How to compare Bitstamp with other crypto exchanges
To compare Bitstamp with other exchanges, match features to your needs and location. Check coins, networks, regulation, funding, security, and tax records.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- List the coins and networks you plan to use.
- US rules bring money transmitter oversight, not deposit insurance.
- Check funding methods before you send money.
- Keep records of every trade for tax reporting.
A dated comparison beats a general review. Exchange terms can change after rule changes, so check the date on any page you use.
What should you check before comparing?
Your location and trading needs narrow the field. Bitstamp serves US customers through a state-licensed entity, so check that it works in your state. Write down the cryptocurrencies and networks you plan to use.
- Your state and its rules for US customers.
- The cryptocurrencies you plan to trade.
- The deposit networks each exchange accepts.
- The withdrawal networks each exchange supports.
- The date on any comparison you read.
How do you compare Bitstamp step by step?
Use the same checks for Bitstamp and each rival. Work through regulation, funding, and security in that order, because a gap in one can stop you later.
- 1Check regulatory statusFind out which entity serves US customers and what licenses it holds. US exchanges usually register with FinCEN and hold state money transmitter licenses, which do not insure coins.
- 2Compare deposit methodsList the ways you can add US dollars, such as bank wire or card. Check processing time and limits on the exchange's own page.
- 3Compare withdrawal methodsList the ways you can take money out and the crypto networks you can use. A deposit method may not work for withdrawals.
- 4Review security featuresLook for multi-factor authentication, withdrawal whitelists, and login alerts. A whitelist limits crypto withdrawals to addresses you pre-approve.
What should you do after comparing?
The IRS treats cryptocurrency as property. Selling crypto, trading one crypto for another, or paying with crypto can be taxable, while buying crypto with US dollars is not a taxable event by itself. Keep records that show each trade and its US dollar value.
Frequently asked questions
Not necessarily. Check the exchange's registration page for your state.
Customer crypto can be tied up in bankruptcy. At Mt. Gox, a hot wallet theft that began in late 2011 led to the exchange's failure.
Yes, usually, if the sending exchange allows withdrawals and you use the correct deposit network on the receiving exchange.
Coin lists, deposit networks, fees, and rules can change. Check the exchange's own pages and the date on any comparison.
