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Dave Miller – Tech Enthusiast & Security Expert – December 26th, 2021
In terms of bitcoin exchanges, Bitstamp is one of the most well-known and well-regarded and SAFEST crypto exchanges. Cryptocurrency enthusiasts who are intermediate or experienced utilize Bitstamp to buy established cryptocurrencies using fiat currency. To trade significant sums of digital currency, Bitstamp has been praised for its low fees and ease of use. If you’re from Europe, you’ve probably heard of them.
Founded in 2011, Bitstamp has subsequently established itself as one of Europe’s most popular cryptocurrency exchanges, while also extending its user base around the world. Once one of the most popular cryptocurrency exchanges, Bitstamp has seen its trading volume drop significantly as the market has gotten overcrowded.
Bitstamp was founded in 2011 by two Slovenian friends, Nejc Kodric and Damijan Merlak. To challenge Mt. Gox, Bitstamp was the first platform to do so .Mt. Gox was the most popular exchange in the early days of cryptocurrency trading. However, there were also security concerns. In June 2011, Mt Gox was breached, and by 2014, the company had gone bankrupt.
Safety and reliability were important considerations for Kodric and Merlak. They realized that users were looking for a secure exchange. Coins like Bitcoin are extremely secure, as is the blockchain technology that they’re founded on. They’re not always traded on the same exchanges. Bitstamp’s creators want to remedy the wrongs of the past. Bitstamp relocated some of its operations to London in 2013. As a result, Kodric and Merlak chose a location that was close to the financial hub of Europe. In contrast to this, the UK did not have the necessary legislation in place to govern the sale of digital money. The duo opined that the lack of regulation surrounding cryptocurrency trading was a major issue. This means that crypto exchanges had to observe too few rules. Those who follow the rules are regarded as trustworthy by consumers. So Bitstamp went out and found a country with rules!
Bitstamp became the world’s first licensed crypto exchange in April. Luxembourg’s banking regulations would apply to Bitstamp, as a result of this decision. Additionally, Bitstamp got licensed in 28 EU nations as a result of this change. Bitstamp and bitcoin both won big in this triumph.
In the United States and the United Kingdom, Bitstamp has a registered business with a physical office. Bitstamp is a very legal firm, and we can certainly claim so.
Bitstamp has been hacked in the past, so we can’t say for sure how safe they are currently, but it’s important to remember that Bitstamp has been hacked in the past (2015). Users’ bitcoins were effectively wiped out.
If you’re new to cryptocurrency and want to stick to the big currencies or even more prominent altcoins, Bitstamp might be a suitable choice for you because of its simple fee structure and the ability to buy crypto with fiat currency right from a bank account, credit card, or debit card.
Some advanced traders may be dissatisfied by the lack of margin trading, the relatively low number of tradable cryptos, and the relatively expensive trading costs. Additionally, those who are interested in staking their cryptocurrency will have to search elsewhere: There are no plans to roll out Bitstamp’s new Ethereum staking scheme in the United States at this time.
Cryptocurrency investments should be approached with caution regardless of one’s level of experience or even the cryptocurrency platform one chooses. Although cryptocurrency is susceptible to price volatility, it is also susceptible to hacking.
Almost 19,000 Bitcoin worth $5.2 million was stolen from Bitstamp in 2015 through a phishing scam, according to a Bitstamp blog post. Bitstamp refunded any damages and appears to have utilized the incident to improve its security.
With being said, it is crucial to keep in mind all of the risks that come with investing in cryptocurrencies: If the exchange or wallet where you keep your crypto is hacked, you could lose everything you’ve invested in the cryptocurrency. The reason for this is that some cryptocurrency investors choose to keep their crypto assets in so-called cold wallets, which are separated from the internet
There are no fees for making or taking orders on Bitstamp, and there are no fees for utilizing the trading and quick buy platforms. This is unlike most other cryptocurrency trading platforms where fees are based on the amount of money you make or take from the exchange.
If you utilize ACH, rather than credit or debit, to fund your purchases, you’ll be paying costs that are among the lowest in the business, making the pricing structure much easier to understand for individuals who are new to cryptocurrency investment. Orders placed via the instant buy platform on most other exchanges are subject to a fee.
As long as you are only using the instant buy platform, you will find Bitstamp’s fees in a competitive position compared to competitors with more complex fee structures, even after taking into consideration discounts granted to high-volume monthly traders.
There is no cost reduction unless you trade at least $10,000 a month, and even then, you’ll have to trade hundreds of thousands or even millions of dollars before you come close to the cheap fees of some of our competitors, like Kraken and Binance.
Bitstamp is the eleventh-largest cryptocurrency exchange in the world. In the previous 24 hours, Bitstamp has been used to buy and sell over 90 million dollars in cryptocurrencies! Cryptocurrency trading on Bitstamp accounts for less than 1% of total trade volume. Bitstamp is available in more than 60 countries, including the United States, New Zealand, Brazil, and South Korea.
Is Bitstamp Safe to Store Crypto?
The volatility of the crypto market has earned it this reputation. Many traders may lack long-term conviction, yet short-term and medium-term fluctuations continue to play out in the cryptocurrency market. They can all keep their capital in USDC or stablecoins for short-term bets held by the trader. Along with USDT, Tether is by far the most readily available on the market and is regarded as one of the most popular and stable cryptocurrencies. As a general rule, all traders should put their money on an exchange, especially if they’re taking speculative bets. For those who are patiently waiting for the ideal chance, it may be best to retain your money in a bank account rather than risk losing it all. A non-custodial wallet is something you should have. You can learn about the advantages of Bitcoin before making an investment.
When it comes to doing our due diligence or determining if it is safe for us to undertake, there may be some clarity. A good example of this is Coinbase, which holds 2% of its cryptocurrency holdings in a hot wallet and the rest in a cold wallet by default. Insured by the exchange, the Hot Wallet provides additional security by protecting you in the event of a loss. A short-term trader’s purpose is to leave the position, although one option is to leave the coins on the exchange. In the end, it’s best to keep it with you in a safe manner.
After providing collateral to safeguard their assets, derivatives traders just need to demonstrate their ability to repay their debts. FTX, BitMEX, and Binance Futures are just a few of the exchanges you may readily access if you like. You can begin this deal if you meet the collateral criteria. Having someone else do this for you can help you identify all of the different types of trades you’ll need to explore. When compared to Bitstamp or BitForex, holding funds is a world away in terms of danger.
It’s impossible to know in advance whether or not one’s account would be compromised, but this could make it more difficult to select a reliable and secure exchange. These are some of the most trustworthy sites for securing our personal information and transactions. Additionally, there are a number of technologies that can assist us in both collecting and securing our accounts. Using a crypto-based exchange, for example, would be beneficial to you.
Remember that even if this exchange does not retain user funds, there are methods in which cold storage can be employed. It is harder to take money from a cold wallet than a hot wallet because the cold wallet is offline.
It is critical that you use 2FA to safeguard your account. There are certain exchanges that offer a variety of 2FA options to all users, including some software and hardware devices Two-factor authentication (2FA) isn’t an option on this platform, which makes it dangerously unsecure for your accounts.
There are many reasons why Bitstamp is a fantastic place to store your cryptocurrency. In recent years, Bitstamp has become one of the world’s most trusted cryptocurrency exchanges. Bitstamp may be a good fit for you if you can figure out the basics.
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Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.
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Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information.
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