How to Buy Bitcoin with Low Fees: A Step-by-Step Guide
Bitcoin is a well-known cryptocurrency that has recently drawn more attention from traders and investors. Yet, a significant issue that many consumers have when purchasing Bitcoin is the related costs.
This post will walk you through the process of purchasing Bitcoin with minimal costs, whether you choose to use a peer-to-peer marketplace or a cryptocurrency exchange.
Step 1: Understand the Different Ways to Buy Bitcoin with Low Fees
The two primary methods for purchasing Bitcoin with low costs are through a peer-to-peer exchange or a cryptocurrency exchange.
Online marketplaces called cryptocurrency exchanges let you buy, sell, and trade cryptocurrencies like Bitcoin. The well-known exchanges Binance, Coinbase, and Kraken are just a few.
For the services they provide, these exchanges charge a fee that might be anywhere from 0.1% and 5% or more.
Peer-to-peer marketplaces are online spaces that directly link Bitcoin buyers and sellers. These markets frequently charge 0.5% to 1.5% or even less in fees, which is less than exchanges.
Peer-to-peer marketplaces with a following include LocalBitcoins, Paxful, and Bisq.
Step 2: Compare and Contrast the Fees Associated with Each Method
Prior to purchasing Bitcoin, it’s crucial to evaluate the costs involved with each transaction method. Peer-to-peer markets often have lower fees than cryptocurrency exchanges, but they could also provide advantages like more liquidity and speedier transactions.
On the other side, peer-to-peer marketplaces may have lower fees but can be risky because you’re interacting with another person directly. To protect yourself, it’s crucial to conduct thorough due diligence on sellers and to employ escrow services and other security measures.
Step 3: Minimize Fees When Buying Bitcoin
- 1.Using a peer-to-peer marketplace or a cryptocurrency exchange, there are a number of ways to reduce expenses when purchasing Bitcoin. Some pointers are:
- 2. selecting a platform with affordable fees
- 3. instead of using a credit or debit card, which can have higher costs, use a bank transfer
- 4. using a limit order rather than a market order to avoid paying more for immediate trades.
- 5. combining all of your purchases into one transaction to save money
Step 4: Secure and Store Your Bitcoin
After purchasing Bitcoin, it’s crucial to store it safely. There are numerous storage options to think about, such as:
Software wallets—apps or programmes that keep your Bitcoin on your computer or mobile device—are a type of digital cash.
Hardware wallets are offline Bitcoin storage systems that are actual devices.
Multi-signature wallets, which can be more secure and require numerous keys to access your Bitcoin,
Cold storage is the practise of keeping your Bitcoin offline and secure.
Whatever form of storage you select, it’s critical to safeguard your Bitcoin by using strong passwords, two-factor authentication, and other security measures.
Are you trying to find the cheapest bitcoin exchange? Look nowhere else. Based on our extensive research and analysis, we have put together a comprehensive list of the best cryptocurrency exchanges with the lowest costs.
Exchanges for cryptocurrencies are online markets where users can purchase and sell cryptocurrency. Depending on the exchange and the kind of transaction, each exchange has a unique fee structure that might be very different.
We will concentrate on the exchanges with the lowest costs in this article.
13 Top Cryptocurrency Exchanges with the Lowest Fees
13. Coinbase (How to buy Bitcoin with low fees)
Coinbase bills itself as having more than 20 million customers and is both a cryptocurrency exchange and wallet. Despite a recent downturn in activity, the California-based company was established in 2012 and currently serves 33 nations worldwide.
It provides trading for Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC), and Bitcoin (BTC). The first ERC-20 token to be added to Coinbase is called 0x (ZRX).
For each coin listed on Coinbase, a spread of 0.50% is included. An illustration. Coinbase will show users a price of $1,005 if the cost of a bitcoin reaches $1,000. Moreover, it levies a Coinbase Fee, which is dependant on the region and type of payment utilised and can either be a fixed price or variable rate.
12. BitMEX ( How to buy Bitcoin with low fees )
Another platform that enables trading of cryptocurrencies and blockchain applications is BitMEX. Users can, for instance, buy and trade a range of items made of Bitcoin and Ethereum, like futures contracts. They enable the purchase and selling of goods at prices decided upon now but delivered and paid for later. Also, BitMEX provides upside and downside contracts that enable traders to make money from changes in the value of cryptocurrencies.
Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Cardano (ADA), EOS (EOS), Litecoin (LTC), Ripple (XRP), and Tron are the cryptocurrencies you may trade on BitMEX (TRX).
Margin trading is also available on BitMEX. This occurs when a user borrows up to 100 times their current trading balance from the exchange to make transactions. Margin trading gives users the opportunity to increase profits, but it can also result in catastrophic losses for the trader.
