Bitstamp Review for Canada 2023
Making Crypto Simple
Bitstamp is one of the oldest crypto trading platforms that enjoy consistent rising success in the sector, ranking just behind the top ten exchanges in the world.
According to CoinMarketCap, this exchange has an average trading volume of $294,391,142.91 every 24h, indicating that Bitstamp is a popular trading destination for crypto investors worldwide.
We have to admit that launching a crypto project when many concepts of digital asset trading were obscure even to fintech professionals and maintaining a constantly rising graph line on the success chart for more than a decade is quite remarkable.
That’s why we researched and evaluated every area of Bitstamp’s functioning, and here is our assessment of the exchange.
About the Bitstamp Exchange
In 2011, when Bitstamp was just a concept, its UK-based team of creators had a firm belief in the blockchain as the best technical answer for making cryptocurrencies more accessible to people worldwide.
A few years later, the safe and easy access to crypto was the impetus for Bitstamp’s expansion to Luxembourg, Singapore, the USA, and Slovenia.
The exchange developed as a global trading platform currently employing over 400 people throughout the world, thus providing financial independence and a secure trading environment to millions of crypto traders.
Types of Trading Accounts on Bitstamp
To start trading on this exchange, you’ll first need to register your Bitstamp account and go through the Know Your Customer (KYC) verification process. There are two main types of trading accounts offered on Bitstamp:
- Personal accounts – designed for individual traders for non-commercial use;
- Corporate accounts – intended for legal entities and their business purposes.
Sub-accounts are also available on Bitstamp. Sub-accounts are a specialized trading feature that allows you to allocate a specific amount of your funds to a particular trading strategy.
This feature is optional, and there is no cost associated if you decide to use it. However, keep in mind that having a sub-account does not exempt you from the trading costs associated with this type of account.
You might be surprised to learn that Bistamp only supports a handful of cryptocurrencies, given that it is considered to be one of the leading exchanges in terms of the trading volume.
However, the list of supported digital assets includes some of the most popular and actively traded coins, such as Bitcoin (BTC), Ethereum (ETH), Algorand (ALGO), Stellar Lumens (XLM), Bitcoin Cash (BCH), Litecoin (LTC), Tether (USDT), Ripple (XRP), Paxos Standard (PAX), USD Coin (USDC), and a few more.
Bitstamp enables investors to purchase and sell supported coins for fiat currencies on a single platform, unlike other crypto exchanges. This possibility makes Bitstamp a fiat gateway where beginners in crypto trading can exchange their fiat money for crypto before venturing into trading them on another platform.
Apart from offering fiat purchases with your credit/debit card, you can also fund your trading account with various other payment methods, such as bank transfer or SEPA.
Trading Fees and Limits
Bitstamp levies a maker/taker fee structure for trading through its platform. According to this fee system, both market makers and market takers pay 0.5% of the total trade value.
In addition, you can safely withdraw your funds from this trading platform and deposit them straight into your bank account. Bitstamp customers may withdraw and deposit fiat currencies like the USD and EUR with a 50 USD/EUR minimum.
Bitstamp also accepts Swiss Francs (CHF) and British Pounds (GBP), but to trade with those currencies, you will need to first exchange them for either US Dollars (USD) or Euros (EUR) through the exchange.
Some Bitstamp costs are directly related to the payment method you select. Credit card purchases, for example, will incur a hefty 5% fee on the whole amount, which must be factored in ahead of time. Also, international wire transfers are subject to a 0.05% deposit fee, while the withdrawal fee amounts to 0.1%.
The same is true for the other available payment options, so make sure you’re well informed on all additional expenses imposed by payment providers to avoid a more significant loss than benefit.
The Bitstamp platform offers a straightforward exchange, instant buying and selling options and more advanced trading options, advanced order types, crypto staking, and more.
Bitstamp Earn and Staking
This platform has a Bitstamp Earn feature that allows users to accumulate crypto incentives to stake their coins for specific periods.
Staking is increasing your cryptocurrency holdings by securing your funds on the network. Once you lock up your coins, you won’t be able to withdraw or sell that asset for a predetermined time. You’ll earn crypto incentives at regular intervals during the staking period.
Currently, you can stake Ether (ETH) and Algorand (ALGO) coins on the Bitstamp platform. Please note that once your ETH is staked, this could take some weeks before you begin receiving the payouts.
