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Bitstamp Exchange Review 2022 – Regulated Crypto Platform

Founded in 2011, Bitstamp is known as a highly secure crypto exchange. It also offers unique staking incentives. But what other features of this exchange make it distinct. Read ahead as our expert present a detailed review of this Luxembourg crypto exchange.
Bitstamp buy crypto
Bitstamp buy crypto

Bitstamp is a leading global cryptocurrency exchange based in Luxembourg. It offers trading in fiat currencies and popular cryptocurrencies. It was founded in 2011 by Nejc Kodrič and Damijan Merlak in Slovenia. Its registration was moved to the UK in 2013 and later to Luxembourg in 2016.

Bitstamp is a regulated and authorized payment institution holding a license from Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

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Bitstamp Features Reviewed

Here is an overview of the top highlights of the platform:

  • Intuitive Interface
  • Instant deposit and withdrawal of funds
  • Highly encrypted security
  • Cold storage security
  • Advanced Tools
  • 24/7 dedicated customer support
  • Various deposit methods
  • Mobile App
  • Bitstamp Earn
  • Crypto-as-a-service
  • Trading view
  • Competitive fee structure
  • Compatible with IOS and Android mobile applications
  • Competitive fee structure

Is Bitstamp good

Few of the Features of Bitstamp – Picture from Official Website

Ease of Use and Interface 

Bitstamp has a simple, user-friendly, and easy-to-use platform that can be used to buy and sell cryptocurrencies in a hassle-free manner. It is easy to navigate through its main dashboard to access the various tools and functionalities it hosts.

There are links at the top of the screen, which can be used to access the respective features of the platform.

Security

Bitstamp is a highly secured crypto trading platform. It employs industry-standard security measures and technologies to keep client’s personal data safe and secure.

98% of assets are stored offline in cold storage systems. For its hot wallet, it has implemented a Multi-Sig technology to safeguard the tiny portion of assets stored in it. It does not provide any security for assets stored on users’ computers.

Bitstamp Security

For log-in purposes, it uses two-factor authentication (2FA). 2FA makes sure only the user has the access to his account by requiring him to confirm critical account actions, such as logging in or withdrawing funds, using a second device.

It also provides the users with the option to activate email confirmations, through which email intimation is sent to the registered email ID every time a user performs a key account function.

Customer Support

Good customer support is an essential feature of any crypto exchange, which ensures that customers are assisted in the best possible way to make their trading and learning experience a seamless one. Trading on an online platform comes with various challenges, especially for new traders. If their queries are not resolved on time, it creates unnecessary inconvenience and ruins their confidence in the platform.

Bitstamp has an active customer service support system providing 24*7 assistance to all its customers. The helpdesk can be reached either through phone or email or by sending a message directly through the app. It has also assigned dedicated account managers for partners.

How to contact support via the Bitstamp app?

  • Tap on the “Settings” tab on the right at the bottom.
  • Scroll down to the bottom of the settings page.
  • Go to the “About us” section
  • Click on the contact us link to send a message to the team.

Deposits

Bitstamp supports various deposit methods for hassle-free fund deposits. The following methods are currently available on the platform:

  1. Direct Bank Transfer
  2. Credit or Debit Card (with permitted international transactions)
  3. ACH transfer for US customers.
  4. Instant SEPA transfer for Eurozone customers from selected countries.

Bank transfer to a Bitstamp account is accepted only from a bank account that is registered under the same name as the Bitstamp account holder. Deposits from a different account may take time and require the user to provide additional information.

Deposits from joint bank accounts, sole proprietor business accounts, and payment processors are also accepted but may require users to provide additional information.

Bitstamp deposit_withdrawal

Deposits from a corporate bank account to a personal Bitstamp account are not allowed and will be instantly blocked.

Deposits from third-party accounts are not allowed, even with authorization to use the same.

Withdrawals

Bitstamp supports a total of 5 withdrawal methods. However, some of the options are not available in certain regions.

  1. SEPA payments are for Eurozone consumers in selected countries. The customers need to have bank accounts within the SEPA zone. SEPA withdrawals take 1–2 business days to be processed and reflected in your bank accounts.
  2. International wire payments are available for selected currencies and usually take 3–5 business days to be processed depending on bank networks.
  3. Domestic USD payments are payments sent from one US bank account to another US bank account. They take 1–2 business days to be processed.
  4. ACH withdrawals are available for personal account holders within the US and require prior bank verification. They are processed within 1–2 business days. ACH withdrawals have an upper limit of 50,000 USD per transaction.
  5. FPS payments are domestic UK payments. Banks that are included in the Faster Payments Service scheme qualify for this payment mode. They have an upper limit of 250,000 GBP.

