Bitstamp Experience 2021 - Serious Broker or Pure Scam?

Overall Rating: 
5/5 stars

Quality

speed

cost

The crypto exchange Bitstamp is based in Luxembourg, has been firmly established on the market for some time and is one of the best-known crypto providers. In this Bitstamp test, we inform you about our honest Bitstamp experiences.

In this Bitstamp review, you will find out whether the provider can convince in terms of security, seriousness, offer and customer service and how the broker performed in comparison to our test winner eToro.

Whether it is worth registering with Bitstamp or whether there is even Bitstamp fraud to worry about, how high the Bitstamp fees are and exactly what Bitstamp experiences you can make, we will now explain.

However, before we start with our detailed Bitstamp test, we would like to note that although Bitstamp is convincing in many aspects, our current test winner in the crypto exchange comparison is eToro.

Bitstamp

The key data for Bitstamp

Key data

Bitstamp

Broker type

Crypto exchange

Spreads

0.25% (> $ 20,000 trading volume), 0.20% (> $ 400,000 trading volume)

Credit card deposits

Possible

App

Available, could be improved

regulation

Yes, CSSF

Trade offer

Bitcoin, Ether, Bitcoin Cash, Ripple, Litecoin

Scalping

permitted

Ease of use

Well

Payment methods

Visa, Master, SEPA

Headquarters / branches

Luxembourg, London

What is Bitstamp - History of the crypto exchange

Bitstamp was founded back in 2011 by two friends Nejc Kodric and Damijan Merlak in Slovenia. At the time, Bitstamp was one of the first platforms to compete with the mountain (Mt. Gox).

In the early days of crypto trading, Mt. Gox was the biggest exchange in the business. But there were also security problems. Mt. Gox was hacked in June 2011, which eventually led to its bankruptcy in 2014.

As a result, Kodric and Merlak understood the importance of security and reliability early on. They knew that users wanted a provider they could trust.

Cryptocurrencies and the blockchain technology they are based on are very secure. However, the exchanges on which they are traded are not always. The founders of Bitstamp wanted to correct this.

In 2013, Bitstamp moved part of its activities to London. Kodric and Merlak wanted their exchange to be at the centre of European banking. Unfortunately, this led to some problems, as the UK did not yet have regulations for the sale of cryptocurrency.

The pair felt that one of the big problems with crypto trading was that it was not regulated enough. This means that there were not enough rules in place for crypto exchanges. Customers trust companies that follow the rules. So Bitstamp looked for a country with rules!

The former president of PayPal, David Marcus, told Bitstamp to try Luxembourg. In early 2016, Merlak and Kodric had meetings with the Luxembourg government.

This established Bitstamp as the world's first nationally licensed crypto exchange. This meant that Bitstamp would follow Luxembourg's financial laws. It also meant that Bitstamp was now licensed in 28 European Union countries. This was a big win for Bitstamp and for cryptocurrency.

Since then, Bitstamp has partnered with financial institutions around the world. These institutions include Swissquote, CrΓ©dit Agricole and the Chicago Mercantile Exchange. It has become one of the most respected and popular exchanges on the market.

Bitstamp Test: Advantages and disadvantages

Pros

  • Minimum deposit is not required
  • High security standards apply
  • EU licence available
  • There are no high Bitstamp fees
  • Fee model is transparent
  • With the Bitstamp app you remain flexible

Cons

  • The platform is only available in English
  • Only 15 different cryptocurrencies can be traded

In 4 steps to the Bitstamp log-in

Our Bitstamp test showed that it is very easy to trade Bitcoin and other cryptocurrencies at Bitstamp. In just a few minutes, you can open a trading account and immediately buy cryptocurrencies with the deposited funds.

In the following, we explain the Bitstamp registration step by step.

Step 1: Register an account

To register with the Bitstamp broker, click on the menu item Register Button Bitstamp on the top right-hand side of the website.

Welcome to Bitstamp - RegistrationAfter that, a window opens where you have to decide whether you want to open a personal account or an account for an organisation.

In this test, we will start with a personal account.

A window opens that requires you to enter your personal data (first name and surname) and an e-mail address.

