Sell and Buy Bitcoin Using Bitstamp

Description

Bitstamp is an exchange that has supported the bitcoin economy since 2011. It offers buying or selling bitcoin with a credit/debit card and trading, placing various types of orders. It also provides API and has mobile applications for trading on the go.

How Bitstamp Works

To start using Bitstamp, you need to create an account on its web-based platform or download the app on the App Store or Google Play Store. Bitstamp follows KYC (Know Your Customer) regulations, so you must verify your identity by entering your basic financial information, uploading documents and enabling extra security. Bitstamp verification documents are identity documents and proof of residency document.

Once the account is set up and verified, you can deposit either fiat currency (USD, EUR, GBP or a different currency that will be converted to EUR, GBP or USD before it is credited to the account) or bitcoin into it. Bitstamp supports the following deposit methods: bank transfers, credit/debit card payments, PayPal, Apple Pay or Google Pay. US customers can use ACH.

After the account is funded, you can start selling and buying Bitcoin on Bitstamp. The exchange matches buy and sell orders in its order book. It is possible to place the following types of orders: instant order, limit order, market order, stop order, trailing stop order, and fill-or-kill order. Upon completion of trading, bitcoin can be withdrawn to your external wallet, while fiat currencies can be withdrawn to your bank account.

You can also buy or sell bitcoin with a credit/debit card, entering the specific amount and selecting your linked card as the payment method. Once the transaction is approved, a confirmation message will be received.

Bitstamp Features

• Bitstamp Pro app: It is an exchange platform designed for advanced traders and crypto experts. It offers four order types (market orders, limit orders, stop orders, and instant orders), real-time charts, access to actionable data and analytical tools.
• API Support: Bitstamp provides APIs for setting up your trading interface or deploying algorithmic strategies.
• Staking: This feature allows Bitstamp users to participate in the operations of a Proof-of-Stake (PoS) network by delegating their assets to a staking node operator that validates transactions on the network. The underlying PoS protocol issues rewards for participation.
• Lending: Crypto lending enables Bitstamp users to lend their digital assets to others and earn interest on the borrowed amount.

Bitstamp Fees

A maker-taker fee model determines the trading fees. For trading volumes less than $1,000, both the maker and taker fees are 0.00%. As the trading volume increases, the fees adjust accordingly. For instance, for a trading volume greater than $1,000, the maker fee is 0.30%, and the taker fee is 0.40%. For a trading volume exceeding $1,000,000,000, both the maker and taker fees are 0.00%.

Bitstamp also charges fees for staking and lending. The staking fees for BTC are 15.00%, and the lending fees are 27.27%.

As for deposits and withdrawal fees, SEPA deposits, ACH deposits and withdrawals are free of charge. International wire deposits have a fee of 0.05%, and withdrawals have a fee of 0.1%. Bitcoin deposits are free of charge, while withdrawals have a fee of 0.0005 BTC.

Bitstamp Limits

When using a credit or debit card to purchase Bitcoin on Bitstamp, your transaction limits are set as follows: You can make daily transactions up to 2500 USD, EUR, or GBP, with a monthly cap extending to 20000 USD, EUR, or GBP. Furthermore, there’s a minimum purchase requirement of 25 USD, EUR, or GBP. Should you opt for ACH withdrawals, the only method subject to a limit, each transaction is restricted to $50,000. Keep in mind that these limits might vary depending on your country of residence, and they’re not adjustable, meaning you can’t modify them to suit your preferences.

Bitstamp Stop Order and Limit Order

On Bitstamp, both limit orders and stop orders serve distinct purposes when placing trades. A Bitstamp limit order enables you to designate a specific price at which you wish to buy or sell Bitcoin. This order will only execute if the market price reaches or exceeds your specified price, ensuring that you achieve your desired price or better. It is commonly used to secure a particular price for a trade or capitalize on buying opportunities during price drops or selling during peaks. For instance, if you want to purchase Bitcoin (BTC) at $10,000, you can place a limit buy order at that price, which will only activate if the BTC price drops to $10,000 or below.

Conversely, a stop order functions by setting a trigger price, also known as a stop price, which automatically converts the order into a market order once reached. Upon hitting or surpassing the stop price, the order is executed at the best available market price. Stop orders are frequently employed for setting stop-loss orders to mitigate potential losses if the price moves unfavorably, or for setting take-profit orders to lock in gains when the price reaches a specific level. For example, if you own BTC and want to minimize potential losses should the price drop below $9,000, you can place a stop-loss sell order with a stop price of $9,000. Should the BTC price fall to $9,000 or lower, a market sell order will activate, selling your BTC at the best price obtainable at that moment.

Countries Supported by Bitstamp

The Bitstamp app is accessible in numerous countries worldwide, including Albania, Argentina, Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, Croatia, Czechia, Denmark, Egypt, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Japan, Jordan, Kenya, Lebanon, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Morocco, Netherlands, New Zealand, Nigeria, Norway, Pakistan, Peru, Philippines, Poland, Portugal, Romania, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States (except Hawaii, Nevada), Uruguay, Venezuela, Vietnam, and others. You’ll see if your country is supported during signup.

Is Bitstamp Legit and Safe?

The exchange is regulated by the Luxembourg Financial Industry Supervisory Commission (CSSF) and complies with European Union regulations. It has incorporated Multi-Sig technology into its hot wallet, where only a minimal amount of crypto assets are stored. The bulk of the assets are in offline cold storage systems. The service provides withdrawal email confirmation and withdrawal address whitelisting.

Bitstamp Alternatives

More Information

• Bitstamp website
• Bitstamp on Twitter
• Bitstamp reviews on Trustpilot