Bitstamp Review
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Bitstamp is one of the oldest cryptocurrency exchanges that offer a simple-to-use platform with a good selection of cryptocurrencies to buy and sell. The exchange offers a good user experience for new investors, as well as active traders that want access to advanced trading tools. This Bitstamp review will cover the details of its features, available crypto, fees, trading experience (on desktop and mobile), and security measures.
BitStamp Review - Quick Verdict
Bitstamp is a well-designed and popular crypto exchange that excels in spot trading popular cryptocurrencies. While the Bitstamp platform is suitable for beginners and offers an advanced mode for those with more experience, the lack of margin trading and the limited number of supported cryptocurrencies significantly hinders the exchange's performance.
While researching for our Bitstamp review, we were impressed with the exchange's overall execution but disappointed by its limited functionality. As a result, although Bitstamp is a suitable exchange for spot traders, the lack of advanced features and the disappointing number of supported assets make Bitstamp challenging to recommend to frequent traders.
Bitstamp Pros:
- Simple and intuitive
- No fees for the first $1,000 per month
- Detailed educational resources
Bitstamp Cons:
- High debit/credit card fees
- Limited number of cryptocurrencies
- No margin, derivatives, or leverage markets
Pros Explained
- Simple and intuitive. Bitstamp is very easy to use, making it excellent for beginners aiming to make their first investments. Furthermore, with the inclusion of basic and advanced versions, users can gain access to additional features after gaining some experience.
- No fees for first $1,000 per month. With fee-free trading for the first $1,000 worth of monthly transactions, Bitstamp is phenomenal for low-volume investors.
- Detailed educational resources. Many complex terminologies are used within the crypto exchange, making it confusing for beginners. However, the Bitstamp Learn Center offers an impressive amount of information on a substantial range of topics, making it easy for new investors to expand their knowledge.
Cons Explained
- High debit/credit card fees. Although the card-based purchase options improve accessibility, the 4% fee for each transaction heavily impacts its usability and could catch out unsuspecting investors.
- Limited number of cryptocurrencies. While the range of cryptocurrencies offered by Bitstamp isn't terrible, it's not great. As such, anyone trading lesser-known altcoins should look for another crypto exchange.
- No margin, derivatives, or leverage markets. Bitstamp is a spot-only exchange. Therefore, the platform is unsuitable for traders looking to utilize strategies like scalping, which take advantage of small price movements. Those that want to use leverage will need to choose a margin exchange instead.
Bitstamp Compared & Alternatives
A simple platform with access to advanced trading features and reasonable fees for traders makes Bitstamp a quality crypto exchange. The table below compares Bitstamp to HedgewithCrypto's top-rated platforms in terms of supported crypto assets, trading fees, and overall rating.
| Exchange | Crypto Assets | Trading Fees | Rating | Promotion | Website | Review |
|---|---|---|---|---|---|---|
 Binance | 600+ | 0% to 0.1% | Rating | Up to $100 welcome bonus | Visit Binance | Binance Review |
 Kraken | 222 | 0.16% (maker) and 0.26% (taker) | Rating | None available at this time | Visit Kraken | Kraken Review |
 KuCoin | 806 | 0.1% | Rating | Up to 500 USDT in bonuses | Visit KuCoin | KuCoin Review |
 OKX | 349 | 0.08% (maker) / 0.10% (taker) | Rating | None available at this time | Visit OKX | OKX Review |
Bitstamp At A Glance
Bitstamp is a Luxembourg-based cryptocurrency exchange that allows users to buy, sell, and trade popular digital assets. One of the first crypto exchanges, Bitstamp, was founded in 2011 as an alternative to the Mt. Gox Bitcoin exchange that infamously went belly up. The platform prides itself on customer security and, as such, adheres to European financial rules and is regulated by Commission de Surveillance du Secteur Financier (CSSF), providing extra protection for users.
