Bitstamp

With Ethereum 2.0 continuing to roll out through 2021, we will see the Ethereum mainnet change over from a Proof of Work (PoW) consensus mechanism to a Proof of Stake (PoS) mechanism. Instead of mining for Ethereum as a way to verify blocks of transactions on the Ethereum blockchain, validators who stake 32 ETH each will take over this function. Bitstamp announced in 2020 that it would support Ethereum staking on the exchange, allowing Etheruem stakers to earn additional Ethereum.

Bitstamp’s customer facing documentation is precise, user friendly, and thorough. It is also rather simplified, with just several superior quality resources covering everything a trader needs to know to use the platform. Perhaps due to the network effects of Bitstamp being in operation for over a decade, you can Google almost any question about Bitstamp and be led to a company blog post or FAQ sheet answering your exact question.

Bitstamp’s fees are on market with other exchanges. You can find a full fee schedule on the respective section of their website to see their current structure.

Traders may fund their Bitstamp trading account by depositing in multiple ways:

• Bank transfer (free)
• ACH deposit (free)
• Debit or credit card purchase (5% fee)
• Wire transfer (.05%fee)
• Crypto transferred from an external wallet (free)
• FasterPayments in UK only (free) 
• SEPA (Single Euro Payments Area) (for EURO only; free)

Exchange rates vary by region.

Bitstamp’s withdrawal fees are similar to Coinbase, with a .0005% fee on Bitcoin withdrawals and much lower fees for altcoins and stablecoins. The BTC fee is reduced to 0.1% for those who use the BitGo Instant option, which enables on-chain transactions with zero confirmations.

Bitstamp’s thorough verification process requires traders to complete verification forms and submit various documents. They also require that every transfer to and from the account must be from an account owned personally by the traders. Documents needed include:

• A high quality photo I.D. – either a passport, national ID card, or driver’s license.
• Proof of residency, such as a utility bill or bank account statement with your address on it. 

What are AML and KYC?

As part of a range of Anti Money Laundering regulations mandated nationally and internationally, KYC involves the requirement of companies to verify each customer’s identity during the onboarding process. Verification is achieved by submitted identification, proof of ownership, and personal information such as name, address, email address, phone number and tax I.D. number.

A news article and a Twitter thread discussed how Bitstamp was going overboard with KYC by asking extra questions when users wanted to withdraw. Unlike most other exchanges, Bitstamp requires traders to answer specific questions when they make a cryptocurrency withdrawal. Such additional requests included asking for copies of pay stubs, other exchange account records, bank deposit slips showing deposits to other exchanges, and bank withdrawal history. 

While Bitstamp is a trustworthy exchange with a long standing reputation for security and performance, the additional questions may seem particularly abrasive as DeFi applications and exchanges with zero KYC requirements become available and more liquid.

Bitstamp has a refined trading platform, simplified and easy to navigate, without a lot of bells and whistles.

• Reviews for Bitstamp were very favorable overall in both GooglePlay and the App Store. However, in TrustPilot there were a high number of recent negative reviews. Many were related to Bitstamp’s AML policy of extra verification before withdrawing crypto to external wallets. Others did not like it when an unsuccessful transfer still incurred a $25 fee. But every review there, whether positive or negative, was answered with a professional, solution-oriented reply and clear answers.
• Bitstamp is the only crypto exchange our research team has come across thus far that has 24/7 international phone support – we tried the number and a knowledgeable person answered within seconds. In addition, the exchange has emails for customer support and complaints readily available on the website. They are also one of the few exchanges that does not lead the customer through a web of FAQs and other resources before being able to access customer support, but these resources are also available. The lack of a more modern approach to customer service may deter the millennial investor, but it might make sense for providing a personal touch when attracting big investors from traditional venues.

• Bitstamp is vehement about following Luxembourg-based crypto regulations for the security of their users and the longevity of the platform. They are also temporarily registered in the UK, pending approval of their application to the Financial Conduct Authority. 
• With 15 banking partners across the globe, Bitstamp provides dependable fiat rails. 
• Bitstamp has been a trusted platform for longer than any other (still standing) crypto exchange.

• The Bitstamp documentation is easily attainable.
• The support team answers every Trust Pilot review
• They are very forthcoming about crypto regulations – traders should come to expect that stringent KYC rules will be enforced because Bitstamp is very transparent about it. 
• There’s no clear documentation about “Eligible Countries”, the Terms of Use mentions only which countries can use a credit/debit card to buy crypto on the exchange.

Back in 2015, when hot wallets were used for the majority of exchange funds, Bitstamp’s online wallet was hacked. 19,000 bitcoins were lost, valued back then at around $5 million. Ultimately, no customer funds were lost and after the hack they rebuilt the platform with the focus on preventing future hacks. There have been no hacks in recent years.

• • Dollar cost averaging 
  • Self custody
  • Automated trading
  • Automated tax reporting
  • Leverage
  • Futures
  • Trading in USDT (Tether)