Bitstamp Review
Summary
Founded in 2013, Bitstamp is a recognizable name in the crypto-industry. It currently allows you to trade more than 80 cryptocurrencies, which includes Bitcoin (BTC), Ethereum (ETH), and more.
Trading fees are on the higher side for a cryptocurrency exchange (up to 0.4%). However, it’s quick, easy, and free for UK residents to deposit GBP using a UK bank transfer (via FPS). You can deposit GBP with a debit card (4%), but there are cheaper places to do this.
Bitstamp launched in 2013 as the main alternative to Mt. Gox in Europe.
In 2023, it finds itself comfortably within the top 15 exchanges based on daily spot volume and lists more than 80 cryptocurrencies.
If you’re looking for an in-depth review of Bitstamp, the services it offers, and its pros and cons, then look no further – it’s all included below!
Advantages & Disadvantages
Advantages
- Accepts UK residents.
- Easy deposit options for GBP (bank transfer and cards).
- Decent exchange trading fees (max 0.5%).
- Supports more than 80 cryptocurrencies.
- Has a simple and easy to use mobile application.
- Can earn interest on some cryptocurrencies by staking.
- Fast APIs and a quality trading platform.
- Provides access to its own Lightning Network node.
- Ethereum 2.0 (ETH2) can be staked.
Disadvantages
- Not many GBP trading pairs.
- Cost of using a credit or debit card is high (4% fees).
- Low Trustpilot rating (2.3-star, 600+ reviews).
What Is Bitstamp?
Bitstamp was founded in 2011 by two Slovenian entrepreneurs named Nejc Kodric and Damijan Merlak. In 2013, the pair registered the company in the UK where it operated for three years.
By 2016, Bitstamp became fully licensed in Luxemburg, allowing it to operate as a payment processor in all 28 EU member states. Two years later, the exchange was acquired by NXHM, a Belgium-based European investment firm that manages over £2.5 billion in assets.
As of now, Bitstamp remains one of the most well-known exchanges in operation and currently serves over 3 million users, the majority of which are based in Europe.
While the platform is safe and easy to use, it does lack several features that have become commonplace amongst most top cryptocurrency exchanges.
Bitstamps lists its main location as London, England.
It also has offices in New York and Luxembourg.
Bitstamp is still run by founder and current CEO Nejc Kodric.
Along with Nejc, the exchange employs Edward Kemp as CFO and Executive Director. Before Bitstamp, Kemp served as Senior Financial Officer and Executive Director at JP Morgan Bank Luxembourg.
Other notable names include CTO David Osojnik and COO Vasja Jupan.
What Services Does Bitstamp Offer?
The number of services offered by Bitstamp is limited compared to other exchanges like Binance, Kraken, and KuCoin.
Here’s what you’ll be able to do:
- Spot Trading
- Bitstamp Earn
- ProTrader Interface
- Bitstamp Mobile App
- Access to the Bitcoin Lightning Network
Spot Trading
Bitstamp has grown to support more than 80 cryptocurrencies in the last few years. However, this is still noticeably limited compared to other popular cryptocurrency exchanges.
That said, what is available makes up a decent collection of many popular assets – such as Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Ripple (XRP), and others.
And, unfortunately, not many cryptocurrencies can be traded using GBP. However, there are a number of EUR trading pairs.
Bitstamp Earn
Like most exchanges, Bitstamp has implemented a staking program allowing users to earn interest on their cryptocurrency holdings.
There aren’t many supported cryptocurrencies (just 11), but this does include cryptocurrencies like Chainlink (LINK) and stablecoins like Tether (USDT).
If you’re looking for more options than this, then you might want to check out Binance or KuCoin.
Proof of Stake (PoS) is a type of blockchain consensus mechanism used for processing and verifying transactions. It’s also relied upon to provide security and decentralization to a blockchain network.
An alternative consensus method is Proof of Work (PoW), which is currently used by Bitcoin (BTC) and Ethereum (ETH).
For a quality overview of how both systems operate, and an easy-to-understand comparison between the two, check out this article.
Although Bitstamp doesn’t charge any direct fees for staking or unstaking assets, it does collect a commission from its nodes and rewards pool. As of now, this commission is set to 15% and is deducted before rewards are distributed to holders.
ProTrader Interface
Bitstamp’s ProTrader interface is built for professional and high-frequency traders. It comes equipped with many of the standard drawing tools, technical indicators, and customizable features one would expect of a trading station.
If you’re familiar with TradingView, then you’ll feel comfortable using Bitstamp’s ProTrader platform – as it utilizes TradingView’s proprietary trading software.
