Bitstamp stands out as a beacon of longevity in the cryptocurrency world. Established in 2011 and based in Luxembourg, it has the distinction of being one of the oldest crypto exchanges still in operation today. With a license to operate across all 27 European Union countries and nearly 50 other regions, including China and the US, Bitstamp exists as a global platform. It offers trading of over 80 of the most well-established coins and tokens.
Despite fierce competition in the cryptocurrency exchange market, Bitstamp has secured the 11th spot in terms of 24-hour trading volume. This is impressive considering its relatively modest selection of available cryptocurrencies compared to other exchanges. Bitstamp’s enduring presence can be attributed to its appeal to both novice and experienced traders, offering advanced order types while maintaining a user-friendly interface suitable for crypto newcomers.
The Origins of Bitstamp
The story of Bitstamp begins in Kranj, a medieval town in Slovenia, where founders Damijan Merlak and Nejc Kodric embarked on their crypto journey. Their venture started unconventionally, with a discussion about mining Bitcoin over the purchase of two graphics cards. This conversation laid the groundwork for what would eventually become Bitstamp, envisioned as an improved version of the then-popular Mt.Gox exchange.
In 2014, Bitstamp received a significant boost with a $10 million investment from Pantera Capital, a US Bitcoin investment firm. This investment underscored the exchange’s profitability and growth potential in the burgeoning crypto market.
How Does Bitstamp Work?
Bitstamp operates as a comprehensive cryptocurrency exchange, enabling users to buy, sell, and trade a variety of cryptocurrencies. It simplifies the process of engaging with the digital currency market, making it accessible for both newcomers and seasoned traders.
Deposits and Withdrawals
Users can fund their Bitstamp accounts through several methods:
- Bank transfers (ACH deposits/withdrawals): Free of charge and cost-effective.
- Debit/credit card payments: Convenient but may incur fees.
- International wire transfers: Suitable for larger transactions.
Platform Accessibility
Bitstamp offers:
- Web platform: Intuitive interface for straightforward crypto purchases.
- Mobile app (iOS/Android): Manage transactions on the go.
- Tradeview: Advanced trading platform for experienced investors with detailed analysis tools.
Trading Features
Bitstamp supports multiple order types:
- Instant Orders: Execute immediately at current market prices.
- Limit Orders: Set specific buy/sell prices for controlled execution.
- Market Orders: Buy/sell at the best available market price.
- Stop Orders: Limit losses by setting entry/exit price points.
- Trailing Stop Orders: Adjust trigger prices automatically as markets move.
- Fill-or-Kill Orders: Execute entirely at a specified price or not at all.
👉 Discover how Bitstamp compares to other top exchanges
Areas for Improvement
While Bitstamp provides a solid foundation for crypto trading, it lacks some advanced features:
- No margin trading or rewards card.
- Limited staking options (only Ethereum and Algorand).
- Security rating concerns despite offline cold storage and insurance coverage.
After a 2015 phishing attack (theft of 19,000 BTC), Bitstamp reimbursed users and enhanced security protocols. However, some users still seek further transparency in security practices.
FAQs About Bitstamp
Is Bitstamp safe to use?
Yes, Bitstamp employs cold storage for most assets and offers insurance coverage. However, users should enable two-factor authentication (2FA) for added security.
What countries does Bitstamp support?
Bitstamp operates in all EU countries, the US, China, and nearly 50 other regions. Check their website for specific country restrictions.
How do Bitstamp fees compare to other exchanges?
Bitstamp’s fees are competitive, especially for bank transfers (ACH), which are free. Credit card purchases and instant orders may incur higher fees.
👉 Learn more about crypto exchange security best practices
Why Choose Bitstamp?
Bitstamp’s longevity and regulatory compliance make it a trustworthy choice for:
- Beginners seeking simplicity.
- Traders wanting advanced order types without complexity.
- Users prioritizing EU-based regulated platforms.
With continuous improvements and a focus on accessibility, Bitstamp remains a relevant player in the dynamic crypto exchange landscape.