There are a lot of well-known names on crypto exchanges like Binance, Huobi, and Coinbase in the cryptocurrency community specifically and the world of digital currencies in general. Bitstamp is mentioned as one of the great exchanges with many useful and friendly utilities, along with very good security methods to buy Bitcoin. Today Cove Markets would like to introduce more details about what is Bitstamp?
What is Bitstamp?
Bitstamp is a bitcoin centralized exchange based in Luxembourg. It allows trading between USD currency and bitcoin cryptocurrency. It allows USD, EUR, GBP, and BTC. Bitstamp is a digital currency exchange that allows users to buy and sell Bitcoin and other cryptocurrencies. The platform was founded in 2011 and is one of the oldest and most well-known crypto exchanges in the industry. Bitstamp is headquartered in Luxembourg and has offices in the United States, the United Kingdom, and Slovenia.
The company is one of the oldest in the industry and is one of the few cryptocurrency exchanges that allow you to trade with fiat currencies. Bitstamp is also one of the best cryptocurrency exchanges, averaging 10-12% of the total BTC trading volume.
Company Overview
The company is headed by CEO Nejc Kodrič, a widely known member of the bitcoin community, who co-founded the company in August 2011 with Damijan Merlak in his native Slovenia, but later moved its registration to the UK in April 2013, then to Luxembourg in 2016. Bitstamp outsourced certain operations to the UK due to the lack of adequate financial and legal services in Slovenia.
When incorporating in the United Kingdom, the company approached the UK’s Financial Conduct Authority for guidance but was told that bitcoin was not classed as a currency, so the exchange was not subject to regulation. Bitstamp says that it instead regulates itself, following a set of best practices to authenticate customers and deter money laundering.
- In September 2013, the company began requiring account holders to verify their identity with copies of their passports and official records of their home address.
- In April 2016, the Luxembourgish government granted a license to Bitstamp to be fully regulated in the EU as a payment institution, allowing it to do business in all 28 EU member states.
- In April 2018, Nexon was rumored to be in talks to purchase Bitstamp.
- In October 2018, Bitstamp was acquired by NXMH, a Belgium-based investment company.
- In October 2020, the Bitstamp matching engine got an update from Nasdaq.
Pros Explained
- One of the main advantages of Bitstamp is that it is one of the few exchanges that allow you to trade with fiat currencies. This means that you can deposit and withdraw USD, EUR, and other fiat currencies with your bank account, debit card, credit cards.
- Another advantage of Bitstamp is that it is a very popular cryptocurrency exchange. This means that there is always a lot of liquidity on the platform, which is important for traders who want to sell and buy cryptocurrencies quickly.
- Bitstamp also has a very good reputation. The company is one of the oldest in the industry and has built a strong reputation over the years.
Cons Explained
- One of the main disadvantages of Bitstamp is that it charges high fees. The trading fee is 0.25%, which is higher than most other exchanges.
- Another disadvantage of Bitstamp is that it doesn’t offer as many altcoins as some of the other exchanges. This can be a problem for traders who want to trade various digital currencies.
Reviewing of Bitstamp
The earliest cryptocurrency exchange still in operation is Bitstamp, which was established in 2011. Today, it supports traders looking to buy and sell a list of 54 and counting cryptocurrencies with competitive trading fees. Users have the option of trading cryptocurrencies via Bitstamp’s straightforward internet trading interface, active trading platform, or mobile applications.
Bitstamp performs a great job of keeping client accounts safe while offering a user-friendly cryptocurrency trading and investment experience, despite the fact that bitcoin trading is dangerous and volatile.
Products and Services
Bitstamp is a cryptocurrency exchange that allows customers to buy, sell, and trade cryptocurrencies. The platform supports Bitcoin, Ethereum, Litecoin, and other major cryptocurrencies. Bitstamp also offers a mobile app for trading on the go other types of advanced trading options.
Spot Trading
Bitstamp also provides a spot trading platform for the major cryptocurrencies, including BTC, ETH and top coins. The exchange operates as a cryptocurrency broker and does not offer derivative contracts for crypto trading. The spot trading platform is suitable for investors who want to buy and hold cryptocurrencies for long-term investment.
Futures Trading
The Bitstamp cryptocurrency exchange does not offer futures contracts for coin trading. Futures contracts are derivative contracts that allow investors to speculate on the future price of an asset. Futures contracts are traded on exchanges and are often used by investors to hedge against the risk of price movements in the underlying asset.
