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Bitstamp Alternatives: 4 Better Platforms With Lower Fees and More Security

In this guide, we outline the disadvantages of Bitstamp and provide 4 alternatives to help you trade with lower costs and more security.
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Author: Nica San Juan
Last Updated: 28 May 2020

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

Want to get straight to the best alternative? Check out the broker below – we found it to be the no1. Bitstamp alternative for 2020 offering the most secure platform, low trading fees and a large number of tradeable cryptocurrencies to buy and sell.

eToro: Best crypto platform for 2020

eToro Commits To Better Future Growth with Delta Acquisition
  • 16+ Cryptos + Wallet Available
  • $200 Minimum Deposit
  • Accepts Paypal
  • Crypto copy trading
eToro Commits To Better Future Growth with Delta Acquisition
75% of retail investor accounts lose money when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products. No EU investor protection.

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.

eToro: Buy 16+ coins on a safe platform

Bitstamp which came into existence in 2011 is younger than eToro which was founded in 2007. In addition to being older, the latter is also more highly regulated, with top-tier authorities such as CySEC, FCA and ASIC being among its regulators. Bitstamp is only regulated under the CSSF.

While Bitstamp has a single web-based trading platform, eToro has a proprietary web app as well as mobile apps. These trading platforms have features and tools for investors of all experience levels.

Though Bitstamp is renowned for charging low fees, eToro is also relatively competitive. There are no commissions and they generate fees based on variable spreads.

On eToro, you can make payments and withdrawals via bank transfers, NETELLER, Visa, MasterCard, Skrill, Webmoney UK, PayPal and Yandex among others. But on Bitstamp, the options are limited to bank transfers and credit/debit cards.

Bitstamp only offers cryptocurrencies for trading but eToro has a wide range of assets available. These include commodities, indices, stocks, shares, ETFs and forex.

In addition to trading physical assets on eToro, users can also trade cryptocurrencies as CFDs. And while Bitstamp only supports BTC, BCH, LTC, ETH and XRP, eToro’s range of cryptos includes BTC, ETH, BCH, DASH, ETC, NEO, LTC, XRP and XLM.

When it comes to credibility, eToro has a more reputable name online. It is a large and well established company and it has no security incidents in its history. In order to maintain this reputation, it implements two-factor authentication and Bitstamp, on the other hand, has been hacked twice, in 2014 and 2015, denting its credibility.

Demo Account: Yes

Educational Material: Yes

Fees: $10 inactivity fee, $5 withdrawal fee, spread fees may apply to cryptocurrencies, as well as overnight fees.

Minimum deposit: $200

Special Features: Social trading offers copying strategies, an appealing tool for those new to the extremely volatile cryptocurrency market

Regulation: Cyprus Securities and Exchange Commission (CySEC), the British Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).

Payment methods: Wire transfer, SEPA transfer, Wire transfer, online banking, instant deposit, Skrill, Neteller, PayPal, Sofort Banking

OUR RATING

  • Trade cryptos on CFDs
  • Supports PayPal as one of its payment methods
  • Highly secure platform
  • Crypto-to-crypto pairs are not available
75% of retail investors lose capital when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products. No EU investor protection.

Plus500: Trade crypto CFDs on a regulated European broker

Plus500 has been around a while longer than Bitstamp, having been established in 2008, while the latter came into existence in 2011. Another point of divergence is the number of regulators. While Plus500 has licenses from FCA, CySEC, ASIC and MAS, Bitctamp only has a license from CSSF.

You can only trade cryptocurrencies on Bitstamp, but Plus500 offers CFDs for assets such as indices, forex, shares, commodities, cryptos and options. Plus500 also excels in trading platforms with web-based, mobile and proprietary app. Bitstamp only has one web-based platform.

Plus500 has not had any security incidents and for security purposes, it keeps all user funds in segregated accounts and encrypts all user data. It also uses two-factor authentication via SMS and notifies users about login attempts from unknown devices. Bitstamp, on the other hand, has been hacked twice in the past, in 2014 and 2015. Though it now keeps 98% of funds in cold storage, its credibility suffered from the hacks. It also offers 2FA, confirmation emails and notification SMSs during login.

On Bitstamp, you can trade BTC, BCH, LTC, ETH and XRP while on Plus500 available cryptos include BTC, ETH, LTC, NEO, XRP, IOTA, XLM, EOS, ADA, TRON and XMR.

There are no commissions for trading on Plus500, rather, it charges variable market spreads. Bitstamp charges 0.25% and 0.10% for monthly volumes below $20,000 and $20 million respectively.

Bitstamp users can only make payments using bank transfers and credit/debit cards. But Plus500 supports those two options as well as PayPal and Skrill.

Demo Account: Yes

Educational Material: Plus500 offers educational videos to start trading

Fees: No trading fees, overnight and inactivity fees may apply. No fees or options for withdrawing crypto coins.

Minimum deposit: $100 if made by debit or credit card

Special Features: Multi-language platform with live support

Regulation: British FCA, CySec, ASIC, Monetary Authority of Singapore (MAS), Israel Securities Authority (ISA), Listed on the LSE (PLUS)

Payment methods: Debit and credit card, Skrill, PayPal, bank transfers (wire, EU-based SEPA)

OUR RATING

  • Licensed by several top-tier regulators
  • Supports various cryptocurrencies and other assets
  • No commissions
  • Limits on high-frequency trading

Libertex: Low fee bitcoin & crypto trading platform

While Bitstamp was launched in 2011, Libertex came into the market a little later, in 2014. The former is regulated under the CSSF and the latter under CySEC.

Traders using Bitstamp get access to a web-based platform and a mobile app accessible on iOS and Android. Libertex has a similar offering, with a proprietary web-based platform, Libertex, which is also available for Android and iOS.

