Bitstamp is a well-respected and highly popular crypto exchange. It is trusted by a lot of people that have led to its handling of over USD 1 billion worth of trades every day on average. You should choose this exchange if BTC/USD and BTC/EUR are the top trading pair priority for you. The only downside of this crypto exchange is that only 5 cryptocurrencies are supported.
This quick guide will touch upon the pros and cons of Bitstamp while detailing its background, trading fee, funding options, and other features.
Why Should Beginners Choose Bitstamp?
Great trading platform
Support for bank deposits and wire transfers
Support fiat currencies
Support credit/debit cards transactions
What’s not to like?
Weak customer service
Account verification takes long
Invasive KYC questioning
Brief Background of Bitstamp
Bitstamp is one of Europe’s long-standing crypto exchanges. It was founded in 2011 by Damijan Merlak and Nejc Kodrič. The exchange by crypto standards is positively a historic institution. This Luxembourg-based exchange is highly respected and is one of the first fully regulated cryptocurrency exchanges in the world.
What is the Trading Fees on Bitstamp?
The platform works on a minimal trading fee model, which allows users to benefit from taking home the maximum share of profits. The trading fee is highly nominal at just 0.25% for traders who work with less than $20,000. The fee is lowered to only 0.10% if the monthly trading volume increases to $20 million.
The starting fee is 0.50% for every transaction, which may not be the lowest, but, is still competitive. The fee gets lower as the trade volume increases. This table shows how:
30 days volume
0.25% < $20,000
0.24% < $100,000
0.22% < $400,000
0.20% < $600,000
0.15% < $1,000,000
0.14% < $2,000,000
0.13% < $4,000,000
0.12% < $10,000,000
How to Deposit and Withdraw Funds?
The following payment methods can be used to deposit and withdraw fiat currency (USD and EUR) from Bitstamp.
International Wire transfer
There is no fee involved where deposits and withdrawals are made through cryptocurrencies. However, you would incur a flat fee of $10 if you transfer funds to your debit or credit card. A 2% fee will apply on amounts exceeding $1,000.
SEPA transactions incur a withdrawal fee of 0.90 Euro, while deposits are free. International wire transfers incur a fee of 0.09% for withdrawals with a minimum limit of 50 USD/EUR pair. There is a fee of 0.05% on bank wire deposits.
Credit card purchases incur an additional fee of 5% towards card processing charges in addition to the trading fee.
Is Bitstamp Versatile in Terms of Trading?
Bitstamp is a highly versatile trading platform. It offers the following order types:
However, there are only 5 cryptocurrencies supported by the exchange, namely:
Bitcoin Cash (BCH)
There is a USD and EUR pair available for each of these crypto assets.
Along with Bitcoin, there are 12 trading pairs on offer with these currencies. Bitstamp accepts BTC/USD IOUs as well since the exchange works similarly to Ripple. Payments through AstroPay are also accepted increasing the versatility of the trading platform.
There are more than $700 million worth of transactions handled by the platform daily. This reflects the huge liquidity levels of the exchange. $400 million worth of USD pairs is traded on an average daily.
How User-Friendly is Bitstamp?
The user interface of Bitstamp is clean and easy to understand. The exchange may not be best suited for people who are not familiar with different order-types. However, it is one of the simpler exchanges out there. Also, if you are enthusiastic to learn, you would find a lot of literature and necessary information in the Bitstamp knowledge base.
Bitstamp Customer Service
Customer support is one area where Bitstamp is very disappointing. Their verification process can take several days, which can be annoying when you cannot wait to begin trading. The same applies to their support tickets. While there is a UK phone number listed on the website, the number asks you to leave a message, which is not very helpful.
The Bottom Line
All in all, Bitstamp makes an excellent choice for beginners if they want to trade using EUR and USD for some of the more popular cryptocurrencies. The exchange has been around for quite some time now and can be trusted to hold your funds. The user interface is beautiful looking, which just adds to the ease.