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What Cryptocurrencies Does Bitstamp Support?

Bitstamp allows you to buy or sell many different cryptocurrencies that include-

  • BTC
  • ET
  • Tether
  • ADA
  • WBTC
  • DAI
  • AVAX
  • MATIC
  • LINK
  • UNI
  • MANA
  • LRC
  • ENJ
  • AMP
  • COMP

The full list can be accessed through this link.

Pros and Cons

Pros
  • Various payment methods accepted
  • 24*7 customer support
  • Competitive fee structure
  • Can be accessed on the desktop and mobile devices
  • User-friendly mobile app
  • Ensures the highest security standards
  • Transparency in fees
Cons
  • Limited choice of cryptos
  • Limited investment options
  • Not suitable for traders looking for advanced technical analysis
  • Withdrawal fees are charged
  • Slow staking process
  • Only two cryptos are available for staking

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Bitstamp Trading Platform – Order Types

1. Instant Order

Instant order is an order to either buy or sell that gets executed instantly on the prevailing market price of the selected asset. The price appears in the quotes flow at the time of placing the order. It can be executed by clicking on “instant” in the “Order type” drop-down menu.

Instant orders get executed at the exact price requested by the trader or do not take place at all.

2. Limit Order

It is an order to buy or sell, which is placed at a specified price. A buy limit order takes place only at the specified price of the trader or at a lower price. A sell limit order gets executed only at the specified price by the trader or at a higher price. This way, a limit order enables a trader to get a better price for his trades.

3. Market Order

A market order enables users to buy or sell at the best available market price. It is the default choice for placing an order wherein the trader only needs to put the quantity he wants to buy or sell. It takes place instantly at a price that is close to the price the trader can see while placing the order.

4. Stop Order

A Stop order is an order to buy or sell a stock once it reaches a specified price. These types of orders are used to limit potential losses when the price suddenly rises or drops. Once the price surpasses the selected price, the stop order gets executed.

5. Trailing Stop Order

A trailing stop order is a variation of the normal stop order that adjusts the trigger price based on market movements.

A sell trailing stop order can be set at a fixed price below the market price with an attached “trailing” amount. When the market price rises, the stop price will also rise by the trail amount. But the stop loss price doesn’t change if the price of the stock falls.

6. Fill-or-Kill Order

The Fill-or-Kill order (FoK) is a limit buy or sell order that has to be executed immediately in its entirety or cancelled altogether. If the order book doesn’t hold enough units of the assets to complete the order, it will be cancelled.

Fill-or-Kill orders are not supported in Bitstamp’s app or website. They are supported through REST and FIX APIs.

Bitstamp Mobile App

The Bitstamp mobile app is compatible with Android and iOS. The app is a standalone product and can be used without logging on to the webpage.

Bitstamp mobile app

However, certain advanced settings are not currently accessible through the app. To access these advanced settings, users need to log in through the web page.

Bitstamp Earn and Staking

Bitstamp Earn allows users to earn cryptocurrency rewards through staking. They can earn more cryptos as rewards by locking up their assets on the blockchain.

Bitstamp earn through staking

You can currently stake the following cryptocurrencies at Bitstamp:

  • Ether (ETH)– staked manually once per month.
  • Algorand (ALGO)– staked automatically at the end of each governance period, which typically coincides with the end of the quarter.

ETH Staking at Bitstamp

To stake ETH you need to convert it to ETH2. Once the same is converted and held in your account the staking process will begin automatically. The staked assets are collected from customers in a pool and new staking nodes are launched.

Assets are then sent to the blockchain to start the staking process. This is done every 15 minutes. The time required for the completion of the staking process depends on network congestion.

Rewards are distributed on a monthly basis. The rewards for ETH2 are paid in ETH2R. Users are not allowed to withdraw ETH2R from their accounts until the staking period is finished. However, users can trade the staked ETH2.

Users can earn up to 4.38% on an annual basis by staking ETH.

Algorand Staking at Bitstamp

ALGO is automatically staked and need not be converted to any other token.

ALGO staking rewards are sourced from Algorand Community Governance Program. Rewards are quarterly at the end of each governance period. Users can earn up to 5% annual by staking ALGO.

There is no lock-up period with ALGO and can be withdrawn or traded anytime. Rewards are also automatically added to the base staking amount.

