Cheapest Ways to Purchase Bitcoin in 2020

February 19, 2020 by No Comments

Looking for the cheapest ways to purchase Bitcoin this 2020? This article has got you covered!

Bitcoin has been the leading cryptocurrency for as long as the crypto markets came to be. It takes up about 70% of the total crypto market and is the most valuable cryptocurrency. This is why everyone wants a bitcoin.

There are so many bitcoin trading platforms and exchanges which implies that there are so many ways to purchase your Bitcoin. However, when it comes to purchasing bitcoin, people are often charged high transaction fees which make purchase expensive.

To save money, you should consider purchasing your Bitcoin in the cheapest of ways. Listed below are some of the most affordable platforms where you can buy your Bitcoin:

6 Cheapest Ways to Purchase Bitcoin in 2020

  1. Coinbase

Coinbase is one of the leading cryptocurrency wallets globally; it has been around since the year 2012. On Coinbase, you can purchase Bitcoin and altcoins at a relatively cheap rate. The process of buying bitcoin is also safe and straightforward.

First of all, you need to sign up on the platform. Your name, email address, and chosen password are part of the requirement. Next, you will be required to verify your identity, and this is to avoid fraudsters from accessing the platform. You can verify your identity using any government-issued ID.

With your identity verified, you can now buy bitcoin on coinbase. You can purchase Bitcoin using your credit or debit card, bank transfer, or with a Coinbase USD wallet.

To purchase bitcoin cheaply, your best bet is using bank transfer or a Coinbase USD wallet as a transaction fee of only 1.49% will be charged. Buying using a credit or debit card would attract a 3.99% fee.

In terms of safety, Coinbase is very safe. Since its inception, the platform has never been hacked, and most of its cryptocurrencies are stored offline. Buying bitcoin on Coinbase is also convenient. It is available on the web for PC, and mobile devices whether Android, or iOS.

  1. Coinmama

You need a Coinmama account to purchase bitcoin on the platform, so you need to register. The registration procedure is quite simple and can be completed in no time. After registering, you are to verify your account.

Coinmama allows you to buy bitcoin using your bank account, credit/debit card and via SEPA. Those in the select markets can as well sell Bitcoin. It is important to note that Coinmama is not a crypto wallet; it is merely a platform where cryptocurrencies are traded.

For this, you would need to own a crypto wallet before you can purchase bitcoin on Coinmama. As you supply your wallet address on the purchase page, ensure that it is correct by crosschecking. If there is any error, you won’t receive your Bitcoin.

Coinmama charges a flat 5.5% transaction fee. However, an extra 5% fee will be charged if you purchase using a credit/debit card. Make use of bank transfer and SEPA transfer at no additional cost.

Before the bitcoin is transferred, Coinmama will send a wallet confirmation link to your email address. Click on the link in the email to verify your wallet. When you buy bitcoin on Coinmama, you get credited almost immediately; it does not take more than 10 minutes.

 

Read Also;  Guide: What Are the Best Bitcoin Alternatives?

  1. LocalBitcoin

The LocalBitcoin platform is different from other crypto exchange platforms you have come across. What makes this platform one of the cheapest ways and place to purchase bitcoin is because it is a peer-to-peer market place. That is, you can purchase bitcoin directly from other users of the platform. This platform was founded in 2012 and is being used by people from different countries.

Purchasing Bitcoin on LocalBitcoin is very cheap because it is peer-to-peer. What happens is that a seller posts an advert about Bitcoin he or she intends to sell. On these adverts states the price and payment methods.

When you come across the adverts, and you are satisfied with the price, you can contact the buyer, and you both carry out the transaction. The role the platform plays is that of an escrow.

To ensure that people do not get defrauded, LocalBitcoin uses an escrow system for payments. When a buyer pays for Bitcoin, the money is not immediately transferred to the seller. LocalBitcoin admin holds it until the buyer has verified that he or she has received the Bitcoin.

Allowed payment platforms on LocalBitcoin include cash payment – if buyer and seller are in close locations -, bank transfer, Western Union, Webmoney, and Paypal.

