Last update: Apr 15, 2022

Bitstamp Review

Investors looking to enter the world of cryptocurrencies as traders have to choose a reliable exchange for transactions. Bitstamp is one of the popular options today, but is it the right choice for you? Our Bitstamp review will cover everything you need to know about the exchange to help you make the best decision for your crypto trading career.

  • Bitstamp


    1. Operating Since 2011
    2. Currencies Supported 54
    3. Fees Varies
    4. Deposit Methods Cryptocurrencies, fiat, debit and credit cards
    5. Fiat Currencies Yes
    6. Verification Methods email, 2FA, KYC
    7. Margin Trading No
    8. Futures Trading No

Bitstamp Overview

Bitstamp is the oldest cryptocurrency exchange in existence today. Damijan Merlak and Nejc Kodric launched the exchange in 2011. They moved operations from Slovenia to Luxembourg in 2016 to take advantage of a more favorable legislative environment for cryptocurrency businesses.

The founders launched Bitstamp as a solution for Europeans looking for an alternative to Mt. Gox, the largest crypto exchange in the early 2010s.

Bitstamp accepts clients from all around the world. However, it doesn’t allow credit or debit cards from the U.S. and a few other countries. U.S. clients must fund their accounts using cryptocurrencies or through Automated Clearing House (ACH) deposits.

Newcomers to cryptocurrency looking for a reliable exchange to use outside the more publicized brands may enjoy working with Bitstamp. However, more experienced traders may find the platform a bit limiting compared to some of the biggest competitors.

Cryptocurrency Options on Bitstamp

Bitstamp supports 54 cryptocurrencies, including some of the most popular coins like:

  • Bitcoin (BTC)
  • Ripple (XRP)
  • Ethereum (ETH)
  • Polygon (MATIC)
  • Algorand (ALGO)
  • Chainlink (LINK)
  • OMG Network (OMG)
  • Tether (USDT)

Traders looking for more altcoins may find the cryptocurrency options on the platform restrictive as other popular exchanges offer a selection of 400+ coins. However, if you’d rather avoid trading low volatility coins and focus on only the most liquid ones, the smaller selection of cryptocurrencies may be in your favor.

Bitstamp Trading Experience

Trading on the Bitstamp platform is largely intuitive. Traders can find the main trading dashboard from the navigation bar at the top of the screen. On the dashboard, you can initiate different types of orders, including:

  • Instant
  • Market
  • Stop
  • Limit

Click on the pair you’d like to trade, and you can place an order on the right side of the page.

More advanced traders may prefer trading with Tradeview on Bitstamp. The platform also supports the four main types of orders, but it offers more in-depth technical analysis tools. For example, it contains order books, trading indicators, and a depth chart.

Bitstamp Payment Methods

Traders on Bitstamp can transfer money in several ways. Some of the common options include the following.

Fiat Transfers

Bitstamp allows you to transfer your standard government-backed currencies like euros and dollars into your wallet. You can transform the fiat currency into any cryptocurrency of your choice.

The platform also accepts deposits in British pounds and Swiss francs, but it will automatically convert the amount into euros or dollars before you can buy crypto.

If you’re transferring euros from the Eurozone, it’s best to choose the Single Euro Payments Area (SEPA) transfer option. Bitstamp customers using this method won’t pay any fees. Traders outside the Eurozone can still make an international wire transfer. However, these transfers will incur charges.

Credit and Debit Cards

You can transfer money to Bitstamp using credit or debit cards. There’s a fee for the transfers, but it’s still a convenient solution for many traders. Most card transfers are instant, but bank transfers can take 1-3 days to complete.

Cryptocurrency

Like other major exchanges on the market, you can deposit and withdraw cryptocurrencies on Bitstamp. It’s another instant and cost-effective option to consider. However, you should keep in mind that the brand only supports a few major cryptocurrencies.

Bitstamp Fees and Limits

A Bitstamp review is incomplete without a look at the fees. The trading fees on Bitstamp aren’t the cheapest amongst the cryptocurrency exchanges. The amount you’ll pay on trades varies depending on the size of your position. For transactions under $10,000 in size, the trading fee is 0.5%. Above $10 million, the trading fees fall to 0.1%.

On the transfer front, it’s best to avoid transferring money to Bitstamp using credit or debit cards. There’s a massive 5% fee on deposits and a minimum fee of $10 on withdrawals.

SEPA deposits are free, but withdrawals cost a €3 flat fee.

For international wire transfers outside of SEPA, Bitstamp charges a 0.05% deposit fee. However, they charge a minimum and a maximum with this method. The minimum amount to pay is $7.5, while the maximum is $300. So, it’s a good option for people transferring large sums.

For withdrawals, Bitstamp charges 0.1% of the transaction, with a minimum of $25.

Bitstamp Leveraged Trading

Bitstamp doesn’t support leveraged trading, and they don’t offer derivatives that will allow traders to earn profits while shorting a pair. Therefore, the exchange is a less than ideal platform for highly experienced traders looking to make money from cryptocurrency futures trading and other types of margin trading.