Now you only have to accept the terms and conditions and privacy policy for a Bitstamp registration.

Bitstamp e-mailFollowing this, you receive an e-mail with your personal Bitstamp log-in data and the automatically created password.

This password must be changed after the first Bitstamp log-in.

If you have changed your password, you have to log in again with your new Bitstamp password and you will also receive an e-mail informing you that your password has been changed.

It is recommended that you verify your identity after logging in to Bitstamp. By using a two-factor authentication (2 FA). This significantly increases the security of one's Bitstamp user account.

The 2 FA is offered with the Google Authenticator or with DUO. It is best to write down the authentication key separately.

Bitstamp broker

Step 2: Verification

Bitstamp Review Verify Verification is required after Bitstamp registration and before making your first deposit.

Verification helps prevent money laundering and is necessary due to the Know-Your-Customer (KYC) regulations. These, allow Bitstamp to operate as a regulated exchange.

To get to the user account verification, click on the menu item "Verify Account".

Here you have to enter your personal data and also upload a copy of the front and back of your photo ID. In addition, certain ID data must be entered manually.

To complete the verification process, you still have to provide proof of residence (e.g. by means of an electricity bill), with which you confirm your address.

The verification of the data by Bitstamp Support should normally take 24 to 48 hours.

Step 3: Deposit money

After the verification process is complete, you can start depositing money into your account to trade cryptocurrency.

To do this, simply click on the "Deposit" menu item and select the desired deposit method.

Deposits can be made either via SEPA transfer, credit card payment or with a cryptocurrency. Of course, not all cryptocurrencies are accepted.

Our Bitstamp experience shows that it can take up to three days until your money is credited to Bitstamp. Unfortunately, this is a bit longer than with many competitors.

Step 4: Trading at Bitstamp and withdrawals

Once the deposited amount has been credited, you can start buying Bitcoin and Co. at Bitstamp.

For this purpose, you select, for example, Euro-Bitcoin pairs. Several purchase options are available via the menu item "Buy/Sell". Once you have bought the desired currency, it is advisable to deposit it in your own wallet.

Crypto exchanges have increasingly fallen victim to hacker attacks in the past. Even if Bitstamp makes every effort to ensure security, a hacker attack on the exchange can never be ruled out with 100% certainty. Which is why we strongly advise you to take the safekeeping of your coins very seriously.

If you want to store the cryptocurrencies in your own private wallet, you must of course withdraw them. Cryptocurrencies can be withdrawn by clicking on the menu item "Withdrawal".

Buying, selling and also withdrawing cryptocurrency is very easy at Bitstamp and should be done in a few minutes. Only our test winner eToro makes it even easier.

Bitstamp fees: What does trading cost?

As with all crypto exchanges, Bitstamp is funded by charging transaction fees, which are incurred with every purchase or sale of cryptocurrencies.

Bitstamp transaction fees

The pricing model of the Bitstamp broker is very simple and clearly structured, as our Bitstamp test shows.

Traders are always charged a fixed commission for the creation of orders.

The fact that an order fee is incurred is also the rule with other crypto exchanges and generally with trading in financial instruments.

It is clearly communicated on the platform that a basic fee of 0.25 per cent of the order amount is incurred, which covers all costs.




Arbismart Rating
  • There is no need to fear hidden costs. Bitstamp fraud can therefore be ruled out.

    For example, if you process a transaction for 10,000 euros, Bitstamp charges 25 euros.

    Those who trade particularly frequently can benefit from a discount, which, however, is not so easy to achieve.
  • If you turn over at least 20,000 euros a month, you only pay a fee of 0.24 percent. If one achieves a turnover of 20 million euros per month, the Bitstamp fees are reduced to 0.10 percent.

Fee type

costs

Transaction fees

0.25% of the trading volume

Bitstamp Review - The Offer

Bitstamp - Offer OverviewWhen choosing a crypto exchange like Bitstamp, investors should pay particular attention to the offer of cryptocurrencies as well as the level of fees and costs and the user-friendliness of the platform. These are also the most important criteria for our Bitstamp test.

