Bitstamp Review: What is Bitstamp?
Bitstamp is known for its low trading fees and user-friendliness. Founded in 2011, Bitstamp is one of the earliest crypto exchanges. Users can get the mobile app on Android and iOS devices or use the website. The fees are same for the basic trading, pro trading, and trading via the app.
The platform supports a decent number of cryptocurrencies and trading pairs. Traders can get access to various order types including market, stop, limit, fill or kill, and trailing stop. Bitstamp is available in over 100 countries and caters to over 4 million customers.
Traders who are looking for casual trading, an uncomplicated interface, and low fees should consider Bitstamp.
Bitstamp’s blog features elaborate articles on different crypto issues, market insights, and helpful content for beginners.
The ‘Crypto Pulse’ section on BitStamp’s website features useful insights into the crypto market. At the time of writing, users can read a global crypto survey, local market insights for 23 countries, and more.
- Bitstamp is user-friendly and has low trading fees
- Traders can find 70+ cryptocurrencies on Bitstamp
- The exchange caters to 4 million users in 100 different countries
- Users can trade on the website or download the mobile for their devices
Bitstamp Company Overview
Bitstamp was founded in 2011 in Slovenia with the goal of becoming an international, trustworthy crypto partner. The company employs people from all over the globe and has offices in Luxembourg, New York City, London, and Slovenia.
Nejc Kodrič and Damijan Merlak founded Bitstamp in 2011. However, they moved the registration to the UK in 2013. While in the UK, the Financial Conduct Authority told them that Bitstamp was not subject to regulation, as Bitcoin was not regarded as currency. The company regulated itself and followed best practices.
In 2016, Bitstamp moved to Luxembourg and in the same year, the government regulated the company. With this new license, Bitstamp could operate in 28 EU countries. For operating in the US, it has obtained the BitLicense. The company also gets audited regularly by the Big Four.
One of its goals is to make crypto accessible to traders of all kinds. With its beginner-friendly interface, Bitstamp makes crypto trading easy for new traders and quick for casual traders. Meanwhile, the advanced trade view caters to the pro audience. The apps make on-the-go trading seamless.
How Bitstamp Works
With Bitstamp, you can:
- Buy and sell cryptocurrency
- Trade cryptocurrency
- Use advanced trading options
- Stake crypto balance and earn interest
Bitstamp also has mobile apps which offer full trade functionality.
Bitstamp Pros and Cons
To help you determine whether Bitstamp is the right exchange to sign up for or not, here are Bitstamp pros and cons weighed.
This is where Bitstamp shines:
- Low fees
Compared to other similar crypto exchanges, Bitstamp’s fees are lower. The fee schedule is also straightforward and simple to understand. For a 30-day trading volume of around $10,000, Bitstamp charges a 0.50% fee. As the trade volume increases, the charges go down.
- Long history
Bitstamp was founded in 2011, so it has been around for over a decade. So far, it hasn’t faced any regulatory trouble and has a good reputation. Bitstamp was hacked in 2015, but users were not directly affected by the hack.
- Beginner-friendly and accessible
The exchange intends to make crypto accessible to people. The mobile app available for iOS and Android devices is compact and intuitive. Moreover, the app has all the advanced trading tools to make on-the-go trading seamless. Users get access to order types like market, limit, stop, instant, fill or kill, and trailing stop.
- Advanced trading options available
For advanced traders, Bitstamp has an elaborate trade view that offers market insights, advanced charts, and tools. The trade view lets you use various order types like market, limit, stop, trailing stop, fill or kill, and more.
This is where Bitstamp falls flat:
- Limited altcoins
Compared to Binance and Kraken, Bitstamp has a limited number of coins available for trade. Users can trade all the major coins. However, if you want to trade newer coins or invest early in emerging projects, then Bitstamp may not be your best option. It is better to run a quick check and see if the coins you’re looking for are available on the exchange.
- The 2015 hack
Although Bitstamp has a history of complying with regulations and regular audits, it has faced two hacks. In 2015, around 19,000 Bitcoins were stolen. The exchange suspended its service for two weeks. The hack was a result of phishing attacks on the employees. Fortunately, no users lost funds and Bitstamp has not faced any breaches since then.
Bitstamp Supported Cryptocurrencies
Even though the exchange has a limited list of coins, users can find most of the major cryptocurrencies on Bitstamp. You can access over 70 coins, stablecoins, and tokens on the exchange.
Here’s a quick rundown of available crypto on Bitstamp:
- Shiba Inu
Some major altcoins like Solana and Polkadot are missing from the exchange. However, the list of supported coins gets frequent updates and new coins are added.
