When we choose an exchange site to operate with cryptocurrencies we must pay close attention to the level of security offered and the general reliability of the platform, since it will have full access to our wallet (with all the risks involved). In the vast variety of exchange sites on the market, there are also solid players such as Bitstamp, the European exchange site that boasts a good number of years of activity and guarantees that many other sites are unable to provide (or only partially provide).
In the following guide you can find all the advantages of the Bitstamp site, so that you can decide if it’s suitable for your purchase and sale of Bitcoin or other cryptocurrencies.
What Is Bitstamp?
Bitstamp is a cryptocurrency exchange based in Luxembourg, a member state of the European Union. This site was founded in 2011 by Nejc Kodric and, after years, it has reached a level of solidity such that every day hundreds of thousands of people use it to exchange cryptocurrency, on a par with much more famous international sites far from the European Union (and its consumer protection laws).
Therefore, if we are looking for a reliable site in the European Union, Bitstamp is suitable for EU residents, given the high amount of strict controls carried out by Luxembourg and European institutions to be able to operate in the financial sector in all countries of the Union, especially on online activities.
Bitstamp: How Does This Exchange Work
Bitstamp is one of the easiest platforms to use for cryptocurrency beginners – even those who have never bought cryptocurrencies or have never seen an exchange site before can start investing and earning immediately, using only a few minutes of their time to create the account on Bitstamp. The interface is simple to use, so you can immediately access your chosen cryptocurrency and start investing.
Among the advantages that are worth mentioning we find the high trading volume present every day on the platform: this makes it really very easy to find people willing to sell us the required amount of cryptocurrency, as well as being able to place the cryptocurrency already in our possession, with times minimum waiting times and commissions accessible to all.
Like any self-respecting exchange site, support for mobile apps could not be missing, which is useful for trading on-the-go or if you and want to check your crypto wallet even when we are traveling on a train or plane. The Bitstamp app is available for free for Android and iPhone and the applications can be downloaded from Bitstop’s website.
How to Register and How to Pay For Your Crypto
To be able to immediately exchange Bitcoins and cryptocurrencies on this site, simply open the official website and press Register at the top, so that you can follow the registration procedure for individual users (Personal Account). The site will ask for a valid and supported email address (no temporary emails), as well as asking for all personal data to be able to identify you correctly, including your country of residence.
After completing the first part of the registration, verify your email address provided and proceed with the authentication of the account, which is necessary in order to unlock all the features of the site. In order to authenticate the account, it is necessary to provide a valid ID (identity card or passport), including a copy of the front and back. Verification of documents can take up to 72 hours, which is something you should consider if you are planning to invest in a particular cryptocurrency right away.
Bitstamp is among the exchange sites that support credit and debit cards for recharging the account. In addition to cards, it is also possible to deposit via SEPA bank transfer, with handling times from 1 to 5 working days (depending on the bank used).
What Cryptocurrencies Does the Exchange Support?
On Bitstamp it is possible to find a good number of stable cryptocurrencies (stablecoins) but also emerging cryptocurrencies, which are pushed by the site with the zeroing of commissions (identified by the writing Zero Fee next to the name). Below you can find a list of some of the more popular cryptocurrencies on this site:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Ripple (XRP)
- USD Coin (USDC)
- Uniswap (UNI)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Chainlink (LINK)
- Stellar Lumens (XLM)
- AAVE (AAVE)
- Maker (MKR)
Added to these are new little-known or early crypto, which can be used as a low-cost investment (pending the increase in volume and value). To find out all the supported cryptocurrencies, simply open the dedicated page on the platform’s official website.
Costs and Commissions at the Exchange
Bitstamp commissions can be divided according to the type of top-up made and also vary according to the volume of trades made on a monthly level. Below you can find a summary of the costs of the site:
Top-up fees from credit / debit card: 8% for those who deposit less than 500 euros, 7% for those who deposit between 500 and 1000 euros, 6% for those who deposit between 1000 and 5000 euros, 5% for those who deposit more than 5000 EUR.
Withdrawal fees: €0.90 to withdraw via wire transfer, $10 to withdraw up to €1,000 on paper. For sums over 1000 euros, a 2% commission is paid.
Trade commissions: Transactions have a commission between 0.10 and 0.25% depending on the pair and the volumes we are going to move; the more volume users generate, the lower the final management costs.
Account maintenance: For the management of the account it is necessary to pay €1.95 per month, so it is worth considering whether to activate the account since even leaving it active will require payment. Commissions tend to be slightly higher than the competition. but since it is an exchange site in the European Union, there are also account maintenance costs, necessary to guarantee the high security and reliability of the site.
Payments via SEPA transfers have a reduced cost (0.05%): If you want to spend little, you can use transfers from your bank to top up the account.
Is Bitstamp a Reliable Platform?
Bitstamp is based in Luxembourg and therefore enjoys the authorization of the CSSF, the Luxembourg national body that deals with regulating all financial intermediaries. This is a big point in favor of the exchange site, which can therefore operate in full transparency thanks to the regularization of a registered and controlled financial brokerage company.
Currently, there are not many exchange sites that boast authorizations from state control bodies (as opposed to trading sites, all very controlled), therefore, according to that criteria, Bistamp certainly ranks at the top of the list.
Is Bitstamp Safe?
This exchange site boasts a bank-level security level: all the pages of the site are encrypted and even the transactions, as well as the wallets of each customer, are independently encrypted. To further increase the security of the accounts, two-factor authentication is active as a base, which is essential to avoid theft by hackers and criminals.
This system sends a second authentication code via SMS or email, thus making the simple theft of username and password (which are always required but accompanied by the unique code generated with 2FA) useless. Based on these facts, it’s safe to presume that users’ money and cryptocurrency wallet are protected on Bitstamp.
Bitstamp vs Coinbase
How does this exchange compare to Coinbase, one of the most famous exchange sites in the world and platform with the high trading volume? The first difference is reliability: Coinbase has no European certification and operates under the laws of the United States. This does not mean that Coinbase is unsafe or unreliable, but in case of problems European citizens will have to wait for news from the US authority and US laws are not always applicable to citizens of the European Union.
Obviously Coinbase wins if you compare the number of supported cryptocurrencies and the daily trading volume, but Bitstamp still defends itself well and still has a good number of cryptocurrencies, as well as being able to boast a considerable trading volume on European level.
Bitstamp is the reference point for those looking for a safe and reliable exchange site, with servers located within the European Union. This site must comply with Luxembourg laws (very strict in the financial field, which has always been the economic pillar of the country) and European laws, thus offering a good “protective hat” for all novice and skeptical users in choosing an exchange site. for cryptocurrencies.
The commissions tend to be higher than the competition, but it is certainly worth it given the nature of the service, the type of offer proposed, and the level of security achieved both in maintaining the wallets of each user and in the authentication system (proof of hackers).
We don’t encourage you to choose or not to choose Bitstamp, we’ve only taken a look into the specifics of the platform. The rest is completely up to you! Make a wise choice to always have your crypto and funds safe.