Bitstamp Review: Buying Bitcoin when it was invented in 2009 was difficult for the average person, until the advent of crypto exchanges, such as Bitstamp.
Bitstamp was one of the first crypto exchanges to hit the web and started out as a tool to help people buy Bitcoin using fiat currency. Today, Bitstamp has grown into one of the largest exchanges in the world.
Whether you want to buy your first cryptocurrency or create algorithmic trading rules for a bot to run, Bitstamp can support your needs. Here’s what you need to know about the crypto exchange that has been around for over a decade.
A pioneer in cryptocurrency exchange platformsSupports buying and selling for 70+ tokens User-friendly trading platform
What is bit stamp?
Bitstamp was founded in 2011, just two years after the creation of Bitcoin. The company can lay claim to the title of the longest-running crypto exchange in the world.
While the company offers advanced features that crypto trading enthusiasts need, Bitstamp continues to focus on mainstream cryptocurrency adoption. It simplifies the crypto buying process (register, fund and trading) and provides a high level of security on its platform.
What does it offer?
Bitstamp is a crypto exchange that is committed to making access to crypto easier. It helps common people to switch to crypto trading with an intuitive exchange and solid trading guides. But the company also supports advanced crypto traders with charts, API access and trading rules.
Buy and Sell 70+ Crypto ‘Tokens’
Bitstamp supports more than 70 unique tokens, which is really just another name for cryptocurrency or cryptoasset. Tokens mainly refer to cryptocurrencies other than Bitcoin and Ethereum, even though technically they are also tokens.
Compared to other major exchanges, Bitsamp doesn’t offer that many tokens, but know that most of the big name tokens can be traded through Bitstamp.
Stakeout not available in the US
Staking is a process of using a known token in the blockchain to verify and validate the blocks on the blockchain. In exchange for temporarily blocking access to assets, investors receive a small reward for participating in the blockchain.
Staking reduces the energy consumption of the blockchain while preserving the validity of the chain. Bitstamp allows investors to earn passive crypto by staking Ether (ETH) or Algorand (ALGO). Unfortunately, this option is not available to investors in the United States.
Same price for advanced trading platform
Bitstamp has an advanced crypto trading platform called Tradeview. This platform supports all kinds of advanced visualizations and trading options.
Most crypto enthusiasts won’t need all of Tradeview’s functionality, but the platform doesn’t cost anything extra. Anyone who wants to do research can use the advanced trading platform.
Buy Crypto with Fiat Currency or Crypto
Bitstamp supports crypto investors from their first transaction on the blockchain to advanced traders. People who are preparing to make their first crypto purchase can deposit fiat currency (US dollars) into Bitstamp and initiate their first trade through the platform. Investors can even buy crypto with a credit card (although this requires a 5% fee).
Bitstamp also supports crypto-to-crypto transactions and allows users to convert their crypto back to fiat currency at any time (prices are subject to market fluctuations).
Are there any costs?
People using the Bitstamp exchange should be aware of the following charges.
If you buy crypto with a credit or debit card, you will be charged 5% plus any trading fees. The trading fees on Bitstamp depend on your 30 day trading volume.
Volume discounts go all the way up to $20,000,000, but we’re showing the price for trades for those with trading volume up to $1,000,000. This is what their fee schedule looks like, based on a 30 day trading volume.
How does Bitstamp compare?
While many crypto exchanges have doubled down on crypto jargon and complexity, Bitstamp continues to make crypto more accessible to everyday people. It has a clear fee structure that is competitive with other major exchanges such as Coinbase.
It’s not the cheapest exchange on the market – Binance tends to be the cheap leader – but it’s well insured and easy to use. Many people will dismiss these features, but they are important, especially for those concerned about crypto investments.
Bitstamp sets itself apart by offering its Tradeview, the advanced platform available to anyone who chooses to use it.
How do I open an account?
To create an account with Bitstamp, you need a registration form which can be done online or via the app. The registration includes typical details for opening an account, such as your name, address and contact details.
Once the registration form is completed, Bitstamp has a two-step verification process.
Is it safe and secure?
In 2015, Bitstamp suffered a phishing attack and lost 18,866 BTC, which was worth about $5 million at the time. While the company traded quickly, the loss highlights how much of a target these crypto exchanges are.
Today, Bitstamp has multiple lines of defense to reduce the risk of loss in the future. First, it has higher levels of encryption. All users are required to use multi-factor authentication when accessing their accounts.
Additionally, Bitstamp stores 98% of user assets in cold storage, which is largely impenetrable to hacking attempts.
Crypto Safety Tip: This is why we recommend cold wallets:
Cold storage cryptocurrency wallets refer to stripped-down computers that never touch the internet. They have private keys and a button (or two) that allow users to buy and sell crypto on the blockchain. Since cold storage wallets are not vulnerable to internet-based attacks, they are considered the most secure crypto wallets.
Personal information on the Bitstamp website or in the app is encrypted to reduce the chance of it falling into the wrong hands. All assets held at Bitstamp are fully insured against theft or breach one of the two policies† This includes assets held in online storage or part of a transaction. This is an unusually high level of insurance.
In general, assets and information are well protected at Bitstamp. As long as the exchange continues to operate, users are unlikely to lose their assets or their personal information. Of course, there is no way to guarantee that the exchange will not be hacked. All crypto investors should be prepared for this risk, regardless of the exchange they use.
How do I contact Bitstamp?
Bitstamp has its global headquarters in the United Kingdom, but currently operates in over 100 countries.
Investors in the United States can contact Bitstamp by calling 800-712-5702 or by emailing [email protected]
Is it worth it?
Like Coinbase, Bitstamp is an excellent choice for the novice crypto investor. As it focuses on ease of use, buying and selling crypto is easy. And the costs on the platform are reasonable, so it’s nice to know that newbies aren’t being scammed by the Bitstamp platform.
Users can also progress to the full Bitstamp platform. You don’t have to pay for detailed map views or API access, making it a great long-term choice. However, Bitstamp’s strike program is lackluster and unavailable to US residents. This can be a reason to skip the exchange and choose an alternative.