Cryptocurrency Exchange

Bitstamp Review 2022: Is it good for beginners?

Author: Sohrab Khawas

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    Introduction

    There are so many cryptocurrency exchanges now. If you are a beginner and you want to explore the exchange to get a hold of it, we recommend you to try this exchange as the trading fee is 0.00% for a trading volume of less than $1000. Yes, you read it right. In this review, we will explain the pros, cons, and best staking option of this exchange and the overall rating. Read on then… 

    Overview

    Official Web Addresshttps://www.bitstamp.net/ 
    HeadquartersBritish Virgin Islands
    Country of OriginSlovenia
    FoundersNejc Kodric & Damijan Merlak
    Founding Year2011
    Exchange TypeCentralized
    Trading OptionsSpot & Futures
    Trading feesMaker fee (0.00-0.30%) & Taker Fee (0.00-0.40%)
    No of cryptocurrencies80+
    Native TokenNo
    Deposit methodsSEPA, ACH, Bank Transfer, Debit/ Credit Cards
    Deposit feesNo fees
    Withdrawal methodsSEPA, ACH, Bank Transfer
    Withdrawal feesVaries on cryptocurrencies
    Supported Countries100+
    Restricted countries10+
    Supported Fiat currenciesUSD, EUR, GBP
    Mobile AppAvailable on Apple & Google Play Store

    What is Bitstamp?

    Bitstamp is a cryptocurrency agency founded in 2011 by Nejc Kodric & Damijan Merlak in Slovenia. In 2013, it moved its headquarters to the United Kingdom and later moved to Luxembourg in 2016 when it was granted a license to operate in all European regions. In 2018, it was acquired by NXMH, a Belgium-based investment company. 

    They are in 100+ countries with offices in UK, Luxembourg, Slovenia, and USA. The exchange offers spot and futures trading. In addition to that, they offer Staking services also. The maker fee is in the range of 0.00%-0.30% and the taker fee is in the range of 0.00%-0.40%. There are no deposit charges but withdrawal varies for each cryptocurrency. 

    The exchange has a separate wing for US residents named Bitstamp USA and for global customers they have Bitstamp Global. The CEO of Bitstamp Global is Jean Baptiste Graftieaux and the CEO of Bitstamp USA is Robert Zagotta. 

    Note that it was founded in a garage with two laptops and 1000 EUR. As of now, they have 4 million active users using its wide services. 

    Bitstamp Homepage

    Leadership at Bitstamp 

    Bitstamp Leadership 2022

    Features

    • Trading Types – It offers Spot & Futures trading. There is no margin trading available in the platform
    • Trading fees – it provides trading fees based on the Maker-taker fee model with regards to 30-day trading volume. The maker fee is in the range of 0.00%-0.30% & taker fee is in the range of 0.00%-0.30%. 
    • Crypto Pulse – It is a survey report conducted by the company every quarter to understand the level of trust in crypto by its consumers. The data is collected from more than 5000 institutional and 23,000 retail consumers.
    • Affiliate Programme – Content creators and influencers can apply for a program where they will get 50% trading fees as commission from every referee they bring into the exchange for the first 4 months. 
    • Learning Program – It provides a learning section for both beginner and pro traders. You can find articles, videos, and ho-to-guides on all topics related to cryptocurrency and blockchain. 
    • Staking – It provides staking services where you can put your cryptos to work. You can earn up to 4.5% APY on ETH & 1.6% APY on ALGO. The exchange will charge 15% of the rewards as fees. 

    Cryptocurrencies Available on Bitstamp

    The exchange offers more than 70 cryptocurrencies on its platform. Even though it is a minus point for pro traders, it is enough for beginners. There are deposit charges for crypto deposits. The popular cryptocurrencies on the exchange are:

    • Bitcoin
    • Ethereum
    • Litecoin
    • Cardano
    • XRP
    • USD Coin
    • Tether
    • Polygon
    • Polkadot
    • Shiba Inu

    How to Create an Account on Bitstamp?

