More and more Bitcoin has become weaved into the fabric of our society, and it’s not showing any signs of regressing. Though Bitcoin has many favorable benefits, one of the main complaints is the fees attached to obtaining Bitcoin. For the most part, the fees are understandable and even necessary.
However, there are ways to get around paying some of those more heavy-duty fees.
So in this post, we will cover various options and other things to think about related to the cost of obtaining Bitcoin.
The cost involved in buying Bitcoin
There are five different fees to consider when purchasing Bitcoin on any exchange. Those elements are credit card fees, bank transfer fees, trading fees, and instant buy fees.
Fees that come from trading and the spread involved are the fees that unfortunately cannot be avoided. That particular option is not as costly as it is to pay for Bitcoin using instant buy or credit cards.
One of the better ways to buy is to just simply deposit the funds from your bank account and go through the process of creating a typical buy order on whatever exchange that you decide to use.
Is it important to buy Bitcoin cheap?
Definitely, and when referring to buying Bitcoin cheap it’s not that you get a discount on the cost of Bitcoin itself. Buying Bitcoin cheap is the work of finding the lowest fees attached to purchasing it and moving it to your wallet.
When it comes to buying Bitcoin cheap typically people will have to do their homework. However, in this post, we will give you some helpful ideas. The best way to think about it is some vendors can have fees of up to 10%. Think about how many Bitcoin you want to buy and then calculate 10% of the fees. Or, even seven or eight percent that’s still a lot. For one purchase that may not be a big deal, but if you are going to regularly purchase Bitcoin a large percentage like that can really add up, and eat into your increase.
So the benefit of buying on an exchange like CEX is that you are only paying 0.25%. If you do the math you can see what a dramatic difference that is in fees.
So yes, it is very important to buy Bitcoin on the cheap side.
Things to be aware of when buying cheap Bitcoin
As you are on your hunt for the cheapest place to buy Bitcoin keep your guard up a little bit. Don’t be so gung-ho and try to find the best deal that you leave wisdom on your doorstep. We have included a few things to help guide you through the process of looking for the right option.
Make sure the platform that you’re interested in is open and honest about additional fees that you may not know about upfront. One primary example is that of a spread. Another thing to be aware of is the fact that many platforms actually sell your data to other companies for a pretty penny. So, if you’re not okay with that you’ll want to read the fine print to make sure that, that won’t be happening to you. Though that is not a direct hidden fee, they will be making money off of your data.
Ease of use
So you might find a platform that has pretty cheap offers and options, the platform can be complicated. Why is that? I don’t know, but it is not an uncommon thing to come across platforms that are confusing and time-consuming to figure out.
So, before you spend your money make sure you understand the components of successfully moving your money from a platform or exchange to your Bitcoin wallet. Sometimes people lose their funds simply because they don’t know how to operate the system.
If you happen to find a platform that is unusually cheaper than the other cheap options that you have found that should raise a red flag. Why? Well, because cryptocurrency platforms should absolutely have very secure platforms. That actually cost a lot of money for the companies. So, if their fees are dramatically lower than what you have found, you might want to put into question the level of security they have operating on their platform.
Another thing to consider is the fact that scammers are out there with these platforms to lure people any way that they can.
Here are some options to consider in looking for cheap Bitcoin:
Coinbase is a simple and reliable way to get your hands on some bitcoin. It has a steady, and consistent history since 2014. In addition to being able to buy Bitcoin, you can also purchase 10 other cryptocurrencies.
- Stable and reliable
- Been around a long time
- Amazing customer service
- There are 10 cryptocurrencies available
- The credit card deposit fees are high
With that being said about the credit card deposit fees, what you need to know is that Coinbase trading fees are a bit less. The trading fees are only 1.49%.
If you desire to buy Bitcoin cheap on Coinbase then it is advisable that you do not use your credit card to deposit funds because the fee charged is 3.99%. If you can do an ACH or SEPA transfer those options are both free.
Etoro is another great option that was founded in 2006. It is best known for being available in 140 countries with a simple investment dashboard. They offer 15 cryptocurrencies and other financial products.
- No deposit fee
- Easy to use
- No trading fees
- $5 withdrawal fee
The great thing about eToro is that it is the largest cryptocurrency platform and exchange. Also, it charges its customers no trading fees. Their spread on trades is very competitive in the price of all the assets that they offer.
Additionally, be aware that depositing funds with Etoro is completely free, which is not an easy thing to come across. However, they do charge a fixed price of $5 to unleash your funds when it’s time. All in all, that sounds kind of like a good deal.
CEX might be the platform exchange with the lowest Bitcoin fee. Not only that because of his easy and intuitive user dashboard it is a great option for beginners. They pretty much have things down to a science since they have been around since 2013. They have a great reputation for being extremely reliable and safe.
