BitStamp Review
Learning About Its Fees & Verification

trading crypto on bitstamp

If you have been researching cryptocurrencies and how to trade them, then you have likely heard of Bitstamp already. This is one of the leading exchanges and is widely considered as one of the most legit. It was founded in 2011, right when cryptocurrency started to emerge as an alternative to fiat currency.

The company is currently headed by Nejc Kodrič from Slovenia, who is a cofounder of the platform. Back in 2011, the founders were both heavily involved in crypto, particularly Bitcoin and saw a gap in the market for a European based exchange.

Unfortunately, they ran into problems scaling Bistamp in their native Slovenia and sought a move to a major financial hub. First of all they tried to incorporate in London, but faced regulatory hurdles. It is for this reason that the exchange is now based in Luxembourg, which is well known for having liberal banking regulations.

Now in its seventh year, this platform is the biggest marketplace for altcoins in Europe and remains one of the most well known and respected exchanges globally. Unlike other major exchanges, Bitstamp is licensed in the EU and they are on the cutting edge of regulatory approval.

Bitstamp offers a smaller number of coins than other exchanges, which can be a negative. However, others do see this as a smart and cautious approach, as only proven high market cap coins are added for trading.

As you would imagine, Bitstamp is a great place to buy coins. However, it is much more than that and offers a full range of services which include:

investments on electronic money
  • Buying and Selling - The core buy and sell function is all you will need if you just want to invest in altcoins and hold them long term. Bistamp makes this task as simple as possible with an easy to understand interface.
  • Advanced Trading - For those looking to generate a profit from their crypto, there is also access to more advanced trading functionality. This unlocks the ability to take up short or long positions and also place price sensitive buy and sell orders. These functions make high frequency and bot trading possible.
  • Fiat/Crypto Trading trading pairs - Due to their work with financial regulators in Luxembourg, Bitstamp features trading pairs between cryptocurrencies and fiat. Not only does this offer more opportunity for profit if trading, it also increases the liquidity of your digital assets.

Right now, Bitstamp currently supports a select few high market cap coins:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Ripple (XRP)
altcoins supported by the platform

Along with these coins, you can also fund your account with US dollars or Euros. The ease of funding an account is considered to be one of the main benefits of using Bitstamp. Let’s review a bit more information before using this platform.

What Bitstamp Fees Are Charged For Using This Platform?

There is no doubt that Bitstamp is one of the best and most legit cryptocurrency trading platforms out there. The founders made a very smart decision early on by moving to a country with favourable banking regulations and the company has stood the test of time.

While other exchanges started around 2011 have since failed, or fallen into obscurity, Bistamp is still alive and strong.

However, just because this is a large well known exchange it does not automatically make it the best choice for you. Every individual has different investment needs and goals. Before putting a lot of your hard earned money on to Bitstamp or any other platform, it is important to do due diligence.

monitoring financial exchange

That is exactly what we are to help you with in this review!

One of the first things you should consider is the cost involved with using this exchange. You will be glad to know that there is no cost to sign up for an account and become verified, but there are fees for funding your account as well as buying and selling.

If you are working in Euros, deposits to Bit stamp are completely free using SEPA and withdrawals are only 0.90 cents. Credit card fees range from 5-8% which is comparable to other exchanges.

For international customers, wire transfer fees are only 0.05% for deposits and 0.09% for withdrawals. On top of the exchange fees, you should also consider any fees from your bank or financial provider for deposits and withdrawals.

When trading, the fees are also competitive with other platforms. Both maker and taker fees range from 0.10% to 0.25%, depending on what volume you trade per month. The higher your volume, the lower the fee.

Advantages

Some of the advantages of using Bitstamp are outlined below.

  •  High Volume:
    As the exchange of choice for most of Europe and many other users around the world, massive volumes are traded on Bitstamp every day. The result of this is a strong and vibrant marketplace that has high liquidity for all of the coins traded.
  • Advanced Graphing Interface:
    For the more advanced technical traders, Bitstamp is known for having top level graphing  and technical analysis tools. If you are a beginner these may be a little advanced, but for those making a living from trading, these tools are invaluable.
excellent graph preview
  • Fully Licensed:
    One major differentiator between Bit stamp and other exchanges is their licensing. The government of Luxembourg has been very accommodating and has granted the platform full licensing. As a part of the common European Union marketplace, this means that Bitsamp is fully legal and accredited throughout all member states.
  • Trusted:
    This platform is one of the most trusted altcoin sites right now. Despite a past hack, the exchange has recovered well and regained the confidence and trust of users. Since the high profile hack in 2015, there have been no known breaches of security.
  • Debit and Credit Cards Supported:
    Possibly the greatest thing about Bitstamp is their support for purchases with debit and credit cards. By offering these easy to use payment methods, it opens up crypto to even more users and helps to grow the ecosystem.

Disadvantages

Although this is a well regraded exchange, it is not without its negative features. Below you will see some of the disadvantages of using this platform.

