Cheapest Cryptocurrency Exchanges
Cryptocurrency exchanges are the main platforms for investors to buy, sell, and withdraw coins. These platforms are necessary for cryptocurrencies to be traded at today's scale. However, exchanges have various fees, and some platforms have more competitive rates than others.
This page covers everything you need to know about fees when buying cryptocurrencies through exchanges. Also, we’ll disclose the best crypto exchanges that have the lowest fees.
Cheapest Exchanges to Buy Cryptocurrencies in 2022
Below is a table of the cheapest exchanges that let you buy and sell cryptocurrencies:
What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is a digital marketplace that lets traders purchase and sell coins. The exchange connects buyers and sellers through their platform and applies a fee for their service. Also, these platforms have multiple trading pairs for each cryptocurrency, making it easier to invest with fiat currency and altcoins.
The exchange can provide multiple order types: market, limit, and stop-loss. This gives investors more choice regarding the price they buy cryptocurrencies.
What Fees Are There When Buying Cryptocurrencies?
Cryptocurrency exchanges apply different fees for using their services. Investors can find this information by looking at the exchange’s fee structure page. Here’s a list of the main costs users will run into:
Maker and Taker Fee:
Most exchanges apply maker and taker fees on all trades. This means you’ll pay a small percentage fee on top of the sell or buy order. Also, your trade volume can impact the amount you’ll pay as most platforms use a tier system.
Some payment methods can apply a fee for transferring funds into your account. For example, some exchanges have percentage fees for using a credit card to transfer fiat currency.
After buying crypto, most investors transfer their coins to a private wallet, where they’ll encounter a withdrawal fee. This is usually paid with the token being withdrawn from the platform. However, the fee amount varies between coins due to the blockchain type.
This is a hidden fee that some platforms apply. For example, Bitcoin could cost $39,000, but the exchange’s trading interface will show $40,000. Therefore, you’ll be buying less crypto with your money if the exchange doesn’t offer accurate real-time prices.
What Is the Difference Between Cryptocurrency Exchanges and Brokers?
Cryptocurrency exchanges let users sell and buy coins from each other. The crypto platform offers various investment opportunities like staking, liquidity pools, and lending coins. Also, users will own their coins and can withdraw from the platform at any time.
However, brokers do not let clients convey ownership of real cryptocurrencies. Instead, they offer derivative products that allow investors to speculate the price of coins. Although brokers are user-friendly, crypto enthusiasts do not recommend these platforms since you heavily rely on the broker with your money.
What Is a Centralized and Decentralized Exchange?
Centralized cryptocurrency exchanges (CEX) are run by a company that dictates the platform's available coins and investment opportunities. These applications let investors deposit fiat currencies and convert them to coins. Also, most CEXs require completing a KYC process to comply with laws and regulations. Therefore, centralized platforms are not an anonymous method of buying cryptocurrencies.
On the other hand, decentralized exchanges (DEX) let users buy and sell coins without revealing their identities. DEXs do not own their coins and connect buyers with sellers. Moreover, decentralized exchanges make their money by applying a small fee on all trades, which is later sent to the contract address. Finally, these platforms are built on the blockchain and use smart contracts to operate.
Cheapest Ways to Pay for Cryptocurrencies
Centralized Payment Methods
Debit and Credit Cards:
These options are the easiest to use and widely available on crypto exchanges. The deposit fees vary between platforms, but it’s worth using this option for convenience. Simply input your details, and you’re good to go. Also, the platform can save your information, making it easy to deposit next time.
Services like PayPal are a great option because they are straightforward to use. Some exchanges let you connect e-Wallets, so you won’t need to waste time writing in your information.
Although bank transfers are slower, they have the lowest transfer fees. Moreover, users can utilize SWIFT, SEPA, and ACH to transfer money faster. However, international payments may take longer to complete.
Anonymous Payment Methods
When using a crypto ATM, you’ll need to specify that you don’t have a wallet. This makes the machine create a paper wallet that doesn’t require ID. Afterward, you can transfer the coins to an exchange and purchase the crypto you desire.
