Bitstamp Review (Dec 2022): Why We Don’t Like It

June 15, 2022
Reviews

Bitstamp is a simple-to-use European crypto exchange that will allow you to buy, sell, trade, and stake cryptocurrencies through a slick, simple-to-use desktop platform and mobile app. However, considering the limited order types that the exchange has, its lacking customer support, and the fact that it has been hacked before, I'm unable to recommend the platform as a top crypto exchange for Canadians to use.

Instead, I recommend CoinSmart, Bitbuy, or Newton, since they all offer more features and charge lower fees than Bitstamp. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

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What Is Bitstamp?

Bitstamp is a European cryptocurrency exchange based in Luxembourg. It's one of the oldest crypto exchanges around today, as it was founded way back in 2011, and it's also the fourth-largest cryptocurrency exchange based on its 24-hour day trading volume.

The platform was initially founded as an alternative to the Mt. Gox crypto exchange in Europe. Currently, Bitstamp supports 64 different cryptocurrencies, and it has interesting features such as a standalone advanced trading platform, its own blog filled with crypto-relevant information, and its Bitstamp Earn feature, which lets you earn passive income on your cryptocurrency holdings by staking them.

To start off this Bitstamp review, let’s take a deeper look at Bitstamp’s pros, cons, and features.

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Bitstamp Pros & Cons

Bitstamp Pros

  • Simple to use and intuitive platform.
  • Competitive trading fees (0.5% at their lowest tier)
  • Supports a considerable amount of crypto assets (64 different cryptos)
  • Solid security measures (98% cold storage policy, crime insurance against theft or fraud, and more).
  • Allows you to stake your crypto holdings to earn passive income.
  • Has a well-designed and well-received mobile app.
  • Is a registered Money Services Business (MSB) with FINTRAC.

Bitstamp Cons

  • You can only stake 2 of the 64 coins they support.
  • No margin trading or lending trading is available.
  • Lacklustre customer support.
  • The advanced platform doesn't offer much and could disappoint seasoned crypto traders.
  • The platform was hacked in 2015.

Bitstamp Features

1. Bitstamp Desktop Platform

Bitstamp offers an intuitive platform design that beginners will find especially comfortable to use. Opening an account in the exchange is also pretty easy and nearly instantaneous, as you don't need to verify your identity to deposit cryptocurrencies into your account's balance. However, you will need to verify your identity if you want to deposit fiat currencies through a bank, credit, and/or debit card.

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Bitstamp also allows you to create subaccounts that will allow you to test different trading strategies and/or crypto trading bot integrations, and an advanced trading platform that will let you use advanced charts, a wide range of analytical tools, and many different order types such as instant orders, market orders, limit orders, stop orders, and trailing stop orders.

However, considering some of the more advanced order types such as take profit orders and fill or kill orders are missing, seasoned crypto investors may find Bitstamp's advanced platform to be lacking. Additionally, you can only make crypto-to-crypto trades with the available crypto pairs that Bitstamp offers (which are not that many).

Bitstamp also uses an easy-to-understand tiered fee structure that has competitive rates, being at 0.5% per trade on its lowest tier. This rate can be lowered even further if you meet certain trading volume requirements, which is nice.

2. Bitstamp Mobile App

Bitstamp also has a slick and intuitive mobile app that will let you do everything that you can do in the desktop version, including seeing the advanced Tradeview charts and use the different order types that the advanced trading platform offers. It also includes a private mode that allows users to hide all account balances, which is a feature that not all crypto exchange apps offer.

The mobile app is also very well received, with ratings of 4.2 out of 5 stars based on 11,000 reviews on the Google Play Store, and 4.8 out of 5 stars based on 5,000 reviews on the Apple Store. There are very few critiques of the app, but minor bugs (such as balances not showing and having to reset the app to reload them) have been reported.

3. Bitstamp Security Features

Bitstamp has a pretty solid track record in terms of security and regulation: for starters, it's a registered Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and it's regulated by the Luxembourg financial regulator and the Commission de Surveillance du Secteur Financier (CSSF) in Europe as well. Additionally, the platform has gone through security audits before, and it has earned coveted security certifications such as the SOC2 Type 2 and ISO/IEC 27001 certifications.

However, Bitstamp is one organization short of having a perfect regulation record, as it is not a member of the Ontario Securities Commission (OSC) in Canada.

It's worth pointing out that they have a crime insurance policy available as well, and it is offered by Paragon International Insurance Brokers in coordination with Woodruff-Sawyer. The insurance policy applies to digital assets held at Bitstamp either offline or online and covers cases such as employee theft, loss while the assets are stored at any premises, loss in transit, loss caused by computer fraud or funds transfer fraud, and loss related to legal fees and expenses.

As for its security features, the platform uses a wide variety of industry-standard safety protocols, like multi-signature technology for their hot wallets, a 98% cold storage policy to keep all users' funds safe, and two-factor authentication. However, the latter can be disabled if the user chooses to do so, which negates the effectiveness of 2FA in the first place. Additionally, Bitstamp cannot provide any security for funds stored on users’ computers, and the platform was hacked in 2015, which can cause users to have understandable doubts concerning the safety of their assets.

