Bitstamp stands as one of the pioneering cryptocurrency trading platforms, having built an excellent reputation among crypto investors through its long operational history. The exchange supports a diverse range of nearly one hundred different cryptocurrencies. Beyond the well-known Bitcoin and Ethereum, its offerings include numerous smaller cryptocurrencies, top smart contract platforms by market capitalization, and leading DeFi protocols.
While Bitstamp does not provide as extensive a service range as many other major crypto exchanges offer today—such as margin trading, which is popular among professional traders—its platform and fee structure are highly user-friendly. This makes it an excellent choice, especially for those new to cryptocurrency investing.
In addition to its traditional web platform, Bitstamp offers a dedicated mobile application, enabling users to trade and manage their cryptocurrencies on the go. The high-quality Bitstamp mobile app is available for download on both the App Store and Google Play.
Company Overview
Founded in 2011, Bitstamp is the world's oldest operating cryptocurrency exchange. It was established to challenge the then-market leader, Mt. Gox, which is also infamously known for a major security breach. Following the Mt. Gox incident, Bitstamp's popularity grew significantly, and by 2014, it had become one of the most favored trading platforms in the crypto market.
A significant regulatory milestone came in 2016 when Luxembourg granted Bitstamp an official payment institution license. This allowed the exchange to operate under EU regulation and obtain permission to conduct business in all member states.
Over the years, competition among crypto exchanges has intensified, and Bitstamp is no longer the sovereign market leader it once was. Nevertheless, it has maintained its position relatively well and remains one of the world's most popular crypto exchanges by trading volume.
Today, Bitstamp is a reliable and user-friendly cryptocurrency trading platform, particularly well-suited for beginners due to its features and straightforward design. It enjoys significant popularity, especially among European cryptocurrency investors.
Account Registration
Opening a Bitstamp account is designed to be very straightforward from the user's perspective. Creating an account requires providing your name, date of birth, and email address.
After registering, users can log into Bitstamp's services. However, purchasing cryptocurrencies and depositing funds into the service require completing a stronger authentication process (KYC) and setting up two-factor authentication (2FA). Enhanced authentication involves submitting more detailed personal information and uploading a photo of a valid identity document.
Bitstamp prioritizes user security in all its operations, so buying cryptocurrencies or depositing money is not possible without activating two-factor authentication. It is advisable to complete these steps during the account registration process, as it is challenging to get a good overall view of the service and its features if essential functionalities are locked.
Once a customer has completed the above steps, they gain full access to Bitstamp's services. They can then deposit funds and start trading cryptocurrencies.
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Depositing Euros
Trading on Bitstamp requires depositing funds into the account. Depositing euros is made very easy through the Bitstamp mobile app. Simply press the Deposit button on the home screen, then select the currency you wish to deposit—in this case, the euro.
In addition to euro deposits, Bitstamp also supports several other traditional currencies, such as the US dollar and the British pound.
After selecting the euro as the deposit currency in the Deposit menu, a form will appear. Enter the amount you wish to deposit, and the service will provide you with the necessary bank details for the deposit.
Euro deposits are processed via a standard SEPA transfer, and the funds should appear in your Bitstamp account within a couple of banking days. Bitstamp does not charge customers extra fees for euro deposits made via SEPA transfers.
Depositing Cryptocurrencies
Transferring cryptocurrencies to a Bitstamp account is done through the same Deposit menu used for euro deposits. Simply select the cryptocurrency you wish to deposit from the menu. The service will then provide you with a unique cryptocurrency address for that specific asset, to which you can send your deposit.
Bitstamp does not charge additional fees for deposits made with cryptocurrencies.
Cryptocurrency Offerings
Bitstamp offers a slightly narrower selection of cryptocurrencies compared to some other major exchanges. Despite this, the range is extensive enough to excellently meet the needs of both beginner and somewhat more experienced crypto investors.
Bitstamp's cryptocurrency offerings include not only the largest assets by market cap but also some of the most promising smart contract platforms and popular DeFi tokens.
For example, the following popular cryptocurrencies are available on Bitstamp:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP (XRP)
- Cardano (ADA)
- Solana (SOL)
- Polkadot (DOT)
- Polygon (MATIC)
- Dogecoin (DOGE)
In addition to these, Bitstamp offers numerous other cryptocurrencies that have gained significant popularity among investors. The platform typically defines several different trading pairs for the available cryptocurrencies, ensuring smooth trading.