There are no slashing penalties when staking ALGO. Those who do not want to receive any staking rewards in ALGO can opt-out of it.

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Fee Structure

Bitstamp fee crypto

Bitstamp Fee Detailed Guide

1. Trading fees

Bitstamp has a unified trading fee for all trading pairs, which ranges from 0% to 0.5%. It charges a fee of 0.5% for $10,000 or less than 30 days USD volume. Users with a 30-day trading volume of $20,000,000,000 are not charged any trading fees.

2. Staking fees

There is no fee being charged for staking. However, Bitstamp charges a commission of a flat 15% separately on the rewards earned through staking of ALGO and ETH.

3. Withdrawal Fees

  • SEPA: 3 EUR
  • ACH: Free of charge
  • Faster Payments: 2 GBP
  • International Wire: 0.1%(min fee = 25 USD/EUR/GBP. Bank charges additional.)

4. Deposit Fees

  • SEPA: Free of charge
  • ACH: Free of charge
  • Faster Payments: Free of charge
  • International Wire: 0.05%(min fee = 7.5 USD/EUR, 5 GBP, max fee = 300 USD/EUR, 250 GBP)

5. Crypto Deposits and Withdrawals

All crypto deposits are free of charge while the withdrawal charge depends on the respective crypto.

6. Card Purchase

Flat 5 % transaction fee.

Minimum Trade

  • 10 EUR/GBP/PAX/USD/USDC/USDT for EUR/GBP/PAX/USD/USDC/USDT-denominated trading pairs
  • 0002 BTC for BTC-denominated trading pairs
  • 002 ETH for ETH-denominated trading pairs

How to Sign up and Trade on Bitstamp Website

Bitstamp steps to register

Step 1. Registration

Go to Bitstamp’s homepage and click on register. Enter the required personal information including legal name, email address and country of residence.

Step 2. Confirm Your Email Address

Check your email inbox and click on the verification received from Bitstamp. Once done, your unique ID will be displayed. Write down your unique ID completing the registration process.

Choose a password for your account and complete the first step of the registration.

Step 3. Identity Verification

Verification is mandatory if you wish to deposit fiat currencies. You will need to upload a government-issued ID (passport or DL) and a proof of residence (utility bill or bank statement; the latest one).

To complete your verification, log in to your account, go to “verify” and click on ‘personal account verification’.

Once your identity is verified, you will receive an email intimation regarding the same.

Step 4. Funds

Click on the “deposit” tab at the top of the screen. Select your preferred payment method from the drop-down list. Next, enter the amount you want to deposit and click on ‘confirm’.

Step 5. Trade

Click on “buy/sell” at the top of the screen. Select your preferred cryptocurrency trading pair, enter the quantity of the asset you want to trade and click on buy or sell to confirm the order.

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How to Get Access to Bitstamp on Mobile App

To get mobile access to your Bitstamp account, complete the following steps:

  1. Install the Bitstamp mobile app on your device. It is available on Google Play on Android and App Store on iOS.
  2. Once installed, open the app and register as a new account from the app and confirm registration from your email
  3. In case the Captcha puzzle appears, solve it to proceed.
  4. If you have enabled 2FA, then enter your authentication code.
  5. Set a 6-digit PIN to access the app quickly without entering your login credentials every time.
  6. You can also enable or disable touch/face ID to enhance security.
  7. You can verify your account from the app, once you have successfully logged in.

The app can be used to perform all necessary functions like registration, verification, trading, market analysis, deposits and withdrawal, etc. However, certain advanced features are only available on the website.

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Comparing Bitstamp with Top Exchanges

Bitstamp vs eToro

Regulation

eToro is a highly regulated platform. It holds licenses from the Australian Securities and Investments Commission (ASIC), Financial Conduct Authority (FCA), and Cyprus Securities and Exchange Commission(CySEC).

Bitstamp holds a payment institution license issued by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

Security

Both Bitstamp and eToro employ the highest security measures to safeguard users’ assets. However, eToro, being regulated by three big regulators, has an edge when it comes to ensuring the utmost safeguard and security to users.

Unique features

eToro has features like copy trading and copy portfolio, that allow users to copy trades of successful investors on the platform.

Bitstamp does not offer these features.

Tradable Assets

Bitstamp only offers cryptocurrencies as tradable assets.

eToro supports stocks, indices, ETFs, currencies, commodities, and cryptos.

KYC

KYC is mandatory for both platforms.

Compatibility 

Both the platforms are available on a desktop and can be accessed on apps available for Android/ IOS devices.