Even though Bitstamp is one of the first and best-known crypto exchanges in the world with its years of market presence, the range of cryptocurrencies with a Bitstamp Trade account is relatively small.

There are currently 15 cryptocurrencies to choose from.

BTC
XRP
ETH
LINK
LTC
OMG
BCH
XLM
USDC
PAX
ZRX (since March 2021)
MKR (since March 2021)
KNC (since March 2021)
DAI (since March 2021)
GUSD (since March 2021)

Bitcoin
Ripple
Ethereum
Kettenglied
Litecoin
OMG-Netzwerk
Bitcoin Bargeld
Stellar Lumens
USD MΓΌnze
Paxos Standard
0x
Macher
Kyber Netzwerk
Dai
Zwilling Dollar

The cryptocurrencies can be traded with GBP, EUR and USD and partly with each other. BTC can of course be traded with any other coin.

The larger the trading volume of the cryptocurrency, the lower the fees charged for a transaction - therefore, Bitcoin and Ethereum naturally have the lowest fees.

Price charts and further information on the cryptocurrencies can be viewed at

Bitstamp provides traders with a lot of information about the tradable assets. The FAQs alone answer many questions. Most of the coins offered by Bitstamp are based on the blockchain principle, a new technology where all transactions are recorded.

Ether is oriented towards companies and offers smart contracts to automate the corporate supply chain. Market observers broadly agree that this will lead to cost savings and is therefore an interesting business model.

Litecoin's target audience is the private investor, which is why micropayments are also possible. Due to the small resource requirements of this system, this can work.

Bitcoin Cash is a fork of the mother currency Bitcoin and was created from a hard fork. Although the technology is basically the same, these are two different cryptocurrencies.

While there are those who say the supply on Bitstamp is limited, analysis of the cryptos reveals that they are different models that directly compete with each other.

behind the operator

5 new coins free of charge until May 2021

The coins 0x (ZRX), Maker (MKR), Kyber Networks (KNC), Dai (DAI) and Gemeni Dollar (GUSD) can be traded completely fee-free until the end of May due to their new introduction.

Bitstamp has re-launched these coins to improve support for Decentralised Finance (DeFi) and Stabelcoins.

Other Bitstamp fees

Apart from a credit card deposit fee of 5%, no other fees are charged at Bitstamp. So the usual fees for withdrawal, account creation, account maintenance or inactivity at other exchanges do not apply at Bitstamp.

Comparison of fees between Bitstamp and other providers

Here is an overview of Bitstamp's fees compared to its competitors. The example refers to share CFDs in the amount of 1,000 euros, which were held for one month and then sold. There were no price changes during this time.

Wallets mandatory

providers

Bitstamp

eToro

Coinbase

Deposit 

5% for credit card payments

for free

3.99%

Purchase fees

0.25%

1.9%

1.49%

Sales charges

for free

1.9%

1.49%

Holding fees

for free

for free

for free

Payout

for free

$ 5

$ 0.15

Payment methods at Bitstamp

Bitstamp unfortunately only supports a limited number of payment methods. Only credit card, bank transfer (SEPA) and deposit via cryptocurrencies are available.

There is no minimum amount for the first deposit.

As a safety tip, however, we advise you to only deposit as much money as you actively need for trading. It is best to store coins that you do not want to actively trade with in a private wallet and not leave them in your Bitstamp account.

This is the best way to protect yourself from outside access, even though the majority of Bitstamp crypto assets are in cold wallets that are not connected to the internet.

Only after going through a full verification process do you get full access to the trading platform with its functions and can make deposits and withdrawals to trade.

Note: A fee of 5 per cent of the deposited balance is charged for credit card payments.

Supported cryptocurrencies

Payment method

yes/no

Credit cards

Yes

Paypal

no

Instant bank transfer

no

Skrill

no

Neteller

no

Paysafecard

no

Bank Transfer

Yes

Cryptocurrencies

Yes

By the way: Our test winner eToro offers a pleasant Bitstamp alternative to direct crypto trading and allows you to top up funds as part of CFD trading with various user-friendly payment service providers, including via PayPal and eWallets such as Skrill and Neteller.

AvaTrade Review

Is there a Bitstamp Wallet?

