It’s hard to believe that bitcoin has been around for 10 years now. Since its creation, Bitcoin has evolved a lot in those 10 years. For one, it is now incredibly easy to buy and sell bitcoin. This is because of the hundreds of payment options there are now in today’s age. You can now buy bitcoins with bank transfers, PayPal and even gift cards but still, there is a burgeoning question out there. Is it possible to buy bitcoin without fees?
Although there are hundreds of payment methods now available, it can be a challenge to find a good bitcoin exchange that has reasonable fees. Some of the exchanges out there impose some pretty ridiculous transaction fees and that can feel a little bit unfair at times. There are also bitcoin ATMs where you can buy and sell bitcoin but most of them charge unreasonable fees and are not available everywhere.
It also means that there are some exchanges in which you can get more bitcoins for your money.
For example, Coinbase fees are subtracted from the amount entered to arrive at the total.
If you enter $100 USD as the amount of BTC to sell, and the fee is 1.49%, your total will be $98.51. $100 Worth of BTC will be removed from your Coinbase account and $98.51 will be credited to the selected payment method.
It’s important to do your research before deciding which exchange to use. It is also important to ask around and get the answers you are looking for first and find out about the nuances of using a particular exchange. Look for forums that users or traders use to find out if there are hidden fees. That is good to know since we do not want to be surprised by anything while buying your bitcoins.
Buy bitcoin without fees from peer to peer exchanges
Traditional exchanges have evolved into more of a corporation and may not necessarily align with the spirit of cryptocurrencies. A grim reminder of this was when Coinbase partnered with spyware making company Neutrino. This pushed users out of their platform for the fear of their privacy.
With peer to peer exchanges, you might be asking can I really buy and sell bitcoin without transaction fees?”– The answer is yes but then you might start to wonder how do these exchanges make money? The secret is the escrow fee.
Depending on the exchange, you’ll be charged some escrow fee, this fee guarantees that the bitcoins are only released after all the transaction requirements have been met and there is no funny business going on between buyer and seller. Since people set their own price per bitcoin and how much it costs you for each dollar, sometimes because of the nature of seller’s requirements, you might even get more bitcoin than your money’s worth.
Let’s explain the process of purchasing bitcoin with one of the most famous names Paxful:
Paxful is one of the biggest peer-to-peer marketplaces for bitcoin. On Paxful, you can practically buy and sell bitcoin without fees. Plus, you can trade almost anything for bitcoin with the 350+ payment methods available. As well as that, buyers are not charged with any transaction fees. Instead, sellers pay a 1% escrow fee to compensate. Essentially, users can buy bitcoin (with any payment method) and not have to worry about any transaction fees. On the other hand, if users are looking to sell bitcoins (trade their bitcoins for something like cash or gift cards), they’ll have to take note of the 1% escrow fee.
Buying bitcoin without fee with CashApp
Another way to buy bitcoin without any fees is through Square’s CashApp (the link only works on mobile). Square, the company that designed the application, announced that the users would be able to purchase $10,000 worth of bitcoin every week. They also promised to not charge any fees for their services. The app makes use of the money in the bank account linked to your debit card. For now, it only allows you to buy one cryptocurrency: bitcoin.
It’s a Part of Life
The thing about fees is that they’re a part of life. Platforms need compensation for their services. Instead of going out there and looking for a place to buy and sell bitcoin without fees, look for a place that you can buy and sell bitcoin with VERY LOW fees.
Luckily for us, there are still a few platforms/applications out there that still allow us to buy/sell bitcoin without fees. Let’s just enjoy them while we have them.
How much are you paying in fees now on your current platform? Do you think there’s a better alternative for you out there? Let us know in the comments section below!