However, the absence of leveraged trading is good news for beginners or traders without the skills necessary to make money from leveraged cryptocurrency trading. Many traders have lost money on cryptocurrency trading due to excessive leverage.

Bitstamp Security

Bitstamp suffered a widely publicized hack in 2015, where it lost 19,000 BTC. The total sum of lost coins amounted to around $5 million at the time ($760 million today!). However, since that hack, the company has put a lot of work into its security.

Today Bitstamp has enabled two-factor authentication for important account activities, and withdrawals require confirmation via email. Other changes they’ve made include the following:

  • Moving user funds to a fully insured cold storage
  • Use of multi-signature hot wallets, which require multiple keys to open
  • Regular audits from top accounting firms

You should keep in mind that the 2015 hack wasn’t a breach of the company’s physical systems. The hackers staged a successful phishing hack targeting the company’s employees. Overall, Bitstamp is a secure and trustworthy exchange.

Bitstamp Account Creation Process

The account creation process on Bitstamp is similar to what you’ll find on other exchanges. You’ll start the process by submitting some personal information and confirming your email address.

Next, you have to choose a strong password and set up two-factor authentication using Authy or Google Authenticator. You can decide when the two-factor authentication requirement will kick in to ensure a smooth user experience. However, it’s important to leave it enabled for important account actions like deposits and withdrawals.

Once you have your account set up, you need to go through the know-your-customer (KYC) process. You’ll need a camera to complete the facial verification stage of the process. Additionally, you’ll need to provide:

  • A valid identity document such as a driver’s license, national identity card, or international passport
  • Proof of residency documents such as your bank account statement or utility bill

Upon completing the KYC, you can activate your account, log in, and deposit funds using any deposit options that appeal to you. Alternatively, you can transfer some cryptocurrency from another wallet. Once the funds appear, you can proceed to buy, sell, and trade cryptocurrency on the platform.

Bitstamp Customer Service

You can reach Bitstamp support through several channels. You can send an email or call over the phone—a rarity in the cryptocurrency exchange world. The company has a detailed FAQ page, so it’s best to search for your question on the page before you call support or send an email.

Not many exchanges can provide better service as far as support options go. Bitstamp remains the only exchange to offer 24/7 direct email and phone support.

Overall Customer Experience

Bitstamp isn’t rated highly across many consumer reviews sites, but that is common in the crypto exchange world. Customers are likely to leave poor reviews when unhappy, but they don’t leave a positive review when they are satisfied.

Some of the complaints against the brand include long wait times for responses to queries and issues with payment processing and withdrawals. The company doesn’t respond to reviews, so it’s difficult to ascertain the veracity of the claims from happy and unhappy customers.

Still, the company has around 4 million users. It’s a fraction of the user base on more popular platforms, but it’s a good sign of a satisfied customer base.

Bitstamp Account Management

You can manage your Bitstamp account by logging in through any of the Bitstamp mobile apps available on Android and iOS or the Desktop app.

Once logged in, you can view charts, check your wallet balances, and buy and sell coins.

FAQs

How Long Do Bitstamp Withdrawals Take?

Bitstamp cryptocurrency withdrawals are instant, but fiat currency withdrawals can take up to five days to complete. Fiat transfers within the SEPA area are typically the fastest.

Is Bitstamp a Wallet or an Exchange?

Bitstamp is a cryptocurrency exchange, but they also supply users with web wallets. However, as your cryptocurrency holdings grow, it’s best to invest in a non-custodial wallet where you’re the only one with access to the keys.

Is Bitstamp Legit?

Bitstamp is a legitimate business with a presence in multiple financial jurisdictions worldwide. Over four million traders trust the platform for their cryptocurrency transactions.

The company was hacked in 2015, but it’s now well-positioned to forestall a recurrence of such an attack. It’s as legitimate as some of the more popular names in the industry.

Bitstamp Pros and Cons

Pros:

  • Major cryptocurrencies on offer
  • Competitive trading fees for high volume trading
  • Intuitive user-interface
  • Trading platform available on mobile and desktop
  • A long history of providing support to crypto traders
  • Flexible deposit and withdrawal options
  • 24/7 phone and email support
  • Good selection of technical analysis software on the trading platforms
  • More than a decade of positive standing

Cons:

  • Only 54 cryptocurrencies supported
  • High fees for debit and credit card purchases
  • No leveraged markets offered
  • No derivatives offered
  • The staking feature is mediocre
  • No live chat functionality
  • Verification may be slow
  • It may not be ideal for beginners

Bitstamp Review: The Bottom Line

Bitstamp is one of the best crypto exchanges to work with if you love the idea of 24/7 support and straightforward fees. Intermediate traders looking for decent charting solutions, speedy transactions, and high-level reliability will also find the platform useful.

However, as highlighted in a section of this Bitstamp review, the platform doesn’t offer a rich selection of coins. The 0.5% trading fees for volumes under $10,000 may also be prohibitive for small retail traders, and the lack of margin trading makes the platform unattractive for advanced traders looking to take more risks.

author Marco Vela

A crypto obssessed digital marketer passionate about making a difference in the world. When he's not behind the computer he can be found hiking, camping and relaxing with his dog.