Some platforms facilitate cash-in-hand exchanges between investors. This method is riskier and more prone to scams. Therefore, you should wait with the seller until the transfer is complete.
Users can buy prepaid cards online and at local retail stores. They work like regular bank cards but do not require attaching your identity to them. However, they have a limited amount they can hold, making it difficult to buy significant amounts of crypto.
What Are the Cheapest Cryptocurrency Exchanges in 2022?
Binance is the largest cryptocurrency exchange in 2022, with over 28.6 million users worldwide. It offers hundreds of coins to trade at incredibly low fees. These fees can be reduced by 25% if you hold Binance’s native BNB token. The platform has multiple trading interfaces that are tailor-made for beginners and experts.
Furthermore, Binance offers their clients multiple investment opportunities like Binance Earn, staking, and liquidity farming. Also, they have recently added NFTs to the platform for those who are interested.
Binance is the biggest crypto exchange with over 28.6 million users.
The platform has recently launched an NFT marketplace.
After buying coins, clients can participate in staking and liquidity farming.
Binance provides several trading platforms that have different tools.
The exchange offers hundreds of coins with multiple trading pairs.
How to Get Started
Step 1: Create an account with Binance and verify your identity
Step 2: Deposit money into the account using one of the methods Binance provides
Step 3: Then open the trading interface and select a cryptocurrency you want to purchase
Step 4: Input the number of coins you want to receive and click the buy button
CoinBase is the best exchange for beginners due to its easy-to-use interface, educational resources, and security features. The platform offers a pro version that is easy to use and offers much smaller fees compared to the main website. Although the trading interface seems complicated, users can watch a quick tutorial to get to grips with the platform.
However, CoinBase Pro doesn’t have a huge portfolio of cryptocurrencies to buy. The platform has a strict vetting process, and only the most promising projects are available to purchase.
CoinBase Pro has advanced charting and trading options.
The platform has 2-step authentication and uses cold storage for coins.
Unlike CoinBase, the pro version allows stop-loss and limits orders.
Both CoinBase platforms are connected, meaning users won’t need to create a separate account.
CoinBase Pro has FDIC insurance that protects up to $250,000 of stolen funds.
How to Get Started
Step 1: Go to the official CoinBase Pro website and create an account.
Step 2: Complete the KYC process to lift withdrawal restrictions.
Step 3: Then deposit funds into the account via bank transfer or cryptocurrency.
Step 4: After, click the trade button to open the markets page.
Step 5: Select the coin you want to purchase and choose the currency you have in your account.
Step 6: Choose the type of order and input the amount you want to buy.
Step 7: Review the order and click the buy button to acquire the coins.
KuCoin is a large crypto exchange that claims 1 in 4 investors use their platform. The exchange offers basic trading options, margins, and futures. After buying coins, KuCoin offers several investment options such as staking, lending, and liquidity pools.
Moreover, KuCoin has ultra-low fees for trades that range from 0.0125% to 0.01%. The fees depend on your trading volume in the past 30 days. Also, you can receive discounts on fees by holding the KuCoin token (KCS).
Furthermore, the platform offers a huge range of cryptocurrencies with various trading pairs. In addition, users can participate in launch pads and buy into projects at the early stages.
KuCoin has exchange fees of 0.0125% to 0.01% depending on your past 30-day training volume
The platform claims 1 in 4 crypto investors use KuCoin
KuCoin has multi-factor authentication and encryption to protect users’ money
Investors can purchase coins anonymously since the KYC process is not required
KuCoin has several investment options for users
How to Get Started
Step 1: Open the official KuCoin website and sign up
Step 2: Complete the KYC process if you want to lift withdrawal restrictions. Unverified accounts are restricted to withdrawing 5 BTC daily
Step 3: Deposit fiat currency or crypto into your account and open the trading interface
Step 4: Select the coin you want to purchase and the amount
Step 5: Lastly, click the buy button to complete the trade
Kraken is a brilliant choice for new and experienced crypto investors looking for low trading fees. The cost of purchasing coins is 1.5% for most cryptocurrencies and 0.9% for stablecoins. Also, the platform supports hundreds of altcoins so clients can diversify their portfolios.