As mentioned earlier, Bitstamp fees are quite competitive. The fee structure is straightforward. At the time of writing, the unified fee structure looks like this:
Bitstamp Deposit Methods
Just like other exchanges, Bitstamp offers several ways to deposit funds into your account. To start trading, you can deposit via:
- Bank Transfer
- Credit or Debit Cards
The deposit fees vary depending on the method you opt for. Here’s what the fee structure looks like:
Cards and International Wires
SEPA, ACH, and Faster Payments
Bitstamp Trading Services Offered
Bitstamp makes trading available and accessible for traders of all experience levels. If you’re new to crypto, you can easily get the hang of trading through the simple interface. You can buy or sell any coins that you want.
For advanced traders, the trading view is a bit different. You get access to a lot of analytical tools to help you execute trading strategies.
As you can see, there’s the central panel displaying the selected currencies. To the left, you have the trade history. Below the main panel, you can see the market depth chart along with the order book. To place orders, you can use the order form that appears on the right side when you log in.
Traders can execute the following order types:
- Trailing Stop
- Fill or Kill
Other Products Offered By Bitstamp
Apart from trading, users can benefit from other products that Bitstamp offers. You can check out products like:
Bitstamp’s mobile app (available on Android and iOS)
For traders who are always on the move, Bitstamp’s mobile app gives you access to the entire trade view. You can view trading charts, use tools for strategies, and execute trades with a few clicks. Users can download the app via Google Play or App Store.
Apart from trading, users can earn interest on their crypto balances with Bitstamp Earn. You can stake your currency for a fixed number of days to earn interest. With Bitstamp, you can stake Ethereum 2.0 and Algorand. The exchange has promised to add more currencies in the future.
Bitstamp Security: Is Bitstamp Safe?
So far, Bitstamp had no serious run-ins with the regulatory bodies which is a good sign. The exchange was licensed by the government of Luxembourg which enables it to operate in 28 EU countries. Apart from this, Bitstamp holds the BitLicense in New York enabling US-based trading.
Bitstamp gets audited regularly by the Big Four, that is, the four biggest accounting firms on the globe. The exchange is dedicated to maintaining transparency for the users.
As per the information provided on Bitstamp’s website, the exchange stores most of the assets offline in cold storage. A small portion of assets is kept in the hot wallet. Bitstamp uses advanced security and Multi-Sig technology to safeguard the hot wallet.
Interestingly, the New York Attorney General published a "Virtual Markets Integrity Initiative Report" in 2018. Bitstamp was one of the ten companies that responded to the survey. As per this report:
- Bitstamp had sought approval from the New York State Department of Financial Services or its subsidiary to run a virtual currency business in New York State
- The exchange blocked VPN access
- Bitstamp conducted audits for their digital currency holdings
You can check out the entire report here.
The 2015 Bitstamp Hack
Even though Bitstamp has complied with the regulatory bodies and kept out of trouble, it was hacked twice. The first hack happened in 2014, wherein Bitstamp had to suspend its operation after a denial-of-service attack.
In 2015, around 19,000 Bitcoins were stolen from Bitstamp. No users were affected, but the exchange suspended its operations for two weeks. It should be noted that the theft was a result of phishing attacks on Bitstamp employees and not a security breach.
No other hacks or security issues have occurred after the 2015 incident. Bitstamp seems to have leveled up its security to avoid hacks in the future. With the Multi-Sig technology, multiple employees will have to approve access. This eliminates the risk of phishing attacks successfully breaking into one employee’s data and stealing assets.
How to Secure Your Bitstamp Account?
To avoid your account getting compromised, you can take a few security measures. Here’s how users can
- Users can enable two-factor authentication on their Bitstamp account using Google Authenticator
- Use a strong password and make sure only you know it
Apart from this, Bitstamp adds a layer of security by notifying users of withdrawals. You have to approve withdrawals via email before being carried out.
Bitstamp Alternatives: Bitstamp vs Coinbase
- If you’re not hunting for some obscure coins and you’re happy with casual trading, then Gemini might be the way to go. The exchange also offers impressive rewards for staking.
- For advanced trading and lots of complementary services, Binance is a great option. It offers margin trading and derivatives.
Bitstamp Customer Satisfaction
Bitstamp doesn’t feature in the top 10 of either reach, trading volume, or avarega volume per unique visitor.
However, they do have stable, and substantial trading volume that places them solidly in the middle of the pack for their overall usage.
At DeRev, we use the stats around usage to identify the best platforms and services to use.
While, not a top performer, Bitstamp scores solidly across all user engagement and satisfaction metrics meaning it should be a safe brand to use.
You can read more of our analyses on crypto exchanges here.