At the time of writing, Bitstamp's selection includes just over 80 cryptocurrencies. The exchange's offerings continue to expand at a steady pace, and the current range is already capable of meeting most crypto investors' needs.
Bitstamp focuses solely on providing traditional spot trading. The platform currently does not offer margin trading, which is particularly popular among professional crypto investors. This is a deliberate choice by Bitstamp, which has stated its desire to keep its service as simple and user-friendly as possible to lower the barrier to entry for people starting their cryptocurrency investment journey.
Buying and Selling Cryptocurrencies
Buying and selling cryptocurrencies on Bitstamp is designed to be as easy as possible.
Press the Markets button in the app's bottom menu and select the trading pair that best suits you. You can trade with cryptocurrencies or euros. In the example below, the BTC/EUR pair is selected, allowing the user to buy bitcoins with euros.
If you have already deposited euros into your Bitstamp wallet, you can use them for trading. Alternatively, you can also buy bitcoins directly with your bank card. It's important to note that when using a bank card, Bitstamp always automatically charges a 4% service fee. All orders are executed instantly on the platform, and the purchased cryptocurrencies will appear immediately in your Bitstamp wallet after the transaction.
Fees and Pricing Structure
Bitstamp has one of the most cost-effective fee structures among market competitors. Cryptocurrency deposits and SEPA transfers to the service are free, and Bitstamp does not charge for cryptocurrency storage either. Trading on Bitstamp is also free for small volumes, as the platform does not charge trading fees if the trading volume remains below one thousand US dollars.
For a more detailed look at Bitstamp's trading fees, refer to the information below. Trading volume is calculated over a 30-day period. FX fees apply to fiat currency trading.
In addition to potential trading fees, Bitstamp also charges users the following basic fees that may apply:
- Buying cryptocurrency with a bank card: 4%
- Fee for withdrawing euros to your bank account: 3 euros
- Cryptocurrency withdrawal fees: vary between different cryptocurrencies
Overall, Bitstamp's fee structure can be described as very user-friendly. Trading fees are very competitive at their best, and cashing out euros costs only three euros. Because of its fees, Bitstamp is an excellent choice especially for the beginner crypto investor who wants to try crypto investing with a smaller amount.
Withdrawals
Withdrawing euros from the service is just as simple as depositing them. Euro withdrawals are done by navigating to the mobile app's bottom menu and selecting euros under Withdraw.
The user must then save their bank account details to the service if they haven't already done so. The chosen euro amount will arrive at your specified bank account within a couple of banking days. When withdrawing euros from the service, users must also account for Bitstamp's fixed fee of three euros for euro withdrawals.
Withdrawing cryptocurrencies from the service is done from the same Withdraw tab used for euro withdrawals. Simply select the cryptocurrency you wish to withdraw from the service to your personal cryptocurrency wallet and fill in the required information on the form. The speed and fees for cryptocurrency withdrawals depend on the chosen asset.
Typically, cryptocurrency withdrawals appear in your personal wallet very quickly, but during busy periods, there may be minor delays.
Bitstamp Earn
Bitstamp offers its customers the opportunity to earn interest income through cryptocurrency staking. Currently, cryptocurrency staking is only possible with two cryptocurrencies: Ethereum (ETH) and Algorand (ALGO).
Those considering staking should note that for Ethereum, the staker must lock the tokens being staked, making it impossible to withdraw them from the Bitstamp service before Ethereum's staking unlocks. Bitstamp has indicated this will happen at the earliest in late 2023. For Algorand, the staked amount can be withdrawn from the Bitstamp Earn service at any time.
Staking can be started by selecting Earn in the mobile app's menu. After this, the view shown below opens up for the user.
Starting cryptocurrency staking requires selecting the cryptocurrency to be staked and depositing it into the Bitstamp Earn service. Just click on the desired currency, select the amount, and press the Deposit button. After this, you will start earning interest income on your chosen currency.
The range of cryptocurrencies that enable staking on Bitstamp is currently relatively limited. However, change is hopefully coming, as Bitstamp announces on its website that it will expand its selection of staking-enabled cryptocurrencies in the very near future.
