Bitstamp Exchange Review 2019: Fees, Pros, Cons and Features

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 five 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.

If you don’t have the time to read the entire review, then as an overview, we should note that although Bitstamp offers an easy-to-use and secure cryptocurrency trading platform, we prefer eToro. The key reason for this is that Bitstamp only allows you to buy five different coins, while eToro lists 15. We also found that eToro allows you to short cryptocurrencies, which Bitstamp doesn’t.

 

What is Bitstamp?

Bitstamp is a cryptocurrency exchange 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 five 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 such as eToro, 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.

What cryptocurrencies does Bitstamp support?

Bitstamp only allows you to buy or sell five different cryptocurrencies. We’ve listed these below.

💱 Bitcoin (BTC)

💱 Ethereum (ETH)

💱 Litecoin (LTC)

💱 Bitcoin Cash (BCH)

💱 Ripple (XRP)

In terms of trading pairs, this currently stands at 14. This includes crypto-to-crypto pairs, as well as crypto-to-fiat. We’ve listed the trading pairs that Bitstamp offers below.

💲BTC/USD

💲XRP/USD

💲ETH/USD

💲BCH/USD

💲LTC/USD

💲BTC/EUR

💲BCH/EUR

💲XRP/EUR

💲LTC/EUR

💲BCH/BTC

💲ETH/EUR

💲XRP/BTC

💲LTC/BTC

💲ETH/BTC

Which countries does Bitstamp support?

Bitstamp is a global cryptocurrency exchange that allows users from all of the world to open an account. This means that if you’re looking to deposit funds with a cryptocurrency, then there are no country restrictions. However, if you want to use a debit or credit card to deposit funds into your Bitstamp account, then this only available to certain nations. We’ve listed supported countries below.

Bitstamp fees

In term of fees, Bitstamp makes its money on two key fronts. The platform charges fees to trade, and fees to deposit.

In terms of trading fees, you’ll pay 0.25% for each trade that you make. For example, if you trade $1,000 worth of cryptocurrency, you’ll pay a trading fee of $2.50. You’ll pay this again when you close the trade.

If you’re a professional trader and manager to trade more than $20 million in a single month, then you can get this down to 0.10%.

The trading fees charged by Bitstamp are actually quite expensive in comparison to platforms such as eToro. eToro is a lot more competitive because they build fees into their spreads. However, they are at least slightly cheaper than Coinfloor, who charge 0.30%.

Deposit fees are as follows:

💳 Debit cards: Fixed-fee of $10. For deposits of more than $10,000, you pay 2%.

💳 Credit cards: 5% of the deposit amount (plus any fees that your credit card provider charges)

💳 SEPA (European Bank Transfer): Free

💳 Bank wire: 0.05% transaction charge (minimum/maximum €7.50/€300)

💳 Cryptocurrency: Free

Withdrawal fees

💳 Debit card withdrawals: n/a

💳 Credit card withdrawals: n/a

💳 SEPA (European Bank Withdrawals): €0.90

💳 Bank wire: 0.09% transaction fee (minimum €15)

Bitstamp platform dashboard

Bitstamp is relatively simple to navigate through, however, the trading area itself is a bit more complex. Nevertheless, all of the main dashboard functions are accessible by clicking on one of the links at the top of the screen.

Once you click on the ‘buy/sell’ button, you’ll be taken to the trading area. At the top left-hand side of the page, you can select the specific cryptocurrency pair that you want to trade.

You also have the option of doing an ‘instant order’. This will allow you to avoid going through the more advanced trading area to buy and sell. Simply click on ‘instant order’ on the left-hand side of the page, and follow the instructions.

How to sign up and trade on Bitstamp

Although we would advise you to use a platform such as eToro to buy crypto, if you want to proceed with Bitstamp we’ve provided a simple step-by-step guide below to show you how to get started.

Step 1. Open an account with Bitstamp

Once you visit the Bitstamp homepage, you’ll need to click on register. Next, you’ll need to enter some personal information. This will include your full legal name, email address and country of residence. Make sure that this information is correct as you might need to verify your identity further down the line.