    Let us learn how to create an account on Bitstamp

    1. Log on to the Bitstamp website
    2. Click [Get Started]
    3. Type your name, email address, and date of birth
    4. You will get a confirmation mail in your inbox. Click on the link
    5. Set a password and click [Continue]
    6. Complete the verification process by entering your mobile number
    7. Enter the authentication code
    8. Enter your home address
    9. Upload a Passport or any govt issued photo ID by getting a secured link on the phone
    10. Record your selfie video and submit the verification from Laptop
    11. Submit your basic financial details and click [Continue]
    12. Upload Proof of residence. The document can be a photo ID issued by the government, a bank statement, or a utility bill. 
    13. You will receive a notification in an email once the verification is complete

    How to Buy Cryptocurrency on Bitstamp?

    Let us learn how to buy cryptocurrency on Bitstamp

    1. Log on to your Bitstamp account
    2. Make sure your account is verified and deposit Fiat currency in your account using a Bank transfer or wire transfer
    3. Choose your preferred trading pair and how much you have to spend and place an order
    4. You can also buy using credit/ debit cards

    How to Sell Cryptocurrency on Bitstamp?

    Let us learn how to sell cryptocurrency on Bitstamp

    1. Log on to your Bitstamp account
    2. To make an instant sell order & click on [Sell]
    3. Enter the amount of cryptocurrency you want to sell and the currency you want to receive
    4. Review the order and confirm the transaction
    5. You will get a notification once the order is complete

    How to Deposit Cryptocurrency on Bitstamp?

    Let us learn how to deposit cryptocurrency on Bitstamp

    1. Log on to your Bitstamp account. Make sure it is verified
    2. Click on deposit and select the cryptocurrency you want to deposit
    3. Copy the deposit address and paste it into your previous exchange/ wallet
    4. Select the correct network, and enter a tag or memo if necessary
    5. Click [Submit]
    6. You will get a notification once the transaction is complete

    How to Withdraw Cryptocurrency on Bitstamp?

    Let us learn how to withdraw cryptocurrency on Bitstamp

    1. Log on to your Bitstamp account
    2. Click on [Withdraw]. 
    3. Select the cryptocurrency you want to withdraw
    4. Paste the destination address and select the network
    5. Enter tag/ memo if necessary
    6. Click [Submit]. Your transaction will be processed

    Exchange Fees and Supported Payments

    There are no charges for depositing cryptocurrencies and fiat currencies. However, for withdrawal, the charges vary from cryptocurrencies. A detailed breakdown of the fee structure can be viewed here.

    The exchange uses a maker-taker fee model to calculate the trading fees. 30-day Trading volume is also considered while calculating the fees. The maker fees are in the range of 0.00% – 0.30% and the taker fees are in the range of 0.00% – 0.40%. 

    One important thing to note is that it charges no trading fees for a trading volume of lesser than 1000 dollars which makes it appealing for beginners. 

    The detailed list of trading fees can be seen below in the table.

    30 Days USD VolumeStandard Maker Fee %Standard Taker Fee %FX Maker Fee %FX Taker fee %
    < $1,0000.00%0.00%0.00%0.00%
    > $1,0000.30%0.40%0.06%0.08%
    > $10,0000.20%0.30%0.04%0.06%
    > $100,0000.10%0.20%0.02%0.04%
    > $500,0000.08%0.18%0.02%0.04%
    > $1,500,0000.06%0.16%0.01%0.03%
    > $5,000,0000.03%0.12%0.01%0.02%
    > $20,000,0000.02%0.10%0.00%0.02%
    > $50,000,0000.01%0.08%0.00%0.02%
    > $100,000,0000.00%0.06%0.00%0.01%
    > $250,000,0000.00%0.05%0.00%0.01%
    > $1,000,000,0000.00%0.03%0.00%0.01%

    Staking fees

    There are no direct fees for staking and un-staking. However, when the reward is distributed the exchange takes 15% of the reward

    CryptocurrencyFee %Reward
    ETH215.00%4.50%
    ALGO15.00%1.6%

    Fiat Payments

    If you are purchasing cryptocurrencies using instant purchase methods (Debit/ credit cards, Google Pay, Apple Pay, PayPal), the exchange will charge 4%. The card issuers may carry an additional fee also

    Transaction MethodDeposit FeeWithdrawal Fee
    SEPAFree3.00 EUR
    ACHFreeFree
    Faster Payments (UK)Free2.00 GBP
    International Wire0.05%0.10%

    Affiliate Program 

    Bitstamp offers an affiliate program where you can earn up to 50% of trading fees as commission for the first 4 months. If you are a content creator or influencer, you can definitely try this program as this is advantageous. 

