What We Have Covered in This Article
- 1 Compare costs between online exchanges
- 2 Use a stock trading app
- 3 Try a Bitcoin ATM for more anonymity
- 4 Set up a crypto wallet for buying & selling
- 5 Shop with Interactive Brokers for security
- 6 Use PayPal to Buy Crypto
- 7 How to fund your crypto purchase
Last Updated on March 18, 2022 by Editor Futurescope
When buying Bitcoin and cryptocurrency, the transaction fees often take newcomers by surprise. With some crypto coin purchases, it can end up quite expensive. The fee is essentially a service charge. A buyer is giving away a part of their investment for the convenience of using a service. However, the costs don’t have to be hefty. There are many low-fee ways to buy crypto available.
Even if you only intend to make a few trades in the cryptocurrency industry, you can save thousands by being careful where you make your purchases. A Bitcoin ATM near you could easily end up costing you less in fees than shopping on an online exchange or a peer-to-peer network. However, the results may vary. As the industry isn’t regulated, the fees can differ significantly.
Here is everything to know about the best low-fee ways to buy crypto.
Compare costs between online exchanges
There are lots of online exchanges that you can download to your smartphone. These apps are convenient, work smoothly, and make getting started with crypto seem easy. That said, you should compare the different exchanges. Look at their fee structure. Check whether there are limits on what you can buy or sell.
You may also have privacy concerns with an online exchange. If so, this isn’t the method to take on your crypto investment journey. Nevertheless, you may find some online exchanges are advantageous, based on what you’re willing to pay for their convenience.
Use a stock trading app
A crypto exchange specializes in buying and selling cryptocurrency. An alternative is to use a trading app, allowing you to purchase crypto and stocks, EFTs, and other options. Many of these are investment platforms that will let you buy crypto with no commission. However, you may pay a spread markup on some transactions, which will cancel out the attractiveness of paying no commission.
In addition, a stock trading app is limited with what you can do and which coins are investable. This option may not be ideal for those who prioritize a diversified portfolio. Nonetheless, the app can be the perfect way to get started with crypto for those with a good knowledge of stocks and investments.
Try a Bitcoin ATM for more anonymity
Bitcoin ATMs are a great way to buy crypto anonymously. There is a Bitcoin ATM near me and you, in every city and every part of the country. This technology is easy to use, allowing you to put cash in the machine and select the cryptocurrency you want.
Just like with online exchanges, the fees vary. If you aren’t comfortable doing an online exchange, the fees of a Bitcoin ATM are fairly priced. However, there can be a premium due to the nature of the transaction. Yet, a Bitcoin ATM offers a lot more privacy and quicker verifications. Due to these benefits, Bitcoin ATM fees are often slightly above what an online exchange may offer.
Set up a crypto wallet for buying & selling
You can download a crypto wallet onto your desktop or phone. It’s an application used to store crypto, ideal if you do not wish to keep your coin on an online exchange or platform. With a wallet, you can send and receive money with little to no fees if you do it peer-to-peer.
You will also need a wallet should you decide to buy Bitcoin anonymously via a Bitcoin machine or ATM. If you are genuinely looking at low fees and anonymity in buying crypto, a wallet is undoubtedly necessary.
Shop with Interactive Brokers for security
Interactive Brokers allows you to buy futures contractors on Bitcoin. They are one of several cryptocurrency brokers that offer derivatives products to traders, wherein a trader agrees to a contract to speculate on the price of digital currency. They provide crypto options, crypto futures and crypto CFDs with relatively low fees.
Interactive Brokers is more for advanced investors. For those that know what they’re doing, you receive a little more security on your investment, albeit it’s not a direct purchase of crypto. Of course, you can also trade Bitcoin directly and other limited crypto options.
Use PayPal to Buy Crypto
PayPal markets itself as a $0 fee way to set up an account, keep money, and use various features. When you dig into their terms, there are fees everywhere. There are fees when you send money from your PayPal to an account outside North America. Similarly, there are fees if you add cash or cheques to your account.
Nonetheless, you can still use the PayPal platform to buy crypto. The transaction fee varies per amount between 2.4% and 1.5%, which isn’t too much. PayPal might be a way to make your first transactions in the global crypto market.
How to fund your crypto purchase
The method you invest in a crypto purchase will matter. You either do it through a credit card, debit card, cash, or a service like PayPal. The route you take will involve fees, usually every step of the way. If you want to remove the fees altogether, you’ll pay on credit cards, debit cards, or PayPal can try cash. You may also buy crypto with cash at Bitcoin ATMs.
However, the fees you avoid often come around with the transaction fee. Again, this varies from brand to brand. It’s worth considering if you see hefty fees on card-based crypto funding.