Receive all Cointelegraph news immediately in Telegram.
Bitstamp has officially announced that the minimum trade amount will be changed to $US 5.00 in light of complaints from users.
bitstamp, bitcoin, bitcointalk, community
Bitstamp has officially
announced that the minimum trade amount will be changed to $US 5.00 in light of
complaints from users.
Users and forum members
have complained and expressed their concerns on bitcointalk.org that the seemingly negligible fee of 0.2% is,
in fact, rounding off transaction fees to the nearest penny upwards, which has
been adding up for Bitstamp when it comes to micro-transactions.
Previously, the minimum
order for a trade was $US 0.86. Therefore, the fee for this amount at 0.2%
would result in $US 0.00172 (0.002 x 0.86). This fee would then get rounded off
to $0.01 due to Bitstamp’s rounding off method.
A user on BitcoinTalk has
explained that this amount is almost 5 times the actual fee of 0.2%. For
example, a dollar traded on the exchange would yield a fee of $US 0.01, meaning
that the fee of 0.2% promised by Bitstamp is actually 1% instead or a penny for
With hundreds to thousands
of transactions taking place daily, these fees can certainly result in a hefty
Raising the bar
Apparently, Bitstamp has
taken note from one user on BitcoinTalk, Boxman90, who suggested that they
change the amount to $US 5. This minimum threshold that will set the applicable
fee for users at 0.2% instead of 1% (5 x 0.002 = 0.01) since that is the lowest
amount that will make the math constant across the board.
Bitstamp responded by
issuing an official press-release:
Dear Bitstamp clients,
On May 15th, 2014 the
minimum trade amount will be changed to $5.00.
Bitstamp’s accounting system rounds trading fees to
pennies. To greatly reduce the impact of this rounding for our clients the
minimum trade amount is being raised to $5.00.
The $5.00 trade minimum
will apply to both our web interface and our API.
Reactions from the
While some responses have
critiqued the move questioning as to why the rounding off policy is not simply
changed the overall reaction has been largely positive with many users saying
this will curb the prevalence of penny-trading bots. Many users have expressed
their gratitude for Bitstamp acting swiftly and positioning themselves as a
legitimate and reputable business.
Garland William Binns III (Bitcoin.org): "I think it's a good thing that Bitstamp has reacted so quickly and addressed this issue. I don't think it will have any negative effect on their transaction volume. Overall, I think it's a good thing for Bitcoin as well - an exchange working closely with the community, to address their concerns and ensure a positive user experience focused on reliability. Thumbs up."
Follow us on Facebook
For updates and exclusive offers, enter your e-mail below.
One fine body…
Thank you for contacting us! We will reply to you as soon as possible.
Thank you for your interest in our franchise program.
We are considering your request and will contact you in due course. If you have any further queries, please contact:
Reset letter sent.
Please checkout your mailbox for password reset details