What is the Cheapest Way to Buy Bitcoin? 3 Popular Places to Exchange Bitcoin
Bitcoin is a digital currency that was created in 2009 by Satoshi Nakamoto to enable quick and cheap online payments. The virtual currency attracts every eyeball in August 2017 when its price jumped from around 572 U.S. dollars to approximately 4,765 U.S. dollars. With time, the worth kept increasing and as of July 2020, it was worth over11,225 U.S. dollars.
Today, Bitcoin enjoys the number one position in the cryptocurrency world with the market capitalization reaching a level of 117.8 billion U.S. dollars in the first quarter of 2020.
If you’re planning to buy Bitcoin and looking for cheap ways to get them, this article might help as it focuses on buying them at cheap prices. Go ahead and explore the world of opportunities…
What are the Cheap Ways to Get Bitcoin
Buying your first Bitcoin can be a bit challenging as it involves research and planning. Also, there are several places to get Bitcoin, making it difficult to get started. As all the different places offer different ways to buy Bitcoin and the fees are involved, you need to make an informed decision.
Instead of all the challenges and complexities, you can still find cheap ways to get Bitcoin, and here’s how…
The Kind of Buyer You are Affects the Way You Choose
Different people have different reasons for buying Bitcoin and here are some popular reasons…
- Community: Some buyers invest in Bitcoin as they are interested in cryptocurrency and blockchain technology. This is only possible by becoming a part of the crypto community and for this, they buy virtual currency.
- Anonymity: Using Bitcoin people can send money to each other directly, without using a bank or having to share personal details. This process is called anonymity and that is one of the biggest reasons people want to buy bitcoin.
- Ease of Use & Security: It is easy to buy Bitcoin even if you are a beginner and it is safe when you are making a purchase. The ease of use and added security makes Bitcoin an attractive currency for everyone.
Buying Bitcoin with Coinbase
Coinbase is a Bitcoin broker exchange and it simply means that it buys Bitcoin for you and all you need to do is register and open an account. Based in the US, Coinbase is available in 32 countries around the world and available for use at a fee of around 1.49% of your purchase amount.
You need to pay the fees if you deposit fiat currency into your Coinbase account and the exchange doesn’t charge for deposits of fiat currency made by bank transfer. Furthermore, the exchange will charge at least 3.99% of your purchase amount when you use a credit/debit card to buy bitcoin.
Apart from Coinbase, there are several other exchanges that you can use to buy Bitcoin. Some of the cheap options include…
- CEX.IO: Based in London, CEX offers services in 99% of the countries around the world and charges 7% to buy Bitcoin. Using a credit/debit card. However, it charges lower fees if you deposit money into your account before you buy.
- Coinmama: Based in Israel, Coinmama offers services to over 180 countries around the world and charges a fee of 5.9% for every purchase of Bitcoin. If you use a credit/debit card, the exchange adds another 5% fee.
- Gemini: Administered by the Winklevoss twins, Gemini is a famous exchange but it does not accept common payment methods. It offers dollar-to-crypto and crypto-to-crypto trading along with an instant deposit for ACH transfers.
LocalBitcoins is a popular peer-to-peer exchange that allows its users to trade Bitcoins with each other directly. Based in Finland, the exchange help users to buy Bitcoins from people in their local area. The exchange has traders willing to sell Bitcoin in more than 248 countries around the world.
Being a trader on LocalBitcoins, you need to pay a fee to advertise your Bitcoin but buyers don’t pay anything. The exchange offers many different payment methods and allows you to pay with the most popular payment gateways.
Using an ATM for Buying Bitcoin
You can use a Bitcoin ATM to buy this virtual currency and you can find some popular options on CoinATMRadar. Bitcoin ATMs can be fully anonymous and can be a safer way to buy bitcoins but may cost a lot more than other ways.
Though buying Bitcoins using an ATM can be expensive as compared to other options, it is quick, safe, and anonymous. Also, when you buy Bitcoins from an ATM, you need a Bitcoin Wallet to store them.
Some of the Things that can Affect the Fees You Pay
Investing in cryptocurrencies can be a bit challenging due to their nature but with sufficient knowledge, you can make an informed decision. With every virtual you buy, there is some amount of fees you need to pay. Here are a few things that can affect the fees you pay…
- Your Location
- Your Mode of Payment
- Type of Buyer
- The Supply of Bitcoin and Market Demand
- The Number of Competing Cryptocurrencies
- The Rewards Issues to Bitcoin Miners
How Can I Buy Bitcoins Without Fees?