| Exchange Name | Bitstamp |
|---|---|
| Features | Spot Exchange, Learn Center, Institutional Benefits, Staking |
| Accepted Fiat Currencies | USD, GBP, EUR + 17 Others |
| Deposit Methods | Crypto, Bank Transfer, Credit/Debit Card |
| Supported Cryptocurrencies | 73 |
| Number of Trading Pairs | 175 |
| Trading Fees | 0.30% (Maker) 0.40% (Taker) or 0% with Sub $1,000 30-Day Volume |
| Customer Support | Email Ticket System |
| Security Measures | Cold Storage, 2FA, Device Management |
| Mobile App | Yes (Android and IOS) |
Bitstamp Features Reviewed
Bitstamp Earn
Users wishing to earn rewards by staking their crypto assets can use Bitstamp Earn. While writing our Bitstamp review, we checked out the Bitstamp Earn service, and while the reward APY was reasonable, only two cryptos were supported, hiding the service's usability.
Bitstamp offers locked staking on ETH at 4.5% and flexible staking on ALGO at 1.60%. While the exchange plans to increase its range of supported assets in the future, they've exclusively offered ETH and ALGO staking for over a year, putting the hope of additional supported assets in doubt. For a list of platforms that offer a more extensive selection of assets, read HedgewithCrypto's article on the best places to earn crypto interest.
OTC Institutional Services
Enterprise-level investors can access a 24/7 trade desk, advanced security, deep liquidity, and API connectivity through its institutional trading platform. This is ideal for hedge fund managers, enterprise investors, and even FinTech companies that want to create a custom crypto investing solution for their customers. Additionally, Bitstamp offers 24/7 customer support with a dedicated account manager for all institutional customers.
Learn Center
For people new to the cryptocurrency industry, Bitstamp offers an educational platform named the Learn Center. The Bitstamp team has worked hard to ensure that the Learn Center is as comprehensive as possible. The guides provided range from the basics, like sending Bitcoin, to more advanced topics, like understanding technical indicators.
Overall, the Learn Center is an extremely valuable tool with information that could be useful to beginners and more experienced individuals. While it's unlikely to share any trading secrets, it's worth checking out for anyone looking to expand their crypto knowledge.
Creating and Verifying a Bitstamp Account
Although Know-Your-Customer (KYC) verification is mandatory, the Bitstamp account opening process is straightforward and takes only a few minutes to complete. Initially, the user is required to enter and confirm an email address. Afterward, the customer must provide a picture of a photo id (passport, driving license) and take a 20-second confirmation video. We found verification to be simple and efficient. After completing the process, our Bitstamp account was verified within 15 minutes.
Supported Fiat Currencies and Deposit Methods
Bitstamp supports ten fiat currencies, and only three (USD, EUR, GBP) are usable as an account currency. While the range of supported fiat currencies could be improved, Bitstamp does offer a reasonable number of ways to deposit. Bank transfers via SEPA, Faster Payments, and ACH are supported, as are international wire transfers. Additionally, customers can use instant purchases via a bank card or Google/Apple pay, but there is a 4% charge for the privilege.
There are no deposit limits for transfers from a bank account. However, purchases with debit or credit cards are limited to 2,500 per day (USD/EUR/GBP) and 20,000 per month (USD/EUR/GBP). Most withdrawal methods are not restricted except for ACH and Faster Payment System (FPS). ACH withdrawals are limited to $50,000 per transaction and 250,000 GBP for FPS.
Supported Cryptocurrencies and Trading Pairs
While the number of supported crypto assets on Bitstamp is reasonable at 73, the exchange is overshadowed by platforms like Binance, Kraken, and KuCoin, which offer hundreds of tradable assets. As Bitstamp denominates its trading pairs in USD, GBP, EUR, ETH, BTC, and PAX, the range of markets available to trade is significantly better than the supported cryptocurrencies. Users can trade 175 markets on Bitstamp, more than exchanges like Gemini but fewer than platforms such as Crypto.com.
