Bitstamp Review – Bitcoin Exchange – Start Buying And Selling Bitcoins!

Slovenia based Bitstamp is one of the world’s top Bitcoin exchanges ranking 3rd in volume as of this writing after Chinese exchange BTC China, the Japanese Mt.Gox, and above Russian exchange BTC-e.

Bitstamp - Bitcoin Exchange - Review

Bitstamp – Bitcoin Exchange – Review

Individuals and institutions can open accounts to buy and sell Bitcoins on Bitstamp provided they verify their identity according to company and European compliance standards.

Bitstamp in general has a very good and responsive customer service and the deposit and withdrawal times are generally within normal parameters of between 2 and 5 business days for dollars, euros, British pounds, and Swiss francs.

Bitcoin vs US Dollar Trading

For now the service only provides trading of bitcoins against US dollars.

How does it work?

Open Account: The first step is to go to https://www.bitstamp.com and register as a user so you can start the process.

Verify Account: To use the account in any way it needs to be verified. The process is very simple and consists of entering additional identity information including full name, address, date of birth, and scanned copies of your government issued ID and proof of residence.

Send Money: Once your account is verified you can send Bitcoins, euros, dollars, Swiss francs, or British pounds. The Bitstamp account supports dollars and Bitcoins so if you send any of the other currencies they will be exchanged into dollars at no extra charge. The methods to deposit are:

  • Bitcoin: Transfer to the Bitcoin address they provide for your account. No fees charged.
  • Euros: Transfer through the SEPA system to the account number they provide. No fees charged and they are credited in 1 to 3 business days.
  • US dollars, British pounds, and Swiss francs: Wire transfer to their account and then they convert to US dollars if applicable and deposit to your Bitstamp account. They charge in all cases a 0.1% deposit fee on their side with a minimum of $15 and funds are credited within 2 to 5 business days.

Buy and Sell:

Bitstamp - Buy and Sell Bitcoins

Bitstamp – Buy and Sell Bitcoins

Once your money is credited you can start trading bitcoins immediately. The exchange operates 24 hours a day 7 days a week. You can buy and sell to the limit of your account value.

Instant Orders: If you want to buy or sell bitcoins at the current market price you can enter what they call instant orders. They will execute your order at the best price on the exchange.

Limit Orders: If you want to buy or sell bitcoins at a specific price then you can enter the order at that level and they will publish it on the order book and execute it when someone else wants to buy or sell at that price.

Commissions: They charge between 0.50% and 0.20% per trade depending on your monthly volume.

Order Book:

Bitstamp - Order Book

Bitstamp – Order Book

The order book is a great feature because it’s where the exchange shows all the open orders it has from its clients.

The first part of the order book is a chart that represents all the orders organized by type (bid or offer), price, and volume. This is a very efficient way of looking at the market depth and also analyzing the open interest so you can decide how to set and manage your orders.

Also, below the chart is their list of all the open orders organized in two columns (bids and offers) with the same data of the chart with respect to volume and price for each order.

Withdrawals: To withdraw money is as easy as to deposit. You can draw your money in Bitcoins, euros, dollars, Swiss francs, or British pounds:

  • Bitcoin: You can enter your private Bitcoin wallet address and withdraw your bitcoins from your Bitstamp account at no charge.
  • Euros: To withdraw euros your dollars will be exchanged into euros and then they will charge 0.90 euros for your SEPA transfer. It takes from 1 to 3 business days and the minimum is $10.
  • US dollars, British pounds, and Swiss francs: They will exchange your dollars to the destination currency if applicable and charge a 0.09% transfer fee with a minimum of $15. It takes from 2 to 5 business days and the minimum is $50.

Conclusion:

Bitstamp is a well known and reputable Bitcoin exchange. Its efficiency and excellent customer service has won the business not only of individual and institutional traders and investors, but also of many Bitcoin startups and companies that use it as their default exchange partner. This has helped the company grow in volume and share within the market.

If you are looking for an easy to use and professional service to start buying and selling Bitcoins then Bitstamp is an excellent option.

