In 2011, the brothers Kodrich and Damian Merlaki registered a trading platform called Bitstamp, which provided services for the purchase and sale of the Bitcoin. This exchange is one of the first platforms providing similar services.
As of today, this exchange is one of the largest trading platforms that trade in Bitcoin.
The Bitstamp trading platform was recognized as the largest exchange that traded in the pair “Bitcoin-American dollar tokens” in February 2014. A few months later, this marketplace was awarded as the best developing company in Europe, working with the digital currency.
The currency trading platform is constantly being modernized while improving the quality of its services, and increasing the level of security of operations between its customers.
A trading platform that operates with Bitcoin, Bitstamp was created and entered into the register by brothers in the territory of Slovenia, but despite it, the legal address of Bitcoin-Exchange is located in the state of Luxembourg. As of today, most of the trading floor business is concentrated in the UK.
In addition, this crypto exchange is the gateway of the Ripple payment system.
Methods of funds withdrawal and replenishment of the account
Among the key features of the trading platform, which distinguishes it from the others, is the attribution of rules for verification of accounts. In order to create a profile, the potential client of the exchange needs to confirm its identity. For this purpose, in order to confirm residency, the portal administration can ask the potential client to provide invoices with the name specified in the process of registration on the site.
To communicate with the resource administration, a unique ticketing system is used.
The entry and withdrawal of funds of this trading platform are carried out in several ways, including:
- International bank transfers;
- Bitcoin, Ripple, AstroPay payment systems;
- European SEPA transfers.
When performing each trade operation, a commission of 0.5 percent is charged to the customer. The size of the commission directly depends on the volume of trade operations executed within 30 calendar days. So, with a large volume, the commission can be reduced to 0.2 percent.
For its customers, the exchange platform developed a specialized application that operates on smartphones running iOS and Android.
Trading on the exchange is carried out for such pairs as EUR / USD, BTC / EUR, and BTC / USD.
The security of financial resources of each client of the trading platform is provided by:
- 2-level authentication;
- Sending an e-mail notification requesting confirmation of a withdrawal operation;
- Providing the client with the opportunity to manage his own account using API;
- The phone number can be linked to the account and used to verify the user.
Significant events in the history of Bitstamp
Theft of 5 million dollars and the further restoration of efficiency
In January 2015, the Bitstamp trading platform breaking took place. As a result of the actions of cybercriminals, 18,977 Bitcoin tokens were stolen, which cost 5.3 million US dollars at that time. This event negatively affected the reputation of the cryptocurrency trading platform. In addition, the actions of intruders had a negative impact on the cost of the Bitcoin itself.
According to the results of an investigation conducted by the experts of the Stoz Friedberg organization, the process of preparing the operation for hacking lasted a very long time. All the actions of the scammers were carefully planned. In fact, the hacking involved a number of phishing attacks aimed at employees of the Bitstamp cryptocurrency trading platform.
At the same time, the funds kept by the company on “cold” wallets were not affected. This is due to the fact that for this method of storage, multi-signatures and a number of other security measures are used, which are difficult to circumvent.
Bitstamp has been suspended on the territory of the Russian Federation
At the beginning of last year, the management of the exchange decided to impose a temporary ban on the use of the resource for users from the Russian Federation. Such a decision of Bitstamp was made in connection with the fact that the Central Bank of Russia imposed a restriction on access to the resource in connection with the development of bills aimed at banning the use of all types of virtual currencies, including Bitcoin. After a while, namely on February 12, 2016, the administration restored access for Russian customers.
New partnerships of the crypto exchange
The Bitstamp is constantly working on upgrading its own security systems. In this regard, Bitcoin-Exchange has concluded many cooperation agreements with various organizations, among them Xapo and BitGo.
In 2013, the Fortress Investment Group allocated around 10 million US dollars as a hedge fund for the cryptocurrency exchange.
Bitcoin tokens purchase with the bank cards
At the beginning of last year, the Bitstamp trading platform informed its customers about the possibility of acquiring a virtual currency using credit and debit cards of international payment systems Visa and MasterCard. However, this option is available only for citizens residing in the UK and Slovenia.
The acquisition of a virtual currency in this way does not cause any special difficulties. The operation takes only a few seconds. All actions are performed via the Vogogo platform.
Obtaining a European license
Last year, in April, the commission overseeing the financial sector of the state of Luxembourg provided Bitstamp with a license to provide its own services in 28 EU countries.
This license is the confirmation of the highest level of security. Previously, such licenses were granted exclusively to financial institutions.
Withdrawal of funds in gold
At the beginning of last year, customers of the Bitcoin Exchange, residing in the EU, were given a new opportunity – the withdrawal of funds in gold. This option was made available to the users of the exchange by concluding an agreement between the platform and a company called Moro & Kunst, which is also known worldwide as an international gold reseller.
Gold bullions sent to users are insured. After the order has been issued, gold is sent to the client of the exchange by a special track number. The duration of delivery of precious metal to the recipient can last from 2 to 5 days. If desired, the user of the exchange can independently pick up his precious metal by contacting the Moro & Kunst branch.
Bitcoin-exchange customers can receive gold in any of the 28 countries of the European Union.
Adding Ledger wallets support
Last year, in September, the currency exchange announced the addition of world-known hardware wallets for the storage of the virtual currency, called Ledger. This step of the exchange caused admiration from its clients.
Soon, the trading platform intends to add support and other wallets. Today the names of specific firms or models are not indicated, however their list on the market is rather limited. Most of the devices on the market will receive support before the end of this year.