Customer Support

Both exchanges have dedicated customer support.

Bitstamp vs Binance

Interface

Binance is popular amongst experienced traders looking to access advanced technical features. It is not quite suitable for new traders as the interface is a little complex to comprehend.

Bitstamp, on the other hand, has an easy-to-use platform suitable for both beginners and experienced traders. However, when it comes to offering advanced technical features, it lacks.

Leverage

Binance offered leveraged tokens for traders to multiply their positions accordingly.

Bitstamp does not support margin trading.

Regulations

Binance isn’t a regulated platform and is banned in the US. Binance.US is operative in the US and complies with US regulations

Bitstamp is a CSSF-regulated and authorized payment institution.

Fees

The transaction fee in Bitstamp ranges from 0.0% to 0.5%, while in Binance, it ranges from 0.1% to 0.2%.

Bitstamp vs Crypto.com

Crypto Assets

Crypto.com offers an extensive list of cryptocurrencies of more than 250.

Bitstamp supports a limited number of cryptos and some of the popular cryptos are not yet listed on the platform.

Mobile App

Both platforms have independent mobile apps compatible with iOS and Android.

Security

Both platforms use advanced security features. Crypto.com uses multi-factor authentication (MFA) and whitelisting. It also has in place robust compliance monitoring. Bitstamp uses two-factor authentication, Google authenticator, and email confirmation methods.

Crypto.com has partnered with local banks in the U.S. to provide $250,000 in FDIC insurance on USD balances.

Bitstamp vs Coinbase

Regulation

Coinbase is licensed to engage in money transmission in most U.S. jurisdictions and registered as a Money Service Business with FinCEN

Fees

Bitstamp’s trading fee is based on a user’s 30-day trading volume and the rate keeps decreasing with increasing trading volume.

Coinbase charges a fee on every order and comparatively costs more than Bitstamp.

Cryptos

Coinbase offers over 170 cryptocurrencies for trading while Bitstamp offers around 74.

Security

Both platforms have robust security features in place and offer two-factor authentication for account login.

Both platforms claim to store 98% of users’ assets in cold storage.

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Conclusion

Bitstamp may not be a great option for experienced traders as it does not provide advanced trading features for extensive market analysis.

Overall however it is a good crypto trading platform for beginners who are not looking for a wide range of options in cryptos. The process of executing an order through this platform is quite simple. Its competitive fee structure also makes it suitable for new investors with limited funds and knowledge.

We also recommend eToro which unlike Bitstamp as copy trading tools. Both crypto platforms are regulated and open to the United States.

Read More:

eToro - Our Recommended Crypto Platform

Our Rating

eToro exchange
  • ASIC, CySEC and FCA regulated - 20 Million Users Worldwide
  • Buy with Bank transfer, Credit card, Neteller, Paypal, Skrill, Sofort
  • Free Demo Account, Social Trading Community
  • Free Secure Wallet - Unlosable Private Key
  • Staking Rewards for holding ETH, ADA or TRX
  • Copytrade Winning Crypto Traders - 83.7% Average Yearly Profit
eToro exchange
68% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

Is Bitstamp regulated?

Bitstamp Europe S.A is a CSSF-regulated and authorized payment institution. It became the first nationally licensed Bitcoin exchange in Europe in 2016.

Is Bitstamp safe for cryptocurrency trading?

Yes. Trading cryptocurrency is safe with this platform. Bitstamp uses cold storage to store 98% of assets.

Is Bitstamp available for US-based investors?

Yes. Bitstamp is available to US-based investors. They can use ACH to deposit their funds. US-based investors, however, cannot stake crypto on Bitstamp.

Is Bitstamp the best UK broker for Bitcoin?

Many people claim Bitstamp as the best UK broker for Bitcoin. There is no doubt that Bitstamp is safe, simple to use, and has low fees. However, platforms like eToro have an upper hand when it comes to regulatory concerns.

Is KYC mandatory on Bitstamp?

Yes. For successful deposits and withdrawals of funds, it is mandatory to go through the KYC process on Bitstamp.

Can I use Bitstamp on my mobile?

Yes. The Bitstamp mobile app claims to offer unlimited access and a seamless experience to users. With a user-friendly interface, trading on the go using Bitstamp app is hassle-free.

How to open an account on Bitstamp?

• Opening an account on Bitstamp is simple. • Complete the registration form by visiting the website or mobile app. • Create your account and select the verification option. • Fill out the form and upload documents as per requirement. • Upon verification request approval, move ahead with the KYC process. • Deposit funds and start trading.