Bitstamp currently charges a 15% commission on the yields users earn through staking.
Bitstamp Tradeview
Bitstamp Tradeview is Bitstamp's more analytical tool for cryptocurrency trading. It is designed with the needs of somewhat more experienced crypto investors in mind. With Bitstamp Tradeview, the user can get more information about their desired trading pair than the basic view provides.
Tradeview includes five key elements familiar to traders:
- Real-time trading chart
- Trades box, which shows the platform's most recently executed orders
- Order book
- Depth chart, a visual representation of the current state of the order book.
- The user's active orders
Bitstamp Tradeview opens by clicking the Tradeview button in the top bar of Bitstamp's browser version. After this, the view shown in the image below opens up for the user.
From the top left corner of the view, it is possible to switch to the desired trading pair. A downside of the Bitstamp Tradeview is that it is currently only available in Bitstamp's browser version.
Taxation and Security
From a taxation perspective, cryptocurrencies always require initiative from the investor. Taxation does not happen automatically as with many other investment vehicles, such as stocks, and every crypto investor must take care of their own investment accounting and any possible reporting obligations to the tax authorities. Like other cryptocurrency exchanges, Bitstamp does not provide a ready-made tax calculation to the tax authorities.
This article does not delve deeper into taxation, as anyone interested can refer to a comprehensive guide on cryptocurrency taxation.
Bitstamp is the oldest operating cryptocurrency exchange. It would not have survived the storms of the crypto markets to this day if security had not always been its top priority. Today, security is evident in everything Bitstamp does.
This is most apparent to the basic user in that the service cannot be used without two-factor authentication. In most other cryptocurrency exchanges, two-factor authentication is only an optional feature. At Bitstamp, however, it is a requirement for using the entire service.
According to Bitstamp, security is the cornerstone of its operations. Bitstamp stores the majority of customer assets in cold wallets, keeping them out of reach of hackers. Despite its long history, Bitstamp has avoided major hacks and other security-related incidents. Today, Bitstamp is one of the market's safest trading services, and its users can trade on the platform with confidence.
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Frequently Asked Questions
Is Bitstamp suitable for beginners?
Yes, Bitstamp is an excellent choice for beginners due to its user-friendly interface, straightforward fee structure, and strong security measures. The platform is designed to make the process of buying, selling, and storing cryptocurrencies accessible to new investors.
What are the deposit methods available on Bitstamp?
You can deposit funds via SEPA bank transfer (for euros), which is free, or use a bank card, which incurs a 4% fee. Cryptocurrency deposits are also supported and are free of charge.
Does Bitstamp offer staking services?
Yes, Bitstamp offers staking for Ethereum (ETH) and Algorand (ALGO). However, staked ETH tokens are locked until the network upgrade is complete, while ALGO can be unstaked at any time. The platform charges a 15% commission on staking rewards.
How does Bitstamp ensure the security of user funds?
Bitstamp employs robust security measures, including mandatory two-factor authentication (2FA) for all users and storing the vast majority of customer assets in offline cold storage. This significantly reduces the risk of theft from online attacks.
What is Bitstamp's fee structure for trading?
Bitstamp uses a tiered fee structure based on a 30-day trading volume. For volumes under $1,000, the fee is 0% for both makers and takers. Fees decrease as trading volume increases, making it cost-effective for high-volume traders.
Can I use Bitstamp on my mobile phone?
Yes, Bitstamp offers a highly-rated mobile application for both iOS and Android devices. The app provides full functionality for trading, depositing, withdrawing, and monitoring your portfolio on the go.
Final Summary
Bitstamp has been one of the leading cryptocurrency exchanges for over a decade. Despite its long history, it has managed to avoid major scandals. Over the years, Bitstamp has successfully reinvented itself and developed its service, achieving a broad and satisfied user base.
Bitstamp is an extremely user-friendly cryptocurrency trading service, which, thanks to its features and fee structure, is excellently suited especially for beginner crypto investors. Bitstamp also offers its customers an excellent mobile application that stands out positively compared to many competitors'.
If you value an easy and secure cryptocurrency trading service, Bitstamp is absolutely a platform worth trying!