Is Bitstamp a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Bitstamp is a good crypto exchange to start trading with. In this article you will learn whether Bitstamp is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Bitstamp
Bitstamp (bitstamp.net) is one of the oldest cryptocurrency exchanges. The company was founded in 2011 in Luxembourg. The exchange offices are located in Luxembourg, London, and New York. Bitstamp net is focused primarily on clients from the European Union. It provides cryptocurrency trading and exchange services. The company provides clients with TradeView software, detailed information, and analytics of the cryptocurrency markets. One of the features of the exchange is an attractive commission policy for clients with large trading volumes, and for some high-volume traders, there are no commissions at all.
| 💰 Account currency: | EUR, USD, GBP, and cryptocurrencies |
| 🚀 Minimum deposit: | 1 USD |
| ⚖️ Leverage: | 1:1 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, pairs fiat/crypto |
| 💹 Margin Call / Stop Out: | No |
Bitstamp Pros and Cons
👍 Advantages of trading with Bitstamp:
•the possibility of investing cryptocurrencies in gold;
•minimum deposit of 1 USD;
•TradeView terminal.
👎 Disadvantages of Bitstamp:
•was hacked in 2015;
•complicated verification;
•cannot withdraw fiat funds to e-wallets;
•there are fees for withdrawing funds;
•leverage is only 1:1.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
-
Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
-
Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
-
Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
-
Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
-
Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
-
Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Bitstamp Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Bitstamp offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform based on TradingView |
| 📊 Accounts: | Personal, Corporate |
| 💰 Account currency: | EUR, USD, GBP, and cryptocurrencies |
| 💵 Replenishment / Withdrawal: | Visa, Mastercard, Maestro, cryptocurrencies |
| 🚀 Minimum deposit: | 1 USD |
| ⚖️ Leverage: | 1:1 |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | from 20 USD |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies, pairs fiat/crypto |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | No |
| 📋 Orders execution: | N/A |
| ⭐ Trading features: | Gold investment program with the possibility of withdrawal to European banks |
| 🎁 Contests and bonuses: | Unavailable |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Bitstamp commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
Experts at Traders Union have analyzed the fees of Bitstamp cryptocurrency exchange. The main parameter on which the size of the commission depends is the trader’s turnover. The more a crypto trader works, the fewer fees he pays. The maximum commission is 0.5% per trade if the trading volume is <10,000 USD. If a trader’s trading turnover exceeds 20,000,000,000 USD in 30 days, transactions in the company are carried out without commission. The minimum amount to open a transaction on Bitstamp is 20 USD or the equivalent in other currencies and cryptocurrencies. Also, the cryptocurrency exchange charges a fee for withdrawing funds. Detailed information on all commissions can be found on the exchange website.
| Account type | Spread (minimum value) | Withdrawal commission |
| Individual | 0.5% | Yes |
Investment programs of Bitstamp
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Bitstamp offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
The cryptocurrency exchange allows you to receive additional income through staking ETH 2.0, and blocking a certain number of coins, on which a percentage accrues. Staking profitability ranges from 2% to 20% per annum. The minimum amount that can be frozen for staking is 32 ETH.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Bitstamp’s affiliate program
Bitstamp offers its clients an affiliate program. Traders can invite partners using a referral link, you can get it in the trading account of the cryptocurrency exchange. To receive a reward, your referral must register using the link, make a deposit on the account and conduct trading operations of at least 100 USD. For each user who fulfills the specified conditions, you will receive 20 USD. The money is immediately credited to a live account. Bitstamp does not have any bonus accounts. The maximum amount of remuneration for the referral program is 500 USD per year. The company has a list of countries from which you can invite referrals; the list includes 50 countries and territories.
Conclusion. Is Bitstamp good for beginners?
The Bitstamp cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Bitstamp could be considered as a good cryptocurrency exchange for a start.
- Is ZB.com a Good Crypto Exchange for Beginners?
- Is CoinCorner a Good Crypto Exchange for Beginners?
- Is Currency.com a Good Crypto Exchange for Beginners?
- Is Upbit a Good Crypto Exchange for Beginners?
- Is TimeX a Good Crypto Exchange for Beginners?
- Is Korbit a Good Crypto Exchange for Beginners?
- Is Satang Pro a Good Crypto Exchange for Beginners?
- Is Lykke a Good Crypto Exchange for Beginners?
- Is Catex a Good Crypto Exchange for Beginners?
- Is Zipmex a Good Crypto Exchange for Beginners?
- Is BitBay a Good Crypto Exchange for Beginners?
- Is Bitbank a Good Crypto Exchange for Beginners?
- Is BTSE a Good Crypto Exchange for Beginners?
- Is Pionex a Good Crypto Exchange for Beginners?
- Is Bitkub a Good Crypto Exchange for Beginners?
- Is XT.com a Good Crypto Exchange for Beginners?
- Is STEX a Good Crypto Exchange for Beginners?
- Is Tidex a Good Crypto Exchange for Beginners?
- Is BitoPro a Good Crypto Exchange for Beginners?
- Is Gate.io a Good Crypto Exchange for Beginners?
- Is Buda a Good Crypto Exchange for Beginners?
- Is AAX a Good Crypto Exchange for Beginners?
- Is Crex24 a Good Crypto Exchange for Beginners?
- Is Bitcoiva a Good Crypto Exchange for Beginners?
- Is CoinEx a Good Crypto Exchange for Beginners?
- Is Blocktrade a Good Crypto Exchange for Beginners?
- Is 3Commas a Good Crypto Exchange for Beginners?
- Is BigONE a Good Crypto Exchange for Beginners?
- Is Coinmama a Good Crypto Exchange for Beginners?
- Is BitForex a Good Crypto Exchange for Beginners?
FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
Related Articles
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.