Coinbase Vs Bitstamp: Which Is Best!
If you are looking for a good crypto exchange to trade cryptocurrency assets, it is good, to begin with, the most popular options. Both Coinbase and Bitstamp are among the best crypto exchanges. Bitstamp was founded in 2011, focussing mainly on the European markets, while Coinbase was established in 2012 and, since then, has become the most well-known best cryptocurrency exchange around the world. While Coinbase has grown into a popular full-service crypto platform that offers many features for the new bitcoin investors, Bitstamp also provides a solid exchange for those looking for high liquidity in different Euro-based crypto trading pairs.
Difference: Coinbase Vs Bitstamp
Features
Coinbase has turned into a crypto exchange that has involved itself in various aspects of the crypto world. Whereas, Bitstamp has been focused on offering the best possible experience for advanced traders. Bitstamp provides the ability to buy cryptos immediately via credit/ debit cards. However, this is the only key feature of this platform.
Coinbase, on the other hand, has ventured into many new aspects of the cryptocurrency world. Coinbase offers its base brokerage platform, the USDC stablecoin, a non-custodial wallet, Coinbase Pro platform for the experienced traders, Coinbase Earn program, and many other offerings targeted towards businesses in need of cryptocurrency services.
Fees and Payment Methods
The Bitstamp fees are pretty low. The platform charges only 0.25% for trades below $20,000/ So, whether you buy or sell crypto, you will pay out the same fees. Bitstamp does not charge for Euro-based deposits in the SEPA(Single Euro Payments Area). However, withdrawals in the SEPA in Euro cost €0.90. The charge of Bitstamp for the USD deposit is $7.5. It does not charge for crypto withdrawals. Withdrawals of over $1000 cost a 2 percent fee, while withdrawals below $1000 are charged $10. Users of Bitstamp can use credit/ debit cards to purchase cryptocurrencies, and the associated transaction fee is 5% of every transaction amount.
The fees of Coinbase are pretty high. When you buy/ sell cryptocurrency, Coinbase charges 1.49% every time. If the purchase is made via a credit card, a 3.99% fee is charged. Euro deposits on Coinbase in the SEPA are free. However, withdrawals of Euro are charged €0.15. While withdrawals of USD cost $10, deposits with USD are free.
Cryptocurrency Available
Coinbase started as an exchange focused on the USA, while Bitstamp concentrated on the European market. However, both the exchanges expanded to other geographies over time. When it comes to cryptocurrencies, Bitstamp is more traditional than Coinbase. Though Coinbase started as a Bitcoin platform, it embraced many more crypto tokens and assets soon. However, Bitstamp limits you to the popular cryptocurrencies only like Ether, Bitcoin, Bitcoin Cash, LINK, and XRP. Moreover, if you choose to use Coinbase Pro, you get access to all the crypto assets available on the platform.
Security
When comparing two cryptocurrency exchanges based on security, it is vital to consider two factors: security incidents and longevity. The simple way to find whether a specific platform is reliable or not is finding how long a specific exchange has been working without experiencing a hacking incident or other severe events that resulted in users losing their money.
The Coinbase platform has never experienced a serious security event that would make people lose their trust in the ability of the company to store user funds securely. However, with Bitstamp, the same is not true. It had faced a security issue that resulted in a 5 million USD worth of Bitcoin hacking in 2015. But none of the users lost their money.
Both these cryptocurrency exchanges have been there for a decade. So, it is unlikely that any one of them experiences an incident where users’ funds are lost. Most of the funds at these exchanges are held in cold wallets that are very hard to access for hackers.
Advantages of Coinbase Over Bitstamp
- Beginner friendly and simple to use
- Stores customer funds safely
- High liquidity
- Modern, simple website
- Buy crypto faster than other exchanges
- Trustworthy and regulated company
- It lets you buy cryptos using debit/credit cards
Advantages of Bitstamp Over Coinbase
- High liquidity and volume
- Nice trading platform
- Good reputation
- Accepts bank transfers and credit cards
- Simple and quick to use
- 98% of digital assets of users are stored in cold wallets
Conclusion
Buying/ selling cryptocurrency is not always simple. It can be annoying, complex, and even frightening. But it can be lots of fun if you choose the right platform. Both Coinbase and Bitstamp are excellent places to begin your crypto journey.
Coinbase is ideal for newbies. To know more about, click here for a complete Coinbase review by CryptoNewsZ. It is easy to use, user-friendly, and secure. The platform offers all you need to purchase your first crypto. On the other hand, Bitstamp is among the most popular and oldest cryptocurrency exchanges. It is cheap, secure, and has an excellent team that cares for its clients. It can be complex for novices to use this platform, but it is outstanding for advanced traders.
