Bitstamp is a serviceable platform that allows you to trade in crypto markets. You have the option to choose from dozens of cryptocurrency to buy or sell, and the opportunity to earn staking rewards for a few crypto coins. Bitstamp may be cheaper than other traders who offer liquidity to the market, but those who are most successful will trade huge volumes every month. If you think you will only be trading crypto lightly, it is worth looking elsewhere. Bitstamp is similar to other competitors in that it offers very limited customer support. This includes email, support tickets, self-help and support tickets.
What is Bitstamp?
Bitstamp is a leading cryptocurrency exchange in Luxembourg. It initially focused on European clients but now it offers services to all clients.
Bitstamp was founded in the UK and has since enabled millions of traders to trade cryptocurrency through its Bitstamp trading software.
It provides its users with a variety of educational resources, trading tools and dedicated customer service. Additionally, it offers multiple accounts to its traders.
Bitstamp supports countries such as the UK, Serbia and Switzerland, Iceland. Norway, Greenland. Hong Kong, Singapore. Taiwan. Australia, New Zealand. South Korea. Argentina.
How Bitstamp works
Bitstamp allows you to trade, buy and sell various cryptocurrency types. There are many ways to deposit or withdraw money, including ACH transfers from a banking account, debit cards and credit card payments and international wire transfers. Bank transfers are the most cost-effective payment option, since there is no fee for withdrawals or deposits.
Bitstamp is available both as a web site and as an Android and Apple app. Both options are available for buying crypto. The exchange’s standard platform will suffice for most investors. However, Tradeview is a trading platform that allows advanced users to trade on the platform.
Bitstamp may not have the most extensive selection of coins but it does offer many of the most popular and largest cryptos.
Here is a partial list cryptocurrencies that you can trade on Bitstamp:
- Bitcoin (BTC).
- Ethereum (ETH).
- Ripple (XRP), – This product is not available in the U.S.
- Litecoin (LTC).
- Stellar (XLM)
- OMG Network (OMG).
- Chainlink (LINK).
- Algorand (ALGO).
- Polygon (MATIC).
Users of Bitstamp can access the basic trading dashboard by clicking the navigation bar at top of the screen. You can access the basic dashboard to view all types of transactions such as instant, market and stop orders, as well as limit orders.
Simply choose the cryptocurrency trading pair that interests you and then place an order on the right-hand side.
You can also make crypto (and fiat!) deposits and withdrawals from the basic trading dashboard. You can also manage payment methods from this section. Bitstamp supports several payment options: bank wire transfers and ACH transfers (U.S. Only), SEPA transfers (Eurozone Only), credit/debit cards and crypto transfers.
Along with placing orders and managing deposits/withdrawals, users can also stake certain assets through the dashboard. Bitstamp allows you to stake only two coins at the moment: ETH2 or ALGO. Bitstamp charges a 15% commission on the total reward pool, with no direct fees for staking or unstaking.
Depending on how you fit into the exchange’s fee structure, the commission structure can be both more or less favorable for traders than other exchanges. Bitstamp is different from other brokers who offer a maker-taker model (more on that later). Bitstamp charges a single fee based upon your previous 30-days trading volume. This applies regardless of whether you are adding liquidity or taking it. The fees are the same as elsewhere: the more you trade the lower your fees.
Here is Bitstamp’s commission structure:
|$0 – $10,000||0.50 percent|
|$10,000 – $20,000||0.25 percent|
|$20,000 – $100,000||0.24 percent|
|$100,000 – $200,000||0.22 percent|
|$200,000 – $400,000||0.20 percent|
|$400,000 – $600,000||0.15 percent|
|$600,000 to $1 Million||0.14 percent|
|$1 million – $2 million||0.13 percent|
|$2 million – $4 million||0.12 percent|
|$4 million – $20 million||0.11 percent|
|$20 million – $50 million||0.10 percent|
|$50 million – $100 million||0.07 percent|
|$100 million – $500 million||0.05%|
|$500 million – $2 billion||0.03 percent|
|$2 billion to $6 billion||0.01 percent|
|$6 billion to $20 billion||0.005 percent|
|$20 billion and More||0 percent|
Bitstamp’s fee schedule is broken down into 17 tiers. This is one of the most comprehensive we have seen. You’ll be charged the same fees regardless of whether you are adding liquidity to the market (as a maker) or taking it out (as taker). Bitstamp’s fee structure is better than others – if you’re a taker.
