- Country: Luxembourg
- Regulation: CSFF Luxembourg
- Markets: Cryptocurrencies
- Deposit methods: bank transfer, bank card
- Minimum deposit : 0
- Platform: own
- Leverage: no
- Spread: variable
- Commissions: 0.25%
What is Bitstamp?
Bitstamp is one of the best brokers in the world to trade Bitcoin, the cryptocurrency on which it bases its name and fortune.
This broker was the European alternative to the American giant Mt Gox, since it allowed depositing following European standards, which was an advantage to acquire leadership in the cryptocurrency market.
Bitstamp has different offices in Luxembourg, the United Kingdom and the United States.
According to the latest data from bitcoinity.org this broker was occupying the fourth place worldwide in Bitcoin trading volume, with a market share of 10.29%.
The fact of having a physical presence in the United Kingdom and Luxembourg has brought improvements in the regulation of this broker.
Bitstamp tried to regulate itself in the UK but since Bitcoin is not an official currency it was told that it was not necessary. However, the intention of the company was to register completely so we can see the attempt to be transparent of this company.
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However, the most interesting regulatory point came in 2016, when the Luxembourg government gave it full access to be regulated in the EU as a payment institution, being able to do legal financial business without restrictions in all member countries of the European Union.
As we see, this is a fairly serious Bitcoin broker, based in Luxembourg, one of the world’s financial capitals, where it has European institutional support. This gives you a pretty good safety point.
Regarding the security of commerce and the personal data of customers, Bitstamp follows a process similar to that of other competitors in this rapidly growing market.
Users have to pass a double factor authentication of their accounts (2FA).
As usual, you will need an identity document in addition to a receipt that shows your residence, so opening an account in this broker is similar to doing it in another Forex, futures or CFDs.
It usually takes about three days for an account to open, which we hope will improve in the future.
Bitstamp only supported Bitcoin trading until the beginning of 2017, when it introduced other cryptocurrencies to operate with, although it is still behind the competition in this regard. Other big houses like Kraken or Poloniex offer more assets.
Being an eminently European broker, it offers undoubted advantages for deposits for businessmen from the continent, since they can deposit by transfer in a more transparent and less expensive way than by card, for example.
Bitstamp Withdrawals and deposits
The cost of withdrawing money to your account by card is 10 USD up to amounts of up to 1,000, being 2% for those higher than the previous one.
The transfer in SEPA is free and the withdrawal has a commission of 0.9 euros.
For a credit card the commission will go from 8% for amounts less than € 500, 7% for 1,000, 6% for 2,500 and 5% for 5,000.
International transfers have a 0.05% deposit with a minimum of 7.5 USD / EUR and a maximum of 300 USD / EUR. Withdrawals have a rate of 0.09% and a minimum of 15 USD / EUR.
In the case of making deposits or withdrawals with Bitcoin there will be no commission, unless BitGo instant is used, with which they charge 0.1%.
At Ripple IOU the commission is 0.20% for transfer between accounts.
On Ripple XRP, Litecoin and Ethereum it will be free.
Bitstamp trading fees
The minimum to trade with Bitstamp is 5 currency units, EUR or USD.
Trading commissions will depend on the volume traded, following the following table:
|Commission (%)||Volume 30 days USD|
Bitstamp customer support
Bitstamp offers an extensive section of answers and questions (FAQ) that should answer the vast majority of questions that may arise with the service of the same.
However, it also has email contact with three public addresses:
Normally it shouldn’t surprise us to have to wait one to three days to receive an email response, but this is common in the still budding sector of cryptocurrencies.
The telephone number in case of emergency is 44 20 8133 5474.
Trading with Bitstamp
This is one of the best brokers in the market in terms of Bitcoin trading spread, being able to observe a fairly stable spread of one dollar or even less much of the time.
However, and as it continues to happen with most brokers in the sector, we find quite notable spreads, which go to $ 3, 5 or 15 and make the true cost of trading higher than what it really seems.
The latter is in the case of Bitcoin USD, while for the euro we will normally have a higher spread, of the order of 5 points or more, which makes trading with this pair even more difficult. However, I repeat, it is one of the best spreads that we can find in the market.
That if we should not forget the cost of trading with commissions, which we will not have in other CFD brokers that offer this instrument.
In Ethereum trading we have a spread of $ 1.25 in a fairly continuous way, which is one of the best spreads in the market, a spread that also remains more constant than that of Bitcoin, although it is quite superior, everything must be said .
Therefore, if you are going to trade with Ethereum, please keep in mind that we are playing with a very large spread and it is difficult to make successful scalping like this.
Litecoin’s spread is quite good, with a difference of 0.05 USD as of today (64.94 – 64.99). However, the order book is not very deep so we can expect to see notable increases in the spread and therefore in our trading cost.
Other Bitstamp services and partners
Bitstamp has alliances with the Swiss broker and bank Swissquote, the subsidiary of Credit Agricole Caceis and Ripple Gategay, with which we can even expand our trading needs through the advantages of being able to negotiate with the important allies of this great broker. of the cryptocurrency market.
As for other allies we have mentions in Reuters, Forbes, CoinDesk and THEEUROPAS.
The main ally, however, is the US investment group, Pantera , which specializes in cryptocurrencies and has invested $ 10 million in Bitstamp with a view to increasing investment in the future.
Conclusion and opinion
In general I can say that we are dealing with a good cryptocurrency broker that has been in the market for several years (for the recent crypto world) and that offers us seriousness and good trading conditions.
The issue of regulation in Luxembourg helps a lot to give us this broker confidence when trading.
However, my general recommendation is that we never have too much funds in cryptocurrency brokers, not only this one, because we are facing a rather budding world and where there are usually hacking and financial problems. This is not surprising given the extreme volatility of these assets.
For example, in 2015, Bitstamp had to suspend the service for a week when it was discovered that some 19,000 bitcoins were allegedly stolen by a hack, something that was not entirely clear and that it seems that it did not affect customers.
This is very reminiscent of the case of Mt. Gox , the world’s largest Bitcoin broker at the time.
For cases like this, which with common in the industry, I recommend that whenever we have accumulated several bitcoins, we remove them from these operators and put them safely in other places.
As for trading, it is quite good, since it gives us a pretty good spread, similar to Kraken, although unlike this it does not provide leverage , which is not very necessary in Bitcoin, by the way.
In addition, the commissions are the best in the market for large volumes, making it a broker to be considered by large operators.
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