Bitstamp Exchange Review with Pros and Cons – Is it Safe?

Bitstamp is the worlds longest standing cryptocurrency exchange. It’s mainly used to onboard users into the cryptocurrency space.

Table of Contents

  1. When did they start?
  2. Do we know the founders?
  3. How secure is it, is there 2FA, etc.?
  4. What does the exchange focus on?
  5. What are the fees?

START AND FOUNDER

Bitstamp was founded in 2011, just two years after Bitcoin was created. There were exchanges before Bitstamp, like Mt. Gox; however, all of them stopped operating since, making Bitstamp the oldest exchange in crypto.

It was founded in Slovenia, by Nejc Kodrič and Damijan Merlak.

Nejc Kodrič is still the CEO.

Even though it was founded in Slovenia, the exchange moved into the United Kingdom, where it is currently operating.

SECURITY

You have the option to secure yourself with 2FA, like Google Authenticator and Authy.

They have excellent security, with internal controls to limit errors and unwanted access, while at the same time also encrypting user data.

Bitstamp security badge, with information under it.
Most of the funds are stored offline in cold storage, so only the hot wallet (which is about 2%) is exposed to potential hacks.

THE EXCHANGES FOCUS

Bitstamp focuses on providing an easy way to be able to buy/sell bigger cryptocurrencies, such as BTC, ETH, and LTC.

They do not offer any Altcoin-to-Altcoin trading, only Fiat-to-Cryptocurrencies.

You have the option to trade professionally on their website, as they have an interface for advanced users too.

FEES

They have a dynamic fee structure, the more you trade, the bigger discount you will get.

Fee Percentage30 Day Volume
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%> $20,000,000

SEPA Deposits are free, while International Wire transfers will cost you 0.05%.

If you would like to make an instant credit card purchase, that will be an extra 5%.

Bitstamp

8.9

Ease of Use

9.3/10

Security

8.9/10

Fees

8.5/10

Pros

  • Very easy to use
  • Has a good reputation
  • Free cryptocurrency withdrawals

Cons

  • High fees on credit card purchase