US investors permitted
A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Bitstamp consists of four parts: general information, fees, deposit methods and security.
Bitstamp has very grand statements on their landing page. They say that they are “setting standards”, with which they mean that they are compliant with leading examples of best practice (whatever that means). They claim to have “no hidden fees”, with which they mean that they have a transparent volume-based pricing. The exchange also supports all major credit cards and store 98% of all digital funds offline. The exchange is also subject to a yearly audit by one of the Big Four auditing firms (KPMG, PwC, E&Y and Deloitte).
So, let’s review.
Bitstamp’s domicile country is the United Kingdom. United Kingdom is the country which without a doubt has the most cryptocurrency exchanges in the world. At least that we know of. A non-exhaustive list of exchanges from the UK (in addition to this one) includes Exmo, CEX.io, CoinEgg, Livecoin, DSX, LocalTrade, Bittylicious (funny name by the way), CoinMate, Indacoin, MixCoins, Paybis, Vaultoro, Instant Bitex and eToro.
Bitstamp does not explicitly prohibit US-investors from trading on its exchange. In any event, all US-investors should still do their own independent analysis of any problems arising from their residency or citizenship. In a worst-case scenario, they are still prohibited from trading at one or several exchanges that could be the best cryptocurrency exchange site for them.
Bitstamp Trading fees
Always check the fees! That’s a very important lesson. There are a number of top crypto exchanges who don’t charge different fees between takers and makers. Usually, it is called that such exchanges’ trading fees are “flat”. Bitstamp is one of those exchanges and offers a flat trading fee of 0.25%. The exchange does accordingly not care about whether you are a taker or a maker. For investors who prefer to pick-up existing orders from the order book, this might be an attractive trading fee model.
Bitstamp’s trading fees are in line with the industry average which actually is around 0.25%.
Bitstamp Withdrawal fees
OK, you have read this far and you understand the trading fees of this exchange. But wait, there’s more you need to look out for! One very important fee that easily gets forgotten is the withdrawal fee. Let’s say you trade at a top crypto exchange with trading fees that are competitive enough. You have met your investment goals and you are looking to buy house with bitcoin. But in order to buy the house, you need to withdraw the funds. And BAM! – the exchange can make up for its low trading fees at one fell swoop.
Not Bitstamp though. Bitstamp does not charge any withdrawal fees at all for withdrawing BTC. This is a strong competitive edge in the market and distinguishes Bitstamp from most other top crypto exchanges.
At Bitstamp, you can deposit through both wire transfer and credit cards. This can be helpful especially for newer crypto investors.
Bitstamp’s security score is F, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is below industry average when it comes to top crypto exchanges.
If you have concluded that this is the exchange for you, congratulations! Go for it. But if not, please use our Exchange Finder here to find out which exchange has the best cryptocurrency exchange site for you.