In this guide, we explore some of the disadvantages of using Bitstamp and suggest alternative platforms that offer better security, liquidity and usability.
Best alternative to Bitstamp
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What are Some of the Disadvantages of Bistamp?
One of the main disadvantages of using Bitstamp has to do with its credibility. Following the 2015 hack which saw the loss of a whopping 19,000 BTC, traders tread with caution. Even though the service has improved its security measures, the incident made a deep negative impact.
Furthermore, it only supports 5 cryptocurrencies. This makes it difficult to diversify your crypto portfolio as your lineup only features the major cryptos. The fact that it only offers a single tradable asset (cryptocurrencies) is also limiting. It means that you would need multiple accounts on various platforms to trade different assets.
Though its trading platform has some positive features, it is limited in functionality. First, it is only accessible online or as a mobile app and not downloadable to your desktop. Second, its research and analysis tools as well as trading features are not comprehensive. This makes it unsuitable for advanced traders.
Its regulatory status is also lacking. While top-tier platforms are regulated by multiple authorities in various jurisdictions, Bitstamp only has a single regulator. This makes it difficult to ensure the safety of its users in jurisdictions that do not fall under the regulator’s purview.
Other disadvantages include:
- It has no live chat feature
- Credit/debit card payments are limited to users in a few countries
- The verification process for new accounts is painfully slow
- Only very high volume traders enjoy the best trading rates
- Customer support could use some improvement
- Website is only available in English
Due to these reasons, it’s highly recommended that you check out our four highly recommended Bitstamp alternatives below. They can provide you with a better and more secure trading experience.
How We Analyzed Bitstamp’s Alternatives
Based on the above comparative analyses of Bitstamp alternatives, eToro appears to be one of the best options of all. Its balance of features, fees and service offerings is impeccable, and it seeks to address the needs of all types of investors. Take a look at some of its outstanding aspects:
- Safety and Security – Unlike Bitstamp which has had security breaches, eToro has a clean security record. In spite of that, it takes security seriously with advanced encryption measures for its servers and 2FA support for individual users. And in case of a breach, users are covered under a compensation scheme.
- Versatility – eToro is a lot more versatile than Bitstamp in more ways than one. First, it offers traders the opportunity to find a wide range of assets ‘under one roof.’ Additionally, it supports a greater number of cryptocurrencies than Bitstamp. Both of these advantages mean traders can easily diversify both within the cryptocurrency space and beyond. It is also versatile in the number of payment methods that it supports for deposits and withdrawals.
- Trading – In addition to supporting more trading platforms, eToro also offers a number of distinct benefits. For instance, it caters to the needs of both expert traders and newbies. For newbies, it has a demo account with $100,000, more than enough for practice. It also offers beginners an opportunity to learn from the pros thanks to its copy trading feature. Professionals, on the other hand, get access to a slew of research, analysis and charting tools.
Conclusion
Though Bitstamp is a relatively reliable and reputable service provider, the above alternatives show that there are more compelling options in the market. Admittedly, each of the platforms highlighted above offers some distinct benefits. But overall, eToro has the most compelling blend of features.
No matter your trading needs and experience level, eToro’s comprehensive package has plenty to offer. Click the button below to get started with this platform today!
FAQs
Are there other cryptocurrency exchanges like Bitstamp?
Yes. In fact, there are lots of cryptocurrency exchanges you can choose from. Aside from eToro, Huobi, Forex.com and Libertex, other famous cryptocurrency exchanges you can check out are Binance and Huobi.
Why is trading on Bitstamp riskier?
This is because Bitstamp has already been hacked twice. Many traders are hesitant to use it because they fear that their cryptocurrency holdings may disappear in case another hacking happens.
Why are cryptocurrency exchanges like eToro better than Bitstamp?
eToro and the other cryptocurrency exchanges mentioned above are regulated by several top-tier financial regulators. They also have more secure trading platforms.
Is it safe to trade on Bitstamp?
After the hacking incidents, Bitstamp now keeps 98% of its funds in cold storage. Also, it offers 2FA, confirmation emails and notification SMSs during login. It is safer to trade on Bitstamp now compared to five years ago.
What is the best cryptocurrency exchange for US traders?
eToro is one of our most highly recommended exchanges for US traders. By trading on eToro, they can have a better and safer trading experience.