A platform for more seasoned bitcoin traders is BitMEX. It provides market takers in Bitcoin Futures with a 0.025% rebate and those in other crypto futures with a 0.050% refund. On the other side, it charges 0.025% for other futures and 0.075% for takers of Bitcoin Futures. BitMEX doesn’t charge commissions.
11. Bittrex ( How to buy Bitcoin with low fees )
A number of cryptocurrencies are available on the US-based trading site Bittrex, including Ethereum (ETH), Cardano (ADA), Bitcoin (BTC), Litecoin (LTC), Feathercoin (FTC), and ZCash (ZEC). Recently, Bittrex expanded the list of cryptocurrencies it supports to include Ripple (XRP) and Ethereum Classic (ETC).
No fees are assessed for deposits or withdrawals on the exchange. Nonetheless, the cryptocurrency network charges a modest fee for withdrawals. Moreover, Bittrex levies a 0.25% commission on each deal made on its site.
10. Coinbase Pro ( How to buy Bitcoin with low fees )
Coinbase revealed in May 2018 that its GDAX platform would henceforth be known as Coinbase Pro. In contrast to Coinbase, Coinbase Pro provides a platform for highly experienced cryptocurrency dealers. Ethereum Classic was recently featured on Coinbase Pro (ETC).
Federal Deposit Insurance Corporation offers up to $250,000 of coverage for Coinbase Pro’s USD wallet. Also, it is listed as a Money Services Company with the Financial Crimes Enforcement Network.
Neither a maker fee nor rebates are levied by Coinbase Pro. Takers are required to pay a transaction charge of 0.30%. However, the cost is decreased to 0.20% when the total trading volume hits $10 million within 30 days, and to 0.10% when the volume exceeds $100 million.
9. CEX.IO (How to buy Bitcoin with low fees )
Almost 1.0 million people utilise the bitcoin exchange site CEX.IO. It supports Ethereum, Dash, Bitcoin Cash, and Bitcoin (BTC) (ETH). In addition, CEX.IO provides margin trading for specific cryptocurrency and fiat currency pairs.
Visa and MasterCard deposits on CEX.IO are subject to a 2.99% fee; however, bank and cryptocurrency capital transfers are free. In addition, there are fees of up to $3.80 for withdrawals to Visa cards, $3.80 plus 1.20% for withdrawals to MasterCard, and 1% for withdrawals to bank accounts.
According to their fee schedule, trading is subject to a taker fee that varies between 0.10% and 0.25% depending on the volume of trading during the previous 30 days. Also, if a maker’s trading volume is less than
8. Poloniex ( How to buy Bitcoin with low fees )
Poloniex is the next cryptocurrency exchange on our list. The Delaware-based company Poloniex provides traders with cutting-edge trading tools and margin trading services. There are no charges for deposits or withdrawals. Of course, this does not include costs connected to a cryptocurrency’s blockchain.
According to their fee schedule, Poloniex uses the maker-taker mechanism for transactions. When the 30-day trading volume is between $10 million and $15 million, taker fees drop to 0.18% from their initial starting point of 0.20%. The fees then decrease by 0.02 percentage points for every $5.0 million in additional trading volume.
When trade volume exceeds $30 million, a 0.10% fee is charge and When the transaction volume hits $7.5 million, makers pay no fees.
7. Gemini (How to buy Bitcoin with low fees )
The New York State Department of Financial Services oversees Gemini, a trust corporation established in New York and a registered cryptocurrency exchange.
The Gemini Dollar (GUSD), which is linked to the US Dollar at a 1:1 ratio, is another cryptocurrency that it possesses. Tether (USDT), another stablecoin, recently fell in value, which helped the value of the Gemini Dollar rise.
Gemini assesses a fee for makers and takers of between 0.10% to 1.00%, while the actual price changes based on trade volume.
For instance, the “taker” cost is 0.10% and the “maker” fee is eliminated if the 30-day transaction volume exceeds $15 million. However, if the volume of transactions is less than $25,000, both “makers” and “takers” are charged.
6. Bitstamp ( How to buy Bitcoin with low fees )
A European cryptocurrency exchange called Bitstamp has about 3.0 million traders. It discusses cryptocurrencies like Ripple (XRP), Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Bitcoin Cash (BCH). Both US dollars and euros can be deposited and withdrew.
Although it states that market makers can get tailored fees for bigger volumes, Bitstamp does not give unique costs for them. Other than that, the standard trading commissions range from 0.10% to 0.25% depending on the volume of transactions.
