Note: This is not trading advice, the following is strictly my opinion only. This is not financial or trading advice. Buying, Selling, and Trading cryptocurrencies comes with inherent risks. Always do your own due diligence.
Bitcoin.....
Volatile? Yes.
Highest ROI of any asset class in the last 12 years? Yes.
Risky Investment? Yes.
High purchase fees?? Not anymore!!!
Just as stock brokerages have nixed their trading fees and commissions, crypto exchanges are following suit. In this post, you'll learn about the current market leaders and the cheapest ways to buy Bitcoin. There are companies out there who claim to have zero fees, or very low fees, but they will sell you an inflated price for Bitcoin. This is a breakdown of the absolute best of the best with the lowest fees, no tricks, no BS, and no inflated prices. These companies are added based on my personal experience.
If you're brand new to Bitcoin, prep yourself with some basic knowledge by reading my Bitcoin Starter and Onboarding Guide. Also be sure to check out my post on legitimate ways to Earn Free Bitcoin. It's easier than you think.
The Cheapest Ways to Buy Bitcoin
Launched: 2020
Founder: Zap/Jack Mallers
Tested by author: YES
Customer Service: No data
Best Feature: Ability to buy & sell with no additional fees. No fees for withdrawals.
Biggest Complaint: Not available in New York! Also, no DCA yet (dollar cost averaging).
Jack Mallers is a genius. Using the Lightning Network, Strike allows for the quickest Bitcoin transfers in the world (as of post date), literally. They charge NO fees for buying, selling, and sending. They're working on a few ground-breaking projects with the most notable being the ability to convert a portion of your paycheck to Bitcoin. Just like their other products, there will be no added fees for this service. This is a revolutionary service which has been adopted by some NFL players already while in beta testing. You can also earn cashback while spending your Strike balance at online stores. Strike is destined to be a significant disrupter in the industry if they're able to add a DCA feature.
The biggest flaw is that it's not available in New York! This needs to be addressed.
Launched: 2019
Founder: Cory Klippsten
Tested by author: YES
Customer Service: 10/10
Best Features: Free auto-withdrawal to cold storage! Low fees!
Biggest Complaints: No app, browser-based only. Duration of funds to clear.
Swan Bitcoin is truly the best way to DCA (dollar cost average) your Bitcoin purchases. You can set up recurring purchases at any frequency and for as little as $5. The fees are among the lowest in the industry and their platform allows you to turn on auto-withdrawal. If you have a hard wallet, you can provide Swan with your address and they'll automatically send the Bitcoin you purchase to your cold storage, for FREE. This means ultimate security while enjoying low fees. It's a win-win.
Fees are as low as 0.99% for their pre-paid plan and if you're investing more than $50 per week.
The downside of Swan is the amount of time it takes for your funds to clear. This is for their protection and to prevent fraud, but I believe there is a better system. As it stands now, your purchase takes 10 days to clear in their system. After that, it is available for withdrawal. It's not the end of the world, and you pay for the price of Bitcoin upon your initial deposit, but I'm assuming the duration to clear funds is related to illiquidity at Swan. They also need an app!
Launched: 2013
Founder: Jack Dorsey
Tested by author: YES
Customer Service: 10/10
Best Feature: Ability to DCA. Low-ish fees.
Biggest Complaint: As experienced by thousands of other customers, the ID scanning is very poor and loaded with issues. I had to contact customer service on twitter to finalize my account.
Cash App is my least favorite from this list, but it makes the list because of the low fees (even though it's got the highest fees in this group of 4). Cash App was launched in 2013 as a method of sending money to friends. It was and still is a direct competitor of Venmo. They were among the first to add the ability to purchase Bitcoin and it's provided a significant boost to their growth. They also let you buy stocks.
Fees are as low as 0.75% for purchases over $5,000.
The ID scanning issue prevented me from using Cash App for over 2 years until I finally decided to message their support team on Twitter. The issue was resolved.
Launched: 2015
Founder: Brian Armstrong
Tested by author: YES
Customer Service: 6/10
Best Features: Very low fees, great app, #1 piece-of-mind in the crypto industry, best price point for Bitcoin, and a broader selection of tokens beyond Bitcoin.
Biggest Complaints: No ability to DCA. Fees to withdraw.
Coinbase launched in 2012 is the biggest name in Bitcoin and the broader crypto market. The pioneered the movement and made it incredibly easy to purchase, sell, and send Bitcoin. Coinbase Pro (formerly GDAX & formerly Coinbase Exchange) was launched as a trading platform which took the industry to the next level.
Coinbase Pro is built for serious traders but it's also one of the cheapest ways to buy Bitcoin. After you've linked your bank account to Coinbase, you can use Coinbase Pro to add funds to your account and immediately purchase Bitcoin, or any of the other 30+ assets. Fees go as low as 0.04% if you're throwing around some serious $$.
There aren't many flaws of Coinbase Pro, but the lack of DCA is a big one.
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