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How to do your Bitstamp Taxes

Bitstamp is one of the oldest crypto exchanges but is it still relevant? Find out in this detailed Bitstamp review and know more about Bitstamp tax forms.

Founded in Slovenia in 2011, Bitstamp is one of the earliest crypto exchanges to ever support buying and exchanging Bitcoin. The exchange supports 54 of the most popular crypto tokens such as Bitcoin, Ethereum, Litecoin, Uniswap, Stellar Lumens, and others. Combine this relatively short list of virtual coins with an easy-to-use interface and it comes out as a holistic exchange ideal for beginners and casual traders. And the proof is in the pudding because it has 4 million users worldwide. 

With that being said, in this Bitstamp review, we will elucidate on Bitstamp’s pros and cons, the trading experience it provides, the security it offers, Bitstamp tax forms, and more. 

Connecting your Bitstamp Address to ZenLedger For Your Bitstamp Tax Forms

As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges

Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Bitstamp Exchange. Then you'll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.

To import your transactions from the exchange, simply navigate to the "Exchanges" tab of the "Imports" page. Select Bitstamp if you are looking to import it, and instructions will be provided for that specific exchange!

With that out of the way, let’s move on with Bitstamp’s review and talk about its pros and cons. 

Bitstamp’s Pros and Cons

Each exchange has its positives and negatives and we’ve weighed Bitstamp’s features to determine what works for and against the exchange. Here they are:

Pros 

  • Easy-to-use platform: The exchange has a simple and beginner-friendly platform making it easy to buy and sell tokens. 
  • Competitive fees: The fees charged by the exchange are quite low starting from 0.50 percent and going down as the trading volumes increase. To access the platform's lowest fees, you don’t have to use the advanced trading platform. 
  • Long history: It has been in the crypto space for over a decade making it one of the oldest crypto exchanges. 

Cons

  • Limited tokens: The exchange has only 54 tokens on the platform 
  • Limited staking options: On the Bitstamp exchange, only two tokens can be staked with only 5 percent APY whereas other exchanges offer more staking options with more APYs for staking. Also, staking is not available for US customers. 
  • No margin trading or lending: Bitstamp does not provide margin trading or lending features. 

Bitstamp understands the security risks of the market and does an excellent job keeping the customer information secure.  

Trading Experience

Bitstamp offers a simple online trading platform (bitstamp.net), an active trading platform (Tradingview), and a mobile app to its users. Despite different trading platforms, the trading is the same across all platform

Bitstamp.net

It is a simple and basic trading platform where you can buy and sell tokens with instant, market, limit, and stop orders. 

You can buy tokens with your Bitstamp balance or via a card saved on the exchange with an added fee. This platform has a basic chart, current buy and sells offers and a simple purchase form. 

Tradeview

Now, this platform is for more advanced traders. Tradeview is Bitstamp’s active trading platform teeming with advanced charting features, a depth chart, a live updated order book, and quick trading forms.  Both the Bitstamp.net and Tradeview platforms get the same available order types.  

Bitstamp Mobile

Bitstamp also offers a mobile trading app available on both iOS and Android. The app offers a pocket-sized trading experience as it comprises the same simple features of the Bitstamp web-based trading experience. You just need a secure internet connection to buy/sell anywhere and send/receive crypto from your Bitstamp account. 

Fees

Bitstamp boasts some of the lowest trading fees starting from 0.50 percent for regular trades of all pairs. This fee is on par with some of the top crypto exchanges in the market. 

If your trade amount is more than $10,000 the fees get reduced over the prior 30-day period. If you are a high-volume trader with a trading amount of $20 billion or more per month, you don’t have to pay any fees. 

If you leverage the Bitstamp platform for staking, it takes 15 percent from your earnings and no extra fees. Apart from trading fees, you may have to pay fees for funding and managing your account. 

Security

Bitstamp deploys strong security measures and stores a sizeable amount of client funds offline in cold storage. When you sign-up for a new account, Bitstamp asks you to set up multi-factor authentication for extra security. 

Before making any crypto transaction, it is critical to bear in mind that crypto transactions are one-way and if your account is breached, your funds may be lost for good. That’s why you must use vigorous security practices such as a unique password, multi-factor authentication, or a third-party authentication app.  

Furthermore, you should also be cautious while funding your account, withdrawing crypto of fiat currency, and paying any kind of maintenance fees. 

Opening a Bitstamp Account

It’s only a matter of minutes when it comes to opening a Bitstamp account. To get started, you have to enter your email address and set the account password. Next, you have to verify the email address followed by connecting with a multi-factor authentication app such as Google Authenticator. 

For KYC requirements, you have to upload an image of your government-issued ID with a short video of you reading a three-digit code. After you submit all the information, your account will be in the queue for review. 

Bitstamp Tax Forms 

Bitstamp issues Form 1099-K and 1099-MISC to eligible customers. To be eligible for Bitstamp Tax Form 1099-K, these are the criterion:

  • A user should be a Bitstamp USA, Inc customer.
  • A user should have more than 200 trades with a total value equal or more than $20,000 OR the state’s 1099-K reporting threshold.
  • A user should be subject to US taxes.

Below is the criterion for the Bitstamp Tax Form 1099-MISC:

  • A user should be a Bitstamp USA, Inc customer.
  • A user must’ve used Bitstamp Earn in 2022 or earned $600 or more from Bitstamp Earn
  • A user should be subject to US taxes.

Final Verdict

From this Bitstamp review, we know that this exchange makes it easy to buy and sell crypto tokens while keeping the fees reasonably low. However, the platform does not offer an expanded list of currencies and active traders might look elsewhere for more options. But this also makes it more appealing for beginner to intermediate traders and for casual traders as well.

Bitstamp Taxes FAQs

1. Is Bitstamp a good exchange?

Bitstamp is one of the best crypto exchanges in terms of trading fees, ease of use, and security. But, it only offers 54 tokens for trading making it ideal for beginner to intermediate traders and casual traders as well.

2. Is Bitstamp legal?

The exchange has been granted a license to be fully regulated in the EU as a payment institution by the Luxembourgish government in April 2016. This allows the exchange to do business in 28 EU member states.

3. Is Bitstamp allowed in the USA?

Bitstamp operates in over 100 countries and it works in all 50 states of the USA. But, US residents cannot stake coins on Bitstamp.

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