  • Private Key Control:
    Like all centralized exchanges, Bitsamp maintains control of your private keys if you are holding cryptocurrency on the exchange. Any coins you have on the platform are therefore susceptible to hacks. For this reason, most users keep the majority of their altcoins on private wallets.
  • Verification:
    A common complaint by users is the length of time it takes to get verified on this exchange. It can take as long as three days for basic verification and even longer for higher levels. This has not been helped by the recent influx of new users.
safe online prescence
  • Limited Number of Cryptos:
    One of the reasons why this exchange is not even more popular is the limited number of digital currencies and trading pairs available. For traders who like to invest in small market cap coins, this makes Bit stamp unsuitable.
  • Limited Availability:
    Partly due to their financial services license, Bitstamp is not available in every country. To maintain their status, the company needs to adhere to certain rules and this is what precludes them from dealing with some customers. Countries where money laundering is a known issue are commonly affected.

Using Online Reviews To Trade Safely on Bistamp Before You Invest

secure transactions online

To help you make the right investment decision, in this review we will now look into some exchange specific issues. This will help you to understand the platform better before putting your money on the line.

First of all, we will look at the methods of verification used by Bitstamp. To maintain their legit licensing in Luxembourg, the company must adhere to the EU know your customer rules. This has led to many complaints about the invasiveness of ID requests.

On top of regular ID documents, you may need to complete lengthy and invasive questionnaires about your trading and funding sources.

Customer service is something that most users are happy with. There will always be complaints about response times when using crypto exchanges, but Bitstamp’s support team are pretty responsive and professional. As altcoins get more and more popular though, there are bound to be big strains on the support ticket system.

Last of all, it is impossible to avoid the topic of the now infamous Bitstamp hack. Back in 2015, details of a $5million hack were released.

According to the information divulged by Bitstamp, a sophisticated phishing attack targeting many employees was successful and 19 000 BTC were stolen from exchange accounts. The fact that so many coins were in online wallets has been a key criticism.

At the time, this was a massive loss and threatened the stability of the exchange. However, they fixed the security issues and their transparency throughout the whole saga helped to maintain confidence in the platform and it’s administration.

Unlike other exchanges that have failed after large hacks, Bitsamp has recovered and continues to grow stronger.

As you can see by reading reviews online, there are both positives and negatives to using Bitstamp. There are lot of factors to consider before opening an account. If you have decided that this exchange is for you though, we have prepared a short guide in this review on how to use this platform.

How to Use Bitstamp Properly:

start trading crypto money on this system

Before diving in and opening an account on Bit stamp, let’s take a look at some of the main features of this exchange.

  • Secure Wallets:
    Bitstamp features secure wallets for all users. Although storing crypto on an exchange long term is not recommended, the solid security of Bitstamp ensures that the coins you use for day to day trading are safe. They have definitely learnt from past security breaches.
  • Free Crypto Withdrawals:
    Moving crypto from the exchange to another platform or wallet is completely free. This is great news for anyone looking to move in or out of this exchange without converting to fiat.
  • Easy Fiat Deposits:
    Among the big exchanges, Bitsamp offers the easiest options for depositing fiat. This is crucial for users new to cryptocurrencies who do not have altcoins to deposit. Having this feature will make Bitstamp a key player in the growth of cryptos.
  • Stability:
    With a high daily volume that ensures good liquidity and a strong back end that can cope with even the heaviest trading loads, this exchange is as stable as they come. When others buckle under pressure, Bitstamp will keep on working.

So how exactly do you get started with Bitstamp? Now we will guide you through the process step by step.

1. Create an Account

The first step is to create an account on the Bit stamp site. Be sure that you use your real details, exactly as they appear on your government issued ID documents. If there is any kind of mismatch, it will make getting verified more difficult.

2. Create a Secure Password

In your activation email, you will be prompted to create a new, secure password. Given that this password will provide access to any funds help on the exchange, you need to make sure it is strong and secure. Don’t share it with anyone and avoid recording it anywhere. Later on after verification, you can set up two factor authentication.

application interface

3. Get Verified

Next, you will need to navigate to the verification section. Without verification, your account is pretty much useless - you will not be able to deposit funds or begin trading. Follow all of the on screen prompts and upload all of the documents requested, Be sure to select the personal account option, unless you are representing a corporate client.

Once you have submitted your request for verification, it will take one to three working days to be completed.

You will not be able to trade until this is done, so sit tight. If you end up trading at high volumes or suspicious activity is detected, you may even have to go through additional verification later on.

4. Fund Your Account

After receiving a notification that your account is verified, you can start buying cryptocurrency. All you need to do is select your desired payment method. Although bank transfers are the cheapest option on this exchange, many people chose to use a debit or credit card due to convenience.

5. Buy Some Crypto

Now you are ready to go. To get your first crypto you need to place an ‘instant’ order. This will initiate a purchase of the selected altcoin at the current market rate. Once you have the hang of the trading system, you can start to use more advanced functions.

As with any digital trading platform (see here), make sure you do your homework and read real user reviews before trading.