BitStamp

Rated 4 out of 5
BitStamp

The crypto market keeps growing, and many seek to start adopting crypto assets. However, most of them do not know where or how to trade these assets. BitStamp is one of the available crypto exchanges, and it allows its users to enjoy low fees.

BitStamp is also notable for its relatively simple user interface that is perfect for a new crypto trader to learn from. However, some major cryptocurrencies are missing from its trading list, one of its biggest misdoing.

Company Overview

BitStamp is a Luxembourg-based crypto exchange platform that its CEO Nejc Kodrič founded in August 2011. He was helped by Damijan Merlak to base it in Slovenia but later moved the company’s registration to the UK in April 2013. They also moved the registration to Luxembourg in 2016.

It offers trading services between fiat, Bitcoin, and other cryptos. It also allows free deposits only through the European Union’s single Euro payment area. It knows for its simple-to-use interfaces and competitive fee structure.

Cryptos Offered by Bitstamp

BitStamp offers about 45 crypto assets. It offers these star-studied cryptocurrencies to minimize the risks of users trading ‘poor’ cryptos. However, their selection is much smaller than what most alternatives offer.

Some of the coins that it offers include:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Tether (USDT)
  • Cardano (ADA)
  • USD Coin (USDC)
  • Polygon (MATIC)
  • Litecoin (LTC)
  • Algorand (ALGO)

Opening a trading account with BitStamp is easy and similar to other crypto exchanges. However, be ready to provide anti-money laundering and Know your customer details.

Pros and Cons

Pros

Friendly trading fees: It offers trading fees according to a user’s 30-day trading volume. It has a 0.50% fee system for trades under $10K, and discounts are given as the trading volume increases each month.

An easy-to-use user interface: Unlike some crypto exchange platforms, BitStamp offers a straightforward platform where users can comfortably carry out their trade and remember the procedure afterward.

Availability of a more advanced trading platform for experienced traders: BitStamp offers a regular platform and a trading view. The fee structure is the same for both interfaces, but the trading view is better for experienced traders who want to access more charting features and trading forms.

Good cryptocurrency selection:  Its selection of cryptocurrencies is rigid to reduce the risk of trading lower-rated crypto assets.

Cons

Missing major cryptos: Even though BitStamp has a superb selection of crypto assets, it misses some big crypto assets like Solana, Polkadot, and Avalanche.

Suffered a major hack in 2015: BitStamp has suffered a major crypto hack that cost it 19K BTC. The coins were worth $5M, but now they could be worth more. As a result, users are still not comfortable holding assets in the exchange.

Is It Safe to Trade With Bitstamp?

Even though the exchange has been hacked before, it is safer than other alternatives. Since the incident, it now keeps about 98% of the assets held there in a cold crypto wallet. That way, no one can access the coins without authorization. However, it keeps a small percentage of the stored assets in a hot wallet to facilitate day-to-day trading without delays.

It is also safe for an individual trader as it offers the two-factor authentication method (2FA) and addresses whitelisting.

Final Word

BitStamp is a good exchange platform for both experienced and inexperienced traders. Its customer support services and FAQs section is optimized to simplify the overall trading experience. However, experienced traders can explore other alternatives for more types of trades.