This prolongation results from the high demand for the Ethereum 2.0 network and the congestion that it causes, which means that it may take some time before your assets are fully staked.
On the other hand, you will begin to get incentives the next day once you have some ALGO in your account.
Is Bitstamp.net Safe to Use?
Bitstamp is authorized to conduct business as a payment institution in the European Union and holds a BitLicense in the state of New York. Also, the four largest accounting firms in the world, branded as the Big Four, conduct regular audits of the exchange’s order books.
Additionally, the exchange safeguards the funds in cold storage and employs two-factor authentication (2FA), and address whitelisting as some of the vital security features that protect the accounts from hackers. Bitstamp also utilizes BitGo‘s insurance policy and provides extra theft insurance for digital wallets.
Bitstamp executives believe in genuine and dedicated communication with their clients. Because of this, the exchange provides round-the-clock help, no matter where you are or when you need professional support.
Recognizing the importance of establishing and maintaining a relationship of trust, the Bitstamp customer service representatives are on hand to assist you 24/7. You can directly reach them through the exchange’s phone number or email.
Pros and Cons
Here’s a brief digest of our research on Bitstamp’s functionalities:
- A user-friendly exchange open to traders worldwide;
- The platform is suitable for both beginners and advanced traders;
- Enables USD, EUR, and GBP fiat currency purchases for most countries;
- Real-time Tradeview charting tools;
- 24/7 by phone and email customer support;
- The majority of funds are kept in cold wallets;
- Multi-Sig technology secures the hot wallets, which hold a small portion of the total funds.
- Everyone can make a crypto deposit, but fiat deposits and purchases are not available to some countries due to the financial legislation in those jurisdictions;
- Rather long account verification procedure;
- Offers a relatively small number of supported digital assets;
- A relatively small number of trading pairs in comparison with its competitors;
- Doesn’t offer margin trading or crypto lending;
- Doesn’t support opening short trading positions.
The Bottom Line
Bitstamp is one of Europe’s longest-running Bitcoin exchanges, having been in business only a couple of years after Bitcoin was accepted as the first official cryptocurrency.
Through this exchange, you can easily accomplish your investment plan and find new ways to grow your crypto balance. Both novices in trading and experienced traders can effortlessly buy digital assets using fiat money on Bitstamp, unlike many other trading platforms.
The number of cryptocurrencies available for trading on this platform may be insufficient for some demanding traders. Still, the platform’s security, dedicated support team, and ease of use ensure an unparalleled trading experience.
Bitstamp is undoubtedly one of the best and most experienced crypto exchanges on the market today. However, if you’re searching for a local crypto exchange, check out our reviews of some of the best Canadian exchanges. As for international platforms, Binance, Kraken, and Coinbase are always great ideas to consider if Bitstamp is not right up your street.
Frequently Asked Questions
You can find the form for creating new sub-accounts in your account dashboard by going to the Sub Accounts menu and selecting “New Sub Account.”
There is no need to enter any more information when creating a new Sub Account, as a unique identifier distinguishes each one. If you prefer, you can assign your account a custom title.
Traders are allowed a maximum of ten active accounts at any given time. The total number of all of your sub-accounts cannot exceed 30, and this limit applies to both active and deactivated sub-accounts.
The sub-accounts can be easily managed through Bitstamp’s mobile app, too.
No. You can only transfer the balance between sub-accounts by moving the sum from the source sub-account to your main Bitstamp account and transferring the amount to the target sub-account.
Verifying your account might take up to two business days, even longer in some situations. You’ll also have to provide a copy of your government-issued photo ID and evidence of your current address of residence.
By staking ETH or ALGO on Bitstamp, you can earn up to 5% annual percentage yield (APY) of the staked amount of cryptocurrency.
Yes. Using Bitstamp’s mobile app, you can access almost all of Bitstamp’s trading features whenever a lucrative opportunity presents itself.
The Bitstamp app is a stand-alone application supported on all Android and iOS devices, so you don’t have to sign in to the exchange’s website to use it.
The software enables users to sign up for an account with Bitstamp, authenticate their identity, do market analysis, make deposits and withdrawals, and purchase and sell cryptocurrency.
The app does not yet support some configuration options that are not deemed essential, such as the tools to manage withdrawal whitelists or receive order confirmations through email. You’ll still have to visit the website to use the more sophisticated account settings.