Bitstamp Review 2020
Founded in 2011, Bitstamp is regarded as one of the oldest cryptocurrency exchanges around. The exchange is highly respected and is based in Luxembourg. Bitstamp was actually one of the first few cryptocurrency exchanges that were established to compete with the then dominant Mt. Gox exchange. But what is unique about Bitstamp is the fact that it is the first fully regulated cryptocurrency exchange in the world. Bitstamp in April 2016 was licensed by the Luxembourg authorities to act as a payment institution. Under the European Union (EU) “passporting” rules, a financial services provider legally authorized by one member state in the EU is permitted to “passport” its services to all 28 EU states. Hence, this makes Bitstamp the first nationally regulated cryptocurrency exchange not just in the EU but for the entire cryptocurrency trading industry.
- Deposit and Withdrawal Options
- Supported Countries
- Fees and Charges
- Privacy and Security
- Customer Support
- Pros and Cons
Bitstamp is ideal for those who have some experience trading cryptocurrencies. On the surface, the exchange looks a little complicated for a beginner trader to navigate with.
Nevertheless, due to its regulated status, Bitstamp is actually quite popular among European cryptocurrency traders. Apart from offering you the opportunity to trade in Bitcoin, Bitstamp also offers you the ability to trade with several other types of cryptocurrencies such as Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC) and Ripple (XRP). Purchases can be made using fiat currencies such as the Euro and U.S dollar.
For traders who prefer mobile trading, Bitstamp has provided mobile versions of their trading platform which can be downloaded free of charge from Apple App Store and Google Play store. These apps allow you to view your account status as well as letting you trade directly from your smartphone.
Deposit and Withdrawal Options
In terms of deposits and withdrawal methods, Bitstamp accepts deposits through SEPA bank transfers and credit/debit cards. You also have the option to purchase the supported cryptocurrencies directly using your credit card.
Apart from the 28 EU member states, Bitstamp also supports close to 50 different countries outside of the EU. The main countries include Australia, Brazil, China, South Africa, South Korea and the U.S.
Fees and Charges
Compared to what most other exchanges are offering, the fees charged by Bitstamp are quite reasonable. The actual trading fee depends on the volume traded. The following table below shows the applicable fees:
|Fee||30 days Cumulative volume|
For purchases made with a credit card, an additional 5% card processing fee will apply.
As for deposits and withdrawals through cryptocurrencies, there is no fee involved for both deposits and withdrawals. However, transferring funds to your credit or debit card will incur a flat fee of $10 for amounts up to $1000. For amounts exceeding $1000, a 2% fee will apply. For SEPA transactions, deposits are free whereas withdrawals are charged a fee of 0.90 euro. For bank wire transfers, the deposit will cost 0.05% and 0.09% on withdrawals.
Privacy and Security
Bitstamp as a regulated exchange complies strictly with international AML and KYC regulations. While it is free to open an account at Bitstamp, you are required to go through the verification process before you are permitted to deposit or withdraw from a Bitstamp account. Normally the verification process will take a few days to complete. However since the meteoritic rise in the value of Bitcoin in 2017, Bitstamp is has been experiencing an upsurge in verification requests, on average up to 100,000 accounts daily. As such, the actual verification process may take months to complete as each account has to be verified manually. Nevertheless once verified, there are no limits imposed on the account with respect to deposited or withdrawal amounts.
Having suffered hacking attempts in 2014 and in 2015, Bitstamp now takes the security of its exchange very seriously. The bulk of the exchange funds are now kept in cold storage and its customers’ wallets are protected with 2-factor authentication.
Support at Bitstamp like many other cryptocurrency exchanges in the industry is lacking on many fronts, First of all, you can only contact the support team through an email ticket system. As the support team is deluged with thousands of tickets to resolve on a daily basis, it can take a while before your ticket is attended to. Although there is a UK number to call, the calls are answered by a recorded message. Nevertheless, Bitstamp does make an attempt to provide its customer with a fairly comprehensive FAQ. The information contained within the FAQ does help to provide the answers that most people need.
Pros and Cons
- Advanced trading platform
- Bank wire transfers and bank deposits supported
- Have a selection of altcoins to trade with
- High liquidity
- Low Fees
- Regulated Exchange
- Support credit/debit cards transactions
- Support major fiat currencies
- Weak support
- Long waiting period for account verification
- Invasive KYC questioning
How do I purchase Bitcoin?
First, you need to create an account and get it verified. Next, make a deposit into your account. Once the fund in your Bitstamp account is available, you may begin buying Bitcoin on the Bitstamp’s platform.
How long does a withdrawal take?
Withdrawal through SEPA usually takes 2 to 3 business days.
How do I make a Bitcoin withdrawal?
Go to your account and select “Withdraw”. Next, select “Bitcoin”. Enter the withdrawal address and the amount to withdraw and click “Withdraw.
How long does a Bitcoin deposit take?
Bitstamp requires 3 network confirmations and as such, it may take up to an hour to receive all the confirmations.
Apart from their weak customer support, Bitstamp is by far one of the most trusted and reliable cryptocurrency exchanges around. The fees they charge are reasonable and the selection of altcoins is fairly decent. The fact that the exchange accepts fiat currencies is also a major draw for many people seeking to trade cryptocurrencies. But unless you have some prior experience in trading cryptocurrencies, you might find the platform a little overwhelming and confusing.
- Bitcoin Cash
- Bosnia and Herzegovina
- Czech Republic
- Russian Federation
- San Marino
- United Kingdom
- Vatican City
- South Africa
- Hong Kong
- South Korea
- Saudi Arabia
|Headquarters Country||United Kingdom|