Also, Bitstamp charges 2% for withdrawals over this amount and $10 for debit card withdrawals and deposits up to $1,000. Deposits made by credit card are 5%. However, clients from Europe can benefit from the Single Euro Payments Area system and receive free deposits while only paying 0.90 euros for
5. Kraken ( How to buy Bitcoin with low fees )
With a total trading volume of more than $120 million over the past 24 hours, Kraken is one of the top 10 cryptocurrency exchanges. Kraken is among the earliest Bitcoin exchanges, having been established in 2011.
Kraken employs a maker-taker pricing mechanism, like the majority of its rivals. If the trading volume of a market maker over a 30-day period exceeds $10 million, no fees are charged.
If the volume decreases, they must pay a fee of 0.02%, which can increase to 0.16% if the volume is below $50,000. Takers costs, on the other hand, begin at 0.26% if the trading volume is under $50,000 and can decrease to 0.10% if the volume exceeds $10 million.
4. KuCoin (How to buy Bitcoin with low fees )
One of the newest cryptocurrency exchanges is KuCoin, which was established in 2017. It has a Hong Kong base and accepts more than 180 cryptocurrencies. Adjustable fees are applied by KuCoin for withdrawals. For instance, a fee of 0.005 Bitcoins is assessed when withdrawing Bitcoins. Depending on the currency, they change.
KuCoin charges a 0.1% transaction fee for trading. However, depending on how much KCS they own, users who own KuCoin’s native KCS coins can receive discounts of up to 30%.
3. Bitfinex ( How to buy Bitcoin with low fees )
Bitfinex is one of the largest crypto exchanges, having a 24-hour trading volume of $353 million. Moreover, Bitfinex’s 30-day trading volume stands at more than $12.10 billion. It supports most major and small cryptocurrencies.
Bitfinex’s fees vary for makers and takers. They’re based on the 30-day trading volume. If the volume is up to $10 million, the fee is 0.20% for the takers, but then declines and reaches 0.055% if the volume exceeds $30 billion. For makers, fees start at 0.10% for a volume up to $500,000 but decline to zero if the volume exceeds $7.50 million.
After recently pausing fiat deposits, Bitfinex is back with an updated system
2. HitBTC (How to buy Bitcoin with low fees)
Another one of the biggest exchanges, HitBTC, has a $180 million trade volume. More than 300 cryptocurrencies are supported.
Market takers are charged a 0.1% fee by HitBTC. Although it isn’t the lowest charge compared to other exchanges, it is the same regardless of the transaction’s value. Moreover, HitBTC offers a 0.1% rebate to market makers.
1. Binance (How to buy Bitcoin with low fees )
The cryptocurrency exchange with the lowest fees is Binance. It is the biggest exchange in the world with a $917 million trading volume per day. More than 380 cryptocurrency and fiat currency pairs are supported by Binance.
The maker-taker arrangement for transaction fees is what Binance employs, just like the other cryptocurrency exchanges on this list. The amount of Bitcoin or its own Binance Coin (BNB) traded over the preceding 30 days is what determines the multi-tiered model’s value.
If the trade volume is less than 100 Bitcoins or 50 BNB, both makers and takers are taxed 0.10%. Until the volume hits 500 Bitcoin and 200 BNB, takers pay the same fees. Takers’ fees then decrease. For a trading volume above 150,000 Bitcoin and 11,000 BNB, the lowest takers cost is 0.04%.
If the volume surpasses 100 Bitcoin and 50 BNB, the makers’ share declines to 0.090%. Makers fees decrease as trading volume increases until they are finally charged at 0.020% if there are more over 150,000 Bitcoin and 11,000 BNB traded.
Also, Binance provides rebates to traders who own BNB tokens. If fees are paid in BNB, there are additional discounts available.
Factors to Consider when Choosing a Cryptocurrency Exchange (How to buy Bitcoin with low fees )
There are a number of things to take into account while selecting a cryptocurrency exchange, in addition to the costs, including:
The exchange’s security is essential since it affects the security of your money. Seek out exchanges with a solid security history and those that employ cutting-edge security techniques like two-factor authentication and cold storage.
Choose an exchange that has a solid reputation in the cryptocurrency sector since this might be a sign of high levels of dependability and trustworthiness.
User Interface and Experience
The exchange’s user interface and user experience should be simple to use, with concise instructions and little downtime.
Pick an exchange that offers good customer service because it may be crucial if you have any problems or queries about your account or transactions.
If you use the appropriate platforms and tactics, buying Bitcoin can be done at a minimal cost. The instructions in this post will help you reduce fees and safeguard your Bitcoin for long-term use and storage.
Finally, there are a number of cryptocurrency exchanges that offer low costs and a convenient way to purchase and sell cryptocurrencies. While selecting an exchange, it is crucial to take other aspects into account, such as security, reputation, user interface and experience, and customer service.
You may locate an exchange that satisfies your demands and offers a safe and secure platform for trading cryptocurrencies by taking into account these characteristics and conducting extensive research.