Bitstamp Review | Read all about this crypto broker! - 2021

Bitstamp

You probably come across it regularly while viewing a TradeView: the name "Bitstamp". Why is Bitstamp so present in TradeView? What kind of company is it? If you're interested in crypto-currencies, you might want to check out more charts from Bitstamp. We cover it all in this Bitstamp review.

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Cryptocurrency is a big deal in the world of investing, as is the place where these coins are bought and sold: cryptocurrency exchanges. One of these is starting to become more and more famous, namely Bitstamp.

We are going to take a look at how reliable and safe Bitstamp is to trade your crypto coins in this Bitstamp review, and of course at what the advantages and disadvantages of the exchange company are.

Read on quickly to learn more about Bitstamp experiences in this Bitstamp review, and whether it might be your ideal place to buy your crypto currency!

What is Bitstamp?

As mentioned earlier, buying and selling crypto currency takes place on the exchanges intended for this purpose. These exist in many forms, and it is important that you know what each exchange offers, and whether it is suitable for your trade in the crypto currency.

This brings us to Bitstamp. This exchange is not so big in its offer of different coins, but for some reason it is a big name in the world of cryptocurrency. Why is this?

Bitstamp Review

Before we take you through the pros and cons of Bitstamp in this review, we will briefly explain where this cryptocurrency exchange comes from. Because how did a company that was founded in Slovenia in 2011 get so many regular users in a short time, not only in Europe, but also in the rest of the world?

This is probably due not only to the fact that both founders, Nejc Kodrič and Damijan Merlak, were already very well known in the crypto world, but also because Bitstamp is known to be reliable and to give a trusted feeling to their users.

In this Bitstamp review, you will see that Bitstamp has been around for quite a long time in the cryptocurrency world. Therefore, many comparisons were made with other legacy exchanges such as Bitstamp vs Kraken.

The question of whether Bitstamp was reliable for investors is still not entirely clear. Many Bitstamp experiences show that there are problems with the service and that some investors have lost their money or had data sold.

But do we recommend it? Read on in this Bitstamp review about our opinion on the security but also user-friendliness of Bitstamp, the Bitstamp wallet and all Bitstamp experiences!

How can I invest myself?

Bitstamp is now an indispensable part of the world of cryptocurrencies. Are you interested in trading crypto currencies yourself? In just a few simple steps you have done it. Investing can be difficult when you are new to this, but with the right help you can learn to make choices so you can invest exactly the way you want to!

Read this Bitstamp review first to make sure this is the investment for you, or go straight to Step 1 to get your investing adventure started!

Step 1: Choose an online broker

Step 4: Choose your crypto currency

Step 2: Create an account

Step 5: Maintain your wallet

Step 3: Deposit money

Start directly with eToro

Step 1: Choose an online broker

In the world of investing, you will often come across online brokers. Also, if you want to start investing with Bitstamp, finding a suitable broker is an important step to take first. But what is an online broker?

Online brokers are companies that make it possible to trade in investment products, such as Bitstamp. Many brokers also help beginning investors make the right choices.

They also help to provide an overview of all available securities and the corresponding prices. On behalf of the investor, the broker eventually also executes the transaction. Below in the Bitstamp review we have listed some of our recommended brokers.

eToro

eToro is our recommended crypto broker for beginners and experienced traders alike. The user-friendly and clear interface provides an easy entry into the investment world. In addition, the platform offers many different cryptos, which makes it also attractive for experienced investors.

Perhaps the most interesting feature of eToro is the so-called CopyTrading function. This allows you to view the portfolios of successful investors selected by eToro and even take them over completely.

Are you not yet completely comofortable with investing? Then you can use the free demo function, where you can invest with virtual money without any risk. If you are comfortable with the platform and the trading itself, you can benefit from trading with a very low minimum deposit of $50 (€42).

Besides crypto, you can also invest in various other trading products in the form of ETFs, stocks, indices and commodities. When you are going to invest in stocks and ETFs, you pay 0% commission.

All in all, eToro is our favourite because of its interface and unique features. In addition, it is regulated by the FCA and CySec, so you can invest safely through the trading platform.

eTorod

Capital.com

The broker Capital.com is very similar to Libertex, given the fact that you also trade everything as CFDs at this online broker. The range of cryptocurrencies on offer is about the same as at Libertex.

