Bitstamp.net Review – Scam or not?
Bistamp is one of the most reliable Bitcoin exchanges nowadays. The platform was founded as a European alternative to then-dominant cryptocurrency exchange Mt. Gox and provides secure and reliable service to their customers since 2011. The company was founded by Damijan Merlak and Nejc Kodrič in their native Slovenia, but in April of 2013 moved to the UK, then to Luxembourg in 2016.
This cryptocurrency exchange is well-connected in the industry. They work together with Coinbase, one of the most popular BTC exchanges. The company has also attracted significant investment from Pantera Capital, one of the biggest Bitcoin-specific venture capital investors, owned partly by Benchmark, Ribbit Capital, and Fortress Investment Group.
Verification at Bitstamp
Verification process usually takes about 2 hours, if you have all the necessary documents. You can verify identity by submitting scanned image of your passport, national ID or driver’s license together with the proof of residency. All you need to know is explained in this short video:
The verification itself doesn’t affect the amount of money you can trade, but deposits and withdrawals are not possible with an unverified account.
Bitstamp currently accepts just two fiat currencies – US dollars and European Euro. When it comes to cryptocurrencies, they support BTC and Ripple, but Ripple trading is something that we would not recommend due to extremely high fees. Bitcoin trading is the main feature of Bitstamp, and it works as a user-to-user trade, while Ripple trading is conducted directly, user-to-Bitstamp with an unfavorable exchange rate.
Fees at Bitstamp.com
The trading platform supports wire transfers and the following fees apply:
International Wire deposits carry 0.05 percent Bitstamp fee with a minimum of 7.5 USD/EUR and it takes 2-5 business days to be completed.
International Wire withdrawals carry 0.09 percent Bitstamp fee with a minimum of 15.00 USD/EUR. The minimum amount for international wire withdrawals is 50.00 USD/EUR, and it takes 2-5 business days to be completed.
When it comes to Bitcoin trading fees, Bitstamp starts a bit high with 0.25 percent for a monthly volume lower than $20.000. The percentage drops as the volume increases; all the way to 0.10 percent for a monthly volume over $20 million.
USD/EUR trades have a flat fee of 0.20 percent. You can see the detailed fee schedule here – https://www.bitstamp.net/fee_schedule/
The minimum trading amount is currently $5. Previously the minimum trading amount was $0.86, but the exchange had to increase the limit due to customer complaints. Customers complained that they are paying five times higher fees on the smaller trading amounts due to the Bitstamp’s rounding policy.
Bitstamp allows users to execute instant orders at the best bid currently available, to ask price as well as to place limit orders.
Instant Order on Bitstamp
Buying of Bitcoins is available to businesses and individuals 24/7 through the Tradeview interface and a well-documented API. The API gives users complete access to their accounts, as well as a quick way to analyze the public book and ticket information.
Limit order on Bitstamp
The exchange does not support trading of derivate and futures. Altcoins and margin trading services are not supported too.
Ease of Use
The website’s interface looks simple and clean. It’s very easy to find your way around even if you are the first-time visitor. Bitstamp also has one of the best live trading view interfaces and a great Fiat/BTC graphs. You can learn how to use the Tradeview interface here.
Customer Support at Bitstamp.com
Bitstamp’s customer support typically responds within an hour and they are ready to go an extra mile to help resolve user’s issues. They have earned the respect of many users by giving honest replies to support tickets and working overtime as well as hiring additional staff to handle the workload in times of need. More than decent support – everyone loves them, including us.
There are no scam reports on the Web found but in our comment section below there are a couple of negative reviews in the recent past.
The trading platform keeps the security pretty basic. It offers two-factor authentication that connects a user’s account to a mobile device, and a password, which needs to be changed every 90 days.
Bitstamp is very committed to money laundering prevention too. Since the governments have not regulated the BTC exchanges, Bitstamp has created a set of their own rules which they follow in order to prevent any shady financial practices on their platform.
The exchange was last time hacked in January of 2015, and the crooks have stolen up to 19,000BTC. More info can be found in this Reddit discussion.
After the hack, company decided to rebuild the platform entirely in order to restore the trust of the clients. The exchange guaranteed the safety of the funds before the hack and stated the following:
“This breach represents a small fraction of Bitstamp’s total bitcoin reserves, the overwhelming majority of which are held in secure offline cold storage systems. We would like to reassure all Bitstamp customers that their balances held prior to our temporary suspension of services will not be affected and will be honored in full.“
Bitstamp stores 98 percent of all coins in cold wallets, keeping the customer’s funds offline in secure vaults. The remaining 2 percent are held for a live trading on the exchange.
The interesting fact is that the Bitstamp was the first major trading platform to incorporate the best security practices in the industry such as a fully insured cold-storage, two-factor authentication and mandatory confirmation emails in order to increase the security of the users.
The company has email and SMS alerts, and they use PGP (Pretty-Good-Privacy) data encryption for authentication of the uploaded files and privacy protection.
Bitstamp Review Conclusion:
Bitstamp is one of the most reliable cryptocurrency exchanges out there, with a high daily volume and excellent connections in the industry.
- Good reputation
- High volume and liquidity
- Connections in the industry grant it additional legitimacy
- Easy to use and quick
- Supports only BTC/FIAT trades
- Slightly higher fees if you are trading lower volumes
If you are based in Europe, this definitely an exchange you should consider using. Having questions? Feel free to post them in the comments.
We would love to hear from you.