Bitstamp Review - Everything You Need to Know About The Bitstamp Crypto Exchange
Choosing a cryptocurrency exchange that is secure, trustworthy, and simple to use is a difficult job. For most people, trial and error is the greatest method to find the perfect exchange. However, with our Bitstamp review, you can be certain that our tests and research will assist you in making an educated choice.
You would anticipate a review to include information such as benefits and drawbacks, prices, features, and so on. However, if you want to utilise an exchange, it is essential to first grasp the basic idea upon which it was established in order to invest in the appropriate exchange discovered by the right people with the right intentions.
Overview of the Bitstamp Exchange
Bitstamp is one of the world’s earliest cryptocurrency exchanges, founded in 2011 and headquartered in Luxembourg today. It was the first exchange to compete with Mt. Gox, which was the most popular at the time.
It began in Slovenia, with co-founders Nejc Kodric and Damijan Merlak emphasising safety and dependability. They relocated their activities to the United Kingdom in 2013, but because to a lack of bitcoin laws, there was little public confidence. After all, who could put their confidence in a company that broke the rules?
Midway through 2011, Mt. Gox dominated the European markets, although it was plagued by security issues and hacker attempts. It eventually went bankrupt in 2014, but Bitstamp has yet to establish a solid foundation.
However, all changed in 2016 when they relocated to Luxembourg. The nation has crypto laws in place, making it one of the few in the world to regulate crypto-based transactions.
The Luxembourg government awarded the Bitstamp exchange a licence to operate as a fully regulated payment institution in the EU in April 2016, after extensive negotiations between the government and Bitstamp. This enabled them to do business with all EU member states, and the company has progressed significantly since then.
Bitstamp is one of the top ten crypto exchanges in the world today, according to Coin Market Cap.
In This Review
Bitstamp Exchange Features
The ascent of Bitstamp to the top ten is not accidental. The exchange has given customers excellent services and features while also distinguishing itself for its security and safety. Some of the most notable disadvantages that we will encounter in this Bitstamp analysis are:
1. Trade Fiat for Cryptocurrencies
Fiat currencies may be used to purchase cryptocurrencies. Fiat currencies are those that are officially recognized in their respective nations, such as the US dollar or the European Euro. Some exchanges do not allow this, so you will have to go to another exchange, purchase cryptocurrencies in return for fiat currencies, and then utilize them on the exchange you wish to trade with.
Bitstamp allows both purchasing and trading in USD and EUR, as well as buying but not trading in Swiss Francs and British Pounds.
2. Payment Options That Are Flexible
Many exchanges do not allow you to pay with plastic cards such as credit or debit cards. You may pay with Bitstamp using credit cards, debit cards, or even wire transfers.
3. Consistent Security And Compliance
Bitstamp is secure? The answer is that it is secure enough for you to trust it now and smart enough for you to continue to trust it tomorrow. Bitstamp offers numerous security measures that we’ll go over in detail below, but suffice it to say that they understand how important your privacy and security are to you.
Bitstamp is a reputable regulated exchange that adheres to all AML and KYC requirements. Although opening an account is free, the KYC procedure is rigorous, and you must complete a few verification activities before you can make any deposits or payments.
Aside from that, they were one of only seven out of fifteen cryptocurrency exchanges to reply to the New York Attorney General’s study on openness in anti-hacking measures, security, and business operations. They guaranteed that they had obtained permission from the New York State Department of Financial Services to do business in the state.
Bitstamp is one of the most inexpensive exchanges available. The costs are quite reasonable, despite the fact that it is not the lowest. Although the 5% fee on credit card transactions may seem excessive, it is reasonable given that not all exchanges allow credit card purchases.
The costs vary based on where you reside and the kind of payment method you use, but trading fees start at 0.25 percent and may fall as low as 0.1 percent depending on your transaction volume. As you continue on, you’ll discover a more detailed fee schedule and costs depending on the kind of transaction.