After you have bought a cryptocurrency, you need to be able to access it. The codes to access cryptocurrencies are stored in wallets.

Wallets can be online, where they are called hot storage. Or offline, where they are called cold storage.

Note: A wallet has public and private keys. You can give your public key to anyone and they can send you cryptocurrency. Your private keys should not be shown to anyone! Think of it as an email account. The public key is your address and the private key is your password.

But is Bitstamp now its own wallet? The answer is sort of, but not really.

As you already learned in our Bitstamp review, Bitstamp is a crypto exchange that can (but shouldn't!) be used as a wallet. Bitstamp uses storage for both hot and cold wallets.

You should never hold all your cryptocurrency online. A combination of hot and cold storage is best. It is also better to keep hot and cold storage outside Bitstamp, so you minimise the risk of damage from a hacker attack.

Is there a Bitstamp App

Bitstamp also offers a smartphone app for iOS and Android. This is very simple and clearly designed.

The Bitstamp test shows that the Bitstamp app proves to be very practical and enables great Bitstamp experiences, as you remain flexible with the application and are not tied to your desktop at home, but can also trade crypto on the go.

Downloading and using the Bitstamp app is completely free.

The mobile offering is easy to use and offers a pleasant Bitstamp alternative to the desktop version. The core functions are covered and the app also offers the possibility to trade cryptos on the go.

However, the app does not provide access to advanced functionalities such as detailed charts.

However, the app does not provide access to advanced functionalities such as detailed charts.

For this, you need a better crypto broker that offers an excellent trading experience. Bitstamp is the wrong provider here - they only serve the desire for a simple buying option. If you want to trade cryptocurrencies profitably, you should take a closer look at our multiple test winner eToro.

behind the operator

Bitstamp Rating: Licence and Security

Bitstamp Trade your way - SecurityWhoever wants to invest in cryptocurrencies and is looking for the right provider should only turn to the most experienced brokers on the market that operate with a valid licence.

Bitstamp has an official licence from the Luxembourg financial supervisory authority CSSF (Commission de Surveillance du Secteur Financier) and can thus prove its reputable mode of operation. The

But also the verification process of the customers in consideration of the KYC - regulation is an important indication for a correct operation and offers the users a safe environment and protects them from attacks.

Traders are secured with SSL encryption. In addition, over 98 percent of Bitstamp's crypto assets are stored in cold wallets so that hackers cannot gain access.

In our Bitstamp test, we noticed that Bitstamp takes the topic of security very seriously. Hardly any other crypto exchange has implemented such high security measures. Our Bitstamp test showed that Bitstamp protects its customers and their deposits through numerous measures:

  • Encryption of all data traffic with the modern SHA-2 (SHA-256) encryption standard.
  • Bitstamp is protected by a firewall and possible unauthorised access is constantly monitored by a web application firewall (WAF).
  • Users must use a complex, secure password with special characters, upper and lower case letters to reduce the likelihood of an account hack
  • Bitstamp supports the setup of two-factor authentication (2FA), which requires users to authenticate via two devices (e.g. PC and smartphone via SMS code), Google Authenticator can also be used for this purpose.
  • Multi-signature wallets for cryptocurrencies are used. In addition, a large part of the user deposits are stored in cold storage wallets, i.e. offline. These wallets are monitored around the clock, making theft of deposits practically impossible.
  • In addition, of course, there is the fact that BitStamp, as a broker regulated in Luxembourg - supervised by the Commission de Surveillance du Secteur Financier (CSSF) - complies with all security and data protection guidelines stipulated in the EU, such as the General Data Protection Regulation (DSGVO).
  • Similarly, all AML/KYC requirements and the MiFID II Directive are strictly adhered to.

At this point, however, it must be mentioned that in 2015 Bitstamp became the victim of a hacker attack, whereby around 19,000 Bitcoins were stolen.

This incident caused damage to the Bitstamp broker's image and a slump in the Bitcoin price.

Anyone who trades in crypto should be aware that crypto trading platforms are repeatedly exposed to such attacks.

Those who do not want to bother with additional security measures and fear for their coins should pay a visit to our test winner and Bitstamp alternative eToro.

