Exchange Reviews

Bitstamp: A guide and a short history

It’s more than seven years since Bitstamp began its operations and it’s 4 years since it experienced a hack that left a hole of roughly 5 million U.S dollars.

Bitstamp has carved out a name for itself in the cryptocurrency circles since its launch in August 2011. It also comes up in the list of the oldest digital currency exchanges. At present, the exchange has a presence across the globe to cater to its diverse range of customers.

This post is dedicated to helping you have a brief history of Bitstamp and how to board the Bitstamp train.

First…

A brief history of Bitstamp

The exchange was launched in August 2011 mainly targeting the European cryptocurrency market. At the time, its main competitor was the now-defunct Bitcoin exchange, Mt. Gox. Between 2011 and 2016, Bitstamp managed to establish offices in Slovenia, Luxembourg and later opened another one in London.

Currently, the exchange supports the five major coins i.e Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Ripple (XRP).

The exchange provides a platform that is relatively easy to use and charges low transaction fees. To boost the security of customer coins, the exchange has embraced the system of storing coins off the internet commonly known as cold storage.

Bitstamp supports trading of cryptocurrencies against popular fiat denominations such as the U.S dollar and the Euro.

How to start trading on Bitstamp

Bitstamp

For you to be able to use this exchange, you will be required to first create an account after which you will be required to log in each time you visit the website to conduct trades.

With scams and fake websites being used to defraud crypto enthusiasts each day, you need to visit the official Bitstamp website when creating an account or when you want to trade.

When creating an account, you must provide your full names, a valid and accessible email address, plus your country. Being a first time user, make sure you carefully read and understand the terms and conditions to know what you are signing up for. You will also be required to agree to the terms and conditions before the platform accepts your request to join the platform.

If all details provided are correct, the exchange will send a username and a password to the email you provided. The username (Client ID) will be constant but you have to choose a new password when you login into your account for the first time.

Bitstamp

Bitstamp understands security is important and will request you to enable a two-factor verification. As part of its Know-Your-Customer and Anti-Money Laundering procedures, the exchange needs each user to prove their citizenship by providing government-issued identification documents e.g a Passport. Additionally, you will be needed to upload other documents such as a utility bill to prove your residency.

Unless these documents are provided you will not be able to access the full functionality of the platform. Services that are only available to verified accounts include bank transfer.

How to purchase cryptocurrency on Bitstamp

Since Bitstamp supports fiat currencies, it allows you to deposit fiat on the exchange after which you will be able to purchase cryptocurrency on the platform. Note that for the deposit to reflect on your account, it may take a maximum of 3 days.

Bitstamp

The most popular methods that you can use to purchase crypto on the platform include using a debit or credit card, SEPA bank transfer or international bank transfer.

However, withdrawing or depositing crypto on Bitstamp is free. For the minimums, the exchange does not allow trades below 0.001 Bitcoins when trading with BTC pairs. With fiat denominated trades, Bitstamp does not allow for a trade to go below 5 U.S dollars or 5 Euros.

For fiat withdrawals, Bitstamp supports international bank transfer, and SEPA (Single Euro Payments Area) bank transfer.

Has Bitstamp ever experienced a security breach?

Yes. But that was four years ago in 2015. During the hack, the hackers made away with 5 million U.S dollars worth of Bitcoin. The hack has been among the biggest hacks in the history of cryptocurrency exchanges.

The security breach called for an overhaul of Bitstamp’s security systems which has helped the exchange thwart hackers ever since. Bitstamp is now rated among the most secure digital currency exchanges in the word. The exchange is under the watchful eye of the Luxembourg Financial Industry Supervisory Commission among others.

Final words

By being consistent since 2011 and by accounting for a considerable share of all the daily crypto trades that occur globally, Bitstamp becomes the first stop when you want to trade cryptocurrencies. Its fiat support adds to its appeal for anyone looking to purchase digital currencies for the first time.

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coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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