This Step-by-Step Guide to Bitstamp shows how to create an account, buy cryptocurrency with a credit/debit card, and withdraw cryptocurrency on the Bitstamp cryptocurrency exchange. Bitstamp is one of our favorite exchanges because it has an instant order feature and is extremely easy to use. It is especially good for investing euros in cryptocurrency, buying XRP (Ripple) with a credit/debit card, or as an alternative to Coinbase for credit/debit card buys. Let’s get started!
The first step is to create a Bitstamp account. You need your name, email address, a new password, and identification documents to open and use a Bitstamp account. To start, choose “register” from the Bitstamp homepage. Then enter your full name, email address, and country. Press Register to continue.
Bitstamp will send a customer ID and password to your email. Your customer ID is very important long-term because you need the customer ID to login. Use the information in the email from Bitstamp to login.
There is no guarantee that your email account is secure, yet Bitstamp emailed the plain text of your customer ID and password to your inbox. You should immediately reset your Bitstamp password to something different.
It is vital that you enable two-factor authentication on every cryptocurrency exchange you use, including Bitstamp. There are endless stories of individuals losing tens or hundreds of thousands of dollars because they did not use two-factor authentication on a cryptocurrency exchange. Two-factor authentication means that Bitstamp will require that you enter a temporary code, sent to your cell phone, each time you login and for other important transactions. This is in addition to your password and username. Bitstamp supports Google Authenticator and Duo for two-factor authentication. In your settings, go to Security –> Two-Factor Authentication. Choose Enable Two-Factor Authentication and follow the set up directions.
Bitstamp will verify your identity because it wants to comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. Choose the applicable option from the Verify Identity page in your settings. In this guide, we will choose Personal Account Verification.
We appreciate that Bitstamp puts all verification requirements in one page. Enter your full name, compete address, nationality, and date of birth for verification. You must also upload two documents. First, upload an ID document such as a driver’s license or passport. Second, upload a proof of residence document such as a utility bill. It often takes Bitstamp several days to verify your identity before you can start trading.
After your identity is verified, you are ready to buy and sell cryptocurrencies on Bitstamp. Choose Buy/Sell from the upper right of Bitstamp to go to the primary trading interface. There are several ways to buy bitcoin and other cryptocurrencies on Bitstamp. This guide will show how to use the credit card purchase option, but you can choose any of the following:
- Instant Orders: Buy or sell bitcoin, bitcoin cash, litecoin, ethereum, or XRP by entering the amount and pressing Buy or Sell. You must first deposit funds into your Bitstamp account before using the Instant Order buy feature.
- Market, Limit, and Stop Orders: These orders are labeled “advanced” because they provide more control over your buy or sell order than an instant order. Market orders buy or sell at the then-current price. Limit orders are placed on the order book to buy or sell at a specified price. Stop orders set an entry/exit price point and once the price surpasses the predefined entry/exit point, the stop order becomes a market order.
- Credit Card Purchase: Buy bitcoin, bitcoin cash, litecoin, ethereum, or XRP with a credit/debit card.
- Tradeview Orders: You can also buy and sell cryptocurrencies on Bitstamp using a full-scale trading interface. Choose “Tradeview” from the upper right of Bitstamp. This is a good option for more experienced traders.
You can trade several different cryptocurrencies on Bitstamp, including bitcoin, bitcoin cash, litecoin, ethereum, and XRP (Ripple). Bitstamp is unique because it also offers a euros/dollars trading pair. That helps U.S. residents gain access to European markets and vice versa. We chose BTC/USD because this guide we will use a credit card to buy bitcoin with U.S. dollars.
It is simple to buy bitcoin, bitcoin cash, litecoin, ethereum, and XRP (Ripple) with a credit/debit card on Bitstamp. Go to the Buy/Sell screen and Choose Credit Card Purchase. You will arrive at the below screen with options to buy a preset amount of cryptocurrency equal to 100, 250, 500, 1000, and 2500 U.S. dollars. You can also enter any amount of U.S. dollars that you want to invest in bitcoin.
Let’s assume you want to use a credit/debit card to buy $50.00 of bitcoin with U.S. dollars. First, enter 50.00 in the blank space in the lower right of the credit/debit card buy screen on Bitstamp and press Buy.
Next, press continue to use Bitstamp’s third-party processor to buy bitcoin with your credit/debit card.
The final step to complete the purchase of bitcoin is to enter the card payment details such as card type, card number, name, expiration, and the three digit verification number. The bitcoin purchase will be processed as soon as you press submit.
Bitstamp will confirm that the credit/debit card transaction is successful. The total value of your bitcoin is approximately 5% less than the amount paid. The reason is that Bitstamp charges a 5% transaction fee on credit/debit card purchases. You can repeat this same process to use a credit/debit card to buy any cryptocurrency on Bitstamp with U.S. dollars or euros. Hint: visit our article on 6 Ideas to Minimize Cryptocurrency Fees and Maximize Your Investment to learn how to avoid fees in your cryptocurrency transactions.
You may want to withdraw cryptocurrency from Bitstamp to another exchange or a hardware wallet, desktop wallet, or mobile wallet. Your withdrawals of cryptocurrency are free on Bitstamp. Go to Withdraw from the upper right of Bitstamp and choose the cryptocurrency you want to withdraw from the menu on the left. We chose Bitcoin (BTC) in the example below. Then enter the bitcoin address of the receiving wallet or exchange, the amount of bitcoin to withdraw, and your two factor authentication code. Press Withdraw to initiate the withdrawal.
You Are Ready To Get Started With Bitstamp. Visit Bitstamp Now!