9 Cheapest Ways to Buy Bitcoin in 2024

Let’s walk through the cheapest ways to buy Bitcoin. In this guide, we’ll take you through low-cost exchanges — and discuss how you can minimize fees on your Bitcoin purchases.

Popular Low-Fee Exchanges and Services

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Strike

Strike is an app designed to make it easy to buy, sell, and send Bitcoin. Strike offers a competitive fee structure, with an average 0.93% spread on Bitcoin purchases and zero withdrawal fees.

Spread: 0.1%-1%+

Pros & Cons

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  Zero fees on Bitcoin purchases
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  No withdrawal charges
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  Lightning Network integration for fast transactions

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  Only Bitcoin available
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  Some users have complained that Strike can have higher spreads than other platforms

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River Financial

River Financial is a Bitcoin-focused exchange with zero fees on recurring Bitcoin buys. River is a great option for those who want to set up a recurring Bitcoin purchase!

Fees: 0% on recurring BTC purchase, 0-1% on other purchases

Pros & Cons

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  Zero fees on recurring Bitcoin purchases
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  Supports Lightning Network for instant transactions
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  Automated self-custody feature for secure storage
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  All Bitcoin backed 1:1 in reserves

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  Limited to Bitcoin only
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  Only available in the United States

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Swan Bitcoin

Swan Bitcoin is known for its low fees, especially for investors using a dollar-cost averaging (DCA) strategy. The platform charges a 0.99% flat fee for Bitcoin purchases.

Fees: 0.99% flat fee (no fees on first $10,000)

Pros & Cons

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  Low fees, especially for recurring purchases
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  No fees on first $10,000 of purchases
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  Buy BTC instantly using bank transfer/bank wire

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  Limited to Bitcoin only
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  Not ideal for active traders

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Kraken Pro

Kraken Pro — a free version of Kraken for experienced traders — features a competitive 0.40% taker fee for most trades, making it a great option for buying BTC and other cryptocurrencies. The platform offers a wide range of cryptocurrencies and advanced trading features.

Maker fees: 0-0.25%, Taker fees: 0-0.40%

Pros & Cons

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  Low fees for high-volume traders
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  200+ cryptocurrencies (including Bitcoin)
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  Advanced trading features (advanced charting, margin, and derivative trading for most non-US customers)

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  Higher fees on the standard Kraken platform
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  Some advanced features not available in the US

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Coinbase Advanced Trade

While the standard Coinbase platform can be expensive, Coinbase Advanced is free to use and offers low fees (0.60% and lower). You can also get started with a Coinbase One subscription to unlock zero fees on $10,000 worth of trades every month.

Maker fees: 0-0.40%, Taker fees: 0.05-0.60%

Pros & Cons

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  Lower fees compared to regular Coinbase
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  260+ cryptocurrencies (including Bitcoin)
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  User-friendly interface

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  More expensive than some competitors
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  Fees can vary depending on market conditions

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Bisq

Bisq is a decentralized, peer-to-peer Bitcoin exchange that allows users to buy and sell Bitcoin without verifying identity. While it has higher fees than other options (0.15-1.15%), Bisq is a great choice for users who value decentralization and privacy.

Fees: Maker: 0.15%, Taker: 1.15%

Pros & Cons

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  No registration or KYC required
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  Supports various payment methods
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  Open-source software
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  Decentralized governance model

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  Requires a security deposit in Bitcoin to get started trading
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  Lower liquidity compared to centralized exchanges
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  Trades can take longer to complete
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  More complex for beginners

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Cash App

Cash App is a financial app, payment platform, and banking alternative. When you direct deposit your paycheck on Cash App, you can convert a portion to BTC with no fees.

Fees: 0% on direct deposit, 0.75-3% for other BTC purchases (depending on size of order)

Pros & Cons

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  Fee-free Bitcoin purchases through direct deposit
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  Simple and user-friendly interface
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  Integrates with other financial services on Cash App

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  Bitcoin only, no other cryptocurrencies available
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  0.75-3% fees on BTC purchases if you don’t use direct deposit

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Fold

Fold is a Bitcoin rewards platform that allows users to earn Bitcoin on everyday purchases and offers a Bitcoin debit card. Fold offers a Fold+ membership to card holders — a $100 a year subscription that gives you access to fee-free BTC purchases.

Fees: 0% for subscribers, 1.5% fees on spot purchases for non-subscribers

Pros & Cons

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  No fees for Bitcoin purchases for Fold+ subscribers
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  User-friendly mobile app
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  Offers a Bitcoin rewards debit card
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  Earn Bitcoin rewards on everyday purchases (rewards between 1-25% based on spinning a wheel)

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  Limited availability (US-only)
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  Primarily focused on Bitcoin rewards (exchange features are secondary)
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  $150 annual fee on debit card
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  1.5% fee on spot purchases for non-subscribers

Understanding fees vs. spread

To better understand Bitcoin transaction costs,  it’s important to understand the difference between fees and spreads. 

• Transaction fees: A fee is the cost of buying/selling BTC. 
• Spread: The difference between the buy and sell price of Bitcoin on an exchange. A tighter spread means you’re getting a better price.