Visit Bitsamp here >>>

About Donald McIntyre

From stock broker to internet entrepreneur, to financial adviser, to Newfination! Donald McIntyre started his career on Wall Street in 1992 working as an Investment Consultant for UBS Securities and then for Smith Barney Inc. In 1999 he started Dineronet.com, a financial portal for Latin America, with the support of investors SoftBank and Carlos Slim. In 2002 Donald started McIntyre S.A. to provide financial advisory services to Carlos Slim’s Inbursa and after 2004 opened the practice to private clients. In January of 2013 he started Newfination to help consumers discover the best new finance services to manage their money.
11 comments
Motard
Motard

Bitstamp uses an US IP address and Google identification technology, what raises  privacy concerns.

yolo
yolo

ive signed up to bitstamp 6days ago, i sive sent my DOcuments and contacted support to verfiy my account, going 6+ days with ablosutly no reply to anything or any chance to contact bitstamp staff??

can u help

yolo
yolo

ive signed up to bitstamp 6days ago, i sive sent my DOcuments and contacted support to verfiy my account, going 6+ days with ablosutly no reply to anything or any chance to contact bitstamp staff?? can u help

Donald.McIntyre
Donald.McIntyre

jacobattias20 Donald.McIntyre Systems in the US are much more integrated so Coinbase uses a service that by entering your SSN they get all your background information. Because there is no Patriot Act in Europe I guess they haven't developed these systems and they need you passport copy. Also, when Coinbase opens accounts for foreigners they do need the copy because they don't have such systems in other countries. The US is the most strict country in the world in terms of background checks and KYC policies.  For an american user Coinbase seems more secure, but these are all startups so I think they are all equally immature.

jacobattias20
jacobattias20

Donald.McIntyre jacobattias20 I think it's way safer to share info with Google, Facebook and Amazon since they've been around the block. Plus, they never need a passport or driver's license copy. Bitstamp on the other hand is new (and under constant attack). Coinbase charges a 1% USD to BTC transaction fee while Bitstamp charges around .5%. I suppose Coinbase is charging this premium for security/reputation. I think the question is whether this is actually worth it. Even though Bitstamp now works with GBGroup (a supposedly reputable security company), I'm still inclined to lean towards Coinbase. Plus, Coinbase doesn't require copies of official documents. Whatcha think?

Donald.McIntyre
Donald.McIntyre

jacobattias20 This is a good question. In the Bitcoin space there are no traditional players yet like Chase, HSBC, etc. so you can trust because they are regulated and have centuries in the business. The only player that is regulated in the US w/ US standards is Coinbase, based in San Francisco, but still it's a 2012 startup! The answer is you send your ID copy just like you show it in public places when they ask you to and you send a copy of a utility to confirm your address. This is it, it is personal info not that compromising that we have been providing to many services like Amazon, Facebook, Google, etc.

jacobattias20
jacobattias20

How does everyone feel about providing personal information (passport, driver's license, etc...) to companies like Bitstamp?

jacobattias20
jacobattias20

How does everyone feel about providing personal information (passport, driver's license, etc...) to companies like Bitstamp?

Donald.McIntyre
Donald.McIntyre moderator

@jacobattias20 This is a good question. In the Bitcoin space there are no traditional players yet like Chase, HSBC, etc. so you can trust because they are regulated and have centuries in the business.

The only player that is regulated in the US w/ US standards is Coinbase, based in San Francisco, but still it's a 2012 startup!

The answer is you send your ID copy just like you show it in public places when they ask you to and you send a copy of a utility to confirm your address. This is it, it is personal info not that compromising that we have been providing to many services like Amazon, Facebook, Google, etc.

jacobattias20
jacobattias20

@Donald.McIntyre @jacobattias20 I think it's way safer to share info with Google, Facebook and Amazon since they've been around the block. Plus, they never need a passport or driver's license copy. Bitstamp on the other hand is new (and under constant attack).

Coinbase charges a 1% USD to BTC transaction fee while Bitstamp charges around .5%. I suppose Coinbase is charging this premium for security/reputation. I think the question is whether this is actually worth it. Even though Bitstamp now works with GBGroup (a supposedly reputable security company), I'm still inclined to lean towards Coinbase. Plus, Coinbase doesn't require copies of official documents. Whatcha think?

Donald.McIntyre
Donald.McIntyre moderator

@jacobattias20 @Donald.McIntyre Systems in the US are much more integrated so Coinbase uses a service that by entering your SSN they get all your background information. Because there is no Patriot Act in Europe I guess they haven't developed these systems and they need you passport copy.

Also, when Coinbase opens accounts for foreigners they do need the copy because they don't have such systems in other countries.

The US is the most strict country in the world in terms of background checks and KYC policies. 

For an american user Coinbase seems more secure, but these are all startups so I think they are all equally immature.