Step 2. Confirm your email address

Before you are able to proceed to the next stage of the registration process, you’ll need to confirm your email address. Head over to your email inbox and click on the verification link that Bitstamp sent you.  Once you do, you’ll be shown your unique account ID.

Make sure that you write this down and store it somewhere safe, as you’ll need this to log in to your Bitstamp account.

You’ll also need to choose a strong password.

Step 3. Increase security on your account

Now that you have opened your Bitstamp account, you can increase the security on your account by setting up two-factor authentication (2FA). This is where you will need to enter a unique code that is extracted from your mobile phone every time you log in, or withdraw funds.

Click on enable two-factor authentication, and write down your authentication key. You’ll need to download Google Authenticator and insert the key.

To increase your account security further, you should also select the option to activate email confirmations. This will require you to confirm an email every time you perform key account functions.

Ultimately, although the above features will keep your Bitstamp account more secure, eToro is much safer. As you are buying cryptocurrencies in the form of CFDs, users can not hack your account with the view of withdrawing your investments out.

Step 4. Verify identity

If you are looking to deposit funds using a cryptocurrency, then you are not required to verify your identity at this point. However, if you want to deposit funds using a real-world payment method such as a debit/credit card or bank account, then you will first need to verify your identity.

Before you get started, make sure that you have access to a government ID, such as a passport or driving license. You’ll also need to have a copy of your proof of residence. This will consist of a utility bill with your address on, or a bank statement.

First go into your Bistsamp account and click on ‘verify’. You should see your account status as unverified. Click on ‘personal account verification’, unless of course, you are a corporate client.

Once you’ve followed the verification steps, you’ll then need to wait around 24 hours for Bitstamp to confirm your documents. As soon as you receive an email stating that your account has been verified, you can proceed to make a fiat-currency deposit.

Step 5. Deposit funds

At the top of the screen, click on ‘deposit. You’ll then see a drop-down list of all the payment methods you can use to fund your account.

Simply choose your preferred payment method, enter the amount of funds you want to deposit, and click on ‘confirm’. If you’ve used a debit or credit card, then you can expect your Bitstamp account to be credited instantly. If you used a bank transfer, then you might need to wait a few days for your funds to show.

Step 6. Buy cryptocurrencies

If you’ve followed our step-by-step up to this point, then you should now have successfully opened an account and deposited funds. Now its time to trade. At the top of the screen, click on ‘buy/sell’.

You then need to select what cryptocurrency trading pair you want to buy or sell.

Once you’re on the trading page for the cryptocurrency you want to buy, simply enter the amount you want to trade, and choose whether you want to buy or sell.

Visit Bitstamp

Is Bitstamp regulated?

Bitstamp is in possession of a payment institution license, which is issued by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.

Is Bitstamp safe?

When going through the process of joining a new cryptocurrency exchange, you want to be sure that the platform is safe and secure. After all, you will be depositing your own money. Cryptocurrency exchanges have a poor history when it comes to keeping customer funds safe, and Bitstamp is not immune from this.

In fact, in 2015 the Bitstamp servers were hacked by bad actors, subsequently stealing more than 19,000 Bitcoin. In today’s money, that amounts to approximately $95 million in customer funds. The Bitstamp exchange was also hacked the year before, however, the criminals didn’t manage to get away with any funds at the time.

With that being said, we cannot endorse Bitstamp when it comes to safety, as your funds are potentially at risk of a future hack. On the contrary, by using a heavily regulated platform such as eToro, your funds are safe.

Bitstamp security measures

Here is what Bitstamp have installed to keep customer funds safe.

🔒 Two-factor authentication (2FA) when performing key account functions (loging in and withdrawing funds)

🔒 Google Authenticator

🔒 Email confirmations

🔒 98% of customer funds held in cold storage

🔒Accounts audited by a ‘Big 4’ accounting firm every year

Does Bitstamp have a wallet?

As Bitstamp is a third party cryptocurrency exchange, the platform does not offer a native wallet. As such, you will need to store your funds in the platform’s online wallet. This is a really insecure way of keeping your cryptocurrencies safe, as if the exchange is hacked, your funds are at risk of theft.