While some platforms offer zero fees, they make money through spreads. Before you get started with an exchange, you should understand their fee and spread policies. 

Understanding maker and taker fees 

Many Bitcoin exchanges have two types of fees: maker fees and taker fees. Let’s explain what these fees are and when you’ll encounter them. 

What are maker fees? 

A maker is someone who adds liquidity to the marketplace. 

For example, if you place an order to buy Bitcoin at a lower price than the current market price, it will remain on the order book until a seller agrees to sell at that price. Maker fees are usually lower than taker fees because you’re helping the platform by increasing its liquidity.

What are taker fees? 

A taker removes liquidity from the exchange by placing an order matching existing prices.

For example, if you place a market order to buy Bitcoin instantly, you’ll pay the taker fee. Taker fees are typically higher because you’re reducing the platform’s available liquidity.

Maker vs. Taker Fee Example

Bitcoin is trading at $30,000, and you decide to make a purchase. 

Maker: You place a limit order to buy Bitcoin at $29,500. If the price drops and your order is filled, you’ll pay a maker fee (e.g., 0.25%).

Taker: You place a market order to buy Bitcoin immediately at the current market price of $30,000. In this case, you’ll pay a taker fee (e.g., 0.40%).

Why Maker and Taker Fees Matter

Lower fees: Maker fees are generally lower. If you're a patient trader, using limit orders can save you money.

Speed vs. Cost: Taker fees apply when you need to buy Bitcoin quickly at the market price. That means that executing a trade quickly can come with a greater cost. 

How to minimize the cost of buying Bitcoin 

Looking for ways to minimize Bitcoin fees? Consider the following strategies: 

• Use Bitcoin-only services: Platforms focused solely on Bitcoin often provide better security and lower fees.
• Take advantage of direct deposit: Some services allow fee-free Bitcoin purchases if you directly deposit funds.
• Consider annual subscriptions: If you’re an active trader, subscriptions like Coinbase One offer reduced trading fees in exchange for a flat monthly/yearly fee.

Hidden Costs of buying Bitcoin 

Don’t forget about the other types of fees you may encounter when buying Bitcoin: 

• Deposit fees: Some exchanges charge fees depending on your payment method. Typically, credit card purchases are subject to high fees. 
• Withdrawal fees: Some exchanges charge a fee for moving your cryptocurrency off the platform. 
• Network transaction fees: Fees vary depending on network usage, so it’s important to keep an eye out on current network fees. 

Comparing costs across exchanges 

The best exchange for you may differ depending on the size of your purchase and whether you plan to move your Bitcoin to cold storage.  

• Small purchase fees: Some platforms charge higher fees for smaller purchases. For example, a $100 purchase may have a much larger fee than a $10,000 purchase. 
• Large purchase fees: For a $10,000 buy, a hidden spread of 0.85% could make a difference of $85. In this case, exchanges with no spreads like Kraken may be the most cost-effective option. 
• Withdrawal fees: If you’re planning to move your Bitcoin to a self-custody wallet, you should take note of withdrawal fees. These fees may vary depending on the type of cryptocurrency and the method of the withdrawal. 

Alternative ways to acquire Bitcoin 

If you prefer methods outside traditional exchanges, consider the following:

• Peer-to-peer platforms: Services like Bisq, Hodl Hodl, and RoboSats allow users to trade Bitcoin directly with other users. 
• Bitcoin ATMs: Bitcoin ATMs are physical kiosks often found in malls, gas stations, and airports that allow you to buy and sell Bitcoin. While convenient, they tend to have higher fees than the exchanges listed above. 
• Earning Bitcoin: Some exchanges offer Bitcoin referral or affiliate rewards for helping to attract new customers. 

What to consider when choosing an exchange 

While minimizing fees is important, there are other factors to consider when choosing an exchange:

• Security: Look for exchanges with a strong reputation for security. Read third-party reviews and understand the measures the platform takes to protect your crypto. 
• Ease of use: If you’re a beginner, you should choose an exchange with a user-friendly interface. 
• Payment methods: Look for exchanges with different payment methods like bank transfers, debit cards, or direct deposit.
• KYC: While centralized exchanges require you to submit Know Your Customer information, peer-to-peer exchanges allow you to make trades without submitting personal information. 

Tips for timing purchases and transfers

BTC fees can vary depending on when you make your purchase. Here’s what you should know: 

• Understand network congestion: Bitcoin transaction fees fluctuate based on network demand. By timing your transaction, you can reduce associated fees. 
• Use block explorers: Blockchain explorers for Bitcoin like mempool.space can help you track current network fees and find the optimal time for your transaction. 

How to minimize Bitcoin fees 

Eventually, you may wish to sell your Bitcoin. Here are a few steps that you can take to minimize fees: 

• Compare sell fees across exchanges, as they may differ from buy fees.
• Take advantage of subscription/loyalty programs that can help reduce fees. 
• Use limit orders to control the sale price. Limit orders allow you to pay maker fees (typically lower than taker fees) 

Conclusion

If you’re getting started with your Bitcoin journey, you should find a reputable exchange that offers low fees and high security. Do your own research to see which platform best fits your unique needs.