Only instant, market, limit, and stop orders are currently available through this interface. If you’re looking to access more advanced order types – like stop-limit loss and take profit limit – you might want to check out alternatives like Binance or Kraken.
Still, Bistamp’s APIs provide users with real-time market data and are considered one of the fastest around. As of now, the platform supports FIX, HTTP, and WebSockets APIs.
An Application Programming Interface (API) can be thought of as a bridge or communication channel between two computers or software programs.
In the context of cryptocurrency trading, an API links a user’s trading account with the exchange’s automated trading system and is the primary mechanism through which buy and sell orders are processed. APIs are also used to run automated trading tools like bots.
WebSockets, FIX, and HTTP are three of the most popular APIs currently in use.
To learn more about APIs and how they can be used on Bitstamp, visit here.
It’s not uncommon for trading bots to execute several trades in just a few seconds. While the profit on each individual trade may be low, it can add up when a sizable chunk of transactions are made.
Of course, the price of cryptocurrencies are in constant flux, and if an order is executed too slowly, it might mean that you unexpectedly realise a loss. Because of this, serious traders only use APIs that can deliver market data and execute buy/sell orders at a near-instant rate.
Yes. Through WebSockets, FIX, and HTTP APIs, users can use trading bots.
Even though the ProTrader interface is nicely laid out and easy to read, the higher than average trading fees may make it impractical for high-frequency trading.
On top of this, alternatives like KuCoin, Binance, and Kraken all offer more advanced trading interfaces, access to more cryptocurrencies, and lower trading fees.
Mobile App
Bitstamp’s mobile app is lightweight and easy to use.
In fact, the layout is very similar to Coinbase’s mobile app – giving users quick access to their portfolio, markets, and a quick trade function.
Bitcoin Lightning Network on Bitstamp
The Lightning Network is a layer-2 scaling solution that enables Bitcoin to handle millions of transactions per second – all with very low fees.
Bitstamp runs its own set of Lighting Network nodes that users can connect to and use. Participating in these nodes gives people access to instant Bitcoin (BTC) payments with almost no fees.
To read more about the Bitcoin Lightning Network and its implementation on Bitstamp, visit here.
Some networks, like Bitcoin and Ethereum, are limited in the number of transactions they can process per second. If lots of people are trying to submit transactions to the network, then it might cost more, and/or take longer, for it to be processed.
A layer-2 solution operates on top of its parent blockchain, to which it is connected via a 2-way communication channel. Layer-2 solutions can process information and transactions much faster and at a fraction of the cost compared to their parent chain.
Once processed, the information is relayed back to the parent’s chain. Popular Layer-2 cryptocurrencies include Bitcoin Lightning and Polygon.
How to Buy Cryptocurrency on Bitstamp
You can buy cryptocurrencies on Bitstamp by making a bank transfer or using a card.
Card Payments
For card payments, all major credit/debit cards are accepted and purchases can be made in GBP, EUR, or USD. All card payments are processed instantly and come with a flat 4% fee.
Daily card purchases are limited to 2500 GBP/USD/EUR while monthly purchases are capped at 20,000 GBP/USD/EUR.
To buy cryptocurrency from the Bitstamp website, go to the deposit section and select the card payment option. From there, simply enter your card details, desired cryptocurrency, and the purchase amount.
To link a credit or debit card, users must complete the KYC process. Those who don’t will be limited to depositing cryptocurrency from an external wallet or exchange.
No. Although you can use a debit or credit card to purchase cryptocurrencies on Bitstamp, fiat currency can only be withdrawn via a bank transfer.
If you’re set on withdrawing funds to your debit card or bank account, it’s worth mentioning that Coinbase supports withdrawals through PayPal (which can be directly linked to your debit card/bank account).
To take advantage of this workaround, simply send cryptocurrency from your Bitstamp account to your Coinbase account, sell it, and choose PayPal as the withdrawal option.
You can find out more here.
Bank Transfers
UK residents can deposit GBP for free into their account using a UK bank transfer (via Faster Payments)
Some European customers will be able to make deposits using the Instant SEPA service. Those who don’t have access to this service will be limited to traditional SEPA transfers.
ACH and international wire transfers are also available and can take up to 5 business days to arrive.
To learn more about bank transfers on Bitstamp, visit here.
Instant SEPA transfers work like traditional SEPA transfers but, as the name suggests, are significantly faster. As of now, residents of Belgium, Estonia, Finland, Germany, Lithuania, Luxembourg, and Spain can deposit EUR using an Instant SEPA bank transfer on Bitstamp.
Check out this page to learn more about Instant SEPA deposits on Bitstamp.
Supported Cryptocurrencies
Bitstamp currently supports more than 80 cryptocurrencies.