    Mobile App

    Bitstamp mobile app is available on both Google Play Store and Apple App store. With more than a 3.4-star rating, the app is accessible to the eye and easy to navigate and place orders. It allows you to select and put cryptocurrencies in your watch list for easy tracking of prices. If you are an advanced trader, you can easily place different order types, analyze the market trends and inspect the entire order book. If you have any problems with the app you can mail to [email protected] which will be replied to in 24 hours. 

    Customer Support

    In order to contact customer support you need to log in to your Bitstamp account. In the profile section, you can see the support link. Click on the link and raise an email ticket with a screenshot if necessary. The email will be replied to in 24-48 hours. There is also phone support and chat support. You can also contact us them +44 20 3868 9628 or +1 800 712 5702. There is also a generic help section where you can find general responses to the queries related to your account. 

    Recent Updates

    May 2022 – Bitstamp announces new CEO as Jean Baptiste Graftieaux

    Oct 2022 – Bitstamp is one of the top CEXs as per CryptoCompare’s report

    Conclusion 

    Bitstamp is one of the oldest and most successful running exchanges in the world offering trading and staking services for cryptocurrencies. It offers 70+ cryptocurrencies on the exchange which is the ideal number for beginners. One of the plus points of this exchange is that it charges no trading fees for a trading volume of less than $1000. So for beginners who want to try out crypto exchanges, Bitstamp definitely stands out from other exchanges

    It has a nominal trading fee for high-volume traders. The other earning programs include staking and affiliate program. It supports major fiat currencies and there are no deposit charges for crypto deposits. Note that, only verified users can trade, deposit and withdraw cryptocurrencies on its platform. 

    Coming to security, the firm stores 98% of its assets in cold storage, and the rest is made available for daily transactions. Other security features include whitelisting, email confirmation, 2FA, device restriction, etc

    We recommend this agency for beginners as it has a competitive trading fee and supports major cryptocurrencies which are necessary for beginners. 

    FAQs

    Is Bitstamp safe?

    Bitstamp stores 98% of the cryptocurrencies in cold storage. It also has industry-standard features like 2FA, device restriction, whitelisting, email confirmation, etc. However, it was hacked in 2015 where it lost 19,000 BTC.

    Has Bitstamp been ever hacked?

    Bitstamp was hacked in 2015 and employees fell prey to phishing attacks. The hackers stole around 19,000 BTC which was valued at $5 million at that time. The withdrawal was temporarily suspended following the attack. 

    Has Bitstamp been ever hacked?

    Bitstamp was hacked in 2015 and employees fell prey to phishing attacks. The hackers stole around 19,000 BTC which was valued at $5 million at that time. The withdrawal was temporarily suspended following the attack. 

    Can I use Bitstamp without verification?

    In order to use the full features of Bitstamp users need to verify their identity. They can submit government-issued photo ID proof like driving license, passport, etc. They also need to upload a selfie video to verify their identity. Verified users have full access to buy, sell, deposit, and withdraw cryptocurrencies from the exchange. 

    Is it available in the USA?

    Bitstamp has an exclusive exchange for US residents named – Bitstamp USA. It follows all US regulatory guidelines and is audited by the Big 4 accounting firm in the world. 

    Bitstamp - 8.6

    8.6

    Bitstamp Rating

    • Trading & Transaction Fees
    • Learning Programs
    • Website Transparency
    • Security
    Overall
    3.3

    Pros

    • The minimum order size is 10 EUR
    • Available for US Residents
    • Phone support available for customers
    • Low fees for high volume traders
    • Supports major fiat currencies like EUR, GBP & USD
    • Multiple Payment methods are available
    • No trading fees for a trading volume of less than $1000 which makes the exchange ideal for beginners

    Cons

    • It has been hacked where it lost around 19,000 BTC in 2015
    • High minimum fees for fiat withdrawals
    • The slow account verification process
    • Margin trading is not available
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