Through centuries, our means for selling and buying goods and services greatly changed. Moreover, they keep changing with technology. Today, we have Bitcoins and other crypto currencies. This virtual money is becoming more and more popular, due to the fact that it is not controlled by the Central Bank. Acquiring bitcoins can be useful in many ways, and is certainly a smart way to make money.
So, if you are considering this way of getting rich, then this article might help you. In here, we will talk about one of the best Bitcoin exchanges in the world – Bitstamp. By the time you finish reading this article, you will be able to make an educated decision on whether this platform is good for your wallet or not.
Bitstamp is one of the largest bitcoin exchanges in the world, by volume. Here we are talking about the exchange with worldwide coverage, that counts about 700, 000 active users.
It was founded in 2011, and at first, it was a European substitute for Japan’s Mt. Gox.
The exchange was founded in Slovenia by CEO Nejc Kodrič, but in 2013 was moved to the UK. In 2016, the exchange was again moved, this time to Luxembourg.
The exchange is still based in Luxemburg where it is also fully licensed. Not only that, but this exchange is the first one to be nationally regulated.
In January 2017, the first ever online investment round was concluded, and Bitstamp raised unbelievable USD 2, 382, 161.
Reasons to choose Bitstamp:
Of course, every platform has its good and bad side, including this one. However, it is important that the platform is secure, reliable and that it doesn’t have hidden fees. Below you will find out all you need to know before opting for this exchange.
Ease of use
With a cleverly-organized interface, this site is a breeze to use, allowing you to promptly find the info you need. Even if you are new to the world of crypto currencies, you will quickly learn how to use the Bitstamp.
What also adds up to the ease of use are apps that are available for IOS and Android mobile phones.
Fees and discounts
This exchange is the best choice for trading in volume. Small traders have to pay 0.25% fee per each trade.
However, if you have a big vision, and want to trade more than 18, 000 EUR within one month, you will get the privilege to use volume discounts. Discounts go all the way up to those traders who want to trade 18 million EUR per month, decreasing fees at only 0.10%.
In case you are a small trader, then you will be happy to hear that USD/EUR trades come at a flat fee of 0.20%. Moreover, bitcoin withdrawals and deposits will not cost you a thing. On the other side, credit card purchases will quite cost you, with fees of 8% for the sum less than USD 5, 000 or 5,000 EUR.
Since this is the first nationally regulated exchange, it is somehow logical that it offers great security level. That being said, this exchange keeps more than 98% of clients’ funds in the cold storage.
Moreover, this is the first large exchange that uses best security practices such as MultiSig technology.
But, this exchange also ensures your account is safe. Therefore, it offers various ways for securing your account, including 2-factor authentication, and emails for confirming your account.
Thanks to API, you can access and control your account via customized software. API support includes following HTTP API, FIX and WebSocket API. However, there is a catch when using API. Namely, you aren’t allowed to make more than 600 requests within 10 minutes. Still, if you want to try that, know that you will get banned.
Last but not least. With Bitstamp, you can execute instant orders and trade bitcoins 24/7. Not only that, but you can also deposit and trade instantly with your credit card.
This site offers a lengthy FAQ section, explaining in details what you need to know. Let's take a look at some of the most frequently asked questions.
1. What is Bitcoin?
This is a digital currency that enables fast payments at low cost and reasonable fees, without needing to get approval from central authorities. It is created in 2009, by Satoshi Nakamoto.
2. What does “a limit order” mean?
A limit order is when you determine the price you want to get or pay for.
3. What is order book?
Order book represents a list of all sell/buy orders at the given moment. Meaning, you can sell or buy bitcoins at the stated price instantly.
4. What is Bitstamp used for?
With Bitstamp, you can trade between USD currency and Bitcoin. In addition, it offers USD, EUR, Litecoin, Bitcoin and Ripple deposits and withdrawals.
5. Can I sell or buy bitcoins without revealing my personal info?
No, you can't. You are required to submit your personal info as well as to verify your account.
6. How long do I have to wait for withdrawals to be completed?
Withdrawals usually take up to three business days, with SEPA zone transfers. However, if you are outside SEPA zone, you will have to wait for about five business days.
7. How many sub account am I allowed to have?
You can have 10 active sub accounts. In case you want to create more of these, contact support.
8. Can I use my sub account via my mobile phone?
No, you can’t, because sub account isn't supported on the exchange platform at the moment.
9. Is it safe to use this platform?
Yes, it is. Bitstamp takes care of their users’ protection, keeping their personal info on safe.
10. How does this exchange work?
They take cash deposits and Bitcoin deposits from clients, allowing them to exchange their bitcoins for cash and vice versa.
The Final Word
And there you have it. We know this article helped you in learning more about one of the largest exchange in volume trades. Bitxstamp offers great security level, is easy to use, and offers low fees, making it a good choice for anyone who wants a trustworthy way to trade bitcoins.