamp has the famed BitLicense which enables traders in New York to trade crypto.
Quite interesting that Bitstamp is one of the few exchanges that block access to their website when accessed over VPNs, ensuring that every user only accesses the features approved to them.
Customer Support
One of the first things I noticed on Bitsamp is the extensive and extremely useful FAQ section. The platform literally provided all the relevant information you need to know before actually deciding whether you want to use the exchange or not. Effective FAQ section serves as the first line of customer support and help of Bitstamp’s users.
There are quite a few other ways to get help from Bitstamps such as reaching out them to them via email, telephone, or tagging them on social media.
If you are a high-volume trader, you will be eligible to get a dedicated account manager who will be there for you if you run into issues. All in all, Bitstamp has decent customer support.
Security
As noted above, Bitstamp pays a lot of attention to users’ security, especially after the 2015 hack. The two most notable protection measures used on the platform are Cold Storage (most of the assets stored offline), and 2FA (2 Factor Authentification). Even though 2FA is not by default mandatory on Bitstamp, my strongest suggestion is to activate it as soon as you verify your account.
Conclusion
Bitstamp is an easy-to-use cryptocurrency exchange giant that has been around since 2011 and longevity speaks for itself. Perhaps it does not have the largest number of crypto supported or available for staking, but it has a very user-friendly interface and features that are suitable for both beginners and experienced traders.
The exchange is particularly useful for EU citizens who can enjoy instant card purchases, free deposits, and low withdrawal fees.
Keep in mind that these are only my opinions based on my thorough investigation of the exchange. Please do your own research before deciding whether you want to use the Bitstamp exchange or not.
At this point, it is good to note that all opinions and suggestions written in this article are not considered financial advice.
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FAQs
Let’s look at some of the frequently asked questions when it comes to Bitstamp exchange.
What fiat currencies does Bitstamp support?
Bitstamp currently supports 3 fiat currencies – USD, GBP, and EUR.
Does Bitstamp have an app?
Yes, Bitstamp supports iOS, Android, and web versions. All the functions and services are the same on all versions.
Does Bitstamp have a wallet?
As far as I saw, Bitstamp does not have a native wallet. I am assuming this is because most of the assets are kept offline. You can check your account value (balance) when you tap on the profile icon in the top right corner.
Can you ‘short’ cryptocurrencies at Bitstamp?
Yes, you can short crypto on Bitstamp. Let me provide you with a nice example from Bitstamp’s website: “The current market price is 10000 USD for 1 BTC. The trader in a short position might want to set up a stop buy order for BTC at 11000 USD for 1 BTC. The price then continues to rise to 12000 USD for 1 BTC, so the trade has made a profit.”.
How do I contact Bitstamp via live chat?
Bitstamp can be contacted in a few ways such as via email, phone number, or social media. To be honest, I have not found a live chat on the exchange even though I looked thoroughly. All the info about their email, phone numbers, and social media profiles can be found at the bottom of the homepage.
Is Bitstamp easy to use?
Yes, Bitstamp is a very easy-to-use platform. It offers a simple, user-friendly platform that makes it easy to buy and sell cryptocurrency.
Do I need to verify my identity to use Bitstamp?
Yes, Bitsamp has a mandatory KYC (Know Your Customer) verification process. You can’t make any deposits or withdrawals until you verify your account.
Can I withdraw funds back to my debit or credit card?
Yes, you can, if you are in the country-supported credit card withdrawals. Please read more about withdrawal methods here.
Who is Bitstamp Best for?
Bitstamps is best for EU and US citizens who can enjoy instant credit card purchases, free deposits, and low withdrawal fees.
How much will it cost me to use Bitstamp?
Bitstamp offers competitive fees. Most of the deposits are free of charge while trading fees are around the market’s average. You can check Bitstamp’s fee schedule here.
How long does a withdrawal take?
It depends on the withdrawal method you chose. Let me provide you with the details:
- SEPA zone transfer: 1–2 business days
- International wire transfer: 3–5 business days
- Domestic USD transfer: 1–2 business days
- ACH transfer: 1–2 business days
- FPS transfer: 1 business day
Does Bitstamp have Fiat Deposit?
Yes, Bitstamp has a fiat deposit. Fiat currencies supported by the exchange are USD, GBP, and EUR
Can I trade with leverage on Bitstamp?
No, as far as I saw, there is no leverage trading on Bitstamp.
Where is Bitstamp exchange based?
Bitstamp is based in Luxemburg. The exchange was originally launched in Slovenia back in 2011, but then moved to the UK in 2013 and finally in Luxemburg in 2016.
How do I get crypto on Bitstamp?
In order to get crypto on Bitstamps, you have to go through a few simple steps:
- Create an account and verify it
- Deposit fiat currency to your Bitstamp account
- Once you create your account and make a deposit, you can go to the “Markets” tab where you can see the available assets you can buy. On the right side of the list, there is the “Buy” button
The problem born if you have a problem and try to contact the support.Nobody reply for week and week. This is a Bitstamp but also Binance and probably all exchange around the world? Why? They become a billionare with fees and don’t give a minimum of support for they customers?
Bitstamp is logging out users and trapping their clients money and coins with no means of withdrawal . No news from support.
Your $$ and coins just evaporated
Agree with the previous comment about the support. And It`s necessary to this fact as a drawback. Last year my account was frozen and I couldn`t contact to anyone for weeks