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 determines 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.
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:
- 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 US$20 million 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 two to five days and a SEPA transfer one to three 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 one hour.
In terms of withdrawals, SEPA zone transfers usually take two to three days. Clients outside the SEPA region usually wait five business days to receive their funds.
Are there any transfer limits?
To reduce the impact of rounding, Bitstamp stipulates a minimum trade size of US$5.00 on all trades.
The minimum international withdrawal is US$50.00.
Is Bitstamp secure?
Bitstamp is generally considered to be one of the safest platforms for buying and selling cryptocurrency. The two-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.
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
- Globally recognised bitcoin exchange
- Enables crypto-to-crypto and crypto-to-fiat currency transactions
- Highly liquid
- Low transaction fees
- May not be suitable for beginners
- High deposit fees on small amounts of money
- Limited payment options
- Limited selection of altcoins
Once you have done your due diligence and decided to trade on Bitstamp, opening an account 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.