Bitstamp Review - Is The Bitstamp Exchange Legit?

For most people, cryptocurrency is no longer a new term. However, many still do not understand what exactly it is or how it works. In a nutshell, cryptocurrency is digital money.

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To own some, you need to buy from credible sources, and the best place to buy or sell your cryptocurrency is a crypto exchange like Bitstamp.

There are several crypto exchange options to choose from, so you must understand how they work and choose one that suits your needs.

Bitstamp is one of the oldest, safest, and most trusted crypto exchange platforms and has been in full operation since 2011. In this Bitstamp review, you’ll learn all about Bitstamp: how to use it, how it started, how it works, supported countries, and how it compares to other top exchanges.

Bitstamp Review Summary

Bitstamp is one of the leading crypto exchanges, sitting comfortably in the 11th position among the best crypto exchanges. Since the platform launched in 2011, it has contested with the best crypto exchanges before it, mainly because it emphasizes quality over quantity.

The platform supplies trading options for only a few cryptocurrencies but has managed to maintain a positive user experience all along.

If you’re looking to trade your Bitcoin, Ethereum, Litecoin, Ripple, or Bitcoin Cash within the EU, this platform is one of the best options for you.

In this review, we’ll cover the following details about Bitstamp.

1. Bitstamp Overview
2. Bitstamp Services
3. Currencies and Payment Methods
4. Trading on Bitstamp
5. Bitstamp Fees
6. Supported Countries
7. Customer Support and Reviews
8. Privacy and Security
9. Bitstamp vs. Binance
10. Frequently Asked Questions
11. Conclusion – Is Bitstamp Legit?

Bitstamp Overview

Nejc Kodric and Damijan Merlak co-founded Bitstamp to trade Bitcoin in 2011 in their homeland, Slovenia. At the time, Mt. Gox was probably the biggest crypto exchange platform; yet, Bitstamp became a competitor within a short time of launching.

Unfortunately, in June 2011, Mt. Gox suffered a significant setback due to its security lapses. Hackers compromised the platform, and by 2014, the company went bankrupt. Because of this, Kodric and Merlak learned the importance of security and reliability and sought to build a platform that users can trust.

In 2013, Bitstamp moved to the UK because the founders wanted to have an exchange platform that will be in the center of European banking. They discovered that the UK didn’t have enough regulations to guide the trading of cryptocurrencies.

In 2016, they had to move again, but now to a country with better crypto regulations – Luxembourg. Bitstamp followed Luxembourg’s financial laws and became licensed in 28 European Union countries. Bitstamp was later sold to a Belgium-based company, NXMH.

Bitstamp is not the best platform for beginners but it’s best suited for intermediate and experienced cryptocurrency traders. Users can trade Bitcoin, fiat currencies, and altcoins while enjoying a low exchange fee.

Despite the Bitstamp founders’ efforts to provide a secure and safe crypto trading platform for their users, hackers still managed to penetrate their firewalls. The company was forced to stop trading between 2014 and 2015. During that period, 19000 Bitcoins were stolen.

Bitstamp Services

Bitstamp’s primary service is their crypto trading platform, where users can buy or sell Bitcoin and a few other cryptocurrencies. The platform does not have as many digital coins as you’ll probably find on other platforms, but they offer the best services on the few that it supports.

You can place any of the following types of orders on Bitstamp:

• Market

• Instant

• Stop

• Limit

Bitstamp has mobile apps for both Android and iOS devices, with the same functionality as that of the desktop version.

Currencies and Payment Methods

Bitstamp accepts fiat currency payments with Euros and US dollars. If you have a European bank account, you’ll appreciate the service because you can deposit money via SEPA and have it arrive quickly. You may also use a conventional wire transfer.

Bitstamp also allows you to buy Bitcoins with a credit card. This form, however, will incur a 5% charge, in addition to any extra fees levied by your credit card issuer.

The cryptocurrencies available are those that you’d expect to find on a major exchange:

• Bitcoin (BTC)

• Ethereum (ETH)

• Bitcoin Cash (BCH)

• Litecoin (LTC)

• Stellar Lumens (XLM)

• Paxos Standard Token (PAX)

• Ripple (XRP)

Of course, you can deposit any of the currencies listed in the exchange. If none of the above options suit you, Bitstamp also accepts AstroPay transactions.

Trading on Bitstamp

There are two steps to take before you start trading on Bitstamp.

Registration

The first step is to register on the platform. It can either be a personal account or a corporate account. Bitstamp registration is quick and easy— just fill in the information on the registration page.

