Bitstamp is a cryptocurrency exchange platform founded in 2011 by Nejc Kodrič and Damijan Merlak. It was one of the first platforms that allowed users to trade Bitcoin with traditional fiat currencies. The company is headquartered in Luxembourg and has since expanded its offerings to include other cryptocurrencies like Ethereum and Ripple. The name "Bitstamp" comes from the idea of stamping a Bitcoin transaction on the blockchain.
Bitstamp is a cryptocurrency exchange platform that offers several distinct benefits compared to its direct competitors. One of the primary advantages of using Bitstamp is its long-standing reputation and credibility in the industry. Founded in 2011, Bitstamp is one of the oldest cryptocurrency exchanges, making it a trusted platform for many users.
Another benefit of Bitstamp is its robust security measures. The platform employs advanced encryption technology to protect user data and funds, and it has a multi-signature wallet system for enhanced security. Bitstamp also holds a significant portion of its users' funds in cold storage, further minimizing the risk of hacks or theft.
In terms of liquidity, Bitstamp stands out among its competitors. It consistently ranks among the top exchanges in terms of trading volume, ensuring that users can easily buy or sell their cryptocurrencies at fair market prices.
Bitstamp also offers a user-friendly interface that is both intuitive and easy to navigate. This makes it suitable for beginners who are new to cryptocurrency trading, as well as experienced traders looking for a straightforward platform.
In comparison to its direct competitors, Bitstamp differentiates itself through its focus on regulatory compliance. The platform operates with strong adherence to legal frameworks, which can be particularly appealing for users who value transparency and regulatory oversight.
Overall, Bitstamp's longevity, strong security measures, liquidity, user-friendly interface, and commitment to regulatory compliance make it a competitive choice in the cryptocurrency exchange market. However, users should still conduct thorough research and consider their specific requirements before selecting a platform that best meets their needs.
Bitstamp is a cryptocurrency exchange platform that facilitates the buying, selling, and trading of digital assets. Its primary goal is to provide a secure and reliable marketplace for these transactions. Underlying the functioning of Bitstamp is a combination of traditional centralized systems and blockchain technology.
Bitstamp does not utilize a specific blockchain network but relies on a custom infrastructure to securely hold and transfer digital assets. This setup guarantees the trustworthiness and immutability of transactions.
The functioning of Bitstamp involves several key steps. First, users create an account and complete the necessary verification processes. Once verified, users can deposit funds into their accounts. These funds can be fiat currencies such as the US dollar or cryptocurrencies like Bitcoin or Ethereum.
When a user wants to trade, Bitstamp matches their buy or sell order with the corresponding orders on its order book. The order book aggregates all the open orders from users seeking to buy or sell specific cryptocurrencies. This matching process ensures fair and efficient trading.
Once the trade is executed, the ownership of the traded assets is transferred on the Bitstamp platform. Though the actual cryptocurrency transfer may occur on a separate blockchain, Bitstamp updates the account balances of the users accordingly.
To enhance security, Bitstamp employs various measures such as two-factor authentication, cold storage for funds, and regular audits. These precautions minimize the risk of hacking and loss of assets.
Overall, Bitstamp leverages secure infrastructure and efficient order matching mechanisms to provide a reliable trading platform for cryptocurrencies.
DIA has developed a comprehensive approach to sourcing data, including trade data from various exchanges. The process of fetching trade data from Bitstamp, as well as other exchanges, differs depending on the type of exchange involved.
For centralized exchanges like Bitstamp, DIA utilizes scraping techniques to directly collect trade data. This is done by leveraging Rest APIs or WebSocket APIs provided by the exchange. These APIs allow DIA to access the exchange's databases and retrieve trade data in real-time. The frequency of data collection varies depending on the exchange, typically ranging from 1 to 7 seconds.
In the case of decentralized exchanges, DIA takes a different approach. Instead of accessing centralized databases, DIA subscribes to swap events in liquidity pools on various blockchains. This enables DIA to retrieve trade data directly from the blockchain itself, ensuring a high level of data accuracy. Examples of decentralized exchanges that DIA sources data from include Uniswap, curve.finance, and PancakeSwap.
When it comes to NFT marketplaces, DIA captures live trading data by integrating with smart contracts of the respective marketplaces. The retrieval period for NFT trading data ranges from 20 seconds to 1 minute, allowing DIA to cover all NFT transactions happening in real-time. Notable NFT integrated exchange sources for DIA include Blur, X2Y2, OpenSea, and TofuNFT.
By adopting this comprehensive data management strategy, DIA is able to provide highly accurate and customizable price feeds for a wide range of cryptocurrencies, decentralized exchanges, and NFT marketplaces.
DIA utilizes a two-step process to build price oracles with Bitstamp trade data, depending on the type of exchange we are referring to. Let's start with DeFi exchanges.
Step 1 involves data cleaning and outlier detection. This step ensures that trades with prices deviating from the current market price are avoided. This is important to prevent irregularities caused by market manipulation, errors, or flash crashes. DIA applies an Interquartile Range (IR) filter to identify and exclude outliers. Trades falling into the first and last quartiles are filtered out, while trades within the "middle" quartiles are retained for further processing.
Step 2 involves applying price determination methodologies to compute a single USD price value for each asset. DIA offers various filters, including the Volume Weighted Average Price (VWAP) and Moving Average with Interquartile Range Filter (MAIR). VWAP considers the different volumes of trades, weighting them by volume to calculate the average price. MAIR orders trades by timestamp, creates blocks for each second, and applies weighted averages to determine the final price.
For NFT exchanges, the process differs slightly. DIA determines the floor price of an NFT collection through two steps. First, data cleansing filters are used to exclude market outliers and manipulation techniques. Then, a pricing methodology is applied to determine the final price point. DIA offers multiple methodologies, including the Floor Price and the Moving Average of Floor Price. Filtering mechanisms are crucial to produce market-representative prices, as malicious actors may employ manipulation techniques like wash trading or sweeping the floor.
By utilizing these processes, DIA ensures reliable and accurate price feed oracles for both DeFi and NFT exchanges.
Instead of distributing pre-calculated data feeds, DIA covers the whole data journey from individual trade collection, and computation to the last mile of the feed delivery.