Where to Buy Bitcoin with the Lowest Fees

Buying your first Bitcoin can be an exciting step into cryptocurrency. But with so many exchanges out there, it’s easy to feel confused and discouraged. But you definitely need not to worry anymore. Here are where to buy bitcoin with the lowest fees.

1. Binance 

Binance is a popular choice for cryptocurrency traders worldwide. They offer some of the lowest fees in the industry, with a 0.1% fee for spot trading. If you use their native token BNB to pay fees, you can score an extra 25% discount. Binance supports a wide range of payment methods including credit/debit cards, bank transfers, and peer-to-peer trading.

2. Coinbase Pro 

Coinbase is a well-known name in the crypto space, and their Pro platform offers competitive fees. Maker fees start at just 0.5% and go as low as 0% for high volume traders. Taker fees range from 0.04-0.5% depending on your 30-day trading volume. Coinbase Pro supports USD, EUR and GBP deposits via bank transfer.

3. Kraken 

Kraken is another reputable exchange with low fees. Their maker fees start at 0.16% and taker fees at 0.26%, with discounts available for high volume traders. Kraken accepts deposits in USD, EUR, CAD, JPY and GBP via bank transfer and also supports some local payment methods.

4. Gemini ActiveTrader

Gemini’s ActiveTrader platform boasts maker fees as low as 0.10% and taker fees from 0.25-0.35% based on 30-day trading volume. For deposits, they accept bank transfers, wire transfers, and USD deposits from their mobile app. Gemini is known for its strong security and regulatory compliance.

5. Bitstamp

Bitstamp Founded in 2011, Bitstamp is one of the oldest and most trusted exchanges. Their fees start at 0.5% for trades under $10,000 in a 30-day period, going down to 0.25% for volumes over $20,000. Deposits via SEPA bank transfer are free, while international wire transfers incur a small fee. Bitstamp is known for its reliability and good customer support.

Related: 10 Best Crypto Exchanges for Futures Trading

6. Bitfinex 

Bitfinex offers very low fees, with maker fees starting at 0.1% and taker fees at 0.2%. They also offer discounts for high volume traders and those who hold their native token LEO. Bitfinex supports deposits in USD, EUR, GBP, JPY, and several other fiat currencies via wire transfer.

7. OKEx

OKEx has a tiered fee structure based on 30-day trading volume and holdings of their native token OKB. Maker fees range from 0.08% to 0.18% and taker fees from 0.1% to 0.2%. They support a variety of deposit methods including bank transfer, credit/debit cards, and peer-to-peer trading.

8. Huobi Global

Huobi is a major exchange with competitive fees. Their maker fees start at 0.2% and taker fees at 0.2%, with discounts for volume and holdings of their token HT. Huobi accepts deposits in USD, EUR, GBP, and several other currencies via methods like bank transfer and credit card.

Related: 10 Best Crypto Exchanges for Futures Trading

9. KuCoin

KuCoin offers low fees, with a flat 0.1% fee for both maker and taker trades. They also have a native token KCS which provides discounts on trading fees. KuCoin supports a wide range of cryptocurrencies and offers several fiat deposit options through third-party payment providers.

10. FTX

FTX is a derivatives exchange but also offers spot trading with low fees. Maker fees are 0.02% and taker fees 0.07%, with further discounts for high volume and FTT token holders. FTX accepts USD deposits via wire transfer and several stablecoins. They’re known for innovative products and good liquidity.

Key Takeaways

1. Fees can significantly impact your returns when buying Bitcoin, so it’s important to choose an exchange with low fees

2. Top exchanges for low fees include Binance, Coinbase Pro, Kraken, Gemini ActiveTrader, Bitstamp, Bitfinex, OKEx, Huobi Global, KuCoin, and FTX

3. Look for exchanges with low maker and taker fees, usually around 0.1-0.5% or lower

4. Many exchanges offer discounted fees for high volume trading or holding their native tokens

5. Consider deposit and withdrawal fees in addition to trading fees when selecting an exchange

6. Use limit orders instead of market orders to get lower maker fees when possible

7. Deposit funds via low-cost methods like bank transfer to minimize overall fees.

8. Compare rates across multiple exchanges to ensure you’re getting the best deal.

9. Be aware of network fees when withdrawing Bitcoin to an external wallet By following these tips and choosing a reputable, low-fee exchange, you can minimize costs and keep more of your Bitcoin investment. Remember to also factor in security, ease of use, and supported deposit methods when making your choice. With a bit of research and smart fee management, you’ll be well on your way to building your Bitcoin portfolio.

Frequently Asked Questions

1. What is the difference between a maker and taker fee?

A maker fee is charged when you place an order that is not immediately matched, such as a limit buy order below the current market price. These orders add liquidity to the exchange’s order book. A taker fee is charged when your order is immediately matched, removing liquidity from the order book. Exchanges often charge lower fees for maker orders to incentivize users to provide liquidity.

2. Are there any fees besides the exchange’s trading fee?

Yes, there are a few other types of fees to be aware of:

1. Deposit fees: Some exchanges charge a fee for depositing funds, which can vary based on the deposit method used (e.g., credit card, bank transfer).

3. Withdrawal fees: Most exchanges charge a fee for withdrawing funds, either in fiat currency or cryptocurrency. These fees can vary based on the withdrawal method and the specific currency being withdrawn.

4. Network or miner fees: When withdrawing Bitcoin from an exchange to an external wallet, you’ll need to pay a network fee (also known as a miner fee) to have your transaction processed on the Bitcoin blockchain. These fees can fluctuate based on network congestion.

3. How can I further reduce my fees when buying Bitcoin?

There are several strategies you can use to minimize fees:

• Use limit orders instead of market orders to get maker rather than taker fees.
• Take advantage of any discounts offered for high volume trading or holding the exchange’s native token.
• Deposit funds using low-cost methods like bank transfers rather than credit cards.
• Compare fees across multiple exchanges to ensure you’re getting the best rate.
• Consider using an exchange’s API for trading, as some offer lower fees for API trades.

4. Is it safe to buy Bitcoin on a low-fee exchange?

When choosing an exchange, it’s important to consider factors beyond just fees, such as security, reputation, and regulatory compliance. Look for exchanges that:

• Use strong security measures like two-factor authentication and cold storage for user funds
• Have a long-standing reputation in the industry and positive user reviews
• Are compliant with relevant regulations in your jurisdiction
• Offer insurance or other protections for user funds While low fees are important, it’s crucial to balance cost savings with the security and reliability of the platform you’re trusting with your funds.