The broker Capital.com has been around for a while and started offering cryptocurrencies later than Bitstamp as you could have read in this Bitstamp review. At Capital.Com you invest in CFDs which means that you do not own the currency itself.

You take more risk with these products but you can also better manage this risk yourself by using leverage, stop-loss and take-profit. Unlike Bitstamp, you can use iDeal to deposit money at Capital.com.

Want to read more about Capital.com? Then take a look at our Capital.com review next to this Bitstamp review or get started right away!

Capital.com

Libertex

Libertex is a trading platform where you can invest in various products such as cryptocurrency. Everything is traded on Libertex as CFD.

Cryptocurrency is a very volatile trading instrument. You will therefore have to do good research on the crypto you want to invest in. It can be very useful to choose an online broker that has extra experience with this.

One broker we recommend for this is Libertex. Libertex is a trading platform that is suitable for various devices, making it easy for you to trade in crypto currencies, among other things.

All you have to do is register and you have direct access to your personal portal where you can manage your account. And all this is possible from any mobile and desktop device.

Just like this Bitstamp review, there is also a Libertex review, read it first or go straight to the Libertex website and create an account!

Libertex

Step 2: Create an account

The time has come: you have chosen the online broker that suits you best. Now it's time to create an account with this broker. Fortunately, at most brokers, this can be done in just a few minutes.

You can create an account both via their website, and via their mobile app. At eToro, for example, this can even be done via Facebook or Google.

First, you fill in your email address and choose a password. When you have done this, you need to link your account to your bank account.

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When you have done all this, you have to fill in a mandatory questionnaire, to show that you are aware of the risks that investing can entail.

Step 3: Transferring money to account

Your account has been created, so now it's time to deposit an amount. You do this by depositing money into your investor account.

There are many payment methods for depositing money. Think for example of payment via PayPal and Credit Card but you can also in contrast to Bitstamp use iDeal.

The advantage of eToro is that the first time you only have to deposit $50 (€42) to be able to start already!

From the moment your money is deposited into your account, the most important thing is done. The next step: trading in crypto currencies!

Step 4: Choose your crypto currency

Choosing a crypto currency can be tricky, but most online brokers offer clear overviews that help you make the right choice. Once you have decided, you can simply type your desired currency in the search bar of your broker.

You can specify the amount you want to buy the coin for, and in some cases this will not be a whole coin, but a part of it. This of course depends on the trading method you use and which crypto currency you choose. 

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Step 5: Keep your Bitstamp Wallet

Crypto coins need to be stored in a wallet. Most brokers automatically give you access to this on their platform, so you don't have to create it yourself online.

Of course it is important that you secure these properly. Not only online, but also offline. Because when you no longer have access to your wallet, you no longer have access to your crypto currency, which means you lose it.

When you start with an online broker like Libertex, your CFDs are listed under your active transactions on the right side of the Libertex website.

In this Bitstamp Review you have been able to read, among other things, that you do buy the coins themselves at the brokers Bitstamp vs Kraken or eToro, for which you do need a wallet.

Have you chosen a crypto currency and are you familiar with the Bitstamp experiences? Invest at eToro and start trading cryptocurrencies.

What is Bitstamp?

Let's start at the beginning: in 2011 Bitstamp was founded by Nejc Kodrič and Damijan Merlak. Nejc was a very well-known icon in the world of bitcoins, and was able to use his knowledge and position as a CEO to establish his company.

Although Bitstamp was founded in Slovenia, the two's home country, they moved their registration to the United Kingdom in 2013, eventually ending up in Luxembourg in 2016. Due to the lack of proper financial and legal services in Slovenia, Bitstamp outsourced several operations to UK.

In 2013, once they were established in the UK, they approached the FCA (Financial Conduct Authority, an institution that helps both consumers and businesses ensure a fair, stable market), only to be told by them that bitcoin was not a valid currency.

Bitstamp responded by saying that bitcoin regulates itself, which led to several best practices that alerted customers and deterred money laundering; the company eventually began requiring account holders to verify their identity.

Currently, Bitstamp is best known as a cryptocurrency exchange that is very suitable for both beginners and experienced traders, allowing users to trade several crypto-currencies with each other.

At Bitstamp, you simply use your own Bitstamp wallet to store coins safely.

