Bitstamp is a cryptocurrency exchange that has earned a solid reputation in the industry. However, in the report of Cointelegraph Research, the New Crypto Standard, it is clear that Bitstamp has certain weaknesses in terms of security, regulation, services and customer support that are crucial to take into account when considering its use.
In this article we will address these points, their scope and the risks they pose for their users, and additionally, we will tell you a better alternative to avoid these situations.
Bitstamp, an exchange with strong points
Bitstamp is an exchange that is located in the United Kingdom, so its operations are governed by the laws of this country, which is recognized worldwide for being an important financial hub. Due to this, Bitstamp has good operational transparency, with its financial records and business audits being publicly accessible. This is a good sign of trust for an exchange, especially for the peace of mind of its users.
Not only that, but Bitstamp has an operation in which two jurisdictions apply: that of the United Kingdom (for the company as a whole) and that of Luxembourg, for operations with euros and the protection of fiat funds.
This means that, for example, if you are a European user your money is under European laws in that regard (Luxembourg legislation, on the protection of 100% fiat funds). But as soon as you start trading on Bitstamp with crypto funds, you come under the laws of the United Kingdom. A regulatory duality that can bring certain problems.
For example, in the United Kingdom, since it is already outside the EU, the GDPR and other European consumer protection laws do not apply. This is an issue that you should be aware of if you are operating in Europe and you should remember that you will abide by UK laws in case you have a problem, something that may be unfavorable to you as a user.
This can be clearly seen in the fact that Bitstamp cannot operate in Canada due to regulatory issues. It is clear that while Bitstamp is well placed, its level of compliance still has weaknesses in many aspects.
Services and customer service, a deficiency for Bitstamp
However, what Bitstamp gains in the regulatory part it loses in customer service. With a very low rating, Bitstamp customer support is generally seen as very deficient both in the speed of response and in its quality, media and available languages (English, German and Slovak). This contrasts with its clean and accessible interface, which facilitates user access, but due to various problems, they end up with clearly inferior support.
Regarding its services, Bitstamp is the exchange with the fewest services available. They only offer spot trading service (with more than 80 coins available) and staking (with two cryptocurrencies, ETH and ALGO). There is no launchpad service, no debit cards, and their lending service is quite limited. This makes Bistamp the exchange with the least services in the Cointelegraph Research comparison, something that you should take into account if you want to have various operational means for your cryptocurrencies.
If we add to this that Bitstamp lacks ISO 22301 certification and that the arrival of MiCA will make this certification necessary for operations in the EU, it is clear that Bitstamp will face operational problems on the continent if this situation is not improved.
So, while overall, Bitstamp is a solid option for those looking for a regulated exchange with strong security measures, it might not be the best option for beginner traders or those looking for a wide range of trading services, as in this In this sense, Bitstamp's proposal in this regard is deficient.
Why Bit2Me is a better alternative?
If you are looking for a better alternative to BitStamp, Bit2Me is the option you need. Bit2Me offers a wide range of advantages over Bybit, including greater security, transparency, regulatory compliance and customer service.
First of all, Bit2Me takes the security of its users very seriously. The platform has strict cybersecurity measures, including two-factor authentication, cold storage of funds, and regular external audits. Bit2Me also has insurance of 150 million euros that protects users in the event of an attack.
Better security and regulation
On the other hand, Bit2Me is a regulated company that complies with all applicable laws and regulations. The platform is registered with the Bank of Spain and is certified with ISO 27001 and ISO 22301. Bit2Me is also working to comply with the European Union's MiCA regulations.
Additionally, Bit2Me offers excellent customer service. The support team is available 24/7 and is always ready to help users with any issue. A reality that fits perfectly with the wide range of additional services that are not available on BitStamp. These services include staking, lending, trading, crypto wallets, and launchpad.
In conclusion, Bit2Me is a superior alternative to BitStamp in all aspects. If you are looking for a secure, transparent, regulated cryptocurrency exchange with excellent customer service, Bit2Me is the perfect option for you.
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