- It is available in 220 countries
- Their trading fee is a low 0.25%
- It has an easy-to-use intuitive dashboard
- The fee for their instant buy is quite high.
It’s that this exchange does not charge a withdrawal fee, and it has a low trading fee with a great reputation. The only downside is the instant buy feature will have you paying a heavy-duty 7% fee in order to do the instant buy.
If you decide to go this route a great option would be to deposit money as a bank transfer. Otherwise, if you do it from a credit card there will be a 3.5% fee.
Believe it or not, you can actually buy Bitcoin with CashApp. And yes it is one of the cheap ways to get some Bitcoin in your wallet.
- Easy Bitcoin withdrawals
- Very easy to use
- No fees are attached
- You cannot spend the Bitcoin within the app
- Buying large amounts of Bitcoin through the app can get expensive because of the spread
Binance is an exchange that has been established in 2017. Although it is a newer exchange it still has developed a huge amount of trust around millions of users. They have a wide variety of altcoins. The low fee to buy bitcoins, and they have excellent customer service.
- Excellent and high-security standards
- There are over 120 cryptocurrencies available
- Trading fees are only 0.1%
- The interface for beginners might be a little challenging.
- Unfortunately, you cannot buy Bitcoin with GBP, EURO, or USD.
The other thing to consider about finances is though you are able to buy cheap Bitcoin, you won’t be able to use a bank transfer to make purchases. Also, be aware that Bitcoin will charge a fee of $1 to $5 all depending upon the type of currency that you are trying to withdraw.
What about buying Bitcoin with no fees?
The great thing about the ecosystem that is building around the Bitcoin community is that they have experimental ways to pay for it, reduce fees and even have no fees attached to it. Although it can be challenging to find Bitcoin without any fees there are some gems out there that you can take advantage of.
One of the most popular examples includes local bitcoins. LocalBitcoins is an ingenious peer-to-peer Bitcoin marketplace where people can exchange their Bitcoin.
it is quite a vast marketplace and can be a little overwhelming because of all the options. However, LocalBitcoins has been around for a while and has a trustworthy reputation.
LocalBitcoins is so vast that it reaches millions of people in over 249 countries. The payments available are broader and they include prepaid cards, wire transfers, cash, PayPal, and gift cards. It is fully and completely peer-to-peer so people can offer cheaper rates or whatever kind of rates they want without having an intermediary third party present.
So, basically, because there are no middle man LocalBitcoins cannot be considered a fixed market when it comes to the price of Bitcoin.
The platform was developed to fundamentally facilitate treating that is directly between potential sellers and buyers. The price comes down to what the two parties end up agreeing upon.
It might be of concern to you about the trustworthiness of the individuals you’re doing business with on the marketplace. That is a legit concern, but the great thing about this platform is that it has a whole escrow process that holds the money and completes the transaction when certain steps required are fulfilled.
It is wonderful to know that you can also review and check out the people you are considering doing business with. You can see their history and how many transactions they have had. You will be able to see what other users have said about doing business with them, so, you can make the right decision about whom to trade with.
Local Bitcoin also offers you easy registration selling and buying all completely free. There is also a 0% trading fee. It is really hard to lose with the platform. They have every angle covered.
How to keep your Bitcoin safe
it is important to realize that you can easily lose your Bitcoin and any other type of cryptocurrency through the loss of access keys, computer failure theft, and more.
There are many countless amounts of people who use digital wallets and never have a problem with it, but there are those that do and end up losing a vast amount of their cryptocurrency. There are ways to secure your Bitcoin and other cryptocurrencies in a way that is less threatening than only using a digital wallet.
The option to look into is called cold storage. Cold storage is one of the safest ways of holding Bitcoin or other cryptocurrencies because they are not accessible through the internet. You want to do your research on that option. Hot wallets mimic Cold storage but are slightly different and more convenient for certain users.
The safest measures would be to consider investing in a tangible hardware wallet which is the safest most long-term storage option for cryptocurrency and Bitcoin.
If you tend to do a combination of wallets whether it be a hot wallet or digital wallet to keep up to date on the software precautions.
The greatest precautions that you can take to protect your Bitcoin once you have it are our software updates. It can be easy to forget to update the software of your wallet and that actually creates a vulnerability to hackers to be able to log in and take advantage of your cryptocurrency.
Another great idea is to keep your mobile device and your computer operating systems up to date as well.
Why? Because even an app that holds your wallet together can be at risk for vulnerabilities if your mobile device is not updated, along with the app itself.
You now have the most optimal guide to finding the cheapest or no-cost Bitcoin fee platforms. As you make the decision of what platform to buy please take all safety considerations into mind. Even with the options, we have recommended doing your own due diligence to see which platform would work best for you when it comes to fees, ease of use safety, and reputation.