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Austin Jacob • June 1st, 2020

Bitstamp Exchange Review (2020)

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Buy Cryptocurrency with Bitstamp

bitstamp home

 

Bitstamp is the longest-running cryptocurrency exchange in the world. Based in Luxembourg, Bitstamp emerged as a competitor to the world-leading Mt. Gox with a focus on the European market.

The exchange has been headquartered in Slovenia, the UK, and most recently in Luxembourg. Local regulations allowed Bitstamp to be licensed as a payment institution and secure the entire EU market.

As a result, Bitstamp is the premier Bitcoin exchange in Europe, and it has a long history of stability, integrity, and stringent self-regulation.

In the long-term, the efforts towards security and reliability have made Bitstamp a trusted financial institution in a market full of uncertainty and emerging regulations.

Which countries can use Bitstamp?

As mentioned earlier, the initial market for Bitstamp are the 28 member states of the European Union. This is the primary demographic targeted by Bitstamp.

However, Bitstamp has included roughly 50 countries outside the EU in their customer base. These include the United States, South Korea, South Africa, China, Brazil, and Australia.

If you are not sure whether Bitstamp supports your country of residence or not, you can inquire through the company’s contact channels for more information.

Compatible Currencies

Bitstamp is designed to allow fiat exchanges with the two most stable reserve currencies in the world: The United States Dollar (USD) and the Euro (EUR).

Once purchased, you can exchange one type of cryptocurrency for another or back into fiat currencies. Keep in mind that every exchange has a small fee, and these fees can add up with frequent transactions.

Payment and Deposit Methods

Bitstamp supports Single Euro Payments Area (SEPA) bank transfers. Individuals and businesses in the Eurozone can enjoy flexibility in cryptocurrency transactions through this transfer system.

Additionally, customers can purchase cryptocurrency directly using their bank’s debit card.

Lastly, Bitstamp supports cryptocurrency purchases with credit cards.

Fees and Limits

Bitstamp has a competitive fee structure that is determined by the volume of an account’s trading activity. Here is their official table for calculating transaction costs:

Fee % 30 days USD volume

  • 0.50% < $10,000
  • 0.25% < $20,000
  • 0.24% < $100,000
  • 0.22% < $200,000
  • 0.20% < $400,000
  • 0.15% < $600,000
  • 0.14% < $1,000,000
  • 0.13% < $2,000,000
  • 0.12% < $4,000,000
  • 0.11% < $20,000,000
  • 0.10% < $50,000,000
  • 0.07% < $100,000,000
  • 0.05% < $500,000,000
  • 0.03% < $2,000,000,000
  • 0.01% < $6,000,000,000
  • 0.005% < $10,000,000,000 0.0% > $10,000,000,000

Does Bitstamp have a mobile app?

Yes, Bitstamp offers a mobile app with all the same functionality of their desktop service.

The mobile app offers fingerprint and face scanning security features to protect your investments.

As for exchange access, the Bitstamp app offers a simplified exchange interface with four order types and live chart data.

For more advanced users, the Tradeview interface is also available through the app.

Localization

Bitstamp supports the following languages:

English, Dutch, Italian, Polish, Slovenian, Finnish, Czech, and Russian.

More languages are available through it’s crowdsourced localization program.

Bitstamp Team

Bitstamp is currently directed by twelve executive officers and a board of directors:

Nejc Kodrič currently serves as Bitstamp’s Chief Executive Officer.

Edward Kemp serves as Bitstamp’s Chief Financial Officer.

Mary Beth Buchanan serves as Bitstamp’s Chief Legal Officer.

David Osojnik serves as Bitstamp’s Chief Technology Officer.

Vasja Zupan serves as Bitstamp’s Chief Operating Officer.

Michel Leyers serves as Bitstamp’s Chief Compliance Officer for the European Union.

Hunter Merghart serves as Bitstamp’s head of United States operations.

Caitlin Barnett serves as Bitstamp’s Chief Compliance Officer for the United States.

The board of directors includes Nejc Kodrič, Hendrik Ghys, Jong Hyun Hong, and Oliver Blower.

Customer Support Options

Bitstamp offers comprehensive customer support through their FAQ section and support channels.

The FAQ section provides answers to common questions about the service, and it also contains detailed instructions for Bitstamp transactions.