Furthermore, Kraken lets users enable 2-step authentication to increase their security. Clients can also lock their account at any moment if they think it was breached. Finally, the platform offers a great selection of staking programs where users can earn interest in their holdings.
The platform has low fees that are reduced depending on your 30-day trading volume
Kraken supports 97 cryptocurrencies
Kraken uses world-class security to prevent hacks and users’ funds from getting stolen
The platform has 24/7 customer support that has low queue times
The learn section lets beginners understand the fundamentals of investing
How to Get Started
Step 1: Create an account on the official Kraken website and complete the KYC process
Step 2: Next, deposit money into your account using one of the options provided
Step 3: Open the trading platform and select the token you want to acquire
Step 4: Lastly, input the number of coins you wish to purchase and click “buy” to complete the trade
Bybit is a platform that facilitates crypto trading for Bitcoin and altcoins. The trading fees are exceptionally low at 0.1% on buy and sell orders. Also, their platform has excellent staking options and promotions. Lastly, Bybit is multilingual, and support is available 24/7.
Its powerful API helps conduct multiple trades and quickly updates market prices
Bybit uses a 100k TPS matching engine to acquire the best prices
Friendly user interface
Excellent variety of investment options
Bybit supports a huge selection of coins
How to Get Started
Step 1: Open an account with Bybit and complete the verification process
Step 2: Deposit funds and open the trading interface
Step 3: Select the crypto you want to buy and input the amount
Step 4: Click the buy button, and the platform will automatically apply the low fees
What to Consider When Choosing the Cheapest Crypto Exchange?
Ease of Use:
The platform should be easy to use with a user-friendly interface. Nobody wants to waste time looking for essential features, so why should you? We’ve mentioned a few platforms have a straightforward design, making them accessible for all investors.
Before depositing money, ensure that the exchange has excellent security. Usually, a dedicated page showcases what services they use for protecting their clients. Also, the platform should allow whitelisting wallet addresses and 2-step authentication.
The crypto exchange should provide various coins with several trading pairs. This gives you convenience when trading if you hold various stable and blue-chip tokens. Also, coin variety means you can diversify your investments.
Those planning to hold long-term should have access to multiple investment opportunities. Check if the crypto exchange has staking options, liquidity pools, and running promotions.
How to Get Started With a Cryptocurrency Exchange?
Most crypto exchanges follow the same straightforward steps for getting started. We’ve outlined how to begin.
Step 1: Sign up for an account
Step 2: Contiue the signup process
Step 3: Input your details
Step 4: Click the verification link sent to your email
Step 5: Verify your identity
Step 6: Deposit funds
Step 7: Select the coin you want to purchase
Step 8: Choose the relevant trading pair
Step 9: Click "buy"
Alternative Ways to Buy Cryptocurrencies
A straightforward method of investing in crypto is with a broker like eToro. They are more accessible due to the easy buying process and user-friendly interfaces. However, you’ll be buying a derivative product instead of real coins.
This method is great for buying coins anonymously. However, crypto ATMs have a limited variety of coins and larger fees.
DEXs are brilliant for buying coins without ID since there is no KYC process. These platforms have excellent fees, coin variety, and investment options. However, use exchanges not linked to Ethereum since ERC-20 platforms have huge gas fees.
Selecting the cheapest exchange to buy crypto comes down to your requirements. The platform should contain everything you need, from investment opportunities to a large coin variety. Therefore, you shouldn’t hesitate to use a crypto exchange with slightly higher fees if it delivers a premium service.
Nowadays, there are plenty of options for investors at different levels. Binance is amazing for beginners, while CoinBase Pro is an elite platform for experts. Remember that crypto is highly volatile, so invest your money accordingly.