Bitstamp Review: A User-Friendly Crypto Exchange With Affordable Trading Fees
Bitstamp is an excellent choice for investors who are concerned about fees because its commissions are reasonable and significantly lower than what many of its competitors charge. Because it is also simple to use, this cryptocurrency exchange is suitable for users of all experience levels, from novices to experts. However, it is missing quite a few major cryptocurrencies from its lineup, including some of the most popular ones. Check out our in-depth review of Bitstamp to decide whether or not you want to sign up for an account.
Full Bitstamp review
Who Should Use This Cryptocurrency Exchange? Crypto investors who want to keep trading fees to a minimum should consider using this cryptocurrency exchange.
Pros
• Trading costs that are competitive
• It is simple to use.
• There is access to a more developed platform
• Mobile application with very high ratings
• A wide range of available cryptocurrencies
• Earn rewards by staking your cryptocurrency.
Cons
• Absence of major digital currency exchanges
• Compromised in 2015
Top perk
Trading costs that are competitive
When it comes to the fees associated with trading cryptocurrencies, Bitstamp is considered to be among the best exchanges. It has a simple fee structure, in which the amount of money you pay in trading fees is determined by the amount of money you trade in a given month.
On Bitstamp, the trading fee that is the highest is only 0.50% for customers who have a 30-day trading volume of less than $10,000. Users who transact greater amounts each month see a significant reduction in the fees they are charged. That is comparable to or even better than the fees charged by other well-known exchanges.
CONTRAST THE BEST OPTIONS: Check out the list of the top cryptocurrency apps and exchanges compiled by The Ascent.
Simple to operate
When it comes to trading cryptocurrencies on Bitstamp, there is not much of a learning curve. It provides a straightforward platform that makes it easy to learn how to buy and sell cryptocurrencies in a short amount of time. Bitstamp is one of the cryptocurrency exchanges that is considered to be among the more user-friendly options.
Innovative and available platform.
Bitstamp gives its users the option of using either its standard platform or Tradeview, which is an active trading platform. This offers more sophisticated charting capabilities as well as trading forms.
The trading fees on Bitstamp are the same regardless of whether you use the standard platform or the Tradeview platform. This is one of the many advantages of using Bitstamp. On their more advanced platforms, some of the other major exchanges, such as Coinbase and Gemini, have trading fees that are lower. Because there is no difference in price when using Bitstamp, the choice of which platform you use comes down to personal preference.
Highly regarded mobile application
If you have a good mobile app, you will be able to check your portfolio and make trades even when you are not in front of your computer. This is a significant advantage. The Bitstamp mobile app is praised for its comprehensive trading functionality and is available for download on both the App Store and Google Play.
A wide range of cryptocurrencies to choose from.
More than 60 different digital currencies can be traded on the Bitstamp platform. There are exchanges that offer more, but the roster that Bitstamp provides ought to be sufficient to fulfil the requirements of the majority of investors. On this exchange, you can invest in a wide variety of projects, including Bitcoin (BTC) and other market leaders, or you can look for the best places to buy Bitcoin (BTC) and other leading cryptocurrencies. Staking in cryptocurrency allows you to earn rewards.
This cryptocurrency exchange provides a staking programme with the name Bitstamp Earn. You have the ability to earn rewards on any cryptocurrency that you have stored in your Bitstamp account by staking it. Bitstamp Earn was initially launched with two cryptocurrencies: Ethereum (ETH) and Algorand (ALGO). It provides competitive rewards rates on both of these cryptocurrencies.
Do you have further questions regarding staking? Take a look at:
• What Does It Mean to “Stake” in Cryptocurrency?
• The Finest Platforms for Cryptocurrency Staking
Long and successful track record
You won’t discover a cryptocurrency exchange with a longer history than Bitstamp. It was one of the first cryptocurrency exchanges when it opened for business in 2011, and it has outlasted all of its rivals to become the exchange with the longest history. In a market where many exchanges don’t last or run into serious regulatory issues, this stability is a nice selling point to have in your arsenal.
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What aspects could use some work?
Several important cryptocurrencies are absent.
Although there is a good selection of cryptocurrencies available on Bitstamp, there are some notable cryptocurrencies that are not available, such as Solana (SOL) and Polkadot (DOT). Dogecoin (DOGE), a meme coin that Bitstamp CEO Julian Sawyer criticised in 2021, has also been rejected for listing by the exchange.
That would at least make sense if it were a consistent policy of Bitstamp’s, but the exchange went on to list Shiba Inu (SHIB), a meme token inspired by Dogecoin. This contradicts the previous statement. This is a peculiar decision, and despite the fact that Dogecoin is not recommended as a cryptocurrency investment, there is no denying the fact that a great number of people are interested in purchasing it.