Buying bitcoin on LocalBitcoin attracts a 0% transaction fee – you pay just the amount stated by the seller. The platform only charges bitcoin sellers a 1% transaction fee.

  1. Binance

Hundreds of cryptocurrencies are being traded on the Binance platform in minutes which makes it one of the most used crypto exchanges. The platform is relatively new, as it emerged in 2017. However, it is one of the cheapest online exchange you can purchase Bitcoin.

As usual, you need a Binance account to use the platform, and you can register one for free. Bitcoin can be purchased on Binance using bank transfer, credit card, or with other cryptocurrencies.

The platform is straightforward to use, and the process of buying Bitcoin is easy and instant. Your wallet is credited immediately after payment is confirmed.

Binance is a cheap platform to purchase bitcoin because it attracts meagre transaction fees. The transaction fee charged for bitcoin purchase is just 0.1% regardless of the amount involved.

The transaction fee can be even less when you purchase bitcoin using Binance’s native cryptocurrency, the Binance Coin (BNB). All transactions with BNB on the platform grants a 50% discount on fees.

The Binance platform can be accessed from various device types. Aside from the web platform, it has a mobile application that can be downloaded on Android and iOS devices. It is also available as a desktop application for Windows and MacOS.

  1. CEX

CEX is a bitcoin exchange. The platform is simply for buying and selling Bitcoin. It is available to people in different countries with 99% global coverage. To use this platform, you need to make a valid registration.

On CEX, you can purchase bitcoin via different payment methods. Payment methods available include credit/debit cards, ACH, SWIFT, SEPA, Faster Payments, and other cryptocurrencies. Whatever payment method you use, the process is fast and straightforward.

Transaction fees charged on CEX are low and are calculated based on your total trade volume for the past 30 days. This charge is being recalculated at the start of each day to keep it accurate.

The highest charge for purchasing Bitcoin on CEX is 0.25% for a 30-day trade volume of less than 5 BTC. If you are using CEX for the first time to buy Bitcoin, you will be charged just 0.25%.

It is also possible to reduce the charges to as low as 0.10% for a trading volume above 6,000 BTC. When the payer make use of a VISA or MasterCard debit/credit card, there is an extra charges of about 2.99%.

  1. Bitpanda 

Bitpanda is known as the home of digital assets. It is a platform for investing in cryptocurrencies and other digital assets like gold. The platform emerged in 2014 and since then has attracted the interest of many crypto users.

After signing up on Bitpanda, you need to carry out a quick and easy verification to be able to purchase Bitcoin.

Bitpanda lets you make payment via many payment channels. Using this platform, you can make payments via bank transfer, EPS, credit or debit card, Neteller, SEPA, Skrill, giropay, and a few others.

Bitcoin can be purchased any time of the day, and the platform is available 24/7. Also, it is an automated platform, so they credit your account gets credited with Bitcoin once your payment is confirmed.

When you purchase Bitcoin on Bitpanda, about 1.49%  transaction fees will follow the transation. This makes the platform one of the cheapest to buy cryptocurrency. The platform functions as a wallet as well, so you can use it to store your Bitcoin after purchasing.

Transacting on Bitpanda is entirely safe. The platform offers a 100% security guarantee using state of the state-of-the-art technology.

You can access the platform easily on mobile by downloading the mobile app. This app is available for iOS and Android mobile devices.

Reald Also; Blockchain 101: Beginner’s Guide to Cryptocurrency

Conclusion

Listed above are the cheapest ways you can purchase bitcoin. They are ideal platforms to use because they attract low purchase fees.

From findings, paying for Bitcoin using credit or debit cards attract higher fees. They usually send the  extra charge to the card provider. If you want to purchase Bitcoin cheaply, it’ll be best you avoid using your payment cards and make use of other available payment options.

Some platforms offer lesser fees, but the cheapest platform may not be the best platform. Security and reliability are essential factors to consider, as well. The platforms listed above are secure and reliable.

Purchasing Bitcoin can be a profitable investment, but due to its high volatility, it can also be risky. To avoid regrets, follow the general rule – do not put in more than you can afford to lose.

Related; 7 Top Reasons to Buy and Sell Cryptocurrencies

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