What is Bitstamp by Robinhood?

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What is Bitstamp by Robinhood?

Bitstamp by Robinhood is a cryptocurrency exchange service that combines the long-established trading platform of Bitstamp with the retail investing ecosystem of Robinhood Markets.

 

Bitstamp is one of the oldest crypto exchanges in the world, originally founded in 2011 in Europe. Robinhood, on the other hand, is a well-known fintech company known for making stock and crypto investing simple for everyday users. After Robinhood agreed to acquire Bitstamp in 2024 (with the deal closing in 2025), the goal became clear: bring professional-grade crypto trading infrastructure to a much wider audience.

 

In simple terms, Robinhood provides the easy-to-use front end many beginners like, while Bitstamp provides the deeper trading engine and global crypto expertise behind the scenes.

 

Unlike basic crypto buy-sell apps, Bitstamp offers a full exchange experience with order books, multiple order types, and stronger connections to global crypto markets. As integration progresses through 2026, users may see tighter links between the two platforms.

 

Bitstamp by Robinhood: Key Points

 

  • Founded in 2011, Bitstamp is one of the longest-running crypto exchanges.
  • Acquired by Robinhood in a deal completed in June 2025.
  • Supports major cryptocurrencies like Bitcoin and Ether.
  • Offers more advanced trading tools than simple crypto apps.
  • Strong regulatory footprint in Europe (Luxembourg base).
  • Requires identity verification (KYC) to use the platform.

 

 

History of Bitstamp

Bitstamp was founded in 2011 by Slovenians Nejc Kodrič and Damijan Merlak in Europe during the early days of Bitcoin trading. At the time, many exchanges were unregulated or unreliable, and Bitstamp aimed to provide a more trustworthy alternative.

 

Over the years, Bitstamp built a reputation for compliance and stability. A major milestone came in 2016 when it became licensed in Luxembourg, allowing it to operate across the European Union.

 

Meanwhile, Robinhood launched in 2013 in the United States and quickly became popular for commission-free stock trading and a very beginner-friendly mobile app. It added basic crypto trading in 2018 but lacked a full exchange infrastructure.

 

In June 2024, Robinhood announced plans to acquire Bitstamp for about $200 million, and the transaction was completed in June 2025. The move was widely seen as Robinhood’s push to expand globally and offer more serious crypto trading capabilities.

 

 

Bitstamp by Robinhood: Functions and Services

Bitstamp provides several core crypto trading services. Here’s what you should know:

 

Spot trading

 

Spot trading is the main activity on Bitstamp. It simply means buying and selling cryptocurrencies at current market prices.

 

The platform supports trading of major coins such as Bitcoin (BTC) and Ether (ETH), along with a selection of other established cryptocurrencies.

 

Users can place:

 

  • Market orders: buy or sell instantly at the current price
  • Limit orders: buy or sell only at a price you choose
  • Stop orders: trigger trades automatically at set levels

 

For beginners, market orders are usually the easiest way to start.

 

Advanced order tools

 

Compared with simple crypto apps, Bitstamp offers more control over trades. These tools are mainly useful for active traders but are available to everyone.

 

Key order features include:

 

  • Application programming interface (API) access for automated trading (it acts like a secure bridge between Bitstamp and your trading program)
  • Stop-loss orders, which automatically close your trade if the price moves against you beyond a level you choose. This helps limit how much you can lose on a single trade.
  • Position sizing, which means deciding how much money to put into each trade. Instead of risking a large portion of your funds at once, traders use smaller position sizes to protect their capital.
  • Diversification involves spreading your trades across different assets rather than putting everything into one position. This reduces the impact if one trade performs poorly.
  • More advanced helpers include risk calculators, which estimate potential profit or loss before you enter a trade, and portfolio trackers, which show your overall exposure so you can adjust if you are taking on too much risk.

 

If you are new to crypto, you may not need these immediately, but they become useful as you gain experience.

 

Deposits and withdrawals

 

One of Bitstamp’s strengths is its support for both traditional money and crypto transfers.

 

Users can typically:

 

  • Deposit via bank transfer (SEPA, wire, Faster Payments where supported)
  • Buy crypto using cards (availability varies)
  • Send and receive crypto from external wallets

 

Deposit via bank transfer means you can move money from your bank account to the exchange using standard banking rails. SEPA (Single Euro Payments Area) is a European payment network that allows you to send euros between banks across the European Union. A wire transfer is a traditional bank-to-bank payment method commonly used for large or international transfers. Faster Payments (Faster Payments Service) is a UK banking system that lets you send money between participating banks almost instantly.

 

This makes it relatively straightforward to move between fiat money and digital assets.

 

Staking (where available)

 

Bitstamp offers staking on some cryptocurrencies through its Bitstamp Earn program, but it is only available in certain countries.

