When Bitcoin was invented in 2009, it was difficult for the average person to buy back Bitcoin until cryptocurrency exchanges like Bitstamp came along.
Bitstamp was one of the first cryptocurrency exchanges to hit the web, initially as a tool to help people buy bitcoin using fiat currencies. Today, Bitstamp has grown into one of the largest exchanges in the world.
Whether you want to buy your first cryptocurrency, or create algorithmic trading rules for bots to execute, Bitstamp has you covered. Here’s what you need to know about a cryptocurrency exchange that’s been around for over a decade.
- Pioneer of cryptocurrency trading platform
- Support buying and selling more than 70 kinds of tokens
- Easy-to-use trading platform
What is bit stamping?
Bitstamp was founded in 2011, just two years after Bitcoin was born. The company may claim the title of longest-running cryptocurrency exchange on the planet.
While the company offers advanced features required by cryptocurrency trading enthusiasts, Bitstamp continues to focus on the mainstream adoption of cryptocurrencies. It simplifies the cryptocurrency buying process (registration, funding, and trading) and provides a high level of security on its platform.
what does it offer
Bitstamp is a cryptocurrency exchange dedicated to making it easier to access cryptocurrencies. It helps ordinary people transition to cryptocurrency trading with intuitive trading and reliable trading guides. But the company also supports advanced cryptocurrency traders with charts, API access, and trading rules.
Buy and sell 70+ crypto “tokens”
Bitstamp supports over 70 unique tokens, which are really just another name for cryptocurrencies or cryptoassets. Tokens primarily refer to cryptocurrencies other than Bitcoin and Ethereum, although they are technically tokens as well.
Compared to other largest exchanges, Bitsamp does not offer many coins, but just know that most of the big name coins can be traded through Bitstamp.
Staking is not available everywhere
Staking is a process in which known tokens in the blockchain are used to validate and validate blocks on the blockchain. In exchange for temporarily locking access to assets, investors receive a small reward for participating in the blockchain.
Staking reduces the energy consumption associated with the blockchain while maintaining the validity of the chain. Bitstamp allows investors to earn passive cryptocurrency by staking Ether (ETH) or Algorand (ALGO).
Unfortunately, this is not available in Nevada, New Jersey, New York, Louisiana, and Hawaii.
Same price as advanced trading platform
Bitstamp has an advanced cryptocurrency trading platform called Tradeview. The platform supports various advanced visualization and trading options.
Most crypto enthusiasts don’t need all the features on Tradeview, but the platform costs no extra. The advanced trading platform is available to anyone who wants to do research.
Buy Crypto with Fiat or Crypto
Bitstamp supports crypto investors from their first trade on the blockchain all the way to advanced traders. People who are ready to buy cryptocurrency for the first time can deposit fiat currency (USD) into Bitstamp and start their first transaction through the platform. Investors can even buy cryptocurrencies with a credit card (though this comes with a 5% fee).
Bitstamp also supports crypto-to-crypto trading and allows users to convert their crypto back to fiat at any time (prices are subject to market fluctuations).
Is there any charge?
Those using the Bitstamp exchange need to be aware of the following fees.
If you buy cryptocurrency with a credit or debit card, you will be charged a flat fee of 5%, plus any transaction fees. Bitstamp’s transaction fees are based on your 30-day trading volume.
Volume discounts extend all the way up to $20,000,000, but we’re showing prices for people trading up to $1,000,000. Here is their fee schedule, based on 30-day trading volume.
How can I open an account?
To create an account on Bitstamp, you need to fill out a registration form, which can be done online or through the app. Registration includes typical account opening details such as your name, address and contact information.
Once the registration form is complete, Bitstamp will perform 2-step verification.
- First, upload the form to certify that you will fund the account from your personal bank account.
- Then, complete the Know Your Customer verification, which includes a selfie with a photo of your photo ID and proof of residency, such as a current utility bill.
Is it safe and reliable?
In 2015, Bitstamp suffered a phishing attack and lost 18,866 BTC, worth about $5 million at the time. While the company moved quickly, the loss underscores just how targeted these cryptocurrency exchanges are.
Today, Bitstamp has multiple lines of defense to mitigate the risk of future losses. First, it has a higher level of encryption. All users must use multi-factor authentication to access their accounts.
Additionally, Bitstamp stores 98% of user assets in cold storage, which is largely impenetrable to hackers.
Personal information on the Bitstamp website or app is encrypted to reduce the chance of it falling into the wrong hands. All assets held by Bitstamp are fully insured against theft or hacking through one of two insurance policies. This includes assets held in online storage or as part of a transaction. This is an unusually high degree of insurance.
Overall, Bitstamp assets and information are well protected. As long as the exchange continues to operate, users are less likely to lose their assets or personal information. Of course, there is no way to guarantee that an exchange will not be hacked. All cryptocurrency investors must be prepared for this risk, no matter what exchange they use.
Is it worth it?
Much like Coinbase, Bitstamp is an excellent choice for beginner cryptocurrency investors. Buying and selling cryptocurrencies is simple thanks to its focus on ease of use. And the fees on the platform are reasonable, so it’s good to know that novices won’t be ripped off by the Bitstamp platform.
Users can also grow into the full Bitstamp platform. You don’t pay for detailed graph views or API access, which makes it a great long-term option. However, Bitstamp’s staking program is lackluster and unavailable to US residents. This may be a reason to skip the swap and choose an alternative.