Bitstamp vs Coinbase: Battle of the Exchanges

Fees

Bitstamp offers the ability to purchase bitcoin and other cryptocurrencies via a debit or credit card; however, this results in slightly higher fees. Even so, this platform offers marginally lower fees than Coinbase, with maker fees as low as 0.30% and taker fees as low as 0.40%. The comparison with Coinbase in this aspect can get a little tricky, as the base Coinbase platform relies on a spread fee model, which results in higher fees for low trading volumes. Traders looking to trade high volumes will benefit from the slightly reduced fees on the Coinbase Advanced Trade platform (formerly known as Coinbase Pro) – though, Bitstamp still takes the cake for the lowest fees.

Features

While Coinbase has evolved into a company that is getting involved with many different aspects of the overall cryptocurrency industry, Bitstamp has been laser-focused on providing the best experience possible for professional traders. Bitstamp does offer the ability to purchase cryptocurrencies instantly via a debit or credit card, but this is really the only major feature that is available to people who are not interested in trading on an advanced platform.

Coinbase has been venturing into many of the new aspects of the overall cryptocurrency ecosystem that have gained attention over the years. In terms of actual products, Coinbase offers their base brokerage platform that is well-known to be their bread and butter, a noncustodial wallet, the USDC stablecoin, the Coinbase Earn program, the Coinbase Advanced Trade platform for advanced traders, and various other offerings specifically targeted towards businesses that need cryptocurrency services.

Speed

There is not much difference to look at when it comes to the speed of trades made on the Coinbase and Bitstamp platforms. Bitstamp is actually more comparable to the Advanced Trade platform, since they are both built on advanced trading engines that allow users to get their trades executed in a timely fashion. That said, Coinbase has been notorious for experiencing downtimes during times when trading volume is exploding and many users are trying to either buy or sell a specific cryptocurrency as quickly as possible. Of course, it should be noted that these downtimes experience by Coinbase are also a sign that the platform has become extremely popular among cryptocurrency traders.

Security

Whenever you’re comparing various cryptocurrency exchange platforms on the basis of security, it’s important to consider two main factors: longevity and security incidents. The only real way you can gauge whether a particular platform is trustworthy has to do with how long that particular exchange has been able to operate without facing a hacking event or other serious incident that led to users losing money.

To Coinbase’s credit, the platform has never faced a serious security incident that would lead people to lose trust in the company’s ability to securely store user funds. The same cannot be said for Bitstamp, which experienced a security incident that led to a hack of $5 million worth of bitcoin back in 2015. That said, Bitstamp users did not lose any money as a result of this event. Both of these exchanges have been around for nearly a decade at this point, so in reality, it’s unlikely that either exchange would experience an incident where user funds are lost at this point. The vast majority of funds held at exchanges like Coinbase and Bitstamp are actually held in offline wallets that would be extremely difficult for hackers to access.

Cryptocurrencies

Although Coinbase started out as a platform focused on the United States and Bitstamp was mainly concerned about the European market, both of these exchanges have expanded to other jurisdictions over time. In fact, due to the fact that bitcoin trading is heavily concentrated around the U.S. dollar rather than other fiat currencies, the trading activity on Bitstamp is more focused on the BTC/USD trading pair rather than the BTC/EUR trading pair.

In terms of cryptocurrencies, Bitstamp is much more conservative than Coinbase. While Coinbase originally started out as a bitcoin-only platform, the exchange started to embrace a large number of alternative crypto assets and tokens alongside their embrace of the Ethereum cryptocurrency network. On Bitstamp you’ll be limited to only the most popular cryptocurrencies like bitcoin, Ether, XRP, Bitcoin Cash, and LINK. On Coinbase, it should be noted that you gain access to a greater variety of trading pairs with the Advanced Trade platform.

Trading Power

On Bitstamp, traders will notice that the platform has focused on increasing liquidity, making sure order execution is reliable, and providing consistent uptime. The platform also offers a number of API integrations with other applications that allow traders more flexibility in terms of how they interact with the cryptocurrency markets.

With Coinbase, you basically get all of these features as well. These are both pretty basic trading platforms where there is a focus on reliability and security rather than exotic trading opportunities.

Ease of Use

Ease of use is where Coinbase has really been able to make its mark and offer a unique experience that simply cannot be matched by other platforms. If you’re mainly interested in getting exposure to the cryptocurrency markets without having to use a confusing trading engine, then it’s hard to beat Coinbase. The platform allows users to purchase bitcoin and other cryptocurrencies via their user-friendly interface in an extremely simple and easy-to-understand manner. While Bitstamp offers some convenience through the ability to purchase bitcoin via a credit or debit card, the reality is that this same offering is available on Coinbase with lower fees.