Bitstamp vs Cash App — Head-to-Head Custody Comparison

An independent, data-driven comparison of Bitstamp and Cash App across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Bitstamp scores 7.5 vs Cash App's 6.7. Bitstamp leads in 7 of 8 categories.

Bitstamp is better suited for European investors, Institutional traders, Long-term exchange users. Cash App is better suited for Mainstream users, Beginners, Small investors.

7.5

GoodCustody Score

Bitstamp

6.7

FairCustody Score

Cash App

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Bitstamp	Cash App	Winner
Security	20%	7.5	7.0	Bitstamp
Insurance	15%	6.5	5.0	Bitstamp
Regulatory	15%	8.5	8.0	Bitstamp
Fee Transparency	10%	8.0	5.5	Bitstamp
Track Record	15%	8.0	7.5	Bitstamp
Withdrawal Flexibility	10%	8.0	8.5	Cash App
Reporting & Audit	10%	7.5	7.0	Bitstamp
Counterparty Diversification	5%	3.0	2.0	Bitstamp
Overall Score	100%	7.5	6.7	Bitstamp

Visual

Score Radar

Visual overlay of Bitstamp and Cash App across all categories.

BitstampCash App

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (7.5 vs 7.0)

Bitstamp uses BitGo custody partnership key management with 95%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2015 hot wallet breach (19,000 BTC). Fully repaid users..

Cash App uses Block Inc. managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: Block Inc. SOC 2. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Insurance (6.5 vs 5.0)

Bitstamp offers BitGo custody insurance for cold storage via Via BitGo. Cold storage through BitGo with insurance coverage.

Cash App offers Block Inc. corporate insurance via Via Block Inc.. Publicly traded parent company (Block Inc. / SQ).

Regulatory (8.5 vs 8.0)

Bitstamp holds Luxembourg payment institution license, FCA registered (UK), Multiple EU licenses and is not a qualified custodian operating in Luxembourg / EU / Global. Luxembourg-licensed. One of the most established exchanges globally.

Cash App holds NY BitLicense, State money transmitter licenses, FinCEN MSB and is not a qualified custodian operating in United States. Block Inc. (NYSE: SQ) — publicly traded fintech company.

Fee Transparency (8.0 vs 5.5)

Bitstamp charges None in annual custody fees with 0.0-0.4% tiered per transaction. Competitive tiered fee structure. One of Europe's most established exchanges.

Cash App charges None in annual custody fees with ~1.5-2.5% (spread) per transaction. Convenient but higher spread than dedicated exchanges. Free withdrawals.

Track Record (8.0 vs 7.5)

Bitstamp was founded in 2011 and is headquartered in Luxembourg. AUM: $5B+ trading volume. Incident history: 2015 hot wallet breach (19,000 BTC). Fully repaid users..

Cash App was founded in 2013 and is headquartered in San Francisco, CA. AUM: Not publicly disclosed. Incident history: 2022 employee data breach (Cash App Investing, not Bitcoin).

Withdrawal Flexibility (8.0 vs 8.5)

Bitstamp withdrawal fees: Network fees. Minimum account: $10 minimum. Supported assets: Bitcoin, Ethereum, 80+ cryptocurrencies.

Cash App withdrawal fees: Free Bitcoin withdrawals. Minimum account: No minimum ($1). Supported assets: Bitcoin only.

Reporting & Audit (7.5 vs 7.0)

Bitstamp: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Cash App: SOC compliance is Block Inc. SOC 2. Not classified as a qualified custodian.

Counterparty Diversification (3.0 vs 2.0)

Bitstamp is a exchange custody provider. Key management: Exchange-managed custody with BitGo partnership for cold storage..

Cash App is a exchange custody provider. Key management: Bitcoin buying within Cash App payment ecosystem. Block Inc. custody..

Fees

Fee Comparison

Side-by-side fee breakdown for Bitstamp and Cash App.

Fee Type	Bitstamp	Cash App
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.0-0.4% tiered	~1.5-2.5% (spread)
Withdrawal	Network fees	Free Bitcoin withdrawals

Bitstamp: Competitive tiered fee structure. One of Europe's most established exchanges.

Cash App: Convenient but higher spread than dedicated exchanges. Free withdrawals.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Bitstamp	Cash App
13+ year track record	✓	✗
50M+ monthly users	✗	✓
Auto-invest (DCA)	✗	✓
BitGo custody partnership	✓	✗
Free Bitcoin withdrawals	✗	✓
Institutional API	✓	✗
Lightning Network support	✗	✓
Low trading fees	✓	✗
Luxembourg banking license	✓	✗
Mainstream accessibility	✗	✓
Proof of reserves	✗	✓
SEPA/SWIFT support	✓	✗

Recommendation

Who Should Choose Which?

Bitstamp is better if you…

✓Are a european investors
✓Are a institutional traders
✓Are a long-term exchange users
✓Are a fiat gateway seekers
✓Want: 13+ year track record — among oldest exchanges
✓Want: Luxembourg banking license
✓Want: Competitive fee structure

Cash App is better if you…

✓Are a mainstream users
✓Are a beginners
✓Are a small investors
✓Are a cash app existing users
✓Want: Most accessible Bitcoin on-ramp — 50M+ users
✓Want: Free Bitcoin withdrawals
✓Want: Publicly traded parent (Block/SQ)

FAQ

Frequently Asked Questions

Is Bitstamp or Cash App better for Bitcoin custody?

Bitstamp scores 7.5 vs 6.7 in our weighted Custody Score. Bitstamp leads in 7 of 8 scoring categories. However, the best choice depends on your specific needs: Bitstamp is best for European investors and Institutional traders, while Cash App suits Mainstream users and Beginners.

What is the difference between Bitstamp and Cash App?

Bitstamp is a exchange custody provider, while Cash App is a exchange custody provider. Bitstamp excels in Regulatory, whereas Cash App is strongest in Withdrawal Flexibility.

How do Bitstamp and Cash App fees compare?

Bitstamp charges None annual custody fees with 0.0-0.4% tiered transaction fees. Cash App charges None annual custody fees with ~1.5-2.5% (spread) transaction fees.

Which is more secure, Bitstamp or Cash App?

Bitstamp scores 7.5/10 for security while Cash App scores 7.0/10. Bitstamp uses BitGo custody partnership key management, and Cash App uses Block Inc. managed custody.