Owning Bitcoin is the in-thing. Everyone is rushing to get a piece of the pioneer cryptocurrency, some with a plan to sell at a higher price in the future. However, to maximize profits, you must minimize costs. This means using platforms that offer low-cost methods of owning Bitcoins.
If you are searching for cheap ways to buy Bitcoin, you have come to the right place. This article explores free methods to get bitcoin and some of the most affordable places to buy or sell Bitcoin.
Acquiring Bitcoin has associated costs. Using Bitcoin faucets is probably the cheapest. However, crypto exchanges are the safest method of acquiring BTC. They allow you to buy virtual currencies using myriad payment methods, including credit cards, debit cards, PayPal. The transaction fees vary across different cryptocurrency exchanges.
Alternatively, you can trade Bitcoin online without necessarily owning cryptocurrency. In this case, you go long (buy) when you want to increase your Bitcoin holding or go short (sell) to offload the digital assets. Bitcoin's price is volatile, making it a good instrument for short-term traders and speculators.
Read more: How to Day Trade Crypto Like a Pro?
There are several ways to get Bitcoin for free. For example:
● Did you know you can earn Bitcoin through everyday online shopping experiences? Companies like Lolli and Pei reward you with free Bitcoin when you shop at any of their merchant partners.
● Storing crypto assets in a crypto interest account such as BlockFi Interest Account (BIA)
● Crypto mining
● Bitcoin Payment for completing surveys. Time Bucks and Clinchbucks are good examples of survey sites that give BTC for taking surveys.
● Affiliate Marketing can also earn you free Bitcoins.
There is a long list of platforms that allow you to buy bitcoin online, with and without fees. We will look at some in detail later in this article. These platforms include crypto exchanges such as Coinbase, Kraken, and Binance; and trading platforms such as Cointiply, Mitrade
Crypto exchanges: Crypto exchanges allow you to exchange crypto with Fiat currencies or another crypto coin. Top crypto exchanges include Binance, Huobi, Coinbase.
Crypto trading platforms: Most trading platforms offer numerous ways of crypto investments such as bitcoin derivatives, crypto CFD, futures, and options. You only trade based on the bitcoin price changes without owning the digital assets.
Trading Bitcoin CFDs is totally different from buying Bitcoin in exchange. You trade the bitcoin derivatives rather than buying real bitcoin assets. Basically, Contract For Difference (CFD) is a financial instrument that enables you to trade a derivative product of the underlying asset. You make a profit by going long or short.
So you buy bitcoin (BTC/USD) if your analysis shows the bitcoin price could rise ↗. You make a profit if the market price rises. This process is called ‘going long’.
Similarly, you sell bitcoin (BTC/USD) if you believe bitcoin value will drop ↘. If the market actually falls as per your expectation, you rake in a profit. This process is called ‘going short’
Read more: Strategies for Trading Volatility With CFDs
✔️ Doesn’t need a crypto wallet
✔️ Quick registration
✔️ Requires small starting capital
✔️ Leveraged trading
✔️ One account with multi-financial markets
❌ Can’t own actual bitcoin
❌ Leverage brings higher risks
You should note that CFD is a leveraged product. This means you only need a small margin to open a big trading position.
Now, let’s understand how leverage can affect your potential profit and maximum loss when investing in a product worth $20,000.
Although CFD is convenient, you can lose all of your money if leverage is not used properly. Therefore, investors should carefully manage risks by using stop-loss, negative balance protection, choosing licensed brokers, and other risk management tools.
Trade With Australia's Popular Bitcoin CFD Broker - Mitrade
Please note: The cryptocurrency market’s high volatility offers endless trading opportunities. You can trade cryptocurrency online directly on Mitrade platform.
Step1: Open an account on Mitrade
Step2: Go long ( buy) or go short ( sell ) on Bitcoin
Step3: Set up the position size, stop-loss/take-profit levels
Step4: Place this trade
Peer to Peer trading platform
Coinbase is one of the top cryptocurrency exchanges in the world and the biggest in the United States. It’s "Pro" version has exciting features and tools like charts, graphs for more advanced traders.
The platform supports several forms of payment: wire transfer, credit cards, and debit cards. It also accepts PayPal withdrawals.
