Bitstamp is a European digital currency exchange originating in Luxembourg that operates both with European and international clients. It was established in 2011 and there have been various changes on the exchange since then. Probably the biggest win that Bitstamp achieved was getting licensed in 2016.
The company Bitstamp Ltd was licensed by the Luxembourg Financial Industry Supervisory Commission (CSSF) and this has subjected it to various requirements. It is obliged to regularly file reports and audits on its financial situation, both periodical and annual. The company implements strict Anti Money-Laundering policies and tries to maintain a transparent profile with its customers.
That being said, Bitstamp has a significant number of clients looking for an easy access to the cryptocurrency trading and forex exchange industries. But with the number of clients come the number of problems many of the platform’s customers have noticed. There are mixed reviews and feedback from users. Despite the fact that all security measures are in place, there are still some problems that emerged in the last year.
The following Bitstamp review can give a better idea of what the exchange has to offer and will help you determine whether it is a safe platform or scam.
Is the Bitstamp Trading Platform Good?
One of the factors that have attracted customers to the exchange is the fact that it is a web-based trading platform. There is no downloadable software to install and upgrade periodically. Unfortunately, this is not a very user-friendly platform. It lacks a significant number of functionalities and features offered by other browser-based exchanges. A single glance is enough to realize that the interface has not been optimized to support people with a limited amount of knowledge and experience in the cryptocurrency trading world.
4 Bitstamp Scam Factors & Possible Disadvantages
As it was already discussed above, holding a license is not a guarantee that everything with the exchange is smooth in terms of operations and conditions. There are some red flags one should consider before deciding to sign up with the platform:
- Negative Customer Reviews – this is probably the most significant problem with the exchange. A very big portion of its clients have expressed dissatisfaction with Bitstamp. There are several things people have complained about. First of all, the verification of accounts takes an unreasonable amount of time. Some of the newest customers have shared that their accounts have been pending verification for a minimum of three weeks and there is still no development around most of these cases.
- Unreliable Customer Support – some of the negative feedback points out that the customer assistance provided by the Bitstamp platform is unreliable. It rarely answers the questions they get and are very hard to reach. Even if your trading experience is smooth, there is no guarantee that you will receive assistance when you need it.
- Delayed Withdrawals – many people have complained that their withdrawals have not been carried out in a proper manner and took a significant amount of time much like the verification of accounts. This implies that when you submit for a withdrawal, your funds will stay blocked for an unspecified amount of time until the request has been processed.
- Not User-Friendly – this could be a significant disadvantage for the digital currency exchange. The online trading industry is liked and respected because it provides people with limited background knowledge and experience access to a lucrative field. But when exchanges fail to create a user-friendly environment, many people fail to join or to have a fruitful experience.
All of these factors became evident in the recent years as the popularity of Bitstamp grew. It truly does offer some level of security and transparency for its clients but the predominant opinion is that the services provided are of a mediocre quality.
Trading Properties & Conditions
The Bitstamp exchange has attracted people because it allows fiat to cryptocurrency trading. This means you can deposit fiat money like Euro or USD and trade cryptocurrencies against them. What many people have pointed out as a disadvantage is the fact that very few digital currencies are supported. You can trade Bitcoin, Ethereum, XRP (Ripple), and Litecoin. If you are interested in other altcoins, you should consider a different exchange.
Another thing that has made people consider other alternatives are the fees applied by the exchange. Bitstamp charges some of the highest commissions for the lowest trade volumes. There are better exchanges that predominantly apply lower fees.
How to Join & Should You?
In other to start cryptocurrency trading on the Bitstamp exchange, you have to undergo a lengthy registration process. Verification can take more than 3 weeks until your account gets approved for trading, even if you have supplied all necessary documents.
Also, there is no concrete information on what is the minimum amount you can deposit and start with. It is probably going to depend on the method for transfer you have chosen but most exchanges usually provide a universal starting amount so that people can make a more informed decision.
Conclusion – Is Bitstamp a Good Choice?
All in all, the Bitstamp platform might be licensed and regulated but it still has to overcome some significant issues in order to provide quality services. Traders are advised to consider a better alternative for their investment aspirations instead. Bitstamp cannot provide a wide variety of trading instruments, has no resources that would enhance trading, and is not suitable for beginners either. Opt for a different platform, at least until the problems with this one have been resolved if you are interested in it.