You’ll receive an email requesting you to change your password after registering. You also have the option to set up a two-factor verification. Setting up the two-factor verification is easy and worth every second you spend on it. Beware of any crypto exchanges that don’t offer two-factor authentication; you shouldn’t trust them.

Verification

Bitstamp account verification is in two stages, making the verification process time-consuming. If you want to have full access to the platform’s features, you must complete both stages.

For the first stage, go to Settings > Verify Account > Identity Verification > Personal Account Verification. You’ll need to upload your passport or driver’s license and proof of address on the personal account verification page.

For the second stage, go to Settings > Verify Account > Phone Number Verification. Enter the phone number you want to link with your account. You’ll receive a verification code on the phone number.

Bitstamp verification process usually takes 1 – 2 days, but can take longer sometimes. Your account will be ready to go after you’ve completed the two stages and you can start trading.

Trading

Using a credit card is the easiest way to make your first crypto purchase on Bitstamp. Choose the coin you’re interested in buying/selling and select Credit Card Purchases. Fill in your credit card details in the same way as you would when buying on popular platforms like eBay or Amazon.

Bitstamp Fees

A Bitstamp review cannot be complete without talking about the methods of deposits, withdrawals, and trading fees. Unlike other exchanges, Bitstamp fees are pretty cheap.

For instance, they charge 0.05% for every international wire transfer. Trading fees vary depending on the trading amount but the highest is 0.5% for transactions under $10,000. It can also be as low as 0.1% for amounts that are above $10,000,000.

Credit card transactions are a little more expensive. Every credit card purchase charges a 5% card processing fee.

There are no fees involved with deposits and withdrawals made with cryptocurrencies. Transferring money to your credit or debit card, on the other hand, would cost you $10 for funds up to $1000. A 2% charge would be applied to sums greater than $1000.

For those living within the European Union, they are charged Single Euros Payment Area (SEPA) fees. While SEPA deposits are free, withdrawals are charged at 3 EUR.

Supported Countries

Bitstamp is supported in the 28 European Union countries, the United States, and the following countries:

• Paraguay
• Switzerland
• French Polynesia
• Monaco, Brunei
• Japan, Norway
• Faroe Islands
• Serbia, Ecuador
• Turkey
• Bahrain
• Moldova
• Réunion
• Montenegro
• Singapore
• Iceland
• Puerto Rico
• Greenland
• Jamaica
• Liechtenstein
• Mozambique
• Isle of Man
• Åland Islands
• San Marino
• Argentina
• Madagascar
• Hong Kong
• China
• New Caledonia
• Singapore
• Curaçao
• Taiwan
• South Korea
• Australia
• New Zealand
• Brazil
• Martinique Israel
• South Africa
• Chile, Kuwait
• Cayman Islands
• India, Lebanon
• Peru
• Saudi Arabia
• Dominican Republic
• Dominica
• Jordan
• Qatar
• the Bahamas
• Trinidad and Tobago
• Barbados
• Guadeloupe
• Sint Maarten

Customer Support and Reviews

You can contact Bitstamp support through a ticketing system. You should receive a response within 24–72 hours, depending on what your query was. In the case of an emergency, contact the company’s UK phone number.

The platform has a functioning FAQ page where they provide detailed information that answers the most frequently asked questions, unlike many other companies that neglect this area of their websites.

Privacy and Security

As a regulated exchange, Bitstamp adheres to all international AML and KYC regulations. Although it is free to open an account with Bitstamp, you must go through the verification process before you can deposit or withdraw funds from your account.

It usually takes a few days for the verification process to be completed. However, following Bitcoin’s meteoric rise in value in 2017, Bitstamp has seen a spike in verification requests, with up to 100,000 accounts being checked daily on average.

As a result, since each account must be checked manually, the actual verification process may take months to complete. However, after the account has been checked, there are no restrictions on the amount of money you can deposit or withdraw.

Following hacking attempts in 2014 and 2015, Bitstamp is now very concerned about the security of its exchange. The majority of the exchange’s funds are now kept in cold storage, and customers’ wallets are guarded using two-factor authentication.

Bitstamp vs. Binance

When selecting an exchange for trading, consider how long it has been in the industry. Older exchanges usually have a better reputation and are more dependable. Bitstamp is the older exchange in terms of year of entry into the crypto trading market. However, newer platforms are likely to be more technologically advanced than older ones.

It is also important to consider the country where the company is located as some countries have stern financial regulations, making it difficult to seek court assistance if the need arises.

