6 Cheapest Ways To Buy Bitcoin In 2024

Centralized exchanges are one of the cheapest ways to buy Bitcoin, especially for beginners. Centralized exchanges like Binance and Kraken, as highlighted in this list of low-fee cryptocurrency exchanges, offer some of the cheapest fees for getting Bitcoin, especially when using limit orders or trading large volumes. Many of these exchanges support multiple payment methods, including credit cards and debit cards. Some centralized exchanges allow fiat-to-crypto transactions, allowing you to directly buy Bitcoin cheaper compared to alternatives.

Centralized exchanges like Binance enjoy high liquidity, which often leads to cheaper prices for Bitcoin buyers. These exchanges also provide discounts, frequent promotions and good security, making them an attractive option for both new and experienced users. Here are some good centralized exchanges to get Bitcoin.

Binance: Cheapest Place To Buy Bitcoin

Binance arguably offers the cheapest way to buy Bitcoin, thanks to its competitive fee structure. Binance charges around 0.01% on Bitcoin purchases, allowing users to save significantly on trading fees. Additionally, Binance offers discounts for users paying with its  native token, Binance coin (BNB), making transactions even more affordable. Binance also offers zero-fee Bitcoin trading pairs for some markets. Furthermore, Binance supports buying Bitcoin with credit cards, charging around 2%. This is significantly lower than the 3% charged by Coinbase. Beyond its low fees, Binance is also known for being very secure, and providing a good interface that is suitable for both beginners and experienced traders. 

Coinbase

Coinbase is a secure, user-friendly, and straightforward platform that provides one of the cheapest ways to buy Bitcoin.Known for its intuitive interface and strong reputation, Coinbase supports multiple payment options, including PayPal, credit cards, debit cards, and wire transfer. This flexibility makes it easy for users globally to fund their account and buy Bitcoin. Coinbase also offers competitive fees for Bitcoin purchases, ranging around 0.06%, and could be lower, depending on the trade volume. Additionally, Coinbase provides transparent pricing, allowing you to know what you are paying for.  If you are looking for the cheapest place to buy Bitcoin with good security, Coinbase is one of the most reliable options.  

Kraken

Kraken is one of the oldest cryptocurrency exchanges and is one of the cheapest places to buy Bitcoin. Fees on Kraken are between 0% to 0.26%. Fees can go as low as 0% if you are buying in high volumes using Kraken Pro, the exchange’s advanced trading platform. Additionally, Kraken only charges a small fee to fund your account with bank transfers, providing the cheapest way to buy Bitcoin. Beyond the cheap fees, Kraken has several advantages for Bitcoin lovers. It offers the security and support traders need when buying crypto. There’s a high likelihood that Kraken is available in your country as it serves over 170 nations as of this writing. 

Peer-to-peer exchanges provide arguably the cheapest way to buy Bitcoin, especially for people who prefer to trade in a decentralized way. These P2P exchanges connect Bitcoin buyers and sellers directly, eliminating the middleman and the heavy fees that come with such third parties. P2P platforms are designed to allow users to negotiate prices, choose their payment method and keep things safe. Some of these platforms charge minimal or zero transaction fees, making it cheap to get your bitcoins. 

One of the key benefits of using the best P2P Crypto Exchanges is the flexibility in choosing your payment method. Some of the options available for buyers include bank transfers, mobile payments, cash, depending on their locations. Using cash saves you from the extra cost of bank deposits and related fees. P2P exchanges also offer competitive rates, as different sellers try to attract buyers. This competitiveness ensures you get the best and cheapest rate for your purchase. 

Using P2P exchanges is cheaper than traditional exchanges. In addition, P2P exchanges offer access to a global market, allowing you to trade with users around the globe and finding trading partners with the best rates. Some P2P exchanges support over 30 fiat currencies, making them an easy way to get Bitcoin without many hurdles. 

Limit Orders Over Market Orders

Using limit orders over market orders can be a cheap way to get Bitcoin, especially on exchanges that have different fees based on order types. Limit orders allow you to set a specific price at which you prefer to buy Bitcoin. Limit orders are often used by users who want to take advantage of short-term gains or volatile markets and have lower fees compared to market orders. 

Meanwhile, market orders are executed at the best available price, and are mostly used by traders who want to buy or sell quickly. However, using market orders means you do not have control over the execution price. Also, market orders incur “taker fees” to compensate for their demand for instant liquidity. Choosing a limit order helps you avoid paying the cost associated with immediate execution, making it one of the cheapest ways to buy Bitcoin.

In addition, limit orders give you control over the trading process. With limit orders, you do not have to get into trades set at unfavourable rates. Instead, you set a limit order and wait for the market to meet your terms. Although limit orders are not as fast as market orders, their benefit lies in being cost-effective, especially for traders who do not want to pay the premium for fast trades. 

Every crypto exchange provides different funding methods, such as debit/credit cards, bank transfers, third-party platforms, each with varying fees. Some crypto exchanges charge little or nothing for bank transfers, making them suitable for those interested in saving costs. On the other hand, some exchanges impose fees due to processing costs imposed by financial institutions. These extra costs can make it more expensive to get your Bitcoin. So, understanding the difference in fees can help you save costs and get Bitcoin cheaper. 

It’s always important to consider using an exchange with the best funding option available and cost-effective for your needs. If your local banking provides free or low-cost transactions, select exchanges that align and are cheap to use. Similarly, if your funding option is a debit or credit card, take the time to compare rates on different exchanges. Some platforms negotiate lower fees with card networks, making them more budget friendly. However, third-party payment processors like PayPal often come with higher transaction and conversion fees for international transactions. Although they provide better convenience, their associated cost should be a factor to consider. If you plan to use the PayPal option, research platforms that integrate it with reduced fees to ensure you’re not overpaying.

Ultimately, optimizing your funding method requires careful research and planning. Start by comparing the fee schedules of your top exchange choices and match them with your preferred payment method. By making an informed decision, you can save a significant amount on deposit fees, leaving more room to invest in Bitcoin. Remember, even small savings on funding methods can add up over time.

Be Mindful Of Volume And Spreads

Reputable crypto exchanges like Binance and Coinbase, who are two of the best exchanges for day trading, often have higher trading volumes, which leads to tighter spreads. Spreads refer to the difference between the price at which you buy/sell your crypto and the asking price. High volume exchanges like Binance ensures a constant flow of buyers and sellers, keeping price difference small. Using such platforms means you are less likely to overpay due to wider spreads, and you get the best deal on your Bitcoin purchases. 

Platforms with lower volumes tend to have wider spreads due to reduced liquidity. This often leads to you paying more for Bitcoin or selling it for less than you ought to, thereby increasing your costs. Choosing a high-demand, reputable exchange with strong liquidity ensures you enjoy competitive pricing with little or no hidden fees. So, always prioritize using tier 1 exchanges like Binance, KuCoin, Coinbase, OKX, and Kraken to maximize costs. Using these exchanges is arguably the cheapest way to buy Bitcoin.

Leveraging Discounts and Promotions

Can Market Conditions Make It Cheaper to Get Bitcoin?

Yes, market conditions can greatly influence the price of getting Bitcoin. During periods of high liquidity and trading volume, the market experiences tighter spreads, resulting in competitive pricing and better deals for buyers. On the other hand, periods of low-volume markets lead to wider spreads and higher prices due to reduced liquidity. 

Timing your purchase during market dips, when prices temporarily drop due to selling pressure, can be an excellent strategy to get Bitcoin at a lower cost. Additionally, staying updated on market trends, global events, and Bitcoin’s price movements can help you choose the best moment to invest.