If you would like to experience a more professional feel to your trading, Bitstamp is a solid choice.
The Bottom Line: One of the older exchanges, Bitstamp was founded in 2011 and is known as the ‘Big Four Exchange’. Having been around for a while, Bitstamp has a solid reputation as the go-to place for more advanced traders looking to access the top four popular cryptocurrencies using either FIAT or crypto.
Bitstamp at a glance
Opening a Bitstamp account is straightforward. Head over to the website and register your details through the signup link. After confirming your email address and installing 2-Factor Authentication (2FA), you’ll be invited to verify you account. The verification process can be a little intense. That said, verification only takes a couple hours.
In order to traverse Bitstamp’s interface, it’s best if you already have crypto trading experience. While the dashboard is clean and intuitive, you’ll find little explanation of the features if you don’t know what you’re looking at.
For experienced traders, Bitstamp is renowned for having one of the nicest interfaces to work with, including detailed charting. There is an advanced dashboard that provides a Tradeview interface for real-time insights into the crypto markets, with a series of analytical tools to build effective strategies. The website gives a hand how to use the Tradeview interface if for more advanced trading mechanisms. Expert traders can also take advantage of Bistamp’s APIs – recognized as the fastest and most robust route for strategic crypto trading.
In terms of security, Bitstamp is a registered exchange that complies with the stringent AML and KYC procedures when completing its verification process.
The lion’s share – 98%- of Bitstamp’s funds are kept in fully-insured cold storage, following hacks early in the exchange’s life in 2014 and 2015. In response to these security breaches, Bitstamp vowed to prevent another attack, rebuilding the entire structure of the company. With 2FA, complex cryptographic encryption, and hard wallet storage, funds held in Bitstamp are now disconnected or hidden from access by hackers. Bitstamp now have a reputation as being one of the safest exchanges.
When communicating with customers, Bitstamp uses high level encryption to protect all data used in external communications. The platform sends mandatory confirmation emails for transactions, all secured using PGP (Pretty-Good-Privacy) data encryption.
While very popular, Bitstamp is not known for its variety of coins, instead choosing to trade only the top 4 most popular currencies – Bitcoin, Bitcoin Cash, Litcoin, and Ethereum. This has resulted in Bitstamp being known as the ‘Big Four Exchange’.
Customers can trade from FIAT to crypto using USD, GBP, EUR, or CHF.
Users can enjoy both instant orders and limit orders, via the browser platform, or Android and iOS apps to place trades.
The platform does not support altcoin trading, margin trading, or derivatives and futures.
Geared toward expert traders, this platform doesn’t provide any education to help new traders understand the crypto market. The website doesn’t even provide much help when it comes to the functionality of the platform. There is a quick guide to help with the Tradeview, but this is written with the presumption of a basic understanding of crypto trading.
Bitstamp is not known for excelling when it comes to customer service. With no live chat function available, it can be a long wait to hear back from a representative. Only contactable through email – the phone line is an automated message – support workers are inundated with tickets and take up to a week for a response.
That said, when Bitstamp provides a reply, it is usually relatively comprehensive and generally solves the issue. The FAQ section on the website is also quite extensive and can be a great place to start if you’re having trouble.
Bitstamp charges relatively high fees,. For those cumulatively trading less than $10,000 over 30 days, trading fees stand at 0.5%. This is a sliding scale downward to 0.11% for trading volumes over $20 million.
Funds can be deposited by SEPA or internal wire transfer, or cryptocurrency can be purchased using a credit or debit card. There are no deposit fees for SEPA but an additional 5% will be charged for processing credit cards. International wire transfer deposits cost 0.05% with a minimum fee of 7.50 EUR. For those paying by debit card, there is a fixed fee of $10, which becomes 2% for deposits over $10K.
When it comes to withdrawals, SEPA withdrawals are charged a flat fee of 0.90 EUR, while international wire transfer withdrawals cost 0.09% with a minimum $15 fee. Crypto deposits and withdrawals are free.
What You Need to Know
Bitstamp has a good reputation among more experienced crypto traders. Offering an advanced trading platform to exchange the top 4 cryptocurrencies, Bitstamp is known for its powerful APIs. This isn’t an exchange for those looking to diversify into altcoins – there just isn’t the variety on Bitstamp. It also doesn’t have the educational resources for someone looking to learn how to trade. However, if you’re looking for a professional-level exchange with top notch security, and FIAT payments, Bitstamp is the exchange for you.