You can also choose to store the coins somewhere else instead of the Bitstamp wallet, you will then have to send the coins from the Bitstamp Wallet.

Hereafter in the Bitstamp review we will discuss a bit more about the use and security of the platform. So be sure to read on!

Ready to start trading crypto currency after reading the Bitstamp review? Create an account at eToro today!

Bitstamp Review: Old, but safe?

It is obvious: Bitstamp is so old and one of the first players on the crypto currency playing field. But how safe is it to use them?

Bitstamp considers security to be very important and gives it a high priority. Their website is therefore equipped with several security measures and tools.

One example is their SSL certificate. This is a form of security that protects sent data, such as bank account numbers and of course the crypto coins themselves.

Furthermore, security is also offered for logging in. This is done using Two Factor Authentication (2FA).  This means that in addition to a password, an additional unique code is required, which is only valid for a limited time and changes constantly.

Furthermore, the exchange has mandatory identity verification at login. Although this of course offers extra security, you will have to give more personal data than at other exchanges. So consider in advance if you want to do this.

Security leak

It can happen to the best of us: despite all the necessary security measures, Bitstamp has been the victim of several cyber attacks in the past, which led to the theft of 19,000 Bitcoins.

The misery took place in 2014 and was then repeated again in 2015, which led to a drastic tightening of security. Since then, therefore, no one has managed to break into the exchange, and Bitstamp has become a fully regulated payment institution thanks to a Luxembourg licence.

The question of whether Bitstamp is trustworthy was raised more and more often by investors and more and more investors chose other crypto exchanges and online brokers to trade their cryptocurrency with.

Bitstamp vs Kraken

Bitstamp vs Kraken

This comparison has come up before in this Bitstamp review and that's because both crypto exchanges have been around for a long time. Because of this, more and more people started to wonder, what is the best option between Bitstamp vs Kraken.

Due to the aforementioned security leak, at the time the battle between Bitstamp vs Kraken seemed to be decided in the disadvantage of the exchange described in this Bitstamp review.

In the Bitstamp review we will discuss the functions and features of the exchange and a list of all pros and cons.

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Functions and features

So, the security is good. But what is also very important to know if Bitstamp is for you, is what you can do with it. Because what exactly are the functions and features of Bitstamp?

Firstly, it is important to know that each exchange processes the commission percentage to be paid in a different way. Bitstamp uses the same percentages for both sellers and buyers. However, these become lower when the volume that is traded increases.

For both buyers and sellers, the highest possible percentage is 0.25%. If the volume traded increases, this percentage decreases, with the lowest possible percentage being 0.10%.

This 0.10% rate is only available from a 30-day volume of over 16 million Euros, which is not easily achievable for a novice investor.

But what functions does it have? 

For a clear overview, we have listed the most important ones in the Bitstamp review.

  • Fiat-to-crypto gateway with high liquidity
  • Regulated exchange
  • Choice to buy bitcoin and other crypto currencies with a bank card
  • Low fees for SEPA deposits and withdrawals for Europeans
  • User-friendly mobile app
  • Easy use for novice traders

Bitstamp review: the pros and cons

Pros

  • One of the largest and best known exchanges
  • Safe program
  • Possibility to pay with debit card, credit card and bank withdrawals
  • Payment with both Euro and Dollar
  • Competitive rates
  • Handy app for phone
  • Low cost SEPA deposits and withdrawals
  • Fully licensed and regulated throughout the EU

Cons

  • Small supply of cryptocurrencies
  • Fees slightly higher
  • Account verification mandatory and requires more personal information than other exchanges
  • Difference in commission rates
    Filing questions or complaints can sometimes be difficult
  • Filing questions or complaints can sometimes be difficult

Offer and progress

As we already mentioned in this Bitstamp review, the supply of cryptocurrencies at Bitstamp is limited. However, this does mean that the crypto currencies which they do offer, show good results in both TradeView and other trading charts; after all, these currencies get all the attention from the exchange.

The main crypto currency you can trade with Bitstamp is of course Bitcoin. Bitcoin exchange is Bitstamp's main livelihood.

Is Bitcoin Bitstamp's only exchange? No, there are definitely others. Bitstamp exchanges several crypto currencies, and we have listed them for you:

  • Bitcoin
  • Bitcoin Cash
  • Ripple
  • Litecoin
  • Ethereum

To learn more about these crypto-currencies, read our blogs about them! In the last part of this Bitstamp review, we will discuss how you can trade on Bitstamp. After that we will sum up everything in the Bitstamp review for you.