Bitstamp responds to support requests over email within a few hours. The company also runs a Twitter account that responds to support requests through direct message.

Lastly, Bitstamp offers traditional phone support through an official support number at (646) 568-9784.

In summary, Bitstamp has excellent support through many channels.

Bitstamp FAQs

Bitstamp offers a very comprehensive FAQ section through their official website. Let’s take a look at some of the most frequently asked questions and their responses:

What is Bitstamp?

The company describes itself as a cryptocurrency exchange based in Europe. The coins offered by Bitstamp are Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple.

What account types do you offer?

Bitstamp offers personal accounts and business accounts. They describe their personal accounts as explicitly non-commercial exchange accounts. On the other hand, business accounts are designed for private entities to carry out cryptocurrency transactions.

Who pays the deposit fee?

Bitstamp charges zero fees for SEPA transactions within the European Union. However, wire transfers carry a minimum $7.50 EUR/USD fee at a total percent rate of 0.05%.

Is it safe to use Bitstamp?

Bitstamp claims to be a safe method for securing cryptocurrency transactions, and their litany of security features certainly back this statement. For one, the exchange offers multi-sig technology for their hot wallets. Secondly, the majority of their holdings are stored offline in cold storage. Only a small portion of their cryptocurrency reserves are stored in hot wallets. However, by the nature of cryptocurrency storage, they cannot extend their security practices to cryptocurrency that is stored directly on user computers.

Can I link my bank account with my Bitstamp account?

At the moment, it does not seem that Bitstamp offers the option to directly link your bank account to your exchange account. Even without the bank account linking option, it is still possible to make direct deposits to your Bitstamp account from your bank. Depending on the bank, fees may be incurred during the transaction. As Bitstamp is based in Europe, European customers will find the best transaction options with the aforementioned no fee SEPA transfers.

Trading Options

Bitstamp offers a FAQ section on the types of trades offered on their exchange. In short, Bitstamp offers instant, limit, market, stop, and trailing stop orders. Without going into too much detail, we can provide a short summary of each types of trade. Instant or market trades open a transaction the moment the user clicks the buy or sell button.

On the other hand, a limit trade will only open when the asset reaches a certain price. Stop orders will automatically close at a certain price to limit losses or take a previously calculated profit.

Finally, a trailing stop order is simply a stop order that automatically adjusts the stopping price to maximize profit. These are the most basic types of orders that you will find in cryptocurrency exchanges, futures exchanges, and foreign currency exchanges.

How can I make my account more secure?

Bitstamp offers four methods for increasing account security: Guidelines for strong passwords, two-factor authentication (2FA), withdrawal email confirmation, device connection security.

Bitstamp recommends using passwords with numbers, symbols, upper and lower case characters. They also offer 2FA that require confirmation on multiple devices to access your account.

Lastly, they advise users to have the latest antivirus and malware protection installed as well as advising against opening emails from untrusted sources

Why use Bitstamp?

Cutting straight to business, is it worth using Bitstamp? Yes, especially if you are a European resident with an interest in investing in cryptocurrency. Let’s take a look at the reasons why.

First, Bitstamp retains a legacy from 2011 as the oldest continuously running cryptocurrency exchange. Exchanges with long histories and official government licensing are easier to trust with your investments.

Secondly, European customers receive reduced fees through SEPA transfers. A zero percent transfer fee is a massive appeal that cannot be beat. Even relatively low transfer fees on other exchanges can add up to substantial amounts over time.

Lastly, the exchange provides very extensive customer support with a detailed site and multiple support channels. This is very important if anything goes wrong with your account. Customer support that is fast and reliable can make the difference between losing or retaining long-term customers. You can access Bitstamp support through their online FAQs page, phone, email, and even through an official support Twitter account.

On top of this, Bitstamp has handled over $700 million in transactions, and a majority of these trades are customers using USD in exchange for major cryptocurrencies. This volume alone is indicative of an exchange that is reliable and capable of sustaining itself in the long-term.

Although focused on Europe, the international nature of Bitstamp has allowed it to attract customers from all over the globe. As cryptocurrency is very similar to the foreign currency exchange, providing services on an international level has allowed for massive expansion.

An advanced trading interface, reliable customer support, solid security practices, international accessibility and languages, low fees, and convenient mobile features make Bitstamp a solid choice for cryptocurrency investors.

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