 

In simple terms, staking lets you earn extra crypto by allowing your coins to help support the blockchain network. As of late 2025 and early 2026, Bitstamp mainly supports staking for ETH and Cardano (ADA). The feature is not generally available to users in the US, Canada, Japan, or Singapore, but UK customers can currently stake these assets.

 

For UK users, estimated rewards have been around 3.1% annual percentage yield (APY) for ETH and about 1% APY for ADA (rates can change). APY means the estimated percentage return you could earn on your crypto over one year, including the effect of compounding rewards.

 

Bitstamp acts as a middleman that sends your coins to trusted staking operators, while you still remain the owner of your crypto. Thus, it typically takes a 15% commission from the rewards you earn. 

 

There is usually no fixed lock-up set by Bitstamp itself, meaning you can request to unstake, although the blockchain network may still impose waiting periods. Rewards are variable and are usually paid weekly or monthly depending on the coin.

 

It’s also worth noting that Bitstamp has removed staking support for some assets in the past (e.g., Algorand’s ALGO) showing the program focuses only on selected, regulation-friendly cryptocurrencies.

 

Institutional and API services

 

Bitstamp has long served professional traders and institutions. It offers:

 

  • REST and FIX APIs: Representational State Transfer Application Programming Interfaces (REST) and FIX (Financial Information eXchange Application Programming Interfaces) APIs let trading software and bots connect directly to the exchange to place trades automatically.
  • Deep liquidity pools: This means there are many buyers and sellers on the platform, helping trades execute quickly and at more stable prices.
  • Professional custody solutions: Secure storage services designed to safely hold large amounts of crypto for institutions.
  • Broker services: These allow other companies or trading desks to route their clients’ trades through Bitstamp’s infrastructure.

 

This institutional backbone is one of the main reasons Robinhood pursued the acquisition.

 

 

Navigating the Bitstamp app and its modes

The Bitstamp app offers two main modes, Basic and Pro, designed for different types of users. Basic mode focuses on simplicity and speed, while Pro mode is built for advanced traders who want more control and detailed market tools.

 

Basic mode

 

Basic mode is the easiest way to buy and sell crypto and is suitable for both new and casual users. It focuses on quick transactions and a clean interface without overwhelming technical features.

 

Key features include:

 

  • Quick buy and sell functionality
  • Purchases using debit or credit cards, bank transfers, Apple Pay, or Google Pay
  • Spread-based pricing where the displayed price includes costs
  • Simple and intuitive interface

 

In simple terms, Basic mode is designed for users who want to purchase crypto quickly without dealing with trading charts or complex order types.

 

Pro mode

 

Pro mode is designed for experienced traders and active market participants who need more detailed tools and greater control over their trades.

 

Key features include:

 

  • Full Bitstamp exchange functionality within the app
  • Multiple types for more precise trading
  • Real-time charts and order book access
  • Advanced analytical and trading tools
  • Lower maker–taker fee structure
  • No trading fees on the first $1,000 in volume over a rolling 30-day period

 

In simple terms, Pro mode is intended for users who trade frequently and want professional-grade tools similar to a full crypto exchange.

 

 

Is Bitstamp by Robinhood safe to use in 2026?

Bitstamp is generally considered one of the more established and security-focused crypto exchanges, but no crypto platform is completely risk-free.

 

Security measures

 

The platform uses several protections, including:

 

  • Majority of user funds held in cold storage (offline wallets)
  • Mandatory KYC identity verification
  • Two-factor authentication (2FA), meaning adding an extra security step (in addition to password) when logging into your account.
  • Ongoing monitoring for suspicious activity

 

Bitstamp has been operating since 2011, which gives it a longer track record than many competitors.

 

Past incident

 

For transparency, Bitstamp did experience a hack in 2015 that resulted in the loss of about 19,000 BTC. The company reimbursed affected users and significantly upgraded its security afterward.

 

There have been no similarly large public breaches in recent years, but the incident highlights that crypto custody always carries some risk.

 

Regulatory standing

 

Bitstamp operates under Luxembourg regulation and holds multiple registrations globally. Robinhood is also a regulated financial services company in the United States.

 

For beginners, this generally makes the combined ecosystem more credible than many offshore exchanges, though market volatility and regulatory changes remain ongoing risks in crypto.

 

 

Bitstamp by Robinhood FAQs

 

What fees does Bitstamp charge?
Bitstamp uses a volume-based trading fee model, where fees decrease as your monthly trading volume increases. Additional charges like withdrawal or network fees may apply.

 

Does Bitstamp have a mobile app?
Yes, Bitstamp offers mobile apps for iOS and Android, along with a web platform for desktop trading.

 

How do I sign up for Bitstamp?
Create an account, complete KYC verification, enable security features, deposit funds, and you can start trading.

 

Is Bitstamp by Robinhood available in the US?
Availability varies by state and feature, so users should check local support before signing up.

Onkar Singh

Onkar Singh

Author

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