Bitcoin is considered one of the most renowned and purchased cryptocurrencies because it was the first crypto launched, and it has dominated the industry ever since. Despite a recent downward curve in value, it still holds the top spot in terms of value and market capitalization.
Most likely, you must pay a fee to middlemen who process transactions to purchase Bitcoin. However, there is a well-kept secret that the middlemen don’t wish crypto users to know about: how to purchase Bitcoin for little to no fees.
Worry not; in this blog, you’ll get an answer to your query. So let’s start walking together!
Before we learn how to buy Bitcoin without fees, let’s know the types of fees you have to pay.
Types of fees associated with Bitcoin trading
Newbie crypto investors need to be aware of the various fees that come with buying bitcoin and other cryptocurrencies in general. There are four different kinds of fees when trading bitcoins:
- Network fees
- Exchange fees
- Trading fees
Let’s learn about them quickly.
- Network fees (Mining fees)
The network fee is the amount each bitcoin buyer must pay to complete the transaction. If you want to buy bitcoin without paying a fee, you might discover cheaper services, but you will still have to pay the transaction fee.
The miner who creates the block, which contains your transaction, is compensated with a network fee for a bitcoin transaction, sometimes referred to as a mining fee. Your transaction gets verified and added to the blockchain thanks to the network fees.
- Exchange fees
Exchanges and brokers who deal in cryptos have the right to charge fees for deposits and withdrawals of funds onto and from their platforms. Both fiat currency and cryptocurrencies are subject to the exchange fee.
When using different methods to deposit or withdraw your money, exchange fees can also fluctuate. For example, the fastest way to purchase bitcoin is using a credit or debit card, which can have more considerable deposit fees than bank transfers, which might take several days.
- Trading fees
The crypto exchange you use to buy bitcoin will impose trading fees. These trading fees for each trade made on that platform might range between 0.5% and 2%. Although this is a small fee for a one-time transaction, it can rapidly add up if you frequently trade cryptocurrencies.
You can purchase bitcoin for no cost on some cryptocurrency exchanges. However, some businesses charge more when buying bitcoin and offer to buy it for less than its market worth. This is because they cannot generate a profit or maintain their business any other way.
Other services allow you to pay a monthly or annual subscription fee for a premium version of their services, which includes no-fee bitcoin trades.
After learning about the types of fees that you have to pay while trading Bitcoin, let’s know how you can eliminate them.
There are two ways mentioned below by which you can eliminate giving fees:
- Buying Bitcoin without fees – Having a middleman
- Buying Bitcoin without fees – Eliminating the middlemen
Buying Bitcoin without fees – Having a middleman.
- Scheduled commissions: Anyone looking for a fee-free way to purchase Bitcoin should know the scheduled commissions that crypto exchanges and platforms charge. According to specific schedules, the charge decreases as you trade more and eventually becomes zero. To benefit, you should purchase a quantity of crypto that fits into the range where the fees are either minimal or nonexistent.
- Special discount rates: Some platforms reward their users for their loyalty by dropping the charge whenever they reach a particular milestone.
- Purchasing in cash against using a credit card: Some exchanges urge customers to buy bitcoin with cash rather than credit cards. As a trader, you may know that using a credit card is always more expensive than using cash. Cash transactions may incur no fee at all.
Buying Bitcoin without fees – Eliminating the middlemen.
There is an option available for you if you’re still trying to figure out how to purchase Bitcoin without paying a fee: you can purchase directly from a user, cutting away the middleman.
The best option is to use a Peer-to-Peer (P2P) platform to connect with a seller. You can choose the most preferred seller from the many listed on these platforms. You can also purchase from someone you already know, such as a family member or a coworker.
The process includes giving the pre-defined money to the seller for them to send that particular amount of Bitcoin to your crypto wallet. This is how fee-free Bitcoin purchasing is done.
You can get your answers cleared about P2P trading at WazirX by visiting here!
To learn more about WazirX P2P trading, visit here!
Here’s a tutorial that you can watch and help yourself!Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.