There are many ways to buy Bitcoins without fees and GDAX is one such option. It is a sister company of Coinbase and when you sign up for a Coinbase account, you also get access to GDAX. The good news is that GDAX doesn’t charge maker fees means you can buy Bitcoin without fees.
To make this happen, you need to transfer funds from Coinbase to GDAX and there are no charges for it. Once you’re done with fund transfers, you need to submit a buy order which is a maker order and may take some time. When the order is filled, you will receive the Bitcoin you’ve ordered.
Based in the EU, Lykke is an app that allows its users to buy Bitcoin as well as other cryptocurrencies without fees. It allows you to exchange your fiat into Bitcoin with no commission and once you have made some money via trading, you can exchange your fiat into Bitcoin.
Using Lykke is cheap and the system allows European banks to reduce the fees they charge their clients for transfers in euro. It can also be defined as the SEPA system of banking information. Exchange.
Who is the Cheapest Bitcoin Seller?
There are many Bitcoin sellers that you can find but not all of them are cheap. Here we’ve listed the cheapest Bitcoin sellers that you can sue…
1. crypto.com: You can buy, sell, and pay with crypto and it is one of the cheapest places and allows you to buy Bitcoin with a debit card, credit card, or UK bank transfer. If you use a UK bank transfer to deposit GBP using the site, you don’t need to pay any fees.
- It allows you to buy dozens of popular cryptocurrencies with no fees.
- Using ‘Crypto Earn’, you can deposit and earn interest on your cryptocurrency.
- You can access the real BTC to exchange rates with no hidden fees.
- No fees when you buy Bitcoin with GBP and it’s free to withdraw it with a bank transfer.
- A 3.5% fee is there to buy cryptocurrencies using a debit or credit card.
- You may need to pay a small fee to withdraw Bitcoin from the site to your wallet.
- You will need to install an app on your smartphone as there’s no desktop alternative.
2. Coinbase Pro: Previously known as GDAX, Coinbase Pro is one of the cheapest places to buy Bitcoin in the UK. All you need to create a Coinbase account, verify your UK bank account, and send GBP via UK bank transfer to Coinbase Pro.
- One of the cheapest way to buy Bitcoin in the UK that offers high limits.
- It supports UK bank deposits via Faster Payments Service.
- Being a reputable and trusted exchange, you don’t need to verify your identity with multiple platforms.
- May attract animosity.
- Might be a challenging platform for beginners.
3. Wirex: This is one of the cheapest options available for buying Bitcoin as well as other cryptos using a debit card, credit card, or UK bank transfer. You will have to pay a flat fee of 1% and a small fee of around 1.5% hidden in the exchange rate when you buy Bitcoin.
- Offer access to the real BTC to GBP exchange rate.
- Simple and convenient with low fees.
- Unlimited account balance.
- Browser-based and Mobils apps available
- You may need to pay withdrawal fees to send Bitcoins.
- You need to order a Wirex Card and pay an account management fee.
4. OTC Services: Buying Bitcoin through over-the-counter (OTC) services can be another cheapest option. You can avail the OTC services with a GBP UK bank transfer and some popular options include Localbitcoins, BitBargain, Solidi, Paxful, BeyondCC, Bittylicious, etc.
- Quick and easy way to buy Bitcoins.
- Provide better customer services and competitive prices.
- Bitcoin prices may be above the real BTC to GBP exchange rate.
- You will need to verify your identity.
What is the Best Bitcoin Wallet that has the Lowest Fees?
There are many options available and you can choose as per your unique needs. Here is the list of some best Bitcoin Wallets of 2020…
- Exodus - Best for Beginners (Hot Wallet)
- Electrum - Best for Advanced Users (Hot Wallet)
- Mycelium - Best for Mobile Users (Hot Wallet)
- Ledger Nano X - Best Hardware Wallet (Cold Wallet)
- Trezor Model T - Best for a Large Number of Cryptocurrencies (Cold Wallet)
- Ledger Nano S - Best for Buck (Cold Wallet)
The Final Verdict
With so many options to buy Bitcoin at cheap prices, it is easy to get lured but remember there’s nothing like ‘free’ in the cryptocurrency world. You may need to pay some fees and, therefore, try to find the best place to buy Bitcoin.