You also won’t have access to your private keys, meaning that you’ll need to trust Bitstamp to keep your funds safe.

Does Bitstamp have an app?

Bitstamp launched its native app in January 2019, so it’s still in its early days. The app is available to download and install on both iOS and Android phones. This will allow you to perform a range of key account features, such as buying and selling cryptocurrencies, viewing trading charts and checking account balances. If you have the app installed but subsequently lose your phone, you can remotely disable the app from your desktop device.

If you do decide to get the Bitstamp app, just make sure that you are downloading the official version. Hackers have been known to create fake cryptocurrency exchange apps, with the view of stealing your login credentials.

Bitstamp customer service

If you require account assistance from the Bitstamp team, there are two options available to you.

📱 Phone support: Available 24 hours a day, 7 days a week, 365 days a year.

📧 Email support: Contact the Bitstamp team via email at any time.

 

❌ Live chat: Bitstamp does not offer live chat, which is a bit of a negative. Other cryptocurrencies brokers such as eToro allow you get in touch via live chat, which is the easiest, fastest and cheapest way to contact support.

Bitstamp pros and cons

Bitstamp vs eToro

To help you make an informed decision in your quest to find the best cryptocurrency exchange for your individual needs, we decided to make a comparison against eToro.

Although eToro offers 15 different cryptocurrencies that you can go long and short on, they also specialize in lots of other asset classes. This includes the trading of stocks and shares, forex, commodities and indices. eToro also has an ultra-secure online wallet, meaning that you can buy and sell cryptocurrencies in a safe environment.

Why we recommend eToro wallet over Bitstamp:

✅eToro offers a total of 15 different cryptocurrencies, as opposed to the 5 that Bitstamp list.

✅Although Bitstamp holds a license from the CFFC in Luxembourg,  eToro is licensed by both the FCA (UK) and CySEC (Cyprus).  The FCA, in particular, is often regarded as one of the most stringent financial regulators globally.

✅Using Bitstamp as your primary cryptocurrency exchange can be a costly experience. Not only are you charged heavily to use a debit or credit card, but you’ll need to pay 0.25% every time you trade. Although this might not sound like a lot, it very quickly adds up if you trade frequently. On the other hand, eToro does not charge any trading fees other than what you see in the spread. Moreover, eToro does not charge anything to deposit funds.

✅Bitstamp focuses exclusively on the 5 cryptocurrencies that they list, which means you are really restricted with what you can trade. eToro not only list 15 cryptocurrencies, but also more than 1,000 investment assets from the forex, stocks and shares, commodities and indices sectors. This allows you to make both short-term investments and long-term investments.

✅As you are trading CFDs at eToro, you don’t need to go through the inefficient process of withdrawing coins to a wallet. Instead, you can securely keep your funds online.

Open your eToro Account

66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Bitstamp conclusion

In conclusion, although Bitstamp is one of the most popular cryptocurrency exchanges in the industry, it is difficult to endorse them as the go-to-platform for buying and selling coins. On the one hand, the platform is super easy to use, and they do allow you to deposit funds with a debit or credit card. However, only certain countries have the option of using a payment card to deposit funds, and their respective fees are really expensive.

It is also disappointing that Bitstamp only lists a total of 5 cryptocurrencies. This is really unusual, especially when one considers the fact that the platform has been operational since 2011.

There are also some ongoing concerns regarding the safety of customer funds. Although Bitstamp has not experienced any hacks (that we know of) since 2015, the fact that hackers were able to steal more than 19,000 Bitcoin is really concerning. With a current value of $95 million, it’s unclear whether or not the exchange would be able to repay stolen funds in today’s money.

This is why believe that you are better off using a highly regulated platform like eToro. Security is not a concern, as the platform is regulated by two major European bodies. Furthermore, there’s no need to worry about somebody stealing your coins, as you’re simply trading CFDs. eToro also gives you more cryptocurrencies to trade, and fees are significantly lower.