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The Story of BitstampSwissquote, Crédit Agricole and the Chicago Mercantile Exchange. It has become one of the most well-respected and popular exchanges on the market.
How Popular Is Bitstamp?Today (04/23/18), Bitstamp is rated as the 15th largest crypto exchange. Over two-hundred million US Dollars have been used to buy and sell cryptocurrencies on Bitstamp in the last 24-hours! Bitstamp makes up about 6% of all crypto exchange trading. You can trade with Bitstamp in over 60 countries, from the US to New Zealand, Brazil to South Korea and many more. But what’s so good about Bitstamp? Let’s find out. And because this one of the higher quality Bitstamp reviews, I’ll also tell you what’s bad about Bitstamp too…
What’s Good About Bitstamp?Fiat Trading: Bitstamp allows its users to buy cryptocurrencies with fiat currencies. Fiat currencies are the official currencies of countries. Examples of fiat currencies are the Chinese Yuan (CNY), the US Dollar (USD) and the Russian Ruble (RUB). Some crypto exchanges – like Bittrex – don’t allow trading with fiat currencies. This is bad for beginners who are buying cryptocurrency for the first time. With Bitstamp, you can buy cryptocurrency without having to visit another exchange first. The fiat currencies you can trade with on Bitstamp are the US Dollar (USD) and the Euro (EUR).You can also use Swiss Francs and British Pounds on Bitstamp but you won’t be able to trade with them. They will be converted into USD or EUR before you can trade with them. Payment Methods: Bitstamp allows users to fund their accounts using credit cards and bank transfers. Some exchanges – like Kraken – don’t support credit card payments. Bitstamp’s choice of payment types makes your first crypto trade a lot more simple! Security: In January 2015, Bitstamp was hacked and 19,000 Bitcoins (BTC) were stolen. The stolen Bitcoins were worth about 5 million USD! This made a lot of users ask, is Bitstamp safe?PGP (Pretty Good Privacy) to keep any information uploaded by its users private. So, I believe your answer to “Is Bitstamp safe” is yes!bit Fees: Bitstamp fees are quite low when compared to the rest of the market. They are also easy to understand, which is great for newbies. Bitstamp fees change depending on which payment method you’re using and where you live so we will look at them in more detail later. Customer Service: At Bitstamp the customer is King (or Queen!). Bitstamp wants to keep its traders happy. It responds to user emails within three days and has a UK-based helpline for emergencies. Users will find a detailed FAQ page on Bitstamp’s homepage.
What’s Bad About Bitstamp?Coin Selection: Bitstamp only offers five cryptocurrencies for trading. They are; Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH) and Ripple (XRP). As a beginner, this isn’t a big problem but when you’re a pro trader you might want a better selection. Bitstamp only offers 11 trading pairs. Whereas the Poloniex exchange, for example, offers 97! Note: Trading pairs are currencies put into pairs and given an exchange rate. It’s a bit like the Bureau de Change at the airport where the pairs look like this; 1 USD = 106 JPY. A Bitstamp trading pair looks like this; 1 BTC = 9,359.76 USD.
Mobile App: Bitstamp has a mobile app, which is good but it has a score of 1.8 out of 5 at the Apple Store. So, that’s bad! Users have complained that the app is slow to update and doesn’t offer the same features as the main site. User Friendliness: As a professional trading exchange, Bitstamp can be quite complicated. New users can find Bitstamp difficult to use. The platform is well-designed but is probably too advanced for some newbies.Platforms like Coinbase are sometimes recommended instead of Bitstamp for users with no trading experience. Now you’ve heard the good and the bad, are you ready to start trading? Yes? That’s awesome, because no Bitstamp reviews would be complete without a guide to getting started…
How To Start Trading On Bitstamp
Get RegisteredRegister. Registration is quick and easy. Just fill in the information shown below.
Next, you’ll receive an email. The email will contain a link where you must change your password. You’ll also be given the option to set up two-factor authentication. Do it! Quick Tip: Beware crypto exchanges that don’t offer two-factor authentication, unless losing money is your idea of a good time!
As you can see, Bitstamp has its own PDF guide to authentication so there is no excuse not to use it!
Get VerifiedThere are two stages of verification, which can make the Bitstamp verification time quite long. However, you must complete both stages to use all the platform’s features. To complete the first stage, go to Settings then Verify Account and Identity Verification. Next, choose Personal Account Verification. You’ll now need to upload your driver’s license or passport, as well as a proof-of-address, like a gas bill.
The second stage of verification involves getting a code sent to your phone. To do this, go to Settings then Verify Account and Phone Number Verification. Bitstamp verification time: Usually 1-2 days. However, it can take longer, so try to be patient!
Once you have completed this stage your account will be fully verified and you’ll be ready to start trading!
Start TradingThe easiest way to make your first crypto trade is with a credit card. All you have to do is select the Buy/Sell icon and then choose Credit Card Purchases. The example below shows a credit card purchase of 50 US Dollar’s worth of Bitcoin.
You’ll be asked to enter your details in the same way you would if you were buying something with Amazon or Ebay.
Once the payment is goes through, your first cryptocurrency will be sent to your account!
Congratulations, you’re a crypto trader! Pretty cool, right?
BitStamp Storage: Is BitStamp a Wallet?Now that you’ve bought some cryptocurrency you’ll need to be able to access it. The codes used 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 never be shown to anyone! Think of it like an email account. The public key is your address and the private key is your password. So, is Bitstamp a wallet? The answer is, sort of, but not really.Ledger Nano S is a popular hardware wallet.
Bitstamp FeesBefore I finish this Bitstamp review I want to talk about Bitstamp fees in more detail. Deposits, withdrawals and trades all have their own fees;
- Credit Card Purchases– A fee of 5% is charged for every credit card purchase.
- Debit Card Withdrawal– A fee of at least 10 USD is charged for withdrawing funds using a debit card.
- International Wire Transfer– A fee of 05% is charged for deposits made with an international wire transfer (the least you’ll pay is 7.5 USD and the most is 300 USD). A fee of 0.09% is charged for withdrawing funds using an international wire transfer (you will pay at least 15 USD and other banking charges may be made).
- SEPA Fees: If you live in the European Union and are using Euros, then you will be charged SEPA (Single Euros Payment Area) fees. Deposits in the SEPA are free. Withdrawals are charged a 90 EUR fee.
- Trading Fees: All trades under 20,000 USD are charged a fee of 25%. For bigger trades, fees go down. For example, trades bigger than 20,000,000 USD are only charged a fee of 0.1%.
- Cryptocurrency: Making deposits and withdrawals using the cryptocurrencies that Bitstamp offers are free of charge.