4. Bitstamp Customer Support

Bitstamp offers an extensive FAQ section that will allow you to read solutions to the most common problems you can find when opening and using a Bitstamp account, and it does have a versatile selection of communication channels, such as via email, phone assistance, and ticket submission.

  • Phone: 1-800-712-5702 (United States, 24 hours)
  • Email: support@bitstamp.net (24 hours)
  • Live chat: Not Available

However, there isn't a live chat feature, which is strange coming from a crypto exchange, and its customer support is limited as you're expected to handle most account needs yourself. Additionally, the ticket submission doesn't feature an estimated response time, which will leave you guessing as to when your inquiry will be answered.

5. Bitstamp Blog

Bitstamp also has its own blog, filled with thorough articles that cover the platform's latest news, such as whenever they add a new crypto token, new appointments to the Bitstamp team, and reports on whenever the platform undergoes maintenance as well.

This is pretty useful, as some crypto exchanges don't let you know whenever the servers are undergoing maintenance, or don't even tell you whenever a new asset has been added to the supported cryptocurrency list.

Cryptocurrencies On Bitstamp

Bitstamp currently offers 64 different crypto tokens: although it's not the largest crypto array we've seen, it definitely is a comprehensive selection of coins. Some of the most popular cryptocurrencies they support are Bitcoin (BTC), Ether (ETH), Tether (USDT), USD Coin (USDC), XRP (XRP), Cardano (ADA), Avalanche (AVAX), Wrapped Bitcoin (WBTC), DAI (DAI), and Polygon (MATIC).

Bitstamp Fees

Trading Fees

As mentioned previously, Bitstamp follows a tiered fee structure that's pretty easy to understand. That fee structure looks like this:

Fee Rate30-Day Trading Volume (USD)
0.50%< $10,000
0.25%< $20,000
0.24%< $100,000
0.22%< $200,000
0.20%< $400,000
0.15%< $600,000
0.14%< $1,000,000
0.13%< $2,000,000
0.12%< $4,000,000
0.11%< $20,000,000
0.10%< $50,000,000
0.07%< $100,000,000
0.05%< $500,000,000
0.03%< $2,000,000,000
0.01%< $6,000,000,000
0.005%< $20,000,000,000
0.0%> $20,000,000,000

As you can see, the lowest tier already has a pretty competitive fee rate, and as your trading volume goes up, your fee rates will lower even more.

Deposit & Withdrawal Fees

Here are Bitstamp’s deposit fees:

  • SEPA Transfer: Free
  • ACH Transfer: Free
  • Faster Payments Deposit (UK): Free
  • Credit/Debit Card Purchases: 5%
  • Bank Wire Transfer: 0.05%

Here are Bitstamp’s withdrawal fees:

  • SEPA Withdrawal: 3 EUR flat fee
  • ACH Withdrawal: Free
  • Faster Payments Withdrawal (UK): 2 GBP flat fee
  • Bank Wire Transfer: 0.1%

Additionally, here are the deposit and withdrawal fees for the exchange's top 10 most popular cryptocurrencies:

CryptocurrencyDeposit FeeWithdrawal Fee
Bitcoin (BTC)Free0.0005 BTC (~19.23 CAD)
Ethereum (ETH)Free0.006 ETH (~15.74 CAD)
Tether (USDT)Free20 USDT (~25.77 CAD)
USD Coin (USDC)Free20 USDC (~20 CAD)
XRP (XRP)Free0.02 XRP (~0.01073 CAD)
Cardano (ADA)Free1 ADA (~0.68 CAD)
Avalanche (AVAX)Free0.01 AVAX (~0.4143 CAD)
Wrapped Bitcoin (WBTC)Free0.000318 WBTC (~21.861546 CAD)
DAI (DAI)Free15 DAI (~18.3 CAD)
Polygon (MATIC)Free15 MATIC (~26.85 CAD)

3 Exchanges I Recommend Over Bitstamp

Bitstamp isn’t a bad exchange, but it’s also not the best in Canada: the order type selection that the exchange offers will disappoint most knowledgeable crypto investors, its lacking customer support will make getting help with important inquiries a lot more difficult, and the fact that it has been hacked before casts a big shadow of doubt over the efficacy of its security features.

That’s why I recommend any of these three exchanges over Bitstamp:

  1. ZenGo: With 0% trading fees up to $1,000, best-in-class security, and 24/7 customer support, ZenGo is our #1-rated crypto exchange in Canada. Sign up by December 9, 2022 to open your free account.
  2. VirgoCX: With support for more than 50 cryptocurrencies, instant account verification, and a beautiful website and app, VirgoCX is our #1-rated crypto exchange in Canada. Get your $20 signup bonus with VirgoCX here.
  3. CoinSmart: With trading fees at 0.2%, quick deposits and withdrawals, and strong customer support, CoinSmart is my backup exchange in case I ever need something that VirgoCX can't provide. Get your $50 signup bonus with CoinSmart here.

