How to Buy Bitcoin Without Fees | 2021 Guide
After television shows like Mr. Robot, pointing out the fragility of government-regulated currency, it’s no wonder why people want to get their hands into bitcoin investment.
Bitcoin is a cryptocurrency and currently worth over 160 billion USD.
Now, you’re here to learn how to buy bitcoin without fees. There is only one efficient way to buy bitcoin without fees, which we’ll definitely take a look at, but because of this, we’ll also be looking at where to buy bitcoin with low fees. It’s crazy enough buying money, but having to pay fees to buy money, now that’s outrageous. But that’s the power of cryptocurrency.
Understanding the Bitcoin Craze
There are many reasons to invest in bitcoin. It offers a community for those interested in cryptocurrency, or blockchain technology. It offers anonymity. Bitcoin is an unregulated currency that’s not affected by the government, offering privacy beyond measure. Whatever the case, bitcoin only continues to grow in wealth, so now is the time to get involved.
How To Buy Bitcoin Without Fees: Top No-Fee Services
Like we said before, there’s only one way to buy bitcoin with no fees, and that’s through a peer-to-peer exchange. Peer-to-peer exchange removes the middleman (the online broker exchange) and instead lets people converse and trade with sellers and buyers on their own. With this process, you set your own terms, prices, and amounts. Peer-to-peer exchange provides a great way to get involved in the cryptocurrency community, as you’ll communicate directly with other interested people.
This may not be the safest option, meeting up with a stranger to exchange bitcoin, but approach it like a dating app. Learn as much as you can beforehand and share your location with a friend.
A popular platform for buying no-fee bitcoin is LocalBitcoins. Originated in Finland, the platform puts you in touch with local bitcoin sellers or buyers so you can make peer-to-peer transactions. LocalBitcoins operates in over 15,000 cities and 248 countries. While buyers don’t have to pay fees, sellers will have to pay a fee to advertise their bitcoins. You can pay pretty much any way imaginable as the platform supports bank transfers, PayPal, debit, credit, and cash. LocalBitcoins also allows for anonymous posting, giving you more privacy.
I know it says fee-free but as always, there’s a catch. For added protection, sellers will pay an escrow fee. This ensures that buyers will receive the bitcoin they have purchased, or at least protects buyers from scams. This would generally be around 1% of what sellers pay to advertise their bitcoin.
This is how to buy bitcoin without fees.
How to Buy Bitcoin with Low Fees
You know the saying the ‘best things in life are free’? Well, it turns out buying bitcoins is not one of those things. These platforms have to make money somehow, and fees are how they pay workers for a hard day’s work. Yet, that doesn’t mean you have to pay crazy high amounts in fees. Bitcoin broker exchanges are platforms where users follow a live market, and the platform helps users conduct trades. While some of these companies can charge high fees, we wanted to point you in the direction of those that don’t.
While this isn’t a way to buy no-fee bitcoin, for some this is a better option. Peer-to-peer exchanges are not bound by fixed market prices and buyers need more knowledge of the industry to enjoy personal exchanges.
The most popular and reliable platform is Coinbase. With Coinbase, a buyer will deposit fiat currency into their Coinbase account, and then Coinbase will buy bitcoin for the buyer. On average a user will pay 2.5% in fees, at least 1.49%, or 3.99% if paid through debit or credit card. Users pay this fee when they deposit the money into their account. Coinbase does not charge for deposits made by bank transfers.
This is the only fee as a buyer you would pay.
We praise Coinbase for its useability. That’s what makes this platform so amazing for those new to cryptocurrency. Do not expect the same anonymity with Coinbase as you would LocalBitcoins, as it does need personal information. But, Coinbase boasts a clean record for never being hacked and even stores its customer information offline.
Coinbase has the lowest fees for those looking to buy bitcoin with an easy platform. That said, more advanced traders and investors might look for even lower fee options if they have the savvy to navigate more complex platforms.
Coinbase also has a hidden secret, and that’s GDAX. GDAX is Coinbase’s fee-free sister platform that uses a maker and taker relationship, rather than a buyer and seller. Meaning as a maker, you place an order of how much bitcoin you want to be made, and you wait for the amount to be filled. Bitcoins are mined, so this can be a lengthy process, but GDAX doesn’t charge maker fees. So another way to buy bitcoin without fees!
Kraken is another bitcoin broker exchange platform. Created around the same time as Coinbase, Kraken also has effective security measures and success. But Coinbase and Kraken are not the same. For instance, Kraken has leveraged trading.
Leveraged trading is when you’re able to trade with more money than you have deposited. That’s right, Kraken lets you borrow money for trades. Kraken offers 3:1 leverage. So say you have 60$ deposited, with the leverage, that means you can trade with 180$. Now imagine if you had thousands in your account? How much you could make when the price is right? This allows buyers to take bigger action when the perfect deal comes along.
Kraken runs off a maker and taker system, like GDAX, but Kraken does charge a maker fee of 0.16% and a taker fee of 0.26%.
Kraken is not recommended for those new to bitcoin investment. It can be quite tricky getting started on and appeals to those more experienced in the cryptocurrency community.
Choosing the Best Low-Fee or No-Fee Bitcoin Exchange
It’s easy to get obsessed with making the right deal, and a lot of people find that notion synonymous with ‘cheaper’. That’s not true. You wouldn’t throw yourself into the stock market willy nilly, bitcoin is no different, it’s a serious currency that could end up costing you a lot of money if done poorly.
Instead of focusing on ‘free’ focus on what’s best for you. If you’re a beginner, pay the fees and play it safe. If you’re a seasoned player then have fun and be aware. Either way, “how to buy bitcoins without fees” shouldn’t be the first question you ask. It should be “what’s the best way to buy bitcoin for me.”
We hope you found this article helpful. Here at Dchained, we strive to educate and make people feel comfortable with cryptocurrency investment. This is only a small bit of all the information we have to offer. If you’re looking to get started with cryptocurrency investing, be sure to check out our Ultimate Beginner’s Crypto Course.