As the price of Bitcoin rises uncontrollably, people are unable to buy the cryptocurrency at an affordable rate. Currently, 1 BTC costs over $55,742.68 but when you go to buy the coin, there are additional fees charged on your purchase. Therefore, most crypto beginners look for ways to buy Bitcoin without fees. However, avoiding fees completely is not possible. Bitcoin is currently bought only by paying some trading fees or premiums. Even so, some lesser-known ways can help you if you want to buy Bitcoin without fees.
Types of Fees to Consider When Buying Bitcoin
Before buying Bitcoin, you need to know the additional charges that are involved in the process. There are different types of fees charged when buying Bitcoin. Here are the four types of fees to consider:
- Trading Fees: Cryptocurrency exchanges charge a small fee of 0.1% or 0.2% on every trade. When you buy Bitcoin from an exchange or a trading platform, this small percentage gets added to your purchase price before you checkout. Some exchanges, however, nullify these trading fees on frequently traded cryptocurrencies and large-volume purchases.
- Deposit and Withdrawal Fees: Every crypto exchange makes its revenue from the fees levied on deposits and withdrawals. When you add money to your crypto wallet, your credit card is charged with an average $1 fee. For withdrawals, this fee could go up to $5 per transaction. Depositing in traditional currencies and withdrawing cryptocurrencies can collectively cost you $5 to $8 per trade. This fee is called a “funding fee” and is used to electronically transfer the funds from your bank account to the crypto wallet through multiple regulators and vice versa.
- Mining Fees: Mining fees are rarely charged while buying Bitcoin from exchanges. They are used as transaction fees by crypto miners. You can buy Bitcoin directly from the miners by paying their mining fee. However, there is no specific amount that comprises the mining fee. Miners of large cryptocurrencies charge heavy fees to complete their transactions. When you buy a Bitcoin from a mining network, the mining fee gets added to the blockchain. This way, the Bitcoin goes to your wallet only when you clear this mining fee.
- Premiums: Some crypto companies allow you to buy and sell cryptocurrencies without any fees. Instead, they may make profits by charging a premium. Currently, these companies are making over 350% premium on Bitcoin sales. Ideally, Bitcoin premiums start from 25% of the market price.
Based on these types, the additional costs of buying a Bitcoin can be determined.
Is there a way to buy Bitcoins online without any fee?
It is not completely possible to buy Bitcoins without fees. However, there is a workaround. Coinbase Pro, a popular crypto trading platform, can reduce these fees to near-zero percentages. Coinbase Pro allows individual users, pro traders as well as crypto enthusiasts to buy Bitcoin at the lowest fees. It provides a secure and easy way to buy BTC assets online. With Coinbase Pro, you can buy Bitcoin instantly and even get it at a lower price through various trading pairs.
How Coinbase Pro works is it allows you to do limit buys. These limit buys are free. Here, you set the limit price of Bitcoin against the current price of Bitcoin. When the price keeps changing, Coinbase Pro determines if it is necessary to purchase the specified quantity at the limit price.
Currently, Coinbase is 1% on large BTC buys. Other trading platforms tend to charge a flat fee of $10 on every BTC purchase. So, if you buy 1 BTC for $45,000 from these platforms, it will charge you a $10 fee, which is barely 0.022% of the price.
The Secret to Buying Bitcoin with No Fees
There are two lesser-known secrets of buying Bitcoin without any fees.
- Maker trades: It is a trick where you place the original order in the first place. As a maker, you can carry out the trade and help your associate to buy Bitcoin without any fees.
- Taker trades: As a taker, you can offer to buy Bitcoin from someone at a certain price instead of using platforms or other charges.
These two ways are some of the loopholes that allow many crypto beginners to buy Bitcoins fee-free.
How to Buy Bitcoin Without Fees?
Similar to trading platforms, crypto wallets can also help you buy Bitcoin without fees. Lykke, for example, is an emerging crypto wallet used for this purpose.
Lykke currently charges a 0% deposit fee on Bitcoin trading. Lykke also stands out for enabling a 0% fee on all fiat-to-Bitcoin transactions made through its exchange. The entire Lykke blockchain and network charges no commission for these transactions. The exchange, however, charges a flat rate fee when you withdraw Bitcoins from Lykke’s crypto wallet into fiat currency bank accounts. So, technically, you are charged with absolutely no fees when you buy and store Bitcoin on the Lykke Wallet.
All things considered, buying Bitcoin without fees is possible. It can be done when you understand the different types of fees that are charged on BTC purchases. You can find different ways of avoiding or reducing those fees to a bare minimum. Apart from that, If you are looking to make a good amount of money from Bitcoin trading then you should know about the Bitcoin Robots. These are the platforms that lead you to make good money trading. Check out Bitcoin Evolution to get the best experience of the Bitcoin robot platform.