The crypto CFD provider simplifies the crypto trading process through social trading, which benefits inexperienced traders in particular.

eToro enables traders to share in the success of other successful traders by copying their portfolios and strategies. In addition, eToro offers various training opportunities.

You do not have to worry about safekeeping of your coins when trading CFDs, as you do not own the coins directly.

The eToro app offers easy access to buying and selling 16 cryptocurrencies, with new coins being added all the time. Either real cryptocurrencies can be bought and securely deposited in the eToro Wallet (mobile wallet), or users can use the crypto CFDs preferred for crypto trading.

With crypto CFDs, money can be made from the performance of cryptocurrencies, regardless of whether these prices rise or fall, simply by taking the appropriate buy or sell position. In addition, crypto CFDs can be traded with leverage, which, however, also entails a higher risk.

Finanz-Apps-eToro-App-288x300

Bitstamp Test - Customer Service & Support

All beginnings are difficult, - even with the user-friendly Bitstamp Exchange, questions can arise from time to time. Whether on topics such as payment conditions, trading platform, fees or more - the first port of call for Bitstamp support should be the detailed FAQ section.

Bitstamp support is an important feature that testifies to the quality of the provider and therefore represents an important aspect in this Bitstamp review. If the question cannot be answered by the detailed FAQ section, the path leads to personal support.

Bitstamp support is available via email and by phone (weekdays from 8 to 9 a.m. and Saturdays from 8 to 11 a.m.). Bitstamp experiences show that you will receive an answer by email within a few hours.

Note: If you would like to contact Bitstamp support by phone, you should be prepared for telephone charges that may be incurred due to the broker's international location.

As the broker is based in the UK, Bitstamp support staff only speak English, which is not particularly practical if you do not speak English.

Bitstamp Test

Contact way


phone

+44 20 3868 9628

e-mail

Live chat

no

contact form

Yes

FAQs

Yes

Overall, Bitstamp's customer service is okay but not remarkable - many competitors have dedicated customer support that can also be contacted via live chat.

Customer reviews of Bitstamp on the internet

Bitstamp experiences are not too good so far.

With 381 reviews, the Bitstamp rating on Trustpilot is poor with 2.0 out of 5 stars. 24% have given the platform the highest rating and 60% find the platform unsatisfactory.

Here are a few reviews:

Christa Nossmann wrote on 28/07/2020:


"My account was blocked and my money debited in the meantime, for me 2000,00 € is a lot of money! I can only say that in my eyes this is fraud, because they place so much value on security."

Joe Breu is also appalled by Bitstamp and wrote on 30.06.2020:

"Bitstamp absolutely underground. Account was closed from one day to the next and a simple mail with the info: that from now on the wallet account has been closed. Without giving any reasons. I have been waiting for more than a month for a reason. The cheek of the matter is also that the money for wallet certification simply went into their possession. I haven't been able to access my account since then either."

Shaswa, on the other hand, who wrote a review on 31/03/2020, is happy with Bitstamp:

"Hi, would like to share my experience here too,
+ registration is fast
+ Transfer posted very quickly 7am transfer 12 noon.
+ Support responds quickly to enquiry
+ trading fees 0,5% is ok
+ enough coins available
+ good btc rate

- Withdrawal of bitcoin fee fees very expensive 0.005 btc this is not possible at all.
If you make 10 withdrawals a day, regardless of the amount, you are quickly at 25€ in fees. Otherwise everything is ok.

The opinions on Bitstamp are therefore different. We definitely recommend eToro as a Bitstamp alternative, our test winner in our Bitstamp test. eToro is a regulated broker that convinces with low fees and functions such as social trading.

Alternatives to Bitstamp

Alternatives to Bitstamp are:

Rank 1: eToro β˜…β˜…β˜…β˜…β˜…

Our test winner is particularly known for its social trading function, where trading strategies can be legally copied from experienced traders. The regulated broker also convinces with many other functions and offers low fees.

Buy cryptos with eToro

Rank 2: Plus500 β˜…β˜…β˜…β˜…

Plus500 is an exchange founded in 2008 and regulated for speculative trading in cryptos, stocks, forex and other assets. Thanks to innovative technology, this trading platform offers its users the best possible conditions for trading CFDs on cryptos, ETFs, commodities, indices, fiat currencies and shares.