Here's a quick summary of these three exchanges:

#1 Best Overall

Trading Fees: 0% up to $1,000
Security: Best in class
Customer Support: Excellent

Ultimate security + lowest fees.

★★★★★

Rated 4.9/5

#2 In Canada

Spreads: 0.5% – 1%
Security: 95% cold storage
Signup bonus: $20

Low fees + solid platform.

★★★★★

Rated 4.5/5

Good All-Around

Trading fees: 0.2% (Medium)
Security: 95% cold storage
Signup bonus: $50

Average fees, good platform.

★★★★

Rated 4.4/5

How To Withdraw From Bitstamp

To withdraw fiat (cash) from Bitstamp, follow these steps:

  • Log in to your Bitstamp account.
  • Click on the “Wallet” section.
  • Select the fiat currency you want to withdraw.
  • Choose the “Withdraw” option.
  • Input the amount you want to withdraw and your bank account details.
  • Click on the “Next” option.
  • Review the information and confirm.

To withdraw crypto from Bitstamp, follow these steps:

  • Log in to your Bitstamp account.
  • Click on the “Wallet” section.
  • Select the cryptocurrency you want to withdraw.
  • Choose the “Withdraw” option.
  • Input the amount you want to withdraw and your crypto wallet details.
  • Click on the “Next” option.
  • Review the information and confirm.

In Summary

Bitstamp is a simple-to-use European crypto exchange that will allow you to buy, sell, trade, and stake cryptocurrencies through a slick, simple-to-use desktop platform and mobile app. However, considering the limited order types that the exchange has, its lacking customer support, and the fact that it has been hacked before, I'm unable to recommend the platform as a top crypto exchange for Canadians to use.

Instead, I recommend CoinSmart, Bitbuy, or Newton, since they all offer more features and charge lower fees than Bitstamp. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

SECURE MY CRYPTO FOR FREE
Sign up by December 9, 2022.

Bitstamp FAQs

Is Bitstamp Safe & Secure?

Yes, trading with Bitstamp is completely safe and secure. The platform uses a wide variety of industry-standard safety protocols, like multi-signature technology for their hot wallets, a 98% cold storage policy to keep all users' funds safe, and two-factor authentication.

Is Bitstamp Legit?

Yes, Bitstamp is legit for several reasons: it has been around for more than a decade, it's a registered Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and it's regulated by the Luxembourg financial regulator and the Commission de Surveillance du Secteur Financier (CSSF) in Europe as well.

Is Bitstamp Legal In Canada?

Yes, Bitstamp operates legally in Canada. After all, it's a registered Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Is Bitstamp Trustworthy?

Yes, Bitstamp is a trustworthy exchange for several reasons: t's a registered Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), and it's regulated by the Luxembourg financial regulator and the Commission de Surveillance du Secteur Financier (CSSF) in Europe, and it also has an insurance policy to protect its users' funds in case theft were to happen.

Does Bitstamp Verify Accounts Instantly?

Yes, Bitstamp does verify some accounts instantly, though if your account needs to go through the manual verification process for some reason, these are the documents you’ll need to provide:

  • High-quality photos of your current and valid identity document (e.g. international passport, national identity card, driver’s license).
  • A proof of residency document (e.g. utility bill, bank account statement, a government-issued document).

Is Bitstamp Good For Canadians?

Bitstamp is a decent exchange for Canadians, though if you’re looking for the best overall trading experience, I recommend using CoinSmart, Bitbuy or Newton instead. Each of them offers quite a bit more than Bitstamp, and I’m confident you’ll have a better experience with them.

How Well Is Bitstamp Reviewed On Reddit?

Reddit’s review of Bitstamp is uncertain: some Redditors have good things to say, while others don’t. Of course, Redditors are known for their brutally honest opinions, so take what they say with a grain of salt.

Can I Buy Dogecoin With Bitstamp?

No, you cannot buy Dogecoin with Bitstamp. If you want to buy Dogecoin, I suggest using CoinSmart, Bitbuy or Newton instead.

Is Bitstamp Insured?

Yes, Bitstamp’s crypto holdings are insured. Their insurance policy applies to digital assets held at Bitstamp either offline or online and covers cases such as employee theft, loss while the assets are stored at any premises, loss in transit, loss caused by computer fraud or funds transfer fraud, and loss related to legal fees and expenses.

Bitstamp Referral Code

You don’t need a referral code to get your signup bonus with Bitstamp. Simply sign up using our signup bonus link and then deposit $100 or more into your account.

Does Bitstamp report to the CRA?

Yes — as a Money Services Business registered with FINTRAC, Bitstamp is required to report to the Canada Revenue Agency (CRA). With that said, Bitstamp is only required to report transactions larger than $10,000 to the CRA. Transactions below that amount do not need to be reported to the CRA.

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