Bitstamp Fees
Trading Fees
Bitstamp uses a volume-based maker/taker fee structure that rewards high-frequency traders with reduced costs. However, unlike most other crypto exchanges, Bitstamp provides fee-free crypto trading to users under $1,000 in monthly volume, making the platform phenomenal for investors getting started within the crypto space. Although Bitstamp offers the lowest fees possible for low-volume investors, its prices for middle-ground investors are less attractive.
| Trading Fee | 30 day Trading Volume |
|---|---|
| < $1,000 | 0.00% / 0.00% |
| > $1,000 | 0.30% / 0.40% |
| > $10,000 | 0.20% / 0.30% |
| > $100,000 | 0.10% / 0.20% |
| > $500,000 | 0.08% / 0.18% |
| > $1,500,000 | 0.06% / 0.16% |
Moreover, Bitstamp does not have a platform token to offer trading fee discounts and no incentive for high-volume retail traders to use Bitstamp when there are limited incentives. Other trading platforms like Binance will offer up to 25% fee discounts for holding the native token BNB.
Bitstamp Deposit and Withdrawal Fees
Bitstamp does not charge a deposit fee for crypto or fiat currency payments. However, the exchange's withdrawal fees depend on the payment method used. While ACH deposits are free, a 3 EUR and 2 GBP fee is charged for SEPA and Faster Payments deposits. Furthermore, instant purchases made via a credit or debit card incur a 4% fee, significantly limiting the viability of this method.
Additionally, while most cryptocurrency withdrawals are reasonably priced, some assets are far higher than the standard network fee. For example, USDC and USDT cost 20 of the respective token to withdraw which is more expensive than the roughly $2-$3 miner fee.
Bitstamp Ease of Use
Bitstamp offers an intuitive trading interface that makes it simple to buy and sell crypto. After logging into an account, the user is shown a dashboard providing an overview of the user's portfolio and asset watchlist, with links to important areas like deposits/withdrawals also visible.
In contrast to other exchanges, Bitstamp offers a basic and advanced trading platform, providing adequate features for new and advanced traders alike. Accessible from the 'Markets' section, the basic version enables users to buy crypto with a credit or debit card and their Bitstamp balance but does not offer any crypto analysis tools.
On the other hand, the more feature-rich Tradeview platform uses the same order-book-based interface as the basic platform but includes support for limit, market, and stop-market orders. Furthermore, Tradeview features TradingView integration, meaning that users can access a plethora of charting tools and indicators, making the exchange great for technical traders.
Bitstamp operates a highly accessible crypto exchange. With users able to tailor the platform's features to their needs, the platform is great for beginners and experienced investors. While the lack of margin trading features could cause issues for some crypto enthusiasts, Bitstamp is well-rounded and excellent for spot trading.
Bitstamp Mobile App
Bitstamp offers an intuitive mobile app for trading on the go that is available for IOS and Android devices. Bitstamp’s trading app has an overall 4.7/5 star rating on the Apple App Store based on more than 2,500 reviews.
The Bitstamp app is designed well and offers all the functionality of the web platform. Initially, users are met with a screen containing quick links to core services and an overview of a few top-performing assets. After logging in, users can browse coins, see the top gainers/losers, trade crypto, and access Bitstamp earn features.
Unlike most other major exchanges, Bitstamp does not offer leverage on desktop or mobile. While this could deter traders from using the platform, the Bitstamp app does offer phenomenal charting capabilities, with users having access to a solid range of indicators and a variety of charts. However, drawing capabilities are not currently supported.
To summarize our mobile Bitstamp review, we found the app easy to use, with crypto trading on the platform being pleasant. While the lack of leverage or margin trading options could cause issues for traders looking to take advantage of small price movements, the overall experience was great and is suited to beginners and experienced traders.
Security of Assets
Bitstamp stores 98% of its digital assets offline in cold storage with BitGo, making it far more difficult for customer funds to be stolen via a digital attack. In addition, after the 2015 hack, Bitstamp enabled Multi-Sig wallets, requiring multiple digital signatures to access funds on the hot wallets that store assets required for the exchange's day-to-day operations.
