If you’re looking to learn how to buy Bitcoin at the cheapest rate possible, you’ve come to the right place. We’re going to be looking at everything from transaction fees to withdrawal fees, and assist you in knowing what to keep an eye out for when coming across a new exchange.
What To Look Out For
As mentioned above, there are some key factors to consider when looking at an exchange on which to buy Bitcoin. Each exchange is different so it’s important to read the fine print when something sounds too good to be true. So here are the three key elements to check first before depositing any money onto the platform.
Transaction fees: What does the exchange charge you to complete a transaction on the platform? Remember this includes, buying and selling BTC (taker and maker fees).
Withdrawal fees: What does the platform charge you to withdraw funds into your local bank account?
Current exchange price: Always check the price of Bitcoin across a number of exchanges. While it’s common for exchanges to inflate their prices slightly to generate income, it should not be wildly higher than another reputable platform’s. Check Coinmarketcap for the price of Bitcoin if you’re unsure.
Other things to look out for:
Security: Is the platform reputable and safe from security breaches and hacks.
Customer support: Does the platform offer customer support, and if so through what avenues. It isn’t going to help someone in South Africa if an exchange only offers support during Australian working hours.
UX: How user friendly is the site? If it looks complicated, chances are very strong that it will be complicated to use. Look for something with a simple interface and easy to follow instructions.
Reviews: Always read the reviews. If something is wrong with this platform, chances are 98% that you will hear about it in the reviews on various websites and app stores.
How To Buy Bitcoin At The Cheapest Rate Possible In 2021
In your quest to find the cheapest rate, we’ve highlighted five of the top options to consider when looking to buy Bitcoin. We’ve broken these down into two categories: peer to peer and exchanges.
Peer to Peer
Peer to peer trading is when you buy Bitcoin from another trader, as opposed to going through a platform. This could work out to be cheaper, but try to use a company that facilitates pairing you with a buyer and that uses escrow services. Escrow simply means that funds are held until payment has been received.
Local Bitcoins is an international Bitcoin marketplace that focuses specifically on local buyers and sellers within a country, region or area. The platform enables over the counter trading of local currencies for Bitcoins. Users will indicate how they would like to be paid (i.e. which local bank) and the price they’re selling at.
Fees: 1% fee on all trades
Speed: generally 1 hour from funds clearing
Easy To Use: Difficult
Recently launching on the shores of South Africa, Remitano has experienced great success in Asian markets. The platform matches interested buyers with sellers, and offers a profile on each trader to aid buyers in making educated decisions. The platform also makes use of escrow services, ensuring the integrity of all trades. Deposits can be made through local South African banks or cryptocurrencies.
Fees: 1% on all trades
Speed: Fast. For transactions that aren’t completed in 15 minutes incur a 50% discount. Withdrawal time is 5 minutes.
Easy To Use: Medium
This popular crypto trading platform has built up a strong reputation in South Africa, Nigeria, Indonesia, Malaysia and Singapore and over 400,000 active daily users. The platform is easy to use, fast, and very reliable. Users can also benefit from their 0% fees for market makers by creating a sell order instead of a selling BTC directly through the platform. Luno accepts bank transfers in ZAR and does not currently offer credit card facilities.
Fees: Free deposits, low withdrawal fees
Easy To Use: Easy
Established in 2011, Kraken has been delivering great crypto services to the community ever since (which in crypto years is almost a lifetime). The platform boasts being the largest crypto trading platform in Europe based on daily average trading volume. Get ready to unleash the Kraken. The platform accepts bank transfers only.
Fees: Between 0.25% – 0.1% taker fee and 0% maker fee depending on volume
Easy To Use: Difficult
Established and founded in South Africa, Altcointrader is a popular option as they offer trading pairs against the South African Rand. Aside from Bitcoin, they offer 13 other cryptocurrencies to trade with, which is limited but if you’re there for Bitcoin nothing to stress over. Altcointrader accepts deposits via bank transfer.
Fees: 0.0005 withdrawal fee, 0.375% taker fee, 0.375% maker fees
Easy To Use: Medium
Navigate The Markets With Confidence
If this is your first time buying Bitcoin we would advise prioritizing ease of use over fees, however if you are a seasoned trader and adamant that you know how to buy Bitcoin at the cheapest rate possible – unleash the beast and grab it by the horns. Crypto trading doesn’t need to be complicated or scary, with guides like these we’ll show you just how simple it can be.