I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.
See all posts Frank GogolBitstamp Crypto Exchange Explained
Updated on April 9, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
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At a Glance: Bitstamp is a popular cryptocurrency exchange founded in 2011, headquartered in Luxembourg, and serving clients globally. It offers the ability to buy and sell various cryptocurrencies using bank accounts or debit/credit cards. Bitstamp charges trading fees and only allows users to go long. The platform supports major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Ripple. To sign up, users need to open an account, confirm their email, enhance security with 2-factor authentication, verify their identity, make a deposit, and then they can start buying and selling cryptocurrencies.
Everyone needs a good and secure cryptocurrency trading platform that allows them to trade at all times. Bitstamp is great for all crypto traders, particularly if they want to exchange assets with different users of the platform. The exchange was founded in 2011 and since then, it has served a lot of clients from all over the world. But how exactly does Bitstamp work and what are the cryptocurrencies that it supports? Read this article and find out.
What Is Bitstamp?
Bitstamp is one of the most popular cryptocurrency exchanges in the world. It was founded back in 2011, two years after Bitcoin was created and it has a trading volume of $40 million per day, which is lower than platforms like Bitoasis or Coinbase. Its headquarters are in Luxemburg, and even though it was initially focusing on clients from E.U., now it serves clients globally.
On Bitstamp, you can buy many cryptocurrencies, and you also have the option to deposit or withdraw money. This is possible by using a bank account or debit/credit card to make the payment.
Bitstamp is one of the top long-standing exchanges when it comes to Bitcoin. Its crypto services are offered for both people who create personal accounts and institutions that create corporate accounts. Bitstamp has a lot to offer for institutions that want to add crypto into their platforms.
The Bitstamp application can be downloaded on Android and iOS devices. Also, since it is a global crypto exchange, people from all over the world can open an account. There will be no country restrictions if you wish to deposit funds with crypto.
In case you want to deposit funds using a debit or a credit card instead, only certain countries will be able to do so. They include Argentina, Bahrain, Israel, Japan, Jamaica, Serbia, Norway, China, Lebanon, Puerto Rico, San Marino, Singapore, Serbia, South Africa, Hong Kong, Andorra, Chile, Turkey, Greenland, Ecuador, Moldova, Montenegro, and many others.
How Does Bitstamp Work?
Bitstamp works similarly to other major cryptocurrency exchanges. All you have to do is open your Bitstamp account, deposit funds and then start trading. You can either buy or sell coins. Bitstamp acts like a third party between the buyer and the seller. So, when you get cryptocurrencies by purchasing them, you are not buying them from the exchange directly. You are purchasing them from a different entity.
Bitstamp charges trading fees for users as they match buyers and sellers. This way, the platform can offer its services permanently. Also, the exchange only allows to go long, which makes it different from other major cryptocurrency platforms. So, while you are able to make a profit when you think the crypto’s value will increase, you will be unable to repeat this process if you think the markets are going to fall instead.
It can put off a lot of people because day trading professionals who operate in the crypto markets love being able to go long and short, not just one way.
Two methods allow Bitstamp to make its money. One of them included the fees for deposits, and the other one is represented by the fees to trade.
People have to pay trading fees for every single trade they make. You will have to pay 0.25% per trade. So, if you trade $1,000 in cryptos, your trading fee will be $2.50. When you close the trade, you will pay the fee again. Also, if you are a professional trader and you trade over $20 million in a month, this rate can go down to 0.10%.
When compared to other platforms, Bitstamp’s fees are very high. Their credit card deposit fee is 5% of the deposit amount, and the debit card deposits have a fixed fee of $10. You will pay $2 if your deposit is over $10,000, though.
Then, bank wire deposits have a 0.05% transaction charge. Crypto deposits and SEPA are free. Meanwhile, credit and debit card withdrawals are free, SEPA is 0.09 euros and bank wire withdrawals are 0.09%.
What Cryptocurrencies Does Bitstamp Support?
There are several cryptocurrencies that you can buy or sell on Bitstamp. Here is what the platform supports:
- PAX
- Bitcoin
- Ethereum
- Litecoin
- USD coin
- OMG Network
- XLM
- Link
- ALGO
- Bitcoin Cash
- XRP (Ripple)
There are several others, but these are some of the major ones supported by them. Apart from that, they have a few trading pairs. Crypto-to-fiat and crypto-to-crypto are both available. Some of the trading pairs they offer include:
- ETH/USD
- XRP/USD
- LTC/EUR
- ETH/BTC
- BTC/USD
- BCH/EUR
- BCH/USD
- LTC/BTC
- ETH/EUR
- BCH/BTC
- XRP/EUR
How to Sign Up for Bitstamp
If you want to sign up on Bitstamp, here is the process you will have to go through:
Open an Account
Go to the Bitstamp homepage and click on register. You will be asked for some personal information, such as your email address, full legal name, and residence country. Considering you may have to verify your identity later on, it is important to make sure your information is correct.
Confirm the Email Address
You will have to confirm your email if you want to move forward with the account registration. The confirmation can be made if you check your email inbox and click on the verification link sent by Bitstamp. Your unique account ID will be shown when you do that. You have to make sure you write it down and keep it in a safe place. A strong password should also be chosen.
Increase the Account’s Security
After opening the account, you can increase security by adding 2-factor authentication. You can enter a unique code from your mobile phone whenever you log into your account or withdraw funds once you activate the 2FA.
Verify Your Identity
If you wish to make deposits using a cryptocurrency, identity verification will not be necessary. But if you want to use a real-world payment to make deposits, like bank accounts or a card, you will have to verify your identity. This can be done using a driving license, passport, or another form of government ID. A residence proof will be needed too.
Make a Deposit
Click “deposit” at the top of the screen. You will then get a drop-down list of the available payment methods. Choose one and enter the amount you wish to deposit, after which you will click on “confirm”. Your account will be instantly credited if you used a card. Bank transfers will be slower.
Purchase Cryptos
You will now be able to buy cryptos. Click “Buy/Sell” at the top of the screen and select the crypto trading pair that you wish to buy or sell. Enter the amount you wish to trade and choose the right action.
Read More
- How to Make Money with Cryptocurrency
- How to Withdraw from Binance
- How to Transfer From Coinbase to Coinbase Pro
- How to Transfer from Coinbase to Binance
- How Does Cryptocurrency Gain Value?
- How to Read Crypto Charts
The Bottom Line
Bitstamp is a great platform for professional traders. It comes with many features and it’s not that difficult to use. So, you can give it a try and open an account if you want to be able to trade cryptocurrencies.
Frank Gogol
I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.