Bitstamp has also introduced a few ways for its customers to keep their accounts secure. Users must set up two-factor authentication (2FA) to prevent unauthorized account access when registering. Furthermore, customers can control device management and monitor from which IP addresses and locations their account is accessed.
While Bitstamp has previously had some security issues, the crypto exchange has vastly improved its client protection, making Bitstamp a safe and secure exchange. However, regardless of a platform's security, it's always advisable to utilize a hardware wallet for long-term crypto asset storage.
Customer Support
To avoid any unnecessary stress, having access to responsive and knowledgeable customer support is crucial. Unfortunately, Bistamp only provides a few ways for its clients to receive assistance.
Unlike most cryptocurrency exchanges, which offer live chat or a dedicated phone line, Bitstmap exclusively provides support via email-based tickets. While the team was mostly praised for resolving issues in online Bitstamp reviews, its accessibility and responsiveness need to be improved to match the service offered by competitors.
Frequently Asked Questions
Although Bitstamp has maintained a solid track record over the past few years, the exchange was hacked in 2015, which led to 19,000 BTC being stolen (worth around $5 million at the time). However, the Bitstamp team has since worked hard to improve its security practices, significantly improving customer protection.
While Bitstamp has experienced a few security concerns, the advanced trading platform has improved its safety measures and is regarded as one of the top platforms for trading digital assets today. Furthermore, as Bitstamp is regulated, customers can rest assured that their information is adequately secured.
Bitstamp is licensed and regulated by the state of New York and is available to residents of all 50 states in the USA. While U.S. investors are allowed to use Bitstamp’s trading services, as well as directly buy and sell crypto on the exchange, they cannot earn interest on deposits due to strict U.S regulations.
Yes, as Bitstamp is regulated by the Commission de Surveillance du Secteur Financier (CSSF), KYC is a strict requirement for new users on the Bitstamp exchange. To complete Know-Your-Customer verification, users must provide a photo ID (passport, driving license, national ID).
Bitstamp has an average liquidity score of 588, comparable to top exchanges such as KuCoin, Gemini, and BitFlyer. Additionally, the platform reportedly facilitates around $200 million daily trading volume, more than half of it in Bitcoin and Ethereum trades.
While Bitstamp offers decent liquidity and deep order books for Bitcoin and Ethereum, the depth of liquidity on the lesser-known assets could be better. As a result, investors that want to trade large volumes of altcoins will need to use larger exchanges such as Coinbase or Binance to reduce slippage.
As a trading platform, Bitstamp provides an exchange wallet for users to store their funds temporally. However, as exchange wallets do not offer true ownership of funds, customers are recommended to transfer their funds off the exchange and to a non-custodial hot wallet or hardware wallet.
Final Verdict and Scores
Bitstamp is a dedicated spot trading platform. In contrast to other popular trading platforms, Bitstamp does not offer any leverage or margin trading functionality, meaning serious traders will be unable to do so with Bitstamp. While the exchange offers basic/advanced trading interfaces and a dedicated educational platform, its lack of features and limited range of supported cryptocurrencies leaves a lot to be desired.
Although low-volume traders can take advantage of free fees on transactions totaling $1,000 per month, the average trader will be hit by higher-than-average fees for sub $10,000 volumes. As such, while Bitstamp is a great choice for beginners looking to get started with crypto, those looking for advanced trading features will be left disappointed by the exchange.
| Review Criteria | HWC Score |
|---|---|
| Features | 3.5 / 5 |
| Supported Fiat and Deposit Methods | 3.5 / 5 |
| Supported Crypto & Trading Pairs | 3 / 5 |
| Trading Fees | 4 / 5 |
| Ease of Use | 4.5 / 5 |
| Customer support | 3.5 / 5 |
| Security Measures | 3.5 / 5 |
| Mobile App | 4 / 5 |
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