Bitstamp, established in 2011, is one of the oldest cryptocurrency exchanges. While it embraces regulatory compliance, its limited features and high fees raise questions about its competitiveness. This review dives deep into its functionality, security, fees, and user experience.
What Is Bitstamp Exchange?
Bitstamp was founded in Slovenia by Nejc Kodrič and Damijan Merlak, later relocating to Luxembourg. In 2016, it became the first EU-regulated crypto exchange under Luxembourg’s financial authority.
Key Features:
- Supports 90+ cryptocurrencies for spot trading, staking, and lending.
- No derivatives (e.g., futures or margin trading).
- No Chinese language support; interface is English-only.
Pros and Cons
| Pros | Cons |
|----------|----------|
| Strong regulatory compliance | Limited crypto selection |
| 24/7 voice customer support | High trading and withdrawal fees |
| Cold wallet storage for funds | No advanced trading tools |
Is Bitstamp Safe or a Scam?
Bitstamp is not a scam but has moderate security:
- Regulation: Licensed in 50+ countries, including Luxembourg (CSSF), UK (FCA), and Singapore (MAS).
Transparency Issues:
- No public Proof of Reserves or Merkle Tree verification.
- Assets are primarily BTC (64.7%) and ETH (21%), per DefiLlama.
- Past Hack: Compromised in 2015 (19K BTC stolen); reimbursed users and rebuilt systems.
- Insurance: Offers Crime Insurance and cold wallet coverage via BitGo.
Trading Experience
1. Spot Trading
- High Fees: 0.3% (maker) / 0.4% (taker) for basic tiers.
- Slippage: Up to 40 USDT on market orders.
- Mobile App: Lacks technical indicators and Chinese support.
2. Financial Services
- Staking/Lending: Only 17 coins supported.
- Hidden Fees: Withdrawal fees reach 20% (e.g., 20 USDT for USDT transfers).
Deposits & Withdrawals
- No Fiat Support for TWD: Use intermediaries like Binance.
- Credit Card Fees: 4.4% (highly discouraged).
Withdrawal Costs:
- BTC: 0.0005 BTC
- USDT: 20 USDT
Customer Support
- 24/7 Voice Support: English-only; fast response but lacks depth.
- No Live Chat: Email inquiries only.
Bitstamp FAQ
1. Is Bitstamp available in Taiwan?
Yes, but without TWD support or Chinese interface.
2. Are funds insured?
Partially: 95% in cold wallets (BitGo-insured) + Crime Insurance coverage.
3. What are Bitstamp’s fees?
- Trading: Up to 0.4%
- Withdrawals: 0.0005 BTC (BTC) / 20 USDT (USDT)
4. Alternatives?
For lower fees and more features, consider 👉 Bybit or 👉 Binance.
Final Verdict
Bitstamp’s regulatory compliance is commendable, but its high fees, limited assets, and lack of transparency make it less attractive vs. competitors. Suitable for beginners seeking simplicity, but advanced traders should look elsewhere.
Rating: 3.2/5