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Cheapest Exchanges to Buy Bitcoin in 2022

Last updated 26th Sep 2022
Disclosure

Popular crypto exchanges are the perfect option for investing in Bitcoin because they have the lowest rates and support multiple features. However, when selecting a cheap Bitcoin exchange, there are a few factors to consider like security, investment options, trading pairs, and fee structure.

This page covers vital information you need to know regarding fees in Bitcoin exchanges. Also, we’ll discuss the cheapest Bitcoin exchanges, along with their pros and cons.

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What Is a Bitcoin Exchange?

A Bitcoin exchange is a platform that facilitates trades between buyers and sellers. The exchange acts as the middleman between both parties and provides trustworthy transactions for a small fee. Moreover, these platforms have multiple trading pairs for Bitcoin, making exchanges easier if you hold various coins.

Furthermore, a Bitcoin exchange offers different order types: stop-loss, limit, and market. This allows clients to buy and sell Bitcoin closer to the price they want. Also, after buying BTC, you’ll have multiple investment options available like staking, liquidity pools, and lending.

What Fees Are There When Buying Bitcoin?

Bitcoin exchanges apply various fees for using their platform. You can find this information by looking at an exchange’s dedicated fee structure page. Here are the main costs you’ll encounter when buying Bitcoin:

Spreads:

  • Bitcoin exchanges can apply a hidden fee called a “spread”. This means if Bitcoin costs $43k, the platform could set a price of $44k. The $1k difference is known as the “spread”.

Trading Fee:

  • All exchanges have costs for trading on their platform known as the “maker and taker fee”. This means you’ll pay a small amount on every buy and sell order. Typically, trading fees vary between 0.01% to 0.50%.

Deposit Fee:

  • Some payment methods have fees for transferring funds to the exchange. For example, bank cards and e-Wallets may have percentage fees for account deposits. Also, transferring cryptocurrencies to your exchange wallet has variable fees depending on the blockchain you’re using.

Withdrawal Fees:

  • Once you purchase Bitcoin, you’re more than likely going to withdraw to a private wallet. Exchanges apply a fee for transferring coins out of the platform, paid with BTC.

What Is the Difference Between Bitcoin Exchanges and Brokers?

Bitcoin exchanges let users purchase coins from one another while brokers offer derivative products. Exchanges are the preferred option since you buy real Bitcoin and can transfer it freely between accounts. Also, you can use Bitcoin in the real world and buy various products.

Moreover, brokers do not convey ownership of Bitcoin and only offer derivative products. This lets clients speculate the price of Bitcoin by purchasing CFDs, ETFs, and futures. However, Bitcoin enthusiasts do not recommend this option because you rely on the broker with your money. Nevertheless, this option is more accessible to beginners since you can easily swap fiat currency for Bitcoin without complicated trading interfaces.

What Is a Centralized and Decentralized Exchange?

Centralized Exchange:

  • Centralized exchanges (CEX) are platforms owned by a company that oversees the whole operation. They are regulated by a government authority that ensures all activities on the platform are legal. Moreover, CEXs require completing a KYC (Know Your Customer), making centralized exchanges, not an anonymous option.

Decentralized Exchanges:

  • Decentralized exchanges (DEX) allow investors to purchase and sell coins anonymously. These platforms are unregulated and are not run by a single entity. Instead, they use smart contracts to provide a secure exchange system for users. However, DEXs require some technical knowledge because you need to set up and connect a crypto wallet to the exchange.

Cheapest Ways to Pay for Bitcoin

Centralized Payment Methods

Bank Transfer:

  • This method offers secure and low-fee transfers to exchanges. Bank transfers utilize ACH, SWIFT, and SEPA to deliver quick deposits, making it faster to pay for Bitcoin.

Debit and Credit Cards:

  • This option is widely available and easy to use since it requires writing a few lines of information. Also, debit and credit cards are convenient since the exchange can save your details for future deposits.

E-Wallets:

  • Using an e-Wallet is a fast method to transfer money to an exchange. Services such as Skrill and PayPal offer straightforward steps for buying Bitcoin without writing your payment details. Moreover, you can link multiple bank cards to your e-Wallet.

Decentralized Payment Methods

Prepaid Cards:

  • Prepaid cards work like ordinary bank cards but do not require an identity to be attached. Investors can buy them at retail stores and online. However, it’s difficult to buy large amounts of Bitcoin because prepaid cards can hold a limited amount of money.

