It’s going to be a close battle in this comparison piece, as we look at Poloniex and Bitstamp, sitting 16th and 15th, respectively, in our cryptocurrency exchange rankings. Stick with us as we explore costs, trading experience, security, how to buy crypto, and much more.
Compare Poloniex vs Bitstamp
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Poloniex Trading Fees
- Maker fee and taker fee start at just 0.125% (cheap in this industry)
- High-volume traders ($50m+ per month) can get a 0% maker fee
- Poloniex Plus paid members can also get 0% trading fees
- Transaction costs are reduced by 25% when paying in Tron (TRX)
- Crypto deposits are free, but withdrawals require a gas fee (small network charge)
The High Cost Of Bitstamp
- Maker-taker fees start at 0.5% (expensive)
- Trade $10m+ per month for a 0% maker fee and taker fee
- Free deposits and gas-only withdrawals
- Other fees described here
Sign Up & KYC Experience
Opening A Poloniex Account
- Go to Poloniex.com and click ‘Sign Up.’
- Provide your email address, a password, and a referral code (if you have one).
- Accept the terms and conditions.
- Go to your emails and find a new email with a ‘click to verify’ link.
- Give your email address and password where indicated.
- On the right side of your dashboard, click ‘Get Started,’ where it mentions increasing limits and features (see image above).
- KYC (Know Your Customer) checks will ask for your country, name, date of birth, address, and phone number.
- In the next KYC check section, you’ll be asked for a photo or scan of your ID (passport, identity card, or driver’s license).
- Finally, you’ll be asked to take a selfie, which you can do with your webcam or phone. Try holding a piece of paper saying ‘Poloniex’ and today’s date for faster confirmation.
- Wait for approval. It can take minutes, hours, or days.
- Visit Bitstamp.com, click ‘Register,’ and open a personal account.
- Type your name, email address, and accept the terms of service.
- Complete a CAPTCHA form and click ‘Register’ once more.
- Visit your emails to find a new mail from Bitstamp. Copy the Client ID and password in this email and paste them into the Bitstamp tab.
- When instructed, log in and choose a new and stronger password.
- Upon signing in, find the option to ‘Verify Your Account’ and take the ‘Personal’ verification route.
- KYC checks will now begin, asking for your name, address, nationality, and date of birth.
- Next, you must submit a photo or scan of your ID, passport, or driver’s license.
- Following that, you must submit a proof of address, like a scan of a bank statement or utility bill.
- Finally, you will be asked some questions regarding your income, occupation, and intentions on Bitstamp.
Ease of Use and Feel of Website/App
How Comfortable Is Poloniex For Beginners?
- Users can make unlimited trades and $10,000 daily withdrawals without KYC verification
- Native DEX (decentralized exchange)
- Popular margin trading feature
- The neat and easy user interface suits both beginners and experienced traders
- Customer support is available via ticket system, social media, and trollbox
Bitstamp, Suitable For All?
- Customer experience and support reviews are excellent
- Regarded by many as the best place to turn your crypto back into fiat currency
- A simplified crypto trading view for beginners and a Pro Trader version for advanced users
- On-site navigation could use improvement, and the site is arguably in need of modernization, though it remains highly functional
- No fiat currency deposit methods
- 16 cryptocurrencies compatible for deposit
- EUR deposits can be made on the SEPA network for free
- USD deposits can be made on the ACH network for free
- GBP deposit can be made on the Faster Payments network for free
- International bank wire transfers are charged the greater of a flat fee of $7.5, €7.5, or £5, or a commission of 0.05%
- Cryptocurrency deposits can be made in these coins:
- Other fiat currencies may be deposited, though they will be subjected to a foreign exchange conversion. Click here for current exchange rates:
Instant Buy Options (Buying with Credit or Debit Card)
Purchasing From Poloniex
- Poloniex offers direct purchase options for the following coins:
- Poloniex is partnered with Simplex, which allows a credit card to be used with a 3.5% charge rate, or $10, whichever is greater (which is $10 until deposits hit around $290)
- Poloniex, or rather, Simplex, permits purchases from 170 different fiat currencies around the world
- Minimum purchases for instant buys are $50, while the maximum is $20,000 per day or $50,000 per month
Buying From Bitstamp
- Bitstamp permits instant purchases of these cryptocurrencies:
- Purchases by credit card (3DS-enabled only) come with fees of 5%, plus possible card provider charges
- Bitstamp adds a minimal amount to the market price, known as the spread, which they keep for their profits and operational costs
How Is Trading On Poloniex?
We like Poloniex’s trading view a lot; it offers an aesthetically-pleasing blend of white and dark cyan, with fonts presenting data in an easily consumable form. Price, volumes, BTC & altcoin performance, margin trading, and more are available in the user trading interface.
Some trading exchanges fail to hit the mark with their mobile apps, but Poloniex has made a replica of their exchange that is even easier and more pleasant to use. With over 300 trading pairs to choose from, there is a sufficient selection for most traders.
Bitstamp: Is This Bitcoin Exchange Still Good For Traders?
In 2011, Bitstamp launched as a Bitcoin exchange in the tiny European country of Luxembourg. It quickly became a popular cryptocurrency exchange in Europe and the United Kingdom. Based on that early success, Bitstamp grew exponentially, welcoming five million traders in more than 100 countries. However, traders might be disappointed by the comparatively low selection of just 42 market pairings.
Reputation & Security
We’d usually be singing praises for Poloniex since they’ve never been hacked, but they have earned a negative reputation for something else. Due to the low restrictions on trading and withdrawals, some see the trading exchange as one of the last havens for unregulated transactions. This reputation was proven most recently in December 2020, when Poloniex was used to siphon $4m in altcoins stolen from Russian cryptocurrency exchange EXMO. The cybercriminals did their quick siphoning on Christmas Day and Boxing Day, while most of the Poloniex team enjoyed the seasonal holidays.
In 2015, Bitcoin Exchange Bitstamp was hacked for 19,000 BTC. Whilst it may be worth over $900m at today’s rate, it was just $5m back then, and Bitstamp gave all of the affected users BTC from their own reserves. In the time since this hack, they have greatly improved their security and reputation.
Poloniex vs Bitstamp: Who wins this comparison?
So, why, after winning most categories in this comparison, does Bitstamp come out on top? There are two reasons. Firstly, it’s down to its popularity in Europe. Bitstamp is arguably the best European crypto exchange (if you count Binance as Chinese and not Maltese). More often than not, Poloniex doesn’t get mentioned among the best American exchanges. Secondly, it’s about off-ramping. Bitstamp has a reputation as one of the best ways to turn your crypto back to fiat currency legitimately. In contrast, Poloniex offers KYC-free withdrawals, which might win them some favors internationally, but this service is excluded to Americans, losing favor.