Main Security Features
Like most first-generation centralized exchanges, Bitstamp holds user’s private keys on its platform. Users must trust the company to secure and safeguard their digital coins. This means users also must trust those in charge of their private keys to remain honest.
Meanwhile, users access funds through accounts using passwords and two-factor authentication (2FA). The history of cryptocurrencies has shown that you should avoid entrusting third parties with your private keys. It is therefore a good idea, immediately following a purchase, to move your crypto assets to wallets that are 100% under your control. Experts always recommend bringing your holdings onto exchange platforms only when you are ready to sell.
Bitstamp presents their security features from the moment you register an account. After you fill out the registration form, an email is sent containing a customer ID and password to your inbox. You use the ID as your username, and you should change your password immediately the first time you sign in.
Before you will be allowed to trade on the platform, you must also verify the account by providing your full name, postal address and date of birth. To authenticate this information, Bitstamp requires you to upload a government-issued ID and a no more than three-months-old utility bill to prove place of residence.
The document scans should be of high quality (colour images, 300 dpi resolution or higher), visible in their entirety and current (not expired). After you submit proof of ID, it takes three days for Bitstamp support to approve your application.