Bitcoin ATMs:

  • Bitcoin ATMs are gaining mass adoption, with thousands of machines being deployed worldwide. It lets investors buy Bitcoin without providing ID since the machine creates a paper wallet.

P2P:

  • Forums, FaceBook groups, and P2P platforms can facilitate cash-in-hand exchanges. This lets you get better rates since you’ll cut out the middleman and not pay fees. However, this method is riskier, and many people have been scammed. Therefore, you should wait until the transfer completes and verify that the Bitcoin is in your wallet.

What Are the Cheapest Bitcoin Exchanges in 2022?

KuCoin

KuCoin is one of the biggest crypto exchanges that offer multiple trading pairs for Bitcoin. The platform lets users set markets, stop-loss, and limit trade orders. Also, you can borrow Bitcoin from other users to trade and potentially earn more profits.

After buying Bitcoin, you can stake or lend them out to earn interest on your investment. Moreover, KuCoin has low fees that vary between 0.0125% to 0.01% depending on your past 30-day trading volume. Finally, you can receive discounts on fees by holding the native KuCoin token (KCS).

Key Features

  • KuCoin claims 1 in 4 crypto investors uses their platform.

  • KuCoin has ultra-low fees that vary between 0.0125% to 0.01%.

  • The platform has multiple investment options after buying Bitcoin.

Pros

Excellent fee structure
Multiple trading pairs for Bitcoin
Amazing investment options after buying Bitcoin

Cons

Not regulated in the United States
Withdrawing Bitcoin is expensive

How to Get Started

  • Step 1: Create an account with KuCoin and complete the KYC process to lift restrictions.

  • Step 2: Deposit funds into the account using your preferred payment method.

  • Step 3: Navigate to the trading interface and select Bitcoin.

  • Step 4: Then input the amount you want to purchase and click the “buy” button.

  • Step 5: Now you can see your wallet update and withdraw to a private wallet.

Binance

Binance has gained huge popularity in recent years resulting in over 28.6 million users globally. The exchange offers Bitcoin at excellent fee rates that can be reduced by 25% if you hold the BNB coin. Furthermore, Binance has multiple interfaces designed for different activities such as margin trading, converting coins, and regular trading.

After purchasing BTC, you have access to liquidity farming, staking, and lending to earn interest. Also, the platform has recently launched an NFT section where clients can invest in art.

Key Features

  • The exchange offers several trading pairs for Bitcoin.

  • Binance is the largest crypto exchange that has ultra-low fees.

  • Binance has recently launched an NFT platform where users can buy and trade art.

Pros

Holding BNB will reduce fees by 25%
Multiple options for depositing money
Binance is available in several languages

Cons

Binance is not available in the United States
Customer support is subpar
Not an anonymous option

How to Get Started

  • Step 1: Go to the official Binance homepage and select the “Register” button.

  • Step 2: Verify your identity and location to eliminate the withdrawal limits.

  • Step 3: Deposit funds into the account and navigate to the trading interface.

  • Step 4: Select Bitcoin and choose the relevant trading pair.

  • Step 5: Then, write the number of coins you want to purchase and hit the “buy” button.

CoinBase Pro

CoinBase Pro is perhaps the best for beginners because it features a user-friendly interface. The platform also has educational resources to teach new investors about trading and how blockchains work. Compared to CoinBase, the pro version has much smaller fees, so you can buy more BTC with your money.

Key Features

  • CoinBase Pro protects up to $250,000 of clients’ money with FDIC insurance.

  • CoinBase Pro has advanced trading tools.

  • Investors can freely transfer coins between the main and pro platform without encountering fees.

Pros

CoinBase Pro supports different types of trading orders
The fees vary between 0% to 0.50% depending on your 30-day trading volume
Excellent security

Cons

Limited choice of deposit options
CoinBase Pro supports a low amount of cryptocurrencies

How to Get Started

  • Step 1: Sign up to CoinBase Pro and verify your identity.

  • Step 2: Deposit funds via bank transfer or cryptocurrency.

  • Step 3: Open the trading section and select Bitcoin.

  • Step 4: Write the amount you want to acquire and press “buy” to execute the trade.

Kraken

Kraken is a brilliant platform that focuses on transparency for its clients. They recently opened a feature that lets investors see recent audits, letting users verify their holdings are backed up by real assets. Also, their security is amazing, and the settings allow users to set up 2-step authentication with BTC address whitelisting.

Furthermore, the maker and taker fees are 0.20% for new accounts. However, users can reduce the rates by having a high trading volume. Also, instantly buying crypto with a bank card has a 1.5% fee for Bitcoin.