This includes popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Chainlink (LINK), Compound (COMP), and more.
When trading through the ProTrader interface, only 9 GBP trading pairs are available – two of which are fiat currency pairs:
- BTC/GBP
- ETH/GBP
- LINK/GBP
- LTC/GBP
- OMG/GBP
- XLM/GBP
- XRP/GBP
- GBP/USD*
- GBP/EUR*
*Fiat trading pairs
Supported Countries
Bitstamp accepts users from the UK, all members of the European Union, and over 50 other countries/territories.
Check out this page for a full list of the supported regions.
Anyone opening a Bitstamp account from a country/region not included in the list of supported countries won’t be able to conduct card transactions or deposit money with a bank transfer.
Bitstamp Fees
Trading Fees
Starting at 0.4% for takers and 0.3% for makers, Bitstamp’s trading fees are a middleground between Kraken (which is lower) and Coinbase’s Advanced (which is higher) trading fees.
Check out this page for a complete overview of trading fees and the volume-based discounts available.
Card Purchase
All card purchases come with a flat 4% fee.
When using a credit card, be aware that some providers may classify any purchases made with Bitstamp as a cash advance (which comes with extra charges or interest payments). Some credit card companies will also block transactions on crypto exchanges like Bitstamp.
UK Bank Transfer (via FPS)
All GBP deposits made using a UK bank transfer (via Faster Payments) are accepted free of charge. Withdrawals will cost £2.00 per transaction.
SEPA Transfers
All SEPA deposits (normal and instant) are accepted free of charge. When conducting a withdrawal via the SEPA network, users will be charged €3.00 for the transaction though.
Cryptocurrency Deposits & Withdrawals
As is the standard, all cryptocurrency deposits are accepted free of charge. When withdrawing cryptocurrency to an external exchange or wallet, users can expect to pay a network fee to cover the cost of the transaction.
For some coins, like Bitcoin (BTC) or Ethereum (BTC), this fee can sometimes be higher than you might expect. However, cryptocurrencies like Stellar Lumens (XLM) or Tether (USDT), might cost you next to nothing to withdraw.
Check out this page for a complete overview of the withdrawal fees for each listed cryptocurrency.
Bitstamp Alternatives
Compared to other popular cryptocurrency exchanges, Bitstamp is limited in the services it offers.
Depending on what exactly you’re after, there might be better options out there.
For example, if you’re looking to get access to the highest number of cryptocurrencies, then KuCoin or Binance (which list more than 300) might be worth checking out. Serious cryptocurrency traders will also find better support on cryptocurrency exchanges like Kraken.
Is Bitstamp Safe?
With a 13.2 security rating (April 2023) on CryptoCompare, Bitstamp is considered one of the safer exchanges in operation.
On top of this, Bitstamp is licensed in Europe – which some users may see as being more trustworthy compared to exchanges that are licensed in places like Seychelles or Asia.
Bitstamp did experience a hack in 2015 in which 19,000 Bitcoin (BTC) were stolen. At the time of this hack, the total value of the stolen Bitcoin (BTC) was USD$5 million.
Since then, the exchange has implemented several additional safety features to help keep users accounts safe, including:
- PGP data encryption: All transactions and data exchanged on Bitstamp are encrypted using PGP encryption.
- Pin secured mobile device: Bitstamp requires all users to secure their mobile app with a 6-digit pin.
- Withdrawal address whitelisting: When this feature is enabled, your account will only be able to send cryptocurrencies to addresses you’ve included in your whitelist. To learn more about the security feature, visit here.
- 2FA verification: In 2017, Bitstamp added a 2FA verification option to help users further secure their accounts. There is also a 2FA verification reset process available in case users lose access to their authenticator application.
- Ledger Vault technology: Ledger Vault is a leading provider of custodial technology. By using Ledger Vault, Bitstamp can secure its private keys while still maintaining a high level of liquidity on its platform.
- Intense KYC process: Along with uploading documents and personal/employment information, Bitstamp’s KYC process also includes a short video that has you speak three numbers and move your head based on given instructions.
Final Thoughts: Bitstamp Exchange Review
Despite its limitations, Bitstamp is a quality exchange best suited for individuals who value simplicity and security over anything else.
Here’s what stood out to me:
- You can deposit GBP with a UK bank transfer (via Faster Payments) or make a credit/debit card payment.
- You can only buy a few cryptocurrencies directly with GBP, but you can convert your GBP to EUR (on Bitstamp) and get access to a great number of trading pairs.
- For some European users, you can deposit EUR using a SEPA Instant transfer (which should be noticeably faster than a normal SEPA transfer).
Check out the Bitstamp website to learn more!
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