Bitstamp review | The “Big Four” bitcoin exchange | finder.com

Bitstamp bitcoin exchange review – February 2018

Bitstamp is a “Big Four” digital asset exchange that has earned the trust of the global blockchain community.

In 2017, Bitstamp celebrated its sixth anniversary. Over that short period, it has become one of the world’s premier marketplaces for buying and selling bitcoin.

Bitstamp is often referred to as a “Big Four” bitcoin exchange. It has the distinction of being the first fully licensed bitcoin exchange in the world. Today, it commands high liquidity and a truly global client base.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Exchanges like Bitstamp

What is Bitstamp?

Bitstamp is a European Union-based marketplace connecting buyers and sellers of bitcoin and other digital assets. As one of the most trusted names in the cryptocurrency market, Bitstamp allows traders to buy and sell bitcoin safely.

Bitstamp is one of the “Big Four” exchanges that determine the CoinDesk Bitcoin Price Index (XBP), which is based on specific criteria. Currently, the four exchanges representing the BPI include Bitstamp, Coinbase, itBit and OKCoin.

Which cryptocurrency pairs are available?

Bitstamp allows users to add funds through crypto and fiat currencies such as USD, EUR, GBP and CHF. The platform facilitates trading in the following cryptocurrencies:

  • Bitcoin (BTC/USD, BTC/EUR)
  • Ripple (XRP/USD, XRP/EUR, XRP/BTC)
  • Litecoin (LTC/USD, LTC/EUR, LTC/BTC)
  • Ethereum (ETH/USD, ETH/EUR, ETH/BTC)

This means you have the option of trading between cryptocurrency and fiat currency and among cryptocurrencies themselves.

Available countries

Bitstamp is available worldwide, with offices in Luxembourg, the United Kingdom and the United States.

What payment methods are accepted?

Bitstamp accepts the following payment methods:

  • SEPA
  • Credit card
  • International wire transfer
  • Cryptocurrency deposit

How much will it cost me to use Bitstamp?

Like other major exchanges, Bitstamp charges a trading fee, which depends on the user’s 30-day trading history. The more you trade, the more you save on fees.

New accounts and those with the lowest volume are subject to a 0.25% trade fee. The fee declines substantially the more you trade, finally reaching a low of 0.1%. However, you would need to trade more than $20 million USD over a 30-day period to qualify for that ultra-low rate.

Debit card withdrawals, SEPA withdrawals, credit card purchases and international wire transfers are also subject to a fee.

A full breakdown of Bitstamp’s fee schedule, including withdrawal and non-standard processing fees, can be found on the Bitstamp site.

How fast will my funds be available?

In terms of deposits, a bank wire transfer usually takes 2-5 days and a SEPA transfer 1-3 business days to reach your account.

Cryptocurrency deposits depend on how long it takes for the blockchain network to confirm the transaction. Confirmation time is usually 1 hour.

In terms of withdrawals, SEPA zone transfers usually take 2-3 days. Clients outside the SEPA region usually wait 5 business days to receive their funds.

Are there any transfer limits?

To reduce the impact of rounding, Bitstamp stipulates a minimum trade size of $5.00 on all trades.

For SEPA withdrawals, the minimum amount is $10.00.

Is Bitstamp secure?

Bitstamp is generally considered to be one of the safest platforms for buying and selling cryptocurrency. The 2-factor authentication and anti-money laundering guidelines greatly enhance Bitstamp’s security.

The company is also transparent about what information it collects and how it uses it. At the same time, account verification requires a valid government-issued photo ID and proof of residency. These are standard guidelines for regulated bitcoin exchanges.

Customer support

Increased demand has put considerable strain on Bitstamp’s service department. As such, receiving a response may take a little longer than you had planned.

You can contact the customer support team anytime by logging into your account and opening a new ticket. Here, you’ll have access to more than two-dozen categories. However, Bitstamp hopes that its detailed FAQ section will answer most of your questions.

Pros and cons

Pros

  • Globally recognized bitcoin exchange
  • Enables crypto-to-crypto and crypto-to-fiat currency transactions
  • Highly liquid
  • Low transaction fees

Cons

  • May not be suitable for beginners
  • High deposit fees on small amounts of money
  • Limited payment options
  • Limited selection of altcoins

Next steps

Opening an account with Bitstamp is fast, easy and free. To register, go to the homepage and select “Create Account”. After filling out the form, you can login and select your funding method. You will be presented with two main choices: bitcoin you wish to sell, or fiat currency you would like to use to buy bitcoin.

Frequently asked questions

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2 Responses

  1. Default Gravatar
    RayDecember 16, 2017

    One of the cons for Bitstamp, according to the review, is that it may not be suitable for beginners. Why is that?

    • Staff
      ArnoldDecember 21, 2017Staff

      Hi Ray,

      Thanks for your inquiry

      This exchange may be catered to more advance coin traders. If you’re new to cryptocurrency trading, you may find our guide to Bitcoin Trading for Beginners very helpful. The guide will teach you everything you need to know before you start trading.

      Hope this information helps

      Cheers,
      Arnold

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