Key Features

  • Kraken is a trustworthy brand that focuses on transparency.

  • The platform has excellent customer support that is available 24/7.#

  • The learning section contains useful information regarding Bitcoin investing.

Pros

Kraken has world-class security
The platform features a user-friendly interface
Kraken supports several trading pairs for BTC

Cons

Limited investment options compared to other platforms
The minimum trade amount is $10
High fees when instantly buying Bitcoin with a bank card

How to Get Started

  • Step 1: Open Kraken and complete the signup process.

  • Step 2: Verify your account by uploading a picture of your government-issued document.

  • Step 3: Deposit money into your account with your preferred transfer option.

  • Step 4: Click the trading platform and choose Bitcoin. Next, select the trading pair compatible with the coins you currently hold.

  • Step 5: Then, input the amount you want to exchange and click the “buy” button.

eToro

eToro is a stock and crypto broker that offers derivative products for Bitcoin. The platform does not convey ownership of real coins but lets you speculate the price instead. The broker is perhaps easier for beginners since it avoids advanced trading interfaces, and you don’t need technical knowledge to use eToro.

Key Features

  • eToro is a regulated trading service with more than 15 years of experience.

  • The complex fee structure makes crypto trading more expensive than traditional exchanges.

  • Pro accounts can look at successful portfolios to gain insights into what’s profitable.

Pros

Excellent variety of derivative products for Bitcoin
Regulated in numerous jurisdictions
User-friendly interface

Cons

Complex fee structure
High minimum trade amount
eToro does not convey ownership of cryptocurrency

How to Get Started

  • Step 1: Open the official eToro website and verify your profile.

  • Step 2: Deposit money in your account using one of the available payment options.

  • Step 3: Navigate to the crypto marketplace and select Bitcoin.

  • Step 4: Then input the amount you want to purchase and review the order.

  • Step 5: Once you’re happy with the trade, click the “buy” button to invest in Bitcoin.

What to Consider When Choosing the Cheapest Bitcoin Exchange?

Security:

  • Security should be your main priority when buying Bitcoin due to the many hacks on exchanges. Most platforms have a dedicated page that showcases their efforts to keep your money safe. Moreover, you can take some steps to secure your account, like creating a unique password, enabling 2-step authentication, and whitelisting your Bitcoin addresses.

Investment Opportunities:

  • If you plan to hold long-term, participating in investment options is a great idea. The platform should feature staking, lending, and liquidity pools to help you earn interest on your investment. Moreover, some of the bigger exchanges have weekly promotions that let you win tokens for completing various tasks.

Accessibility:

  • Using a crypto exchange should be straightforward and feature a user-friendly interface. We’ve mentioned some exchanges with a great UI design, making it easier for beginners to use. Also, the platform should feature some tutorials in case you have trouble navigating their system.

How to Get Started With Bitcoin Exchange?

Bitcoin exchanges follow the same principles from account creation to acquiring coins. Below is a quick step-by-step guide on how to start:

Step 1: Click the registration button
Step 2: Continue the registeration process
Step 3: Click the verification link sent to your email
Step 4: Verify your identity
Step 5: Deposit money
Step 6: Exchange
Step 7: Navigate to the trading interface
Step 8: Select the market order
Step 9: Write the amount of Bitcoin
Step 10: Click “buy”

Alternative Ways to Buy Bitcoin

Bitcoin ATMs:

  • Using BATMs is a great way of purchasing Bitcoin without revealing your identity. They are easy to use and commonly found in local retail stores. However, Bitcoin ATMs have higher fees compared to exchanges.

Decentralized Exchanges:

  • A decentralized exchange (DEX) is a straightforward platform for investors to buy crypto anonymously. This option requires users to connect a crypto wallet and exchange coins from other investors. Also, DEXs do not require a KYC process and are unregulated.

Brokers:

  • Brokers like eToro let investors buy into cryptocurrency through derivative products. They are more accessible to beginners since brokers avoid complicated trading interfaces.

Final Thoughts

Choosing a cheap Bitcoin exchange comes down to your preferences and needs. The platform should provide investment opportunities, multiple deposit options, and several trading pairs for Bitcoin. We’ve mentioned the top Bitcoin exchanges that offer competitive rates along with great features, so it’s up to you which platform is best.

Nevertheless, there are plenty of reliable and cheap options no matter your investing experience. Remember that Bitcoin is extremely volatile, and the market swings regularly. Therefore, you should invest accordingly and stick to an investment plan.

FAQs

How do I select a cheap Bitcoin exchange?
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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.