Nowadays, cryptocurrencies are trending everywhere in the world. Many new investors are getting attracted to it each day and looking forward to investing their money, but many have doubts. Beginners usually come up with questions related to the charges required to buy Bitcoin, which we will discuss in this article.
Be it any product or any service, and nothing comes for free. Some new people in this field don’t know whether they have to pay any fee for purchasing Bitcoin. Well, let us break down this for you. Whenever an investor buys or sells crypto coins, there are some fees attached to them. These costs include withdrawal fees, trading costs, transaction fees, and deposit charges.
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Can you purchase a Bitcoin without paying any fees?
Can anyone buy Bitcoin without paying any charges? Well, the answer to this question is no. No cryptocurrency can be bought by avoiding paying any extra amount related to it. However, there are always some ways that one can learn to minimize the fees they have to pay during their purchase.
This article will share some exchanges where you don’t have to pay hefty amounts on buying cryptocurrencies. The exchanges we have discussed in this article are some of the best in the industry. But before we discuss that, let us talk about some of the types of fees that we have to pay while purchasing Bitcoin.
Types of fees
- Withdrawal and the funding fees:
Many platforms charge a cost whenever a person requires to send money or receive money on that exchange. When an exchange charges you a cost for adding money to your account, it is a deposit or the funding fee. But when the transaction is made to send money from your account to some other wallet, it charges you a withdrawal fee.
- Trading fees:
Usually, most platforms charge approximately 0.1% to 0.2% of the trade money that you make through those exchanges. It may not look like a significant amount now, but you will probably realize that it isn’t a tiny amount when you add it after making every trade.
Sometimes trading fees are also mentioned by the names “taker” or the “maker” fees on various sites. When you add a new order to your order box, then you pay the making of an order amount. On the contrary, if you fill an order that has already been added to your order box, you pay by taking an order amount.
- Premium costs:
Many platforms do not charge any other fees, but they do charge hefty premium amounts. To understand this, let us take an example. If the Bitcoin’s original value is $7000, then the exchange purchases it at this price and sells it at a higher amount, such as $7100 or $7200.
It is also termed as “spread.” So before you make any decisions related to making investments in cryptocurrencies, do proper research. Try to get an idea about the “spread” in the different exchanges. After comparing different platforms, you will be able to find out the better option for yourself.
- Mining or the transaction fees:
Whenever an investor transacts the money to its blockchain, he needs to pay a transaction amount, also known as the mining cost. It might be evident that if you want to bring Bitcoin into your wallet, you need to pay mining charges and the buying amount.
Where can you buy Bitcoin?
If you are looking for some exchange to buy Bitcoin, this is one of the best and probably the cheapest sites. All you have to do is open an account on their platform and get some fiat currency to buy Bitcoins. Coinbase charges at least 1.49% of your trading amount when you purchase Bitcoin.
However, it does not take any extra charges on deposits that are made by the bank transfers. If you use any card (debit or credit) for buying the crypto coin, then you need to pay 3.99% of it at least.
This exchange offers its services in almost 180 countries all over the world. It is an Israel-based platform that provides very similar services to Coinbase. But one of its drawbacks is that you cannot deposit money on this exchange. So, whenever you have to buy something, you have to use western union payment methods, credit or debit cards.
Talking about its charges, it takes about 5.9% of the amount used to buy Bitcoin. However, when you use credit or debit cards, it takes an extra fee of 5%, which becomes a reasonable amount.
No denial that it is one of the most expensive exchanges, but it offers quality services which you cannot doubt. This platform is speedy and easy to use. Another plus point is that you do not need to register yourself on this exchange, and also, the details of your cards will not get saved or stored on their site. This is why it provides the best safety when investing a hefty amount in Bitcoins.
To sum up
Finding an exchange that does not charge any fee when you buy Bitcoin is an almost impossible task to do. Even the exchanges also want to profit, so they charge different types of fees from you. The best option for you is to do as much research as possible and find a place where you can avoid paying hefty extra charges.