Bitstamp pros and cons

Pros:

Accepts debit/credit cards and bank transfers
Available to all countries (if depositing with crypto)
24/7 phone support
Good selection of charting tools

Cons:

Supports 54 cryptocurrencies, fewer than major exchanges
Unable to go-short
No live chat facility
Limited number of supported countries for debit/credit card deposits
Slow verification

Bitstamp is one of the most established cryptocurrency exchanges in the industry. Launched way back in 2011, the platform allows users to buy, sell and trade different cryptocurrencies. Bitstamp is also hugely popular because they allow you to buy cryptocurrencies using fiat currencies such as USD and EUR.

If you’re thinking about opening an account with Bitstamp for your cryptocurrency trading needs, then be sure to read our comprehensive guide first. We’ll cover everything you need to know, such as fees, security, user-friendliness and more.

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What is Bitstamp?

Bitstamp is a cryptocurrency exchanges that is headquartered in Luxemburg. Although the platform originally focused on E.U. clients, it now offers its services on a global basis.

The Bitstamp exchange allows you to buy and sell different cryptocurrencies, and you can deposit and withdraw funds using everyday payment methods such as a debit/credit card or bank account.

As the platform has been in operation since 2011, it is one of the most long-standing exchanges in the Bitcoin trading scene. At the time of writing, Bitstamp averages a trading volume of around $40 million per day. This is significantly lower in comparison to other exchanges such as Coinbase, Bitoasis, or Kucoin.

How does Bitstamp Work?

Bitstamp operates in a similar manner to other leading cryptocurrency exchanges in the industry. Once you open an account and deposit funds, you’ll have the option of buying and selling coins. The platform itself is essentially a third party intermediary between buyers and sellers.

As such, when you buy crypto at Bitstamp, you’re not actually purchasing it directly from the exchange. Instead, you are buying coins from another person, of which Bitstamp facilitates.

In return for matching buyers and sellers, Bitstamp charges users trading fees. This allows the platform to offers its services without disruption.

Unlike other leading cryptocurrency platforms, Bitstamp only allows to go-long. This means that while you have the option of making a profit if you think a cryptocurrency will increase in value, you can’t repeat the process if you think the markets will fall.

This is a major disadvantage, as day trading professionals operating in the cryptocurrency markets like to have the option of going both long and short.