The cryptocurrency exchange known as Bitstamp has been the victim of a significant security breach. In 2015, hackers were successful in their phishing attack against employees of Bitstamp, and they stole nearly 19,000 Bitcoin, which had a value of approximately $5 million at the time.
It is important to note that after the hack, Bitstamp completely rebuilt its trading platform and has not experienced any further data breaches since then. Additionally, the exchange made sure that none of their customers lost their own money.
Alternatives to consider
Coinbase offers more than 200 different cryptocurrencies, including the majority of the market leaders as well as plenty of smaller cryptos that have the potential to move up the charts. If you are looking for a wider selection of cryptocurrencies, Coinbase is the place to go. This exchange’s enormous popularity can be attributed, in part, to the fact that it is so user-friendly for novices. Additionally, it provides experienced traders with an advanced trading option that includes additional features.
If you want a crypto rewards program that is more robust, despite the fact that Bitstamp has a good staking program, Gemini is difficult to beat in this particular area. Its Gemini Earn program is straightforward to use and provides attractive interest rates on a wide variety of cryptocurrencies.
How Bitstamp works
Bitstamp is a cryptocurrency exchange that allows users to buy, sell, and trade a variety of different digital assets. You have a variety of options to choose from when it comes to making deposits and withdrawals of funds, such as automatic clearing house (ACH) transfers from a bank account, payments made with a debit or credit card, and international wire transfers. Because there are no fees associated with ACH deposits or withdrawals, sending money through a bank transfer is the most cost-effective method of payment.
Both a website and a mobile application for iOS and Android devices are provided for users of the Bitstamp cryptocurrency exchange. Both of these methods allow you to purchase cryptocurrency. The standard trading platform provided by the exchange is sufficient for the needs of many investors; however, the exchange also provides Tradeview, a trading platform designed for more experienced users.
Bitstamp Earn is an option provided by the exchange for users interested in earning cryptocurrency rewards. You will now have the ability to stake certain cryptocurrencies, which is a method of putting your digital assets to work for you.
Fees overview
Bitstamp uses a tiered fee structure, where your 30-day trading volume determines the level of trading fees you are charged. The following is a list of the fees that will be charged by the exchange to investors whose monthly trading volume is up to $50 million:
Data source: Bitstamp.
Free of charge are all ACH transactions, including deposits and withdrawals. If you only use bank account transfers to fund your Bitstamp account, you will only be subject to Bitstamp’s standard trading fees.
A fee of 5% is added to all card purchases made on Bitstamp. The use of debit and credit cards to purchase cryptocurrencies is almost always subject to a fee, but a fee of 5% is higher than what is typically charged by cryptocurrency exchanges. Regardless, the most convenient way to purchase cryptocurrency is through an electronic check or cash transfer.
Alternative cryptocurrencies to consider.
Bitstamp supports more than sixty different digital currencies. This places it squarely in the centre of the pack when compared to other cryptocurrency apps and exchanges. It has a respectable number of cryptocurrencies, so you won’t be short on investment opportunities, but there are other platforms out there that offer significantly more.
On Bitstamp, you’ll have access to the vast majority of the major cryptocurrencies, including Bitcoin, Ethereum, and the majority of the other market leaders that are considered to be the heavy hitters. The following are some of the most prominent cryptocurrencies that are currently unavailable on Bitstamp:
• Solana
• Polkadot
• Dogecoin
Is it safe to store your cryptocurrency with Bitstamp?
Bitstamp is widely regarded as one of the most secure platforms for trading cryptocurrencies thanks to its robust security measures. The cryptocurrency exchange stores offline, in “cold storage,” 98% of all of its assets. Offline storage is considered to be the safest method of storing cryptocurrencies because it prevents funds from falling into the hands of cybercriminals. The relatively small amount of customer funds that Bitstamp maintains in “hot storage,” also known as storage that is connected to the internet, is what is used for day-to-day trading.
Bitstamp provides an additional layer of security by way of a crime insurance policy that protects against theft. Its insurance covers theft that occurs when the exchange itself is compromised; however, it does not protect your individual account in the event that your login credentials are obtained by an unauthorised party.
Bitstamp provides optional security measures such as two-factor authentication (2FA) and address whitelisting to customers in order to safeguard customer accounts and customer assets. The two-factor authentication (2FA) necessitates that you log in using both your password and an additional form of authentication, such as a code that is sent to your mobile device. Whitelisting an address gives you the ability to select which email addresses are eligible to receive withdrawals from your account.
You should use Bitstamp if any of the following statements are true:
• You wish to find a user-friendly cryptocurrency exchange that charges reasonable fees.
• You want to be able to trade cryptocurrencies on both your computer and your mobile phone.