Compare Bitstamp with FTX.US. Bitstamp charges 0.24 percent per trade for every $70,000 of trading volume. FTX.US: For your first $100,000 of trading volume, you’ll be charged 0.40 percent as a taker and 0.10 percent as a maker.
You’ll want to compare Bitstamp with other platforms such as Binance.US where fees start at 0.1% regardless of whether you are a taker or maker and then decline from there. To reach that rate, you would need to trade $20,000,000 at Bitstamp.
Bitstamp offers the opportunity to earn staking rewards on your holdings. Not all crypto exchanges provide this option. Staking rewards are a reward for owners who support cryptocurrency. Staking refers to the act of placing your currency up for verification transactions in a particular cryptocurrency. You’ll receive a payment and risk for committing your holdings.
Bitstamp coordinates staking for your account and then transfers the net reward to you (minus the 15 percent fee). The fee structure is clearly laid out by the exchange, which is unlike rivals who hide their costs by claiming that you will pay a small fee.
At this time, Bitstamp rewards for staking are only available to Algorand and Ethereum. Unfortunately, they are not available for customers from the United States.
Bitstamp’s customer support stands out in a sea of crypto exchanges, where support is often minimal to non-existent. Bitstamp offers what is considered the best in crypto exchanges: self-help sections on the website, as well as support tickets and email. You’ll also receive phone support, which is a rare feature among crypto exchanges.
When you need to explain complex issues, having phone access is a huge advantage.
Bitstamp protects your cryptocurrency. The exchange stores 98% of its assets in cold crypto storage. Because funds are protected from hackers, offline storage is the best type of crypto storage. Bitstamp’s small amount of funds kept in hot storage (connected to the internet) is used for daily trading.
Bitstamp offers additional protection by offering a crime insurance policy that covers theft. The insurance covers theft when the exchange is breached. However, it does not cover individual accounts if your login credentials are stolen.
Bitstamp offers two factor authentication (2FA), and address whitelisting (optional security measures) to protect customer accounts and assets. You will need to log in using your password and another form of authentication such as a code sent by your phone. You can specify which addresses are eligible to receive withdrawals from the account by using address whitelisting.
- Each trade that a user executes on Bitstamp requires them to pay 0.25 percent. If the trade involves $1000 of crypto, then they will need to pay $2.50.
- The fee drops to 0.1% if the user is a professional trader or manager and trades more than $20 million per month. These fees are quite expensive compared to other crypto exchanges.
Bitstamp Deposit Fees
- Bitstamp charges $10 for debit card deposits. For more than $10,000, the deposit fee will be 2%.
- Credit card deposits are subject to a 5% fee plus an additional fee by the credit card provider.
- SEPA – European transfer are available free of charge
- It charges 0.5% transaction fees for wire transfers.
- For depositing crypto – free
- Bitstamp fees for withdrawals from credit cards and debit cards – not applicable
- SEPA European Bank Withdrawal Charges are 0.90 Euros
- For withdrawals, wire transfer fees are 0.09% transaction fees with a minimum of 15 euros
Pros and Cons
|Trading fees competitive||Missing major cryptocurrencies|
|It is simple to use||Lacklustre staking program|
|Advanced platform available||Hacked in 2015|
|Mobile app highly rated|
|Solid selection of cryptocurrency|
Bitstamp is a good place to start for beginners who appreciate the convenience of having 24/7 support and a simple fee structure, as well as the ability to choose from a small number of cryptocurrencies. Bitstamp’s advanced charting capabilities and uptime may appeal to intermediate traders. However, more experienced users might not find these features appealing.
It is available to anyone, but there are other options. Bitstamp is not unique in that it offers 24/7 support and has lower fees than other crypto exchanges.