Did you take a moment to consider the fact that Bitcoin has been around for 10 years now? Well, since it first appeared on the market, it went through various changes that led to its immense popularity. So, nowadays you can buy bitcoins with bank transfers, PayPal or gift cards, which is why you might wonder if it is possible to buy bitcoin without fees.
Well, if you are new to the Coinbase world, read our guide about how to buy bitcoin with Coinbase, a platform where you can store cryptocurrency that allows you to trade it via Coinbase Pro.
It provides a wide range of digital currency trading pairs, including the famous bitcoin, being backed up by major investors in the field such as the New York Stock Exchange or Union Square Ventures. So lets first look at how to buy bitcoin without fees on coinbase.
Coinbase Pro vs Coinbase
The core distinction between Coinbase and Coinbase Pro is the fact that Coinbase acts as a broker, a service that buys Bitcoin for you and charges a fee for it, while Coinbase Pro represents an exchange, that allows you to buy or sell Bitcoin on the market.
Both Coinbase and Coinbase Pro do not charge users directly for withdrawals of their digital assets.
Coinbase redirects the network fee to the user, varying depending on how heavily the network is currently being used.
The truth is that if you want to buy bitcoin instantly you will have to pay a certain fee on Coinbase initially when you first send your USD to Coinbase which is where you initially will exchange your U.S dollars for Cryptocurrency.
But, if you are patient, you can opt for using a bank transfer instead of a debit card to diminish said fees.
What is even more interesting is the fact that on Coinbase Pro you will have no fee for using USD to buy BTC.
Coinbase charges its users a purchase fee, a spread that goes between 0 and 200 basis points, meaning up to 2%, to the exchange rate.
On the other hand, Coinbase Pro does not feature a hidden conversion fee, it only limits your bank transfers to $ 7,500 per week.
How to buy bitcoin without fees on Coinbase Pro
As we already mentioned, Coinbase Pro is not a broker, which is the main reason why there is no fee for purchasing Bitcoin with US dollars.
It is important to note that you can automatically get an account at Coinbase Pro without any verification, If you already have a Coinbase Account. You can Sign Up for a Coinbase account and you should be able to easily access coinbase pro formerly known as GDAX.
Instead, this platform charges a trading fee, that goes as it follows.
Coinbase Pro functions based on a maker-taker fee model meant to establish trading fees.
Basically, if you opt for accepting one of the existing offers, you are considered to be a taker.
Instead, if you choose to make your own offer, you are a maker. Hence, to set up your own offer, you will have to opt for a buying price below the existing lowest selling price, in a so-called limit order.
So, in this particular case, you will pay zero fee.
Anyhow, if you choose to accept an existing offer, you can submit a market order, that will automatically link you to the existing lowest price.
In this particular case, you will be required to pay a trading fee of 0.10 to 0.30%.
Other methods to buy Bitcoin without Fees – Bisq Platform
Differing from centralized exchanges, Bitsquare will not store any of your funds, but it offers you a wallet that is stored locally on your device or computer that you are using.
Thus, when a person would want to sell Bitcoin, he places it into his Bitshares wallet, establishes an offer broadcasted to all the peers and as soon someone accepts the offer, the trade initiates.
Hence, in order to be allowed to trade, both the buyer and the person selling (the seller) must provide a security deposit required which is 0.1 BTC, which will be used as a collateral in the event in which any of the parties misbehave.
Mainly, with Bisq as the protocol suggests, there is a non-mandatory fee, needed for the transaction to be included in the blockchain.
Also, a network fee might be requested if you want to withdraw your funds, usually derived from the exchange fee.
Bisq allows bank payments and various conversions, which at first won`t require a fee, but eventually you will have to cover some banking fees and bitcoin transaction fees.
Bottom line, the trick on how to buy Bitcoin without fees is to be patient. Instant Bitcoin transactions usually require a fee, while you can avoid withdrawal, conversion and purchase fees if you strategize and bid in such manner that almost all those fees go to the other party involved in the transaction.
As far this problem is concerned, Coinbase Pro is one of the best solutions to buy Bitcoin with little to no fees, while Bisq, has a minimal cost for almost any type of action taken into account.
Both Coinbase Pro and Bisq are great for trading, if you are patient enough to avoid unnecessary costs.