Bitstamp Review: Is Bitstamp Legit?
Bitstamp is a Swedish-based bitcoin exchange. It puts cryptocurrencies at the center of its operations, even though it lists only five. Founded in 2011 by Nejc Kodrič and Damijan Merlak, it is one of the oldest exchanges around.
For those of you considering cryptocurrency trading, you're not alone. The world of crypto is booming, and exchanges are popping up all over the place.
But if you've never traded before, it can be a bit confusing, so we're here to help with our Bitstamp review. What’s more, you can check our reviews on other
top-popular crypto exchanges to check in 2021.
Today’s Bitstamp review will cover the following topics:
- What Is Bitstamp?
- How to register and pass Bitstamp account verification
- Key features of the exchange
- How to use Bitstamp and its primary services
- Payment methods
- Bitstamp fees
- Level of customer service
- Testimonials of registered users
- FAQ
What Is Bitstamp?
Although the platform is headquartered in Luxembourg, the company's services are available to global clients around the world.
According to Bitstamp review by Safetrading analysts, users can buy and sell the most popular coins, including:
- Bitcoin (BTC)
- Ethereum (ETH)
- Stellar Lumens (XLM)
- Paxos Standard token (PAX)
- Litecoin (LTC)
- Ripple (XRP)
- Bitcoin cash (BCH)
How to Register on the Trading Exchange
If you want to become a Bitstamp customer, the first step you need to take is to create a new account. This Bitstamp review would not be complete without a brief introduction of the sign-up procedure.
Here's a short step-by-step guide on how to sign-up on a dime:
- Visit the official platform and click on the "Register" button.
- Provide personal and financial information and fill up all required fields.
- Confirm the email address you provided during registration.
- Sign in and visit the "Security" tab. We strongly recommend that you check the box next to two-factor authentication (2FA) to keep your account secure.
- Verify your identity with scanned copies of your passport or driver's license. Please note that the exchange also requires users to confirm their residence with a scanned copy of the relevant document.
- Refill your account and wait for the funds to be credited.
Features of the Bitstamp Exchange
The platform looks in no way other than top-level crypto trading platforms. Once you register a new account and deposit funds, you can buy and sell coins using fiat money, namely dollars or euros. Meanwhile, the platform acts as an intermediary between traders.
While reading this Bitstamp review, you should pay special attention to the fact that you are not actually buying coins from the exchange itself. You interact with other sellers and buyers, and the exchange charges a commission for conducting trades.
The proceeds allow the company to organize uninterrupted trading 24/7.
Perhaps the most crucial difference between the crypto exchange and other providers is the option to open long trading positions.
In other words, if you assume that an asset may rise in price in a long-term period, then you can open a corresponding trading position and make a profit. However, the exchange does not allow users to open trade positions with the expectation of a fall in price.
This is a considerable disadvantage - especially for seasoned investors. Often, professionals prefer to open two opposite positions so that if the price behaves unpredictably, they can compensate for their losses.
Bitstamp Review: Trading Services
The core of all exchange services is the so-called trading platform. This trading tool is used for trading crypto coins smoothly. Unfortunately, the exchange limits the number of crypto assets available for trading.
In our opinion, the platform strives to comply with centers on "quality over quantity," so to speak. However, despite the limited supply of crypto assets, you can enjoy high processing speed and smooth operation of all services.
The exchange currently offers the following order types:
- Market
- Limit
- Stop
- Instant
If you prefer to trade on the go, then be sure to install the Bitstamp mobile app. Our experts tested each function and made sure that the platform's mobile version has full functionality and is much easier to manage than the desktop one.
The app is currently available for iOS and Android smartphones and tablets.
Bitstamp Review: Payment Methods
Note that if you live in Europe and have a European bank account, you can fund your trading account using the Single Euro Payments Area (SEPA). In this case, the funds will be guaranteed to be transferred to your trading account ASAP.
Please note that the platform also allows its customers to buy crypto assets using a credit card. However, if you choose this payment method, then be prepared that the exchange will oblige you to pay a 5% commission of the deposit amount.
If you are an adherent of account reloading using an e-wallet, then use the AstroPay option instead.
The depositing procedure looks quite simple and straightforward:
- Sign in to your account
- Go to the "Deposits" section
- Choose a suitable deposit method
- Enter all the required data and the amount of payment
- Click on the "Deposit" button
- Wait until funds are credited to your trading account
- Start trading
Bitstamp Review: Commissions
We analyzed the fees offered by competing crypto exchanges and found that the commission rate by Bitstamp looks slightly more beneficial to the end-user. At the time of this writing this audit, the fee for depositing funds via bank transfer is only 0.05%.
In general, the trading commission amount may differ depending on the volume of trading operations for the purchase or sale of digital assets. If you are trading coins up to $10,000, then the commission is 0.5%.
Users who buy and sell over $10 million worth of crypto assets can expect to see their commission reduced by up to 0.10%.
For our part, we would like to warn you that depositing funds with a debit or credit card will entail an excessive amount of money. You will have to pay 5% of the top-up amount!
The good news is that if you decide to withdraw funds in Bitcoin, Litecoin, and Ethereum, then the exchange commission is 0%. Keep in mind that these are far from all the commissions you may encounter while conducting trading operations, depositing an account, or withdrawing funds.
Bitstamp deposit fees depend on a type of coin you’re going to withdraw. If it concerns the withdrawal of BTC the commission is 0.0005 BTC.
Bitstamp Review: Customer Support
Our experts have tested technical customer support and ensured that the company responds to a message within 24-72 hours.
We also want to point out that the company has created a highly interactive FAQ page. It contains all the comprehensive information for novice users.
Reviews Current Clients
The exchange currently has a 2 stars rating on Trustpilot with 61% bad and 5% poor reviews out of 411 cases. Almost the same thing happens on the popular Reddit platform.
After analyzing tons of comments, we concluded that users are unhappy that the exchange can unilaterally decide on a ban on withdrawals. Moreover, they often give vague wording that the funds were frozen as part of the KYC & AML check.
“Is Bitstamp safe, anyway?“
Yes, but to some extent. Actually, Forbes mentions that Bitstamp USA
was robbed of $5.2m back in 2015. So, it’s hard to say that Bitstamp security is a 100% guarantee of your funds’ safety.
Summary
In conclusion, we would like to say that despite the high popularity of the crypto exchange among global traders, it is difficult for us to recommend it as an ideal trading platform.
Without a doubt, the trading platform looks intuitive and straightforward to use, and it also allows you to fund your account using debit and credit cards. These are obvious benefits!
However, if you look at these advantages impartially, it becomes evident that the number of countries where a trader can use a payment card to fund an account is limited. Moreover, the fees for depositing funds with this payment method are prohibitive.
Therefore, if you still doubt whether it is worth registering on this crypto exchange website, we recommend that you consider more reliable providers with a minimum number of negative reviews.
FAQ to Ease Your Brain
Is Bitstamp legit?
Yes, Bitstamp is legit, as the government of Luxembourg licensed it in 2016. Since that date, the exchange has the right to offer its services all over the EU.
Is Bitstamp better than Coinbase?
No way it is! Bitstamp provides fees that are five or even six times lower than the ones offered by Coinbase. If you are going to trade with large crypto volumes or run lots of trading operations, then it’s better to consider Bitstamp.
Has Bitstamp ever been hacked?
Unfortunately, yes. It was hacked in 2015. Fraudsters managed to steal over $5 million in crypto equivalent.
Can I use Bitstamp in the US?
Yes, it is legal in the United States along with 50 other countries outside the EU.