Are you interested in buying Bitcoin, but don’t want to pay fees?
Bitcoin is supposed to cost less than traditional currencies, so why does it have fees?
Fortunately, there are ways around paying fees when you purchase Bitcoin. However, you must know these methods.
You might get stuck paying a 10% fee without these methods. And that almost eliminates the entire purpose of Bitcoin.
Anyway, read on to discover some different methods to avoid fees when you purchase Bitcoin.
The first idea people have when they want to avoid Bitcoin fees is to go to LocalBitcoins. For those that don’t know, LocalBitcoins is a website that connects local Bitcoin sellers with local Bitcoin buyers.
That’s right, you will physically meet the person to purchase Bitcoin. This is usually done with cash.
Think of LocalBitcoins as the Craigslist of Bitcoin.
Unfortunately, LocalBitcoins charges some fees. You also have to deal with sellers not giving the best exchange rate on Bitcoin.
Depending on the seller, you might end up paying more for the Bitcoins than if you had just bought them on Coinbase. Additionally, it’s annoying to meet someone on LocalBitcoins for a purchase.
That said, we do recommend LocalBitcoins if you want to purchase Bitcoin anonymously. But better options exist if you want to avoid paying high fees.
Do you have a Coinbase account?
If you do, then you already have a Coinbase Pro account – it’s a sister company of Coinbase.
So, what’s the difference between the two companies?
Coinbase Pro allows you to make maker orders. These are orders on the exchange itself instead of purchasing from the Coinbase account.
This means Coinbase Pro charges no fees for Bitcoin purchases. Coinbase Pro also doesn’t charge deposit fees if you transfer money from your Coinbase account (free deposits).
Basically, we’ve spent time looking for the lowest cost way to purchase Bitcoin, and Coinbase Pro is the best option for most people.
Lykke (EU only)
Lykke is an EU based cryptocurrency exchange that has zero fees.
That’s right, no fees. No deposit fees, no withdrawal fees, and a pretty decent exchange rate. You can think of them as the European version of Coinbase Pro.
Unfortunately, Lykke is only available to EU citizens. US citizens have Coinbase Pro, so that isn’t a huge problem for Americans and Canadians.
Many people immediately jump to Bitcoin ATMs when they think of a way to buy Bitcoin.
Unfortunately, Bitcoin ATMs have some of the highest fees for purchasing Bitcoin. You really don’t want to purchase Bitcoin at a Bitcoin ATM unless absolutely necessary.
The fees can be up to 10% with a terrible exchange rate.
And it shouldn’t be necessary with the ease of purchasing Bitcoin these days.
Just avoid Bitcoin ATMs.
Can I avoid paying transfer fees?
No. You must pay transfer fees no matter where you purchase your Bitcoin. Those transfer fees pay the Bitcoin miners that make the blockchain operate.
Thankfully, the transfer fees on Bitcoin are extremely low. For large purchases, the transfer fee is a negligible amount.
Can I mine my own Bitcoin?
Yes. You can mine your own Bitcoin if you have a mining rig (computer). It’s actually a great way to acquire Bitcoin, but it has costs associated with it in the form of electricity and the rig itself.
We don’t recommend mining Bitcoin only to avoid fees. However, if you already have a rig, then you may as well mine Bitcoin with it if it’s profitable.