Margin Trading
Margin trading is a type of trading in which investors can trade cryptocurrencies with borrowed capital. This tradind type increases the potential profits but also the risks involved in cryptocurrency trading. The Bitstamp exchange does not offer margin trading.
Tokenized Stocks
There are three stocks of Bitstamp. The most traded one is BTC/USD. There are also stocks for EUR and GBP, but their trading volume is much lower.
Bitstamp is a very popular cryptocurrency exchange, so it is not surprising that its stocks are among the most traded ones. The trading volume of BTC/USD stock is about $1 billion per day.
EUR/USD has a trading volume of about $50 million per day. GBP/USD has a trading volume of about $30 million per day.
Leveraged Tokens
The Bitstamp crypto exchange does not offer leveraged trading. Leveraged trading allows investors to trade cryptocurrencies with borrowed capital. This increases the potential profits but also the risks involved in cryptocurrency trading.
Volatility
The volatility of Bitstamp was relatively high for the first four years of its existence. However, since mid-2014, the price has been relatively stable, with only a few spikes. The most notable price spike occurred in early 2018, when the price of Bitcoin surged to nearly $20,000.
The last 30 days have seen a considerable decline in the value of Bitcoin against the US dollar. On July 25, the price of Bitcoin was trading at around $11,600 but fell sharply to around $9,100 on August 14.
This decline in price has caused the volatility of Bitstamp to increase. In the last 30 days, the volatility of Bitstamp has been 3.33%. This is higher than the 2.94% volatility seen in the last 90 days.
Staking
Bitstamp has also introduced the staking of its digital currency. This is a new service that the company has started and it will be using its own exchange to facilitate the process. The customers can stake their digital currency on the platform and earn rewards for doing so.
There are different types of rewards that the customers can earn by staking their digital currency. The customers can earn daily, weekly, monthly, and yearly rewards. The customers can also get a percentage of the transaction fees that they pay to the exchange according to order types.
The staking service that Bitstamp has introduced is a new way for the customers to earn rewards. The customers can stake their digital currency on the platform and take rewards for doing so. The customers can earn daily, weekly, monthly, and yearly rewards. The customers can also get a percentage of the transaction fees that they pay to the exchange.
Lending
Bitstamp’s lending program allows users to earn interest on their account balances. Interest is paid on the following coins:
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Ripple (XRP)
Users can lend their coins for a period of 1-90 days. Interest is calculated daily and paid out at the end of the loan period. There are no fees for lending coins. Bitstamp does not charge any fees on deposits or withdrawals of cryptocurrency. However, there is a 0.25% fee for all trades.
Read more: Litecoin Vs Bitcoin Comparison: Which Should You Invest 2023?
Digital wallet options and security
Bitstamp offers a variety of digital wallets for storing your cryptocurrencies. The company offers a web wallet, a mobile wallet, and a desktop wallet. Bitstamp uses multiple layers of security to protect your account and funds. The company uses 2-factor authentication (2FA), email verification, and IP address verification.
Bitstamp also provides a variety of security features, such as a password recovery option and a security question.
Trading Fee
Trading fees at Bitstamp start at 0.50% for regular trades for all pairs. This straightforward pricing is on-par with top competitors’ pro platforms. Bitstamp fees aren’t the cheapest around but are certainly not the most expensive.
Fees decrease if you trade more than $10,000 in volume over the prior 30 day period. High-volume traders can see fees drop to as low as 0% on volumes of $20 billion per month or more.
If you use Bitstamp for staking, it takes 15% of your earnings but doesn’t charge any other fees. In addition to trading costs, you may run into these costs when funding and managing your account:
| Payment Method | Bitstamp Fee |
| USD Wallet | No added charge |
| Debit/Credit card | 5% |
| ACH Transfer | No charge |
| Wire Transfer | 0.05% deposit fee, 0.1% withdrawal fee |
| Crypto Conversion | May apply |
| Purchases | 0.50% or less |
| Trades | 0.50% or less |
| Any other fees mentioned | Fees apply when withdrawing cryptocurrency to an external wallet |
Customer Service
Bitstamp provide customer support via email and online chat. The company also has a FAQ section on its website. Bitstamp has a strong security reputation and was hacked only once in 2015. The exchange has implemented multiple layers of security, including 2FA and a cold storage system.
In addition, Bitstamp uses a variety of security measures to protect user funds, such as reserving a percentage of user funds in a separate, offline wallet. Bitstamp also features a number of customer service options, including a live chat, a ticket system, and a knowledge base.
