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.
Ever since it opened its doors in 2011, Bitstamp has provided a reliable gateway into the crypto universe for individuals and institutions worldwide. It is regularly Europe’s biggest exchange by trading volume and offers trading of BTC, ETH, LTC, BCH and XRP paired with USD, EUR and BTC. Beginners can purchase crypto with credit cards, while experienced traders can use a range of order types and analytical tools.
The exchange is a pioneer in crypto security and regulation, having developed a number of best practices for the industry, like cold storage of assets, multisig wallets and segwit implementation. With a mature approach to the industry, Bitstamp serves as the bridge between traditional finance and crypto.
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).
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 View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view (advanced version) at Bitstamp:
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. 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 flat trading fee is, from 1 August 2019, 0.50%. These trading fees are double the industry average, as the industry average is arguably around 0.25%. However, Bitstamp offers trading fee discounts when you have a large trading volume during the preceding 30 days. Trading fees can become as low as 0.00% (nothing) if the relevant trader has a trading volume during the preceding 30 days of more than USD 10 billion. We doubt that there are any traders meeting that criteria, but if they do, they trade for free. The exact trading fee discounts are set out in the below table:
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 only charges 0.0005 BTC for withdrawing BTC. This is also quite competitive seeing as the global industry average BTC-withdrawal fee is 0.000812 BTC per BTC-withdrawal. Here are a few of the other withdrawal fees:
• Ethereum: 0.001 ETH
• Ripple: 0.02 XRP
• Bitcoin Cash: 0.0001 BCH
• Litecoin: 0.001 LTC
At Bitstamp, you can deposit through both wire transfer and credit cards. This can be helpful especially for newer crypto investors and makes Bitstamp a so called “entry-level exchange”.
As mentioned above, this exchange supports credit card deposits (alone or through the use of any of its associated payment service providers). Other cryptocurrency exchanges that also have this option include: