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How To Buy Bitcoin With Lowest Fees In 2022

Last updated 16th Aug 2022
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The biggest cost of buying Bitcoin (BTC) is the fees applied by the crypto platform. On average, investors pay 0.1% to 2% on all trades, impacting profitability. However, several trustworthy cryptocurrency exchanges and brokers offer Bitcoin at competitive rates.

This page covers the best cryptocurrency platforms with the lowest fees for buying Bitcoin. Also, we’ll discuss their best features, investment opportunities, and pros & cons.

Best Bitcoin Brokers With Lowest Fees in 2022

We’ve researched the best brokers that have competitive fee rates for buying Bitcoin and compiled them in this easy-to-understand table:

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What Fees Are There When Buying Bitcoin?

Cryptocurrency exchanges apply various fees for buying Bitcoin through their platform. All exchanges have a dedicated page that showcases the different costs of trading Bitcoin. Here are the main costs you’ll encounter:

Deposit Fee:

  • When transferring cryptocurrency to the exchange, you’ll have to pay a transfer fee. However, the amount varies depending on the blockchain you’re using. Also, using your bank to deposit funds has fees that range between 0.5% to 2%.

Trading Fee:

  • When buying and selling Bitcoin, you’ll encounter a fixed fee on all trades. The amount varies between platforms, but typically the amount ranges from 0.1% to 0.5%.

Withdrawal Fee:

  • After buying Bitcoin, you’re most likely going to withdraw them to a cold or hot wallet. However, withdrawing coins from the exchange has fixed fees paid with Bitcoin.

What Options Do I Have When Buying Bitcoin With Lowest Fees?

Binance:

  • Binance is the largest cryptocurrency trading platform in the world. It offers a great selection of coins with multiple trading pairs for convenience. After purchasing Bitcoin, you can participate in staking, liquidity pools, and Binance Earn. Moreover, the fees are ultra-low at 0.1% on sell or buy orders.

  • Moreover, Binance has several trading interfaces that are designed for different activities. Beginners can use the convert page, which makes it easier to exchange coins for Bitcoin. However, experienced investors can use the classic or advanced trading interface to purchase Bitcoin with different types of orders.

Key Features

  • Binance has the lowest fees for depositing, trading, and staking coins

  • Investors can set up 2-step authentication to add more security

  • The platform has FDIC insurance

Pros & Cons of Binance

Pros

Over 300 cryptocurrencies available to purchase
Low fees for buying Bitcoin
Bitcoin has several trading pairs

Cons

Slow customer support
Binance is not available in the United States
The several trading platforms can be confusing to use for beginners

How to Get Started?

Step 1: Create an account
Step 2: Verify your account
Step 3: Deposit funds
Step 4: Select Bitcoin
Step 5: Click “Buy”

KuCoin:

  • KuCoin was released in 2017 and has gained a lot of attraction, reaching 8 million users. Their popularity is due to the brilliant features like staking, multiple trading interfaces, and KuCoin Earn. The platform lets clients purchase Bitcoin at ultra-low fees ranging from 0.0125% to 0.01%. The fee amount depends on your 30-day trading volume. Also, if you hold the KuCoin token, the fees are reduced by 25%.

Key Features

  • KuCoin claims 1 in 4 investors uses their platform

  • The platform has multiple trading pairs for Bitcoin

  • Clients can hold the KuCoin token to reduce fees by 25%

Pros

Multiple investment options after buying Bitcoin
KuCoin has exceptionally low fees
Great selection of cryptocurrencies

Cons

Not licensed in the United States
High fees for withdrawing Bitcoin

How to Get Started?

Step 1: Sign up for an account
Step 2: Select Bitcoin
Step 3: Choose the relevant trading pair
Step 4: Click ‘Buy’

CoinBase Pro:

  • CoinBase Pro is the professional version of the CoinBase platform. It offers much better fee rates that begin at 0.50% on buy and sell trades. In addition, the platform lets users set up stop-loss, limit, and market orders on Bitcoin. Moreover, the Bitcoin token has several trading pairs with fiat and cryptocurrency.

  • The trading interface has multiple tools that help investors analyze the market situation and invest accordingly. Also, users can deposit funds into their accounts via crypto or bank transfer.

Key Features

  • CoinBase Pro comes with several trading tools.

  • The platform has fiat and crypto trading pairs for Bitcoin.

  • CoinBase Pro has excellent security and requires 2-step authentication for withdrawing coins.

Pros

User-friendly interface
Low fees for trading
Advanced trading features

Cons

Customer support is slow due to many users requesting assistance
CoinBase Pro can seem challenging to use for beginners
Limited selection of cryptocurrencies

How to Get Started?

Step 1: Sign up for an account
Step 2: Transfer money
Step 3: Choose the relevant trading pair
Step 4: Click “Buy”

Kraken:

  • Kraken is an amazing crypto exchange for those who want to use a transparent platform. In fact, Kraken recently added a feature that lets users see recent audits, making them a trustworthy location for buying Bitcoin. In addition, their security is brilliant because it uses SSL encryption, air-gapped cold storage, 2-step authentication, and precise API key permission control.

  • Moreover, the fees for trading Bitcoin are 0% to 0.26% depending on your 30-day trading volume. Also, you have multiple investment options after buying Bitcoin, like liquidity pools, crypto lending, and staking.

Key Features

  • Kraken is a trustworthy brand that offers full transparency

  • Clients can use the platform to participate in various investment opportunities

  • Kraken takes security seriously and has multiple layers of security

Pros

The platform supports multiple exchange pairs for Bitcoin
Easy-to-use interface
Kraken is a high liquidity exchange

Cons

Limited variety of cryptocurrencies
Low APY for staking Bitcoin

How to Get Started?

Step 1: Sign up for an account and transfer funds
Step 2: Go to Kraken’s trading interface
Step 3: Input the amount you want to buy
Step 4: Click ‘Buy’

eToro:

  • eToro is a market leader in providing CFDs for stocks and cryptocurrencies. The platform has acquired 23.2 million users across the globe, which lets them place significantly fewer fees on crypto transactions. This results in Bitcoin having a spread fee of 0.75%. For example, if you wanted to buy $1,000 worth of Bitcoin and it costs $8,000 per Bitcoin, you’d pay $7.5 in fees.

  • Moreover, eToro hosts various coins on their platform so clients can diversify their portfolios. However, if you’re unsure which coins to buy, you can look at successful traders and copy their portfolios.

Key Features

  • eToro doesn’t provide real coins and offers CFDs instead

  • Clients can copy successful profiles if they have a premium account

  • eToro lets you hold coins for long periods without applying a fee

Pros

User-friendly design makes eToro more accessible for beginners
Great selection of altcoins
Amazing customer support

Cons

eToro provides CFDs that don’t convey ownership of real cryptocurrencies
Higher fees compared to exchanges
No option to withdraw Bitcoins

What to Consider When Choosing a Broker With Lowest Fees?

When choosing a cryptocurrency exchange, there are a few considerations to make. Here are the main factors to consider when selecting a crypto platform.

Security:

  • There have been many hacks and scams revolving around crypto exchanges. Therefore, you should use crypto exchanges with an excellent track record of delivering a safe experience for clients. The platform should let clients enable 2-step authentication and whitelist crypto addresses.

Easy-to-use:

  • The process of buying Bitcoin should be convenient for beginners and experts. The platform must have quick processes to acquire Bitcoin and avoid complicated interfaces.

Tools and Indicators:

  • If you’re a technical trader, you’ll want to have a set of tools in your arsenal. The popular crypto exchanges have low fees and a great combination of analyzing tools.

Interface:

  • The trading interface should be simple while providing sufficient information. Some interfaces have complicated buying processes, making it frustrating to invest in Bitcoin.

Investment Opportunities:

  • After acquiring Bitcoin and using a long-term strategy, you’ll want to participate in various investment opportunities. Therefore, the crypto exchange should provide staking, liquidity pools, and other options.

Easy Withdrawals:

  • Some exchanges have strict withdrawal limits, making it challenging to transfer your Bitcoin. Often you’ll need to complete a KYC process to lift withdrawal restrictions.

Trading Pairs:

  • Multiple trading pairs make it convenient to purchase Bitcoin if you hold various coins. The most popular exchange pairs for Bitcoin are Bitcoin/ETH, Bitcoin/USDT, Bitcoin/USDC, Bitcoin/ADA, and Bitcoin/XRP.

How to Buy Bitcoin With Low Fees?

The buying process of Bitcoin is similar to all crypto platforms. Here’s an outline of how to buy Bitcoin using a popular exchange.

Step 1: Click the Register button
Step 2: Create an account
Step 3: Click the verification email sent to you
Step 4: Deposit fiat currency or crypto
Step 5: Choose the USDC/Bitcoin exchange pair
Step 6: Write the amount you want to purchase
Step 7: Click ‘Buy’

Alternative Ways to Invest in Bitcoin?

Bitcoin ATMs:

  • Bitcoin ATMs are great machines for buying coins anonymously. They work similarly to bank ATMs but provide options for buying various cryptocurrencies instead. However, the fees for using Bitcoin ATMs are much higher than other options.

Decentralized Exchanges:

  • Decentralized exchanges (DEXs) let investors buy large quantities of Bitcoins anonymously. They require connecting a compatible crypto wallet, making this option for more tech-savvy users. Moreover, you should avoid using DEXs built on the Ethereum blockchain because the gas fees are huge. Instead, you can use exchanges built on Polkadot, Cardano, and the Binance Smart Chain.

Cash-in-hand:

Investors can use platforms that connect buyers and sellers to each other. These P2P exchanges facilitate transfers between clients in real life. However, this option is riskier due to the potential of being scammed. Therefore, you should wait with the seller until the transfer is complete.

Cryptocurrency Brokers:

  • Brokers are brilliant for beginners, thanks to their user-friendly design. These platforms offer various cryptocurrencies, including Bitcoin. However, you’ll be buying a derivative product and won’t own real coins. Crypto brokers can offer CFDs, futures, and ETFs to deliver numerous investment opportunities for clients.

Final Thoughts

Paying low fees is essential when buying Bitcoin to acquire more coins. We’ve mentioned the best platforms that offer excellent fee rates, investment options, and trading tools. However, you should select a crypto exchange that offers all the features you require for investing.

Beginners may find an exchange like Binance easier to use because it has educational resources, several trading platforms, and a user-friendly design. Moreover, expert traders may find KuCoin the best option since it has advanced trading tools. Also, clients can reduce their trading fees by 25% if they hold KuCoin’s native token KCS.

Furthermore, you can use a broker like eToro to invest in Bitcoin without encountering complicated trading interfaces. However, you won’t own real crypto and buy a derivative product. Therefore, you should go over the many available options and select the platform that fits your needs.

FAQs

How do I keep my Bitcoins safe?
Where can I buy Bitcoin with low fees?
Can I buy Bitcoin with fiat currency?
How do I choose a cryptocurrency exchange?
Should I sign up for a broker or exchange?

Dominikas Pupkevicius

Dominikas is a content and research writer with over 6 years of experience. He is passionate about blockchain technology and believes cryptocurrency is the future of humanity. Dominikas lives in the countryside with his 3 dogs and enjoys long walks.