Bitstamp stands out as a beacon of longevity in the cryptocurrency world. Established in 2011 and based in Luxembourg, it has the distinction of being one of the oldest crypto exchanges still in operation today. With a licence to operate across all 27 European Union countries and nearly 50 other regions, including China and the US, Bitstamp exists as a global platform. It offers trading of over 80 of the most well-established coins and tokens.
Despite the fierce competition in the cryptocurrency exchange market, Bitstamp has managed to secure the 11th spot in terms of 24-hour trading volume. This is particularly impressive considering its relatively modest selection of available cryptocurrencies compared to other exchanges. Bitstamp’s enduring presence in the market can be attributed to its appeal to both novice and experienced traders, offering advanced order types while maintaining a user-friendly interface suitable for those new to the world of crypto.
The origins
The story of Bitstamp begins in Kranj, a mediaeval town in Slovenia, where founders Damijan Merlak and Nejc Kodric embarked on their crypto journey. Their venture into the world of cryptocurrency started in a rather unconventional manner, with a discussion about mining Bitcoin over the purchase of two graphics cards. This conversation laid the groundwork for what would eventually become Bitstamp, envisioned as an improved version of the then-popular Mt.Gox exchange.
In 2014, Bitstamp received a significant boost with a $10 million investment from Pantera Capital, a US Bitcoin investment firm. This investment underscored the exchange’s profitability and potential for growth in the burgeoning crypto market.
How does Bitstamp work?
Bitstamp operates as a comprehensive cryptocurrency exchange, enabling users to buy, sell, and trade a variety of cryptocurrencies. It simplifies the process of engaging with the digital currency market, making it accessible for both newcomers and seasoned traders.
Here’s a closer look at how Bitstamp facilitates these transactions and what makes it a preferred choice for many in the crypto community.
Deposits and Withdrawals
Users can fund their Bitstamp accounts through several methods, including international wire transfers, debit and credit card payments, and ACH transfers from a bank account. Among these options, bank transfers, especially ACH deposits and withdrawals, stand out as the most cost-effective choice, as they are free of charge. This variety in payment methods underscores Bitstamp’s commitment to providing flexibility and convenience to its users.
Platform Accessibility
Bitstamp caters to its diverse user base by offering both a web platform and a mobile app available for Apple and Android devices. This dual approach ensures that users can manage their cryptocurrency transactions on the go or from the comfort of their homes. The platforms are designed to be intuitive, allowing for straightforward purchases of cryptocurrency.
For those looking for more advanced trading options, Bitstamp introduces Tradeview. This trading platform is tailored for experienced investors, offering a more detailed analysis and a suite of tools to execute complex trading strategies. Tradeview complements the standard platform, which satisfies the needs of most investors with its simplicity and ease of use.
Trading Features and Support
Bitstamp distinguishes itself with a range of trading features that cater to various strategies and preferences. These include:
- Instant Orders: These are executed immediately at the current market price, allowing for quick transactions.
- Limit Orders: Users can set a specific price at which they wish to buy or sell, providing control over the execution price.
- Market Orders: This option enables buying or selling at the best available price in the market at the moment of the order.
- Stop Orders: By setting an entry or exit price point, traders can limit potential losses due to sudden market fluctuations.
- Trailing Stop Orders: Offering more flexibility than standard stop orders, these allow for a “trigger price” to automatically adjust as the market moves.
- Fill-or-Kill Orders: These orders mandate that a transaction is executed immediately in its entirety at a specified price, or not at all.
In terms of customer support, Bitstamp is among the few exchanges that provide phone support, a feature that is highly valued by users who prefer direct communication. While the exchange does not offer live chat support, users can still reach out for assistance through email by submitting a support ticket.
Areas for improvement
While Bitstamp offers a solid foundation for cryptocurrency trading, it lacks some of the advanced features found on other platforms, such as margin trading and a rewards card. The exchange also offers staking for Ethereum ($ETH) and Algorand ($ALGO) but falls short in providing a wider range of advanced trading options.
Over the years, Bitstamp has taken significant steps to enhance its security measures, especially after a phishing attack in 2015 led to the theft of nearly 19,000 Bitcoin. In response, Bitstamp not only reimbursed affected users but also ramped up its security protocols. Most of its digital assets are now stored offline in cold storage, and the platform has implemented comprehensive insurance coverage against various crime-related scenarios. Despite these improvements, Bitstamp’s security rating remains a point of concern for some users.