5. Its mobile application is simple to use.
Any Bitstamp review would be incomplete if it did not include one of Bitstamp’s unique selling points – its mobile application. It has a 4.8/5 rating on the Apple App Store, and the app’s dashboard is ideal for keeping track of pricing and market movements. Making purchases and trading inside the app is just as easy, but you may need to spend some time learning the user interface before you can fully depend on it.
The Drawbacks Of Bitstamp
What good is a Bitstamp review if it doesn’t present all sides of the storey? Bitstamp does have a few drawbacks, but they are minor. They are as follows:
1. Coins in Limited Supply
As previously said, Bitstamp offers many benefits and services that appeal to consumers, but they have yet to go further into the cryptocurrency markets. The site does not enable the trade or acquisition of lesser-known currencies and altcoins.
Although this is a minor disadvantage, the exchange supports every major currency and is likely expanding its list as you read this. As you continue on, we’ll take a closer look at the currencies it supports.
2. Unsuitable for Newcomers
If you’ve used other exchanges and are familiar with the world of cryptocurrencies and exchanges, this may not be a problem for you. However, if you are a novice looking to begin your adventure in the crypto market, you will need to take the time to learn the platform’s UI and operating procedures.
The user interface is not one of the simplest to use, and you will most certainly struggle at first. However, once you’re at ease, it’ll be as smooth as butter.
3. Only offers basic customer service
For many people, this is more of an annoyance than a disadvantage. Customer service is extremely active, and they promise to reply to emails within three days. In case of an emergency, they also offer a hotline in the United Kingdom. However, the support staff gets hundreds of help requests every day, so it may take some time for your question to reach them.
The emergency number has a recorded receiver, which means that even if there is a helpline number, your questions will be answered by a bot. This may be aggravating for sophisticated users who have previously attempted the simplest solutions to their issue.
Having said that, their website has a very comprehensive and informative customer FAQ that addresses the majority of the basic and intermediate level problems.
Which coins are supported?
Bitstamp accepts all major cryptocurrencies, including Ethereum, Bitcoin, XRP, Chainlink, Bitcoin Cash, and Litecoin. It also allows for the purchase of the majority of them in either the fiat currencies EUR or USD. When you add them together, you get a total of 80 coins available on this site.
If you believe this figure is lower, you are correct. Some exchanges support more than 200 in total. While the number of currencies is not as appealing as that of their rivals at the time of writing this Bitstamp review, it will suffice. The software already supports the most popular and bankable currencies.
They are also continuously developing. To put this in context, until approximately a month ago, they only offered trades and exchanges in five currencies: BTC, BCH, LTC, ETH, and XRP. However, they have now extended to support LINK, XLM, OMG, USDC, AAVE, UNI, ZRX, BAT, and many more.
The Privacy and Security of Bitstamp
One of the most frequent worries about Bitstamp is its security, despite the fact that its founders established this exchange with security as their primary emphasis. In 2015, the exchange was hacked, and 19,000 BTC were taken. People have had trust problems with them since then.
But, let’s face it, 2015 was a different age. Back then, Bitstamp didn’t even have a worldwide trading licence. Everyone was still learning about the potential of blockchain technology. If you’re still asking questions like ‘is Bitstamp legit?’ today, you’re far behind the times.
Hacking efforts are like to having holes bored into your walls. It is critical how you deal with them once the harm has been done. Following the hack attempt, Bitstamp verified that no client money were lost. Although about $5 million USD was taken, Bitstamp clients did not lose a single cent, as the exchange guaranteed. Following the incident, they rebuilt the platform from the ground up, and as a result of their dedication, it is now one of the safest exchanges in the world.
Two-factor authentication (2FA), text message notifications, and PGP are the three most essential security measures (Pretty Good Privacy). 2FA requires each user to give two types of input to the system in order to be identified as the correct user. Consider your Gmail account password and the pairing number you get on your authorised device as examples of 2FA in action.
PGP is an encryption technology that was designed especially for cryptographic security. This encrypts all communications and data, including system files, text messages, emails, disc partitions, and so forth. Furthermore, each account is carefully validated, and 98 percent of client assets are kept in cold storage and secured with 2FA to prevent hacker attempts.
So, just how secure is Bitstamp? Wouldn’t you agree that it’s safe enough by now?