First Bitstamp deposit is usually easy for newbies because of their beginner-friendly deposit platform. Until recently, Binance only operated on only cryptocurrency exchanges and does not support fiat currencies. However, nowadays, the platform now allows payments via debit or credit card. You can either use a Visa or MasterCard.

On the other hand, Bitstamp uses deposit methods like credit/debit cards, international wire transfers for non-EU users, and bank (SEPA) deposits. For withdrawal, it uses international wire transfers, bank withdrawal, and you can withdraw your cryptocurrency to a wallet address.

One of the most obvious differences between the two exchange platforms is the number of coins they support. Binance supports a wider variety of currencies than Bitstamp but their fees are quite similar.

Both platforms are centralized and both of them have mobile apps available for iOS and Android devices.

Frequently Asked Questions

Is Bitstamp Safe for Trading?

Perhaps, this is one of the most frequently asked questions about Bitstamp and the answer is yes. Bitstamp prioritizes the safety of their clients’ data over any other thing. By using advanced security technologies, Bitstamp follows best practices in terms of security.

We’ve added Multi-Signature technology to our hot wallet, where we keep just a small percentage of our crypto assets, with the rest securely held offline in cold storage systems.

However, we cannot guarantee the security of crypto assets stored on users’ computers.

How Do I Purchase Bitcoin on Bitstamp?

To begin, you must first create an account and have it verified. Next, visit the Bitstamp login page and fill in your credentials to gain access to your account. Deposit into your account after that. You can start buying Bitcoin on the Bitstamp platform once the funds in your Bitstamp account are available.

Can I Open Multiple Bitstamp Accounts?

No, you can’t. You can only have one account for personal transactions, but the platform offers you an option for a corporate account. If you’re opening the account on your company’s behalf, you can choose this option.

Is BitStamp a Wallet?

You’ll need to be able to access your cryptocurrency now that you’ve purchased it. Wallets store the codes required to access cryptocurrencies. Wallets can also be found online, where they are referred to as “hot storage” or offline where they are referred to as “cold storage.”

So, is Bitstamp a wallet? To an extent, it is. Bitstamp is a cryptocurrency exchange and wallet in one. Bitstamp allows users to store both hot and cold wallets. It’s never a good idea to have all of your cryptocurrencies on the internet. It’s safer to use a mixture of hot and cold storage. I often suggest that you use a hardware wallet.

This is a cold storage unit that works similarly to a USB flash drive. A common hardware wallet is the Ledger Nano.

How Long Does a Bitstamp Withdrawal Take?

Bitstamp Fiat withdrawals take between 2 – 5 working days, but their SEPA transfers take less time to be completed.

How Long Does it Take to Make a Bank Deposit?

Like withdrawals, bank transfers can take up to five working days before reaching your Bitstamp. You can make deposits using USD, EUR, or GBP. If you intend to deposit funds in a different currency, the funds will first be converted into USD, EUR, or GBP before it is credited into your account.

Can I Link My Bitstamp Account to My Bank Account?

For now, this option is not available, but our US customers can deposit and withdraw funds using ACH. Other customers can withdraw or deposit funds using bank transfer.

Which Trading Pairs Does Bitstamp Support?

You can view all our trading pairs on www.bitstamp.net and navigate to the market page. If you’re unable to find the trading pair you want, you may need to convert your funds to a different fiat currency or cryptocurrency before purchasing your chosen asset.

For instance, if you have ETH in your account and want to swap it for BCH, you can trade it for any of the BCH-paired currencies (currently USD, EUR, BTC, and GBP), and then trade that currency for BCH.

What is the Crypto Purchasing Limit with a Card on Bitstamp? Can I Increase or Decrease it?

Bitstamp has a set limit for purchasing cryptocurrencies with debit or credit cards. The daily card limit is 2500 USD/GBP/EUR, while the monthly limit is 20000 USD/GBP/EUR. The minimum purchase amount on Bitstamp is 50 USD/GBP/EUR. You cannot alter Bitstamp withdrawal limits or purchasing limits for that matter.

Conclusion – Is Bitstamp Legit?

Bitstamp is a low-fee cryptocurrency exchange for those looking for a safe place to trade. It’s been around for a while and knows how to provide a good service for huge trade amounts.

It’s a convenient platform for those looking to work in the EU and you can rest assured that large sums of money will be kept secure. The only real drawbacks are that it’s a little frustrating for Bitcoin newbies who aren’t acquainted with trading markets and that there isn’t much variety in terms of cryptocurrencies.

If you’re already quite familiar with cryptocurrencies, go for Bitstamp but if this is your first crypto purchase, you may want to start with a simpler exchange platform.