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 Beginners Our Rating 120+ Cryptos Wallet Available $50 Minimum Deposit Accepts Paypal Crypto copy trading Visit Site 81% of retail investor accounts lose money when trading CFDs with this provider. 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 Visit eToro 75% of retail investors lose capital when trading CFDs with this provider. Crypto assets are highly volatile unregulated investment products. No EU investor protection. 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 Our Rating CySEC regulated platform Has a mobile app Offers commodities, currencies, stocks, indices and cryptocurrencies Limited cryptocurrencies Visit Libertex 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 Beginners Our Rating 120+ Cryptos Wallet Available $50 Minimum Deposit Accepts Paypal Crypto copy trading Visit Site 81% of retail investor accounts lose money when trading CFDs with this provider. 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.