Customer Satisfaction
Bitstamp has a 4.5-star rating on Trustpilot. The company has a 4.5-star rating on Bitcoin.com. However, the exchange does have a withdrawal fee that varies depending on the digital asset being withdrawn. For example, the fee of withdrawing Bitcoin is 0.0005 BTC. Customer satisfaction is generally high, with Bitstamp consistently receiving positive reviews.
Account Management
Bitstamp offers a Coin Management service to help users keep track of their digital assets. The service includes a portfolio tracker, transaction history, and market data. The company also offers a mobile app for Android and iOS devices.
How to use Bitstamp: A beginner’s guide
Bitstamp offers a variety of account management features. The company offers a password recovery option and a security question.
Bitstamp is a digital currency exchange that allows traders to sell and buy crypto. The company also offers a variety of digital wallets, including a mobile app. This guide will show you how to open a Bitstamp account and buy/sell digital assets on the platform.
How to open a Bitstamp account?
To open an account, you must provide your name, email address, and country of residence. You will also need to create a password. Once you have registered for an account, you will need to verify your email.
To sign up for a business account with Bitstamp, just:
- Fill out our corporate account registration form to register your account.
- Pick “Corporate account verification” after creating your account.
- After that, fill out the verification form and submit the necessary files.
- Your inquiry will get a prompt response from our company verification staff.
Depending on their position within a firm, each individual may have their login information, passwords, and permissions in companies where numerous employees need to use the same corporate account at Bitstamp. You will be required to provide name, email, and position information for each user and scans of certain documents throughout the onboarding process. See How I can add numerous users to a corporate account for further details.
NOTE: You may register for a personal and a business account at Bitstamp, but you must open each separately. It is impossible to utilize one account for personal and professional activities. How do you confirm your business account?
Legal entities use corporate accounts for commercial reasons. This implies that you should choose this account type if you wish to trade with money that belongs to your company.
How to buy and sell cryptocurrencies on Bitstamp?
- Log in to your Bitstamp account.
- Go to the “Balances” page.
- Select the currency you want to buy or sell.
- Enter the amount you want to sell, buy crypto.
- Select the “Buy” or “Sell” button.
- Review the transaction and click on the “Confirm” button.
Trading Experience
Bitstamp has a comprehensible platform. The company offers a variety of digital wallets, including a mobile app. Bitstamp has high security, with two-factor authentication and several other security options. However, the company charges high fees for trading and withdrawals.
Read more: Best Crypto Exchanges For Trading In 2023: Centralized Exchanges
FAQs
Is Bitstamp right for you?
Bitstamp is a great choice for users looking for a reliable and user-friendly digital currency exchange. Bitstamp is a great option for both beginners and experienced traders. If you’re new to the world of digital currencies, Bitstamp’s user-friendly interface will make it easy for you to get started. If you’re more experienced, you’ll appreciate the advanced features that Bitstamp offers.
One thing to keep in mind is that Bitstamp does not offer a mobile app. The company offers a variety of features and a mobile app for trading on the go. If you’re looking for an exchange that you can use on the go, you may want to consider another option.
Is Bitstamp Exchange safe?
Yes, Bitstamp is a safe and secure exchange.
What cryptocurrencies does Bitstamp support?
Bitstamp lists a limited selection of cryptocurrencies.It allows trading between fiat currency, bitcoin and other cryptocurrencies. It allows USD, EUR, GBP, Bitcoin, ALGO, XRP, Ethereum, Litecoin, Bitcoin cash, XLM, Link, OMG Network, USD Coin or PAX deposits and withdrawals.
Read more: Cardano vs Ethereum: ADA vs ETH. Which is better 2023?
Litecoin Vs Ethereum Overview: What Crypto You Should Invest 2023?
What happens if I lose my Bitstamp account information?
If you lose your Bitstamp account information, you will need to contact customer support to regain access to your account. Please submit a support ticket or email our support staff at Bitstamp.com they will be pleased to assist.
Conclusion
Bitstamp is a reliable and safe place to trade digital currencies. The company has a strong focus on security and has implemented several industry-leading safety measures. Bitstamp is also one of the few exchanges that allows account holders to use two-factor authentication (2FA). The platform is easy to use and navigate. account holders can easily buy, sell, or trade digital currencies. Bitstamp is a good choice for those looking for a reliable and easy-to-use exchange.
Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.
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