Bitstamp only offers a single tradable asset, cryptocurrencies, supporting BTC, LTC, ETH, BCH, and XRP. But Libertex offers commodities, currencies, stocks, indices and cryptocurrencies. Supported cryptos include BTC, ETH, LTC, BTG and BCH.

Payment options on Libertex include credit/debit card, wire transfers, NETELLER and Skrill. These exceed Bitstamp’s options which are bank transfers and credit/debit cards.

Libertex takes security seriously, protecting its investors through client fund segregation and advanced encryption features. The security measures on Bitstamp include two-factor authentication, encryption for all user data and cold storage for 98% of funds. Funds are also fully insured by the FDIC.

However, the fact that Bitstamp was hacked in 2014 and 2015 has greatly dented its credibility. Libertex has never suffered a security breach and thus draws a more favorable market perception.

When it comes to fees, Bitstamp’s compelling offer is hard to beat. Traders with monthly volumes below $20,000 get a 0.25% fee while those with over $20 million trade at 0.10%. Libertex too works on a commission-based system, but the rates vary by trading instrument. Some are considerably higher than the rates on Bitstamp while others are lower.

Demo Account: Yes

Educational Material: Limited educational resources

Fees: 0.2% for most cryptocurrency trading operations

Minimum deposit: €/$/£100 or 100 currency units, may vary based on payment method

Special Features: Serves international traders not reached by other platforms or crypto exchanges

Regulation: CySec

Payment methods: SEPA bank transfer, wire transfer, Skrill, Neteller, Sofort, Giropay, Trustly, iDEAL, Przelewy, MB, Rapid, TeleIngreso, Neosurf

  • CySEC regulated platform
  • Has a mobile app
  • Offers commodities, currencies, stocks, indices and cryptocurrencies
  • Limited cryptocurrencies

Forex.com: ideal for experienced investors

Bitstamp is a decade younger than Forex.com, the latter having been founded in 2001 while the former was established in 2011.

Though both exchanges are regulated, Forex.com has licenses from a higher number of top-tier authorities. Bitstamp was the very first fully licensed crypto exchange in Europe. It operates under the Luxembourg Financial Industry Supervisory Commission (CSSF). On the other hand, Forex.com is regulated in multiple jurisdictions. Some of its regulators include the Cayman Islands Monetary Authority (CMA), the FCA (UK), CFTC (US), ASIC (Australia) and FFAJ (Japan) among others.

Forex.com makes use of strong security policies such as account segregation to keep user funds safe. Since its inception, it has had no breaches, unlike Bitstamp, which was hacked in 2014 and 2015, losing 19,000 BTC in the second incident. After the incidents though, it re-evaluated security features, moving 98% of funds to cold storage.

Traders on Forex.com get access to two trading platforms, MetaTrader 4 and its proprietary FOREXTrader. The FOREXTrader platform is fully customizable and offers excellent research and analysis, professional charting tools and advanced features for trading. Bitstamp lags behind in this respect, providing only one web-based platform with limited functionality.

Both services accept payments via credit/debit card and bank wire transfer. But Bitstamp goes a step further, accepting SEPA and cryptocurrencies too.

When it comes to asset coverage, Bitstamp only offers cryptocurrencies, while Forex.com has a wide range of options such as currency pairs, indices, equity, shares, commodities and metals. The cryptos available on Bitstamp include BTC, BCH, LTC, ETH, XRP, while Forex.com supports BTC, ETH, LTC and XRP.

With regards to fees, Bitstamp offers a more competitive bargain. Trading fees are 0.25% for a monthly volume below $20,000 and 0.10% for $20 million monthly volume. Forex.com does not charge commissions but uses variable spreads for each currency.

Considering the size and reputation of GAIN Capital, the company behind Forex.com, its highly regulated operations and its flawless security record, it has greater credibility.

Demo Account: Yes

Educational Material: Great educational resources for both experienced and new traders

Fees: Spread, Rollover, financing and fiat conversion fees, no cryptocurrency withdrawal or transfer fees

Minimum deposit: $100 or 100 currency units

Special Features: Multiple currency pairs for cryptocurrency CFDs

Regulation: FCA, Investment Industry Regulatory Organization of Canada (IIROC), Financial Services Authority (FSA) Japan, ASIC, US Commodity Futures Trading Commission (CFTC), Cayman Islands Monetary Authority (CIMA)

Payment methods: Credit/debit card, wire transfer

OUR RATING

  • Established trading platform
  • Regulated by several financial authorities
  • Highly secure platform
  • Supports limited number of cryptocurrencies

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.

A lot of other factors have been taken into account for our analyses of Bitstamp’s alternatives. These include the platfroms’ regulatory status, credibility, fees, supported payment methods, tradable assets, supported cryptocurrencies as well as launch date.

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!

eToro: Best crypto platform for 2020

eToro Commits To Better Future Growth with Delta Acquisition
  • 16+ Cryptos + Wallet Available
  • $200 Minimum Deposit
  • Accepts Paypal
  • Crypto copy trading
eToro Commits To Better Future Growth with Delta Acquisition
75% of retail investor accounts lose money when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products. No EU investor protection.

FAQs

Are there other cryptocurrency exchanges like Bitstamp?

Yes. In fact, there are lots of cryptocurrency exchanges you can choose from. Aside from eToro, Plus500, 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.

Remember, all trading carries risk. Past performance is no guarantee of future results.
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Janica Sherine is an expert writer who specializes in financial technology and cryptocurrency. At her young age, she was already able to work with founders who graduated from Harvard, tech startups funded by Y-Combinator, CEOs of multi-million dollar blockchain companies, investment companies in London and many more.

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