Unless you’ve been living under a rock the past few years, you’ve heard about Bitcoin. In 2017, bitcoin hits its highest price ever. One bitcoin was valued at $19,783. Since that record high, Bitcoin and cryptocurrency markets have calmed down a bit.
At the time of writing, 1 Bitcoin is valued at $6,430. Although, it is unclear if Bitcoin will ever rise again, investing a small amount of your money in Bitcoin wouldn’t do you any harm. If Bitcoin ever skyrockets again, you’d be glad you invested even a little amount.
If you are interested in buying bitcoin, this article is specially written for you. In this article, we will list out the best services to buy Bitcoin. When selecting a service, you must select the best service according to your requirements:
Bitcoin Exchanges with Lowest Fees
These are the bitcoin exchanges that have some of the lowest fees. It is important to understand that in order to buy Bitcoin with the lowest fee, you need to choose the right payment method. If you do not choose the right payment method, fees can be much higher than you expected. We will teach how to get the lowest fee:
Coinbase Pro has some of the lowest fees out of all cryptocurrency exchanges. In all cryptocurrency exchanges, there are 3 types of charges. Fees when depositing, trading, and withdrawing.
At Coinbase Pro, if you deposit funds to your account using a bank transfer (ACH), you pay 0 fees. When you withdraw Bitcoin, you pay 0 fees. The only fee you pay is when you trade. That is when you buy Bitcoin with USD. You will either pay the market maker or taker fee while trading. When you place an order, if the order doesn’t get filled automatically, you are the market maker. If the order gets filled automatically, you are the market taker. At Coinbase Pro, the market maker pays the lesser fee. However, if your trading volume is less than $50,000, it wouldn’t make any difference. The market maker and taker pay the same fee. You can check out the full breakdown of Coinbase Pro fee structure here.
If you do not deposit using ACH (bank transfer), your fees can be much higher. For example, Wire transfers take a fee of $10 when you deposit funds.
Coinbase and Coinbase Pro are owned by the same company. Coinbase also has significantly low fees compared to other exchanges. Just like Coinbase Pro, to get the lowest fee, you need to deposit funds using ACH (bank transfer). Coinbase also charges no fee when you deposit funds using ACH (bank transfer). However, Buy/Sell transactions and digital currency conversions at Coinbase do have fees. You can check out the breakdown of Coinbase fee structure here.
One downside of Coinbase is its limited availability. It only supports customers from the USA, Canada, Australia, UK, Singapore, and some European countries. You can check the supported countries here.
LocalBitCoins is not a cryptocurrency broker like Coinbase. It is an exchange where buyers and sellers interact directly with each other. The LocalBitCoins exchange does not take any fee from you.
When sellers sell bitcoin at LocalBitCoins, they usually mark up the price of Bitcoin. This is the “fee” you will be paying at LocalBitCoins. Depending on the method you choose to buy Bitcoin at LocalBitCoins, your fees can be high or low. The lowest fee we have seen at LocalBitCoins is when you buy bitcoin with “cash” or a “bank transfer”. However, if you surf through all offers at LocalBitCoins, you can find offers with significantly low fees or no fee at all.
Best Services to Buy Cryptocurrency Without KYC
KYC (Know Your Customer) is the process employed by businesses to verify the identity of customers before or during doing business with them. This process usually requires customers to provide their government ID, passport, or other forms of documents.
This can be troublesome for those who want to buy Bitcoin anonymously. Fortunately, there are some services that can be utilized to buy Bitcoin anonymously. You can learn about them here.
Bitcoin Exchanges With Highest Security
The security of your funds is very important when buying Bitcoin. I’m sure you have heard stories about people losing their funds while buying bitcoin or exchanges getting hacked.
The safest way to buy Bitcoin as of today is with the use of a decentralized exchange. A decentralized exchange is not owned by anyone. All transactions occur directly bitcoin buyers and sellers. On a decentralized exchange, the only person in control of your funds is you. However, if you forget your login details, your funds will be lost forever. In that scenario, a decentralized exchange is less secure. However, if you know how to use a decentralized exchange properly, your funds will have the highest security. Here are some of the best decentralized exchanges available today:
If you do not like decentralized exchanges, you can still use reputed cryptocurrency exchanges like Coinbase. Coinbase exchange claims that the majority of their funds are stored in secure offline storage. Coinbase is one of those exchanges that has never been hacked so far.
Best Services to Buy Bitcoin Anonymously
Some people like Bitcoin for its anonymous nature. However, this is not true. Bitcoin is not completely anonymous. It is pseudo-anonymous at best. If you want to remain anonymous while buying Bitcoin, there are a few ways to do that. You can learn how to buy Bitcoin anonymously here.
Bitcoin Exchanges With Fastest Withdrawal Times
Withdrawal times are a very important factor of consideration when choosing a service to buy Bitcoin.
Without a doubt, the fastest way to buy Bitcoin is with the use of a Bitcoin ATM. These are ATMs that enable you to buy and sell Bitcoin. Bitcoin will be available on your wallet within minutes. You can find the nearest Bitcoin ATM here.
If you are buying bitcoin from a peer-to-peer exchange like LocalBitCoins or Paxful, withdrawal times are entirely dependent on the seller of bitcoin. Because you have to wait till the seller releases Bitcoin to your wallet.
If you are buying Bitcoin from a Bitcoin broker, your options of payment are “bank transfer”, “wire transfer”, “SEPA transfer”, or “debit/credit card”. A bank transfer takes the longest time to process. A debit/credit card has the fastest processing times.
However, when you buy Bitcoin from a Bitcoin broker, your funds will only be deposited to your exchange wallet. You will then have to withdraw this Bitcoin to your Bitcoin wallet. Here are some of the exchanges with fastest withdrawal times to your wallet:
When you select a service to buy Bitcoin, you must always select the service that caters to your requirements.