This review concerns Bitstamp, an online exchange platform that offers services regarding cryptocurrencies. The information that you will get from this article will help you choose the best option available to you as a trader.
The investigation contains personal take on the online business, with pros, cons and concluding remarks serving as a general remark on the exchange.
About the Exchange
Bitstamp is a cryptocurrency exchange based in the UK, operated by a Slovenian management team. The company has registered business units in the United Kingdom, Luxemburg and United States, thus has global market reach. Customers from different parts of the planet can trade with bitcoins, Ethereum, Litecoin, and Ripple.
Bitstamp offers both instant exchange and margin trading services for its clients. Platform orients towards both starters and experts, with an adjustable interface that suits different needs of traders.
Apart from web marketplace, crypto investors can download free apps for phones, with both iOS and Android being supported by the company.
Registration and Verification
Registration at Bitstamp takes a different approach than other exchanges. When creating an account on the platform, you shall be provided with system-generated username and password. Your email serves as recovery item should you happen to lose your codes, while password should be changed as soon as you log in.
Anyone with a credit card or bank account, linked to his or her name, is eligible to participate in trade activities at Bitstamp. No matter if you are located in Germany or Mexico, you can use the different trade platforms that company offers. Thus, Bitstamp has a larger market reach than exchanges like Coinbase, which has limited regional coverage.
Deposit/Withdrawal Methods and Fees
At Bitstamp, you can fund your account using bank transfers and credit/debit cards. The bank transfer deposits cost 0.05% if carried out through international wire transfer, while SEPA accounts are free. Credit cards stand at 5%, much like at Coinmama, though higher than at Coinbase, which charges 3.99% its customers.
The withdrawals are carried out through bank transfers only, with fees standing at 0.09% (minimum $15). Apart from deposit/withdrawal costs, Bitstamp implements a single trading system. The fees range between 0.25% and 0.1%, depending on monthly trade volume achieved.
Bitstamp offers several layers of protection for its customers, with functions that you can use being:
– two-factor authentication (2FA)
– email notification system
– password manager
Apart from personal protection, the company keeps a large portion of coins in offline cold storages. Bitstamp also provides audited reports on a yearly basis, since it operates as a government regulated business.
Thus, we deem the platform as more secure than other businesses in the industry, as P2P platforms offer little to no protection and exchanges usually providing 2FA only.
Pros and Cons
Apart from 2FA, you only have distribution history as a security measure. Much like Coinmate and Bleutrade, the security level is low at Binance, especially since the company deals with ICO who might turn out to be quite profitable.
Exmo, Coinbase, and Bitfinex all offer email notifications, providing an additional layer of protection for its customers.
+ offers both instant and margin trading
+ globally available services
+ adequate security tools
– somewhat high credit card fees of 5%
– verification is mandatory prior to the trade
Bitstamp offers something for everyone, though at a little bit higher price than its competition. Starters can use instant exchange platform, while experts might want to try out the margin trading at Bitstamp.
In both cases, verification of one’s identity is a must while, as a compensation, security is of better quality than what most competitors have.