Plus500

Rank 3: Alvexo β˜…β˜…β˜…

Alvexo is a regulated forex broker and investment company focused on global financial markets. The broker offers trading in CFDs on shares, indices and commodities with modern online trading tools, excellent customer support and leverage of up to 1:300, with a minimum deposit of $500.

Alvexo

Bitstamp Test - Conclusion

Bitstamp is an established provider on the crypto market and allows trading with 10 different cryptocurrencies. Although the range of cryptocurrencies could be a little better, it should definitely be enough for the first experiences.

The provider not only acts as a crypto exchange, but also as a Bitstamp Exchange and enables the exchange of euros for USD.

Even if the selection of cryptos is not the largest, the provider can score points with a transparent fee model and low Bitstamp fees.

pro-gfx-3

Unfortunately, the Bitstamp app does not offer access to advanced functionalities such as detailed charts, so the mobile offer is only suitable for basic things. So those who mainly want to trade on the go should rather turn to another provider.

There is also a small point deduction in the Bitstamp review regarding the contact channels of the Bitstamp support, as there is no live chat that enables a quick answer to questions.

Instead, you have to resort to email contact or the international hotline for questions, which may incur costs. In addition, the employees only speak English, which should also be noted in the Bitstamp review.

Like many other crypto exchanges, Bitstamp has not been spared hacker attacks in the past. This is why Bitstamp fraud can never be 100 per cent ruled out despite strong security measures.

It is advisable to store your coins in a separate wallet.

If this is too much effort for you, you can use our test winner as a Bitstamp alternative.

Recommended alternative to Bitstamp: eToro


If you want to buy Bitcoin quickly, we recommend the broker eToro. Besides a clear user interface, government regulation and copy trading, the big advantage of the platform is that both Bitcoin CFDs and real Bitcoin are available for trading. Moreover, with ~1.8% total costs, eToro also proves to be the top dog in terms of price.

Exchange and wallet in one
Regulated provider
Deposit with PayPal, credit card, SOFORT transfer and more
Over 14 other cryptos tradable
Equities and ETFs also available

FAQ

What is Bitstamp?

Bitstamp is a regulated crypto exchange based in Luxembourg and licensed by CSSF. The exchange was the first fully regulated crypto exchange and offers trading in 10 leading cryptocurrencies.

How much money should I invest with Bitstamp?

There is no minimum deposit at Bitstamp. This means that trading can also be started with very small sums. How much money you invest ultimately depends on your own financial situation and willingness to take risks.

How long does it take to withdraw money from Bitstamp?

Withdrawals at Bitstamp are carried out via SEPA transfer to a bank account located in the EU. Payouts usually take between 1-3 banking days, depending on the bank and the time of application.

What are the requirements for Bitstamp registration?

After Bitstamp registration, one must confirm one's email address and then verify one's account. After that, the proof of identity and address is carried out. A scan of the passport or identity card as well as the utility bill with residential address has to be submitted.

Can I buy Bitcoin with euros at Bitstamp?

If you want to buy Bitcoin directly with euros, Bitstamp is the right place to go. If all requirements are met, you can get to the purchase menu with just a few clicks. There you can directly buy the selected EUR amount in Bitcoin according to the current exchange rate. This is a simple and convenient way to buy Bitcoin within a few minutes.

Which cryptocurrencies are available at Bitstamp?

Bitstamp offers trading in a total of 10 different cryptocurrencies. These are: Bitcoin, Ripple, Ethereum, Chainlink, Litecoin, OMG Network, Bitcoin Cash, Stellar Lumens, USD Coin and Paxos Standard.

Hi, my name is Benzion. I have twelve years of experience in the Forex industry, and I have launched two successful crypto trading services. I have in-depth experience on several blockchain networks like Bitcoin, Etheruem, EOS, Cardano, Hyperledger, ICON, Komado, etc. I also have in-depth knowledge of blockchain techniques, including various consensus mechanisms, DLT, smart contracts, security, and privacy measures. Benzion Friedman