Bitstamp is a world wide cryptocurrency trading platform based in London, England. The exchange allows users to trade the most popular cryptocurrencies, including Bitcoin, Ripple, Litecoin, Ether and Bitcoin Cash as well as buy and sell them for EUR and USD. Bitstamp was the first exchange to partner with Ripple, has attracted the investment of Pantera Capital and is AML and KYC compliant. Its 3 million users around the world use Bitstamp because of its commitment to security, ease of use and customer service. In this Bitstamp review, we aim to settle any doubts that you may have about using this trading platform.
Account Setup and Verification
Bitstamp offers 2 account types: Personal and Corporate. In this Bitstamp review, we will focus mainly on the Personal account option.
To set up a personal account, users must supply their full name, email, and country of residency.
Accounts need to be verified before trading and you can do this by going to ‘verify account’. The personal account verification is straightforward and the form requires a name, address, nationality, residency, and date of birth. All information should be the same as in your ID. They also require a double sided color photo of a valid government issued ID, and a proof of residency document (a bill, government document, bank statement or something similar). Once verified you can start trading on Bitstamp.
To buy Bitcoin or another cryptocurrency, first, off you need to deposit some funds into your Bitstamp account. You can use a Visa or Mastercard credit card, a SEPA bank transfer or an international wire transfer.
Using a credit card for purchases is the quickest option. Simply choose the type of cryptocurrency you want to buy, either USD or EUR, and how much you want to buy. Then, simply fill out the payment form with your card information and when the transaction has been processed, your account will be credited with the purchased funds. Credit card purchases attract a 5% fee and the card issuer may also charge a fee.
To transfer with a SEPA bank account or an international wire transfer, go to ‘Deposit’ and choose your deposit method. With an international wire transfer, you can use either JPY, CAD, GBP, CHF, AUD, EUR or USD to credit your account with either USD or EUR. It’s important that the account used to deposit the funds is in the same name as the user’s account. It should be noted that it can take up to 3 days for a SEPA transfer and up to 5 days for a wire transfer to be deposited into Bitstamp’s account.
To make a trade or to buy cryptocurrencies, choose a trading pair by clicking on the upper left black bar on the account page, for example, USD/BTC. Then go to ‘Buy/Sell’. Here you can choose Limit Order, Market Order, Stop Order, Credit Card Purchase or Instant Order but the simplest option is Instant Order. The other options are recommended only for experienced traders.
Next enter how much you want to spend and you’ll get an approximate quote. The market value of any cryptocurrency is constantly changing so the quote is only an approximation. After clicking on ‘Buy BTC’, the order will be processed and your account will be credited with the purchase.
In terms of fees, Bitstamp charges a deposit fee of 0.05% on wire transfers with a minimum of 7.50 USD/EUR but SEPA transfers are free. To deposit or withdraw cryptocurrencies is free.
Withdrawals to bank accounts for fiat currencies or to wallets for cryptocurrencies are possible and simple. Just go to ‘Withdraw’ on your account and follow the steps. Bitstamp’s full fee schedule is available here.
Security and Privacy
The platform offers 2 Factor Authentication and uses PGP data encryption to protect data and uploads from users. They also store 98% of funds offline in cold wallets to protect them from online threats. Their hot wallets also are protected with Multi-Sig technology and all data is SSL encrypted.
Bitstamp is fully compliant with KYC and AML regulations. This means that users have to supply some pretty personal information in order to prevent illegal activities. This has caused some users frustration however the platform maintains that this is necessary to stop the platform being used illegally and to remain legally compliant with regulations.
Bitstamp can be contacted via email at email@example.com, their ticket service, telephone or social media. They have a generally good reputation for customer support however as with any service, some complaints can be found. Response times vary but are generally sent within a few hours. Their FAQ page is also a good source of how to guides, troubleshooting, and information.
5 New Street Square
London EC4A 3TW
Bitstamp Review Summary
The great user interface and low fees are very attractive to intermediate and beginner traders. This has helped the platform grow to over 3 million users, however, Bitstamp is not without its issues. Sometimes verification confirmation can take a while to arrive, according to some users, and the mobile app has a few bugs that need attention. Even so, the speed, ease, and security with which users can purchase Bitcoin and altcoins with a credit card or bank transfer make it a good option for many traders. We hope that this Bitstamp review was helpful and if you’re interested in trading with the platform, then sign up here.
Disclaimer: Buy For Bitcoin does not provide any warranties towards the accuracy of the statements in the above Bitstamp review. Any content on this site should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to perform your own research of the platform. Trading and investing in cryptocurrencies involves considerable risk of loss and is not suitable for every investor.