Web2 and Web3 are two different generations of the World Wide Web. While Web2 is a centralized platform, Web3 is decentralized and powered by blockchain technology. The success of Web3 has been enormous, with many people now moving from Web2 to take advantage of its benefits. However, the path to Web3 is not always straightforward. It is complicated and requires a deep understanding of both technologies. Today's guide will ensure you have the right information to successfully move from Web2…
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Bitstamp Review – Exchange Features, Trading Fees, and Security
Bitstamp is one of the world’s longest-standing crypto exchanges. This veteran platform provides trading services geared to intermediate and experienced investors. Consequently, the platform has a customer base that includes individuals and institutions.
Impressively, the Bitstamp exchange was the first fully regulated EU exchange. Specifically, the platform is regulated by the Luxembourg Financial Industry Supervisory Commission (CSSF). This designation has helped the network to remain a popular choice in the EU market.
Benefits of The Bitstamp Exchange
Bitstamp earned a reputation as a safe and secure way to enter the blockchain space. The exchange provides an easy-to-navigate interface that simplifies the core trading functionalities of the platform. You don’t need technical understanding to complete basic trading on this platform. Here are some other benefits that Bitstamp users enjoy:
Fiat On-ramp
Bitstamp offers users instant deposit options. You can load your account in various ways, including direct bank transfer, credit, and debit cards. Credit card support has become a sought-after feature on most exchanges because it allows investors more leverage. Notably, the platform only accepts deposits made in Euros at this time. This decision reflects the platform’s goal to support the EU markets primarily.
Low Fees
Another advantage of Bitstamp is its low fee structure. The network charges 0.25% for all trades under $20,000. This rate is significantly lower than other major platforms, such as Coinbase and Binance. There are also discounts for traders that exceed this volume in orders monthly. Moreover, these discounts continue to increase alongside your trading volume. In this way, Bitstamp incentivizes large traders to conduct more trades.
Trading Volume
Bitstamp provides deep liquidity to traders seeking to make large trades. The exchange has dropped in ranking in market capitalization since its hay days as one of the first exchanges. Despite these adjustments, Bitstamp remains a popular choice for those seeking liquidity.
Customer Service
Bitstamp users are privy to top-notch customer service. Unlike the competition, Bitstamp users can pick up the phone and speak to an actual representative. This feature is great because it helps clear any confusion and allows users to get answers to all the questions in real time. In comparison, most exchanges rely on an email ticket service. Sadly, it can take days for users to get an accurate response to their questions.
Security
Developers integrated institutional-grade security into the core protocols of Bitstamp. The network features support for multi-sig wallets. Multi-sig wallets require multiple keys to transfer funds. They are ideal for businesses and are crucial in preventing unauthorized withdrawals. Additionally, the website integrates AES 256 encryption for connections to their server. Personal security measures such as encrypted personal data, transaction confirmation, and two-factor authentication are core protocols within this blockchain ecosystem.
How Does The Bitstamp Exchange Work
As one of the first cryptocurrency exchanges globally, the network focuses on the most established cryptocurrencies. This focus on top-notch projects makes the platform ideal for experienced traders seeking spot trading of established projects.
Mobile App
Many Bitstamp users utilize the mobile app. This full-featured platform is available as a free download on iOS and Android. Aside from all the basic trading functionalities, mobile app users gain access to advanced order types and analytical tools. Impressively, there are even limited charting capabilities for those who want to complete some technical analysis on the go. This feature is a perfect example of how Bitstamp supports advanced users in unique ways.
History of The Bitstamp Exchange
Damijan Merlak and Nejc Kodric founded Bitstamp in Slovenia in 2011. The exchange moved operations a couple of times since its launch. In 2013, Bitstamp moved to the UK. Three years later, the exchange moved again to Luxemburg. Since then, it has also added a London and New York office.
Bitstamp was the victim of two major hacks in 2014 and 2015. In the 2015 Hack, the attackers stole 19,000 BTC. To this day, this is one of the largest hacks in crypto history. However, it’s vital to mention that the hacks were not the result of technical shortcomings but rather phishing attacks on employees.
Phishing attacks are a hacking strategy that involves slowly gathering information from various emails and other communications to gather enough data to infiltrate a network. Sadly, this style of hack is still common in the market. One recent example of this hack style occurred with the 2020 Twitter Bitcoin hack that saw popular accounts compromised after an employee revealed the credentials to the platform’s backend dubbed “God-Mode.”
Bitstamp has secured some high-level partnerships during its tenure as a major exchange. Notably, Bitstamp was the first Ripple Gateway. The platform also has strategic partnerships with well-known EU financial institutions, Swissquote, and Credit Agricole SA.
How to Use The Bitstamp Exchange
Using Bitstamp is easy. You need to head over to the website or download the mobile app. In the top right corner, you will see Register. The network requires you to enter your name, email address, and country to start the process. From there, you will receive an automatically generated password. This password is only used for your primary login. After you’re in, it’s recommended that you change this code.
Next, you will need to submit your KYC documents. Bitstamp requires you to send a copy of your driver’s license, passport, or National ID. You will also need to verify your phone number via SMS. Once this is complete, you are ready to load your account and begin trading.
Bitstamp – Still As Relevant as Ever
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Bitstamp still holds a valuable place in the crypto sector. This established and trusted exchange remains a wise choice for traders not looking for extra bells and whistles. In addition, you can efficiently trade all the top coins using this network. For these reasons, Bitstamp is set to remain a staple in the community.
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