Find out everything about the Bitstamp cryptocurrency exchange, how it works and what are its advantages.
What is Bitstamp?
Bitstamp is one of the oldest cryptocurrency exchanges that was established in 2011. Its founders are Slovenian Nejc Kodric and Damian Merlak. They dreamed of a stock exchange that would be able to compete with the then most popular Mt. Gox. As it turned out after 9 years, the Mt.Gox exchange has been gone for a long time and is hardly associated with people associated with cryptocurrencies, while Bitstamp is still functioning and doing even well. Going back to the beginnings, the headquarters of Bitstamp in 2013, after a short time of operation, was moved to London, three years later to Luxembourg, and then in 2018 the stock exchange was bought by NXMH. It is the European branch of the Korean company NXC investing in digital technologies. After the buyout, the president of the stock exchange, Nejc Kodric, retained 10% of shares, and Damian Merlak established a completely new stock exchange. The current seat of Bitstamp is again London.
Advantages and operation of the exchange
The current owners can boast of the statute of the first licensed cryptocurrency exchange in the European Union. In addition, it cooperates with the Swiss Dukascopy Bank. It is one of the leaders in the forex and CFD markets. Thanks to this cooperation, Dukascopy clients can fund their accounts with BTC, as well as withdraw funds in Bitcoichach. The payment operator is of course the Bitstamp exchange. Under the supervision of the Financial Sector Supervisory Commission, Bitstamt is a completely safe exchange recognized as licensed throughout the European Union. The stock exchange shows that it takes the safety of its clients very seriously.
Additionally, Bitstamp ensures that 98% of all funds are kept on the so-called cold wallets, i.e. offline. Emphasizing the importance of security, the stock exchange is subject to annual audits performed by one of the four big companies: KPMG, Deloitte, Ernst & Young, PricewaterhouseCoopers. No wonder that Bitstamp is considered by the majority of the cryptocurrency society as one of the safest exchanges. What are the other aspects? Focusing on security, Bitstamt was very slow and reluctant to introduce new cryptocurrencies, so that currently only 14 currency pairs are available on the platform, and these are the most popular cryptocurrencies. This means that you can buy Bitcoin, Ethereum, Ripple, Bitcoin Cash and Litecoin on the exchange. Additionally, the user has at his disposal two currencies: Fiat, Dollar and Euro. Considering the current large and well-known cryptocurrency exchanges in terms of asset availability, Bitstamt looks very poor and probably lost the war with Binance or Bittrex, among others.
Bitstamp - fees
Taking into account the costs, they are not excessive, and even low, if the user operates in Euro. The deposit is then free and the withdrawal will cost 3 Euro. USD is not that colorful anymore. There, the user will pay 0.05% of the transfer value for the payment, but not less than USD 7.5, and for the withdrawal 0.1% of the transfer value and not less than USD 25. Cryptocurrency deposits are free, and withdrawal costs are very similar to other platforms:
- BTC - 0.0005BTC
- BCH - 0.0001 BCH
- ETH - 0.001 ETH
- XRP - 0.02XRP
- LTC - 0.001 LTC.
The fees on the stock exchange, both Maker and Taker, amount to 0.5%, but as it is recently becoming increasingly popular, these fees can be reduced by achieving an appropriate turnover on your account. The platform is quite intuitive and convenient to use. The daily turnover on the stock exchange is 94 million dollars. The customer confidence measure, which takes into account liquidity, traffic and regulations, shows less than 81%, which is one of the best results. As you can see, the stock exchange enjoys the recognition of customers and a good reputation. The only fault is the poor array of digital assets.