When you’re buying Bitcoins, you need to keep a lot of different factors in mind, such as geographical location, supported currencies, and mot importantly the transaction fees.
While those may be the most popular methods of buying Bitcoins, they aren’t the only ones. Below, I’ve listed out three of the cheapest ways to buy Bitcoins.
However, before you buy Bitcoin now, you should start using bitcoin wallet so you can store them safely. I would recommend you use hardware wallets such as Ledger Nano S and Trezor as they’re the safest means of storage.
Comparative Table of 3 Cheapest ways to Buy Bitcoin
The following is a comparison of the 3 cheapest ways to buy Bitcoin. You can use this table to help narrow down your search.
|Changelly Review||0.5%||Okay||Global, with Credit/Debit restrictions||Buy|
PART 1: Paxful
Paxful is one of the two most popular peer-to-peer exchange platforms in the world. It features on the top of this list because you don’t have to pay ANY transaction fee to buy Bitcoins from this platform.
Of course, they also don’t have a standardized rate as the rate of selling bitcoins is determined by individual sellers. As such, you should look for sellers who are selling Bitcoin at a lower rate.
Other than the fact that it’s cheap, Paxful is also one of the exchange platforms which requires no verification, making is highly anonymous. Furthermore, you can use a number of unconventional payment methods such as gift cards and PayPal as well.
In this platform, Paxful is merely a spot where buyers and sellers can meet to strike a deal. Once a deal has been struck, you can transfer funds to an escrow account. Following that, you receive the Bitcoins, and once you do you can release the funds to the seller.
How to Buy Bitcoins with Paxful:
- Register with Paxful.
- Enter the amount of Bitcoins you want to purchase along with the payment method and the city (if you want your seller to be physically accessible).
- Go through the profiles of all the sellers and find one that seems reliable and meets your requirements.
- Send a trade request.
- Once they accept, their funds will be transferred to the escrow account.
- Make the payment using your preferred payment method.
- They’ll release the Bitcoins once they receive the payment.
Geographical Availability: Paxful is available across the globe.
Fees: NO fees applicable for buyers.
Read: Paxful Review
LocalBitcoins is just like Paxful. However, LocalBitcoins is far older and perhaps a little more reliable. No verification is necessary and they charge no transaction fee. As such, the rate determined by the seller is all you have to pay.
Because it’s a p2p platform with no verification, you find a lot of frauds and scammers in the platform. You should very carefully vet the profiles of all sellers before striking a deal, and also go through the fraud or scam warnings page often.
How to Buy Bitcoins with LocalBitcoins:
- Register with LocalBitcoins.
- From the Instant Bitcoins page start searching for relevant advertisements. You can filter your search by entering the amount of Bitcoins you want to buy, the payment method, and whether you want to limit your sellers based on country or city. Filtering based on geography is usually helpful if you intend to meet them in person to buy the Bitcoin. However, that’s dangerous and ill-advised.
- Vet your sellers thoroughly by going through their profiles, reputation, feedback, past transactions, etc. Once you’re satisfied they’re legit, send a trade request.
- Once the trade request is accepted, their Bitcoins will be deposited in an escrow account.
- Send payment using your preferred payment method. If you’re sending by cash deposit, send proof in the form of a receipt as well.
- Once the payment is received, the seller will release the Bitcoins to you.
Geographical Availability: LocalBitcoins is available across the globe.
Fees: LocalBitcoins doesn’t charge any transaction fee from the buyers.
Read: LocalBitcoins Review
PART 3: Changelly
Changelly is a lot safer than the peer-to-peer exchange platforms as it works based on standardized rates and you’re not dealing with sellers directly. However, it has a slightly higher transaction fee of 0.5%. However, this is still negligible compared to other exchange platforms.
How to Buy Bitcoins with Changelly:
- Register with Changelly with your email address.
- Select your currency and Bitcoins.
- Enter the amount of Bitcoins that you want to buy.
- Changelly doesn’t store bitcoins so you’ll have to enter your wallet address.
- Confirm & Make Payment.
- Choose your payment method, add it, and then proceed.
- Once the payment has been processed, you’ll receive the Bitcoins within 30 minutes.
For other queries you can go through their FAQ page.
Geographical Availability: Changelly is available across the globe.
Fees: The transaction fee in Changelly is just 0.5%.
Read: Changelly Review
These are some of the cheapest and most reliable exchange platforms in the market. My personal recommendation would be to use LocalBitcoins as it has been around the longest. However, if you’re a beginner and wary of using a p2p platform, you can use Changelly as well.
If you have any other questions, feel free to ask down in the comments section.