Why Bitstamp Sucks In 50 Words
Bitstamp’s only major caveat is the lack of a wide range of digital assets. Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash are the only cryptocurrencies available to buy/sell against USD and EUR (the last 4 can be also traded against BTC). There are simply too few cryptos for such an old and big exchange, so we would like to see more added soon.
Why Bitstamp Doesn’t Suck In 50 Words
This is one of the oldest crypto exchanges and during all their years in business, they’ve developed a very streamlined and convenient way of buying and selling Bitcoin. If you don’t want to do technical analysis, you can simply buy cryptos from the website, without opening a trading platform. This easy process is used nowadays by quite a few exchanges, but Bitstamp was among the first to introduce it. Of course, they also provide a feature-rich trading platform.
Is Bitstamp A Scam?
No way! All companies from the Bitstamp group are regulated or supervised in some way, and even if this wasn’t the case, we still wouldn’t have any Scam suspicion regarding Bitstamp. They’ve been in business almost since the beginning of the blockchain itself and in all this time, they’ve shown great care for their customers and have always tried to improve.
Back in 2014 and 2015, the exchange suffered cyberattacks, which resulted in 19,000 Bitcoin being stolen. Almost all big exchanges encountered this type of incident during their time in business – of course, that’s a bad thing, and it shows that security is still not as strong as it should be, but the positive thing in all of this is that Bitstamp refunded all of the client’s losses. So, how can we call them a scam when they actually put their clients’ interests above their own?
Should I Open An Account With Bitstamp?
Bitstamp is the world’s longest-standing crypto exchange, with its history in business starting way back in 2011. The exchange is operated by Bitstamp Limited, a company registered with the Registrar of Companies for England and Wales under the number 8157033. Payment processing is offered by Bitstamp Europe S.A, which is authorized and regulated by the Commission de Surveillance du Secteur Financier (CSSF). Services in the United States are provided by Bitstamp USA Inc, which has been granted a virtual currency license by the New York Department of Financial Services (NYDFS).
The exchange tries and succeeds, in our opinion, to satisfy all types of clients by offering them a sophisticated and feature-rich trading platform focused on technical analysis, market depth and different types of orders, but also an easier way to buy/sell crypto right on the website. Basically, if you don’t want to deal with the platform and learn its ins and outs, you can simply go on the website, chose the amount of cryptocurrency you want to buy or sell and click the corresponding button. It doesn’t get any easier than that.
Bitstamp offers two types of accounts: Personal (for retail clients) and Corporate (for institutions). Retail clients are all treated the same, no matter how much they deposit, meaning that Bitstamp doesn’t have a tiered account structure as we are used to seeing with CFD brokers. As a special feature, clients can create Subaccounts to their main accounts. This can come in handy if you are using API because you can create a subaccount and transfer only a part of your funds there (to be used by a bot through API, etc.).
Education is limited to a few words about the different cryptocurrencies they offer and some tutorials about buying said crypto assets, so it’s safe to say that if you want to learn about blockchain, you should find a website that’s focused on that because Bitstamp’s main goal is not education.
To conclude, it’s clear that Bitstamp is a trustworthy crypto exchange, and definitely one of the more prominent ones, but they have a limited choice of digital assets. If you can get over this fact, Bitstamp is a top crypto exchange and one that you should definitely consider if you are looking to buy and sell crypto.
Bitstamp Limited has a registered office at 5 New Street Square, EC4A 3TW London, United Kingdom. Bitstamp Europe S.A. lists the address 21-25 Allée Scheffer L-2520 Luxembourg, Luxembourg. Bitstamp USA Inc. is located at 27 Union Square West, Suite 205 New York, NY 10003 United States. The exchange can be reached at phones +44 20 3868 9628, +1 646 568 9784 and +352 20 88 10 96 or email [email protected], [email protected], [email protected]
Bitstamp Online Presence And Reputation
The exchange is known for its transparency and as proof of that, they even show pictures of the entire managerial team on the About Us page. If you compare this with the classic “we are the best online platform”, you can clearly see the difference, as most CFD brokers don’t even post their address, let alone information about their management.
As far as their reputation among traders, Bitstamp enjoys a positive vibe, without notable complaints. A user had a few grievances regarding Bitstamp’s KYC process, which prevented him to withdraw until he provided certain information that was considered too sensitive by said user. Indeed, KYC and AML procedures can be a bit stuffy sometimes, but we and the exchanges have to comply with them.
Bitstamp Special Features
This is a pretty straightforward exchange, in the sense that it does what it’s supposed to, without too much glitter on the side. You want to buy and sell crypto – you got it. Easy, fast and convenient.
As a special feature, we can mention their Instant Order, which allows buying and selling of crypto assets with just a few clicks, right on the website and without having to access the trading platform. Also, Bitstamp is running an active Lightning Network node, which helps stabilize the Bitcoin network.
Bitstamp Overall Ratings
User Friendliness 17/20
The website is only available in English, which is pretty common among crypto exchanges, but still, more languages wouldn’t hurt. The platform is well designed and with enough features to satisfy technical traders but Bitstamp also offers an Instant Order feature where you simply decide how much to buy or sell and click a single button, which makes is very easy to use. US traders are accepted and a mobile platform is available for both iOS and Android.
Range Of Markets And Volume 16/20
One of the drawbacks of using Bitstamp is the limited variety of digital assets that can be bought and sold: Bitcoin, Ripple, Litecoin, Ethereum and Bitcoin Cash. These can be traded against the Euro and US Dollar, as well as between themselves, which brings the total number of tradable pairs to 15 (including EUR/USD) but that’s still low for a mainstream cryptocurrency exchange. However, the trading volume is huge, at 77 million USD for the last 24 hours (at the time of writing), showing that the limited number of assets is not off-putting for traders.
The trading fees are 0.50% for all pairs, which is a bit on the steep side of the trading volume is below 10,000 USD for the last 30 days (which I bet will include a lot of people). Above 10K USD, the fee will be 0.25% and the next threshold is 100K USD, where the fee will only drop to 0.24%. There’s a 3.00 EUR fee for SEPA withdrawals (deposits are free), a 5% fee if you purchase cryptocurrency with a credit card, a 0.05% fee for international wire deposits, and 0.1% fee for international wire withdrawals.
Deposits And Withdrawals 17/20
The methods for deposits and withdrawals are credit cards, SEPA transfers, international wire transfers, and of course, cryptocurrencies. The fees for fiat transactions are outlined above, and while some may be a bit steep, crypto transactions are much more convenient: deposits are free and withdrawals only incur low fees of 0.0005 BTC or 0.001 ETH (these change depending on crypto asset). The minimum fiat withdrawal is 50 USD, which is fair.
Bitstamp Extras 16/20
The Instant Order, which allows you to buy cryptocurrency with the click of a button is probably the most interesting feature. Also, Bitstamp is running a Lightning Network node, which helps the network grow and acts as an added layer of connections on top of the BTC blockchain. This improves the scalability and performance of the BTC network but doesn’t affect traders directly at the time.
Bitstamp Overall Rating: 82/100