I want to trade with Bitstamp, now what?

If you have made up your mind after reading this Bitstamp review, thought about your preferred crypto currency and finally decided to work with Bitstamp, there is still one simple question left: how do I do it? Because is Bitstamp user-friendly enough for me?

Step 1: Verifying an account

As with eToro, creating an account is simple: you enter your email address, choose a password and you are ready to sign up. However, with Bitstamp there is another piece of protection involved: verifying your account.

For this verification, the exchange needs more information from you than the usual name, address and date of birth. There is also a form of identification to be uploaded.

This should be an identification document (such as a passport), of which you should upload both a front and back view. Please note that Bitstamp needs a little more information from you than other exchanges.

Step 2: Deposit money

Of course you also need to deposit money into your account; otherwise you will not be able to trade with it. It differs per exchange with which forms of currency you can pay; not everywhere you can deposit both Euros and Dollars on your account. Fortunately, this is possible at Bitstamp.

Bitstamp offers three different payment methods: credit card, SEPA bank transfer and international bank transfer. This means that Bitstamp does not allow you to use iDEAL to deposit funds.

Each payment method has its own specific rules and requirements, so it is very important to think carefully about your preferred method and follow the instructions on the Bitstamp website.

Step 3: Get started!

Now that you have finally activated your account, verified your identity and transferred your money it is time to act. There are a few tips and tricks that are useful to keep in mind:

  • Transaction time. When you make a transaction from a Dutch bank, it can take a while before it is settled. This is also the case when it comes to crypto money. It is therefore possible that your crypto money will arrive later at your account than initially expected.
  • Reachability. When you have questions or complaints, it can sometimes be difficult to reach Bitstamp; it is not always clear which email address and phone number to use, and the FAQ can sometimes make it difficult to find answers to your specific question.
  • Web navigation. In addition to the FAQ, the trading and currency dashboards can also take some getting used to as they are spread across several pages. That said, the pages have a very clear layout and are user-friendly for both experienced and novice investors.

Bitstamp Review: Frequently Asked Questions

What is Bitstamp?

Bitstamp is a cryptocurrency exchange that has been around since 2011. Although their crypto-currency offering is not large, they are a very large and well-known company that offers many competitive rates.

How safe is Bitstamp?

Bitstamp uses multiple security tools that ensure that both your account and your payments and data are protected. However, the mandatory identity verification does require you to provide more personal information than other exchanges.

Does Bitstamp use API?

Bitstamp definitely uses API (apllication programming interface). Bitstamp's API allows their users to access and control their accounts using applied software.

Can I trade bitcoins through Bitstamp?

You can definitely trade bitcoins through Bitstamp. Bitstamp offers several crypto currencies, including Bitcoins. Although they do not offer a wide variety of cryptocurrencies, they are very specialized in the ones that are available. This includes bitcoin.

Can you trade with Bitstamp's TradeView?

You can trade with Bitstamp using TradeView. For example, if you have bitcoins at Bitstamps, you can trade them with Bitstamp using TradeView. Bitstamp has put several videos online explaining how Tradeview works.

Can I only trade bitcoin at Bitstamp?

Bitstamp allows you to trade multiple crypto currencies. This includes Bitcoin. In addition to Bitcoin, Bitstamp also offers Bitcoin Cash, Ripple, Litecoin and Ethereum.

Is Bitstamp reliable?

This is still not completely clear. Many users have had negative experiences with Bitstamp in the past. Nevertheless, it continues to grow.

Bitstamp Review: Conclusion

In this Bitstamp Review you have been able to read everything about Bitstamp experiences and Bitstamp is reliable. It is a crypto exchange that has been around for many years and has all kinds of features such as a Bitstamp Wallet. Unfortunately, Bitstamp does not offer the possibility to use iDEAL as a payment method.

Nevertheless, there are a number of crypto exchanges and online brokers that are better than Bitstamp review. For example, it is better to start investing with an online broker like eToro, which offers you many more possibilities.

Enough reading in this Bitstamp review and do you want to get started with cryptocurrency? Then go to eToro via the button below and simply create an account!