Multiple deposit and withdrawal options
Insured BTC deposit
Incredible online and mobile wallet-associated services
Excellent security features and two factor authentication
Easy to use
Users are not entirely anonymous
Support and help is not among the fastest
Deposits and withdrawals can be delayed for up to 72 hours
LocalBitcoins accepts dozens of payment methods depending on your location. You can buy and sell Bitcoin using debit, credit cards, and skrill. It also accepts local payment methods like M-PESA
It upholds privacy when buying Bitcoins
Supports numerous payment methods
It doesn't buying and selling limits
Transactions between Localbitcoin users are instantaneous (10-60 minutes when sending Bitcoins to your Localbitcoin wallets)
High fees for cash transactions
Does not support altcoins
Large amounts may require ID verification
Delivery speeds depends entirely on the seller confirming the payment
Gemini is a famous Bitcoin exchange founded by the Winklevoss twins. It is a regulated platform that offers a simple and secure way to buy Bitcoin and other cryptocurrencies. However, it does not accept common payment methods such as debit cards for deposits and withdrawals. To buy Bitcoin on Gemini, you need to link your bank account and initiate an ACH deposit or wire transfer.
Licensed in 42 US states and over 60 countries around the world
Instant Deposit for ACH Transfers
It offers dollar-to-crypto and crypto-to-crypto trading
It severely lacks in payment methods
Doesn’t guarantee absolute privacy
Kraken is a San Francisco based crypto exchange founded in 2011. It serves customers across the globe and is available in 176 countries. Besides Bitcoin, the company supports 90 digital tokens and seven fiat currencies. It is currently considered the world's largest bitcoin exchange in euro volume and liquidity. It allows traders to make deposits and payouts using bank transfer and SEPA credit transfer payment methods.
It comes with an integrated wallet
It offers regular and business accounts
It has two-factor authentication for added security
Deposits are secured in offline cold storage
Multisig wallets to reduces possibility of theft
It has experienced technical issues and downtimes in the past
The user interface looks outdated
Bitstamp is a prominent Bitcoin exchange founded in 2011. It is licensed with the Ministry of Finance in Luxembourg. Bitstamp is probably the best platform to buy large amounts of Bitcoins.
Payment methods for deposits and withdrawals include SEPA bank transfers, credit, and debit cards. Traders can buy supported crypto assets using credit cards.
Tip notch Customer support
Fast trade executions
Plenty analysis tools and resources
Licensed and transparent
Easy to use
The registration process is long and quite confusing
Fees charges are relatively high and not straightforward
CEX is a London-based multi-functional bitcoin and crypto exchanges that offers crypto trading and brokerage service. It boasts over four million spread across the corners of the world. The platform allows you to buy Bitcoin using debit and credit cards and withdraw money into your credit card or bank account in a few clicks. Besides Bitcoin, CEX allows you to trade, buy and sell 110 other digital tokens.
It available 99% of the countries
Deposits by bank transfer are free for US dollars (USD), British Pounds (GBP) and Euros (EUR)
Supports multiple payment methods
It is safe and secure
A little bit complex for beginners
According to Coinmarketcap, Binance is the biggest crypto exchange in the world. It handles $8.8 billion daily trading volume, about six times more than Coinbase which follows at a distant second. With low fees, 408 coins, and supporting multiple languages, Binance is one of the best and cheapest ways to buy Bitcoin online. What's more, the crypto exchange supports several payment methods, including bank transfers, credit cards, or debit cards.
Significantly low fees
Offers over 400 virtual coins for trading
Excellent mobile app
Binance US has limited functionalities
Does not support crypto-fiat trading
One of the best ways of owning Bitcoin cheaply is using Cointiply Bitcoin faucet. It offers several ways of accumulating free BTC; for example, by completing surveys, playing games and watching videos.
The platform gives subscribers a chance, every hour, to win Cointiply Coins, which can be exchanged for BTC. The page makes revenue from visitors' interaction and traffic which it redistributes among users.
First, look for Bitcoin faucets if you don't mind growing little by little. However, if you plan on acquiring significant funds, find a reputable exchange with low fees, high trading volume, incredible analysis tools, high limits, and preferably, mobile apps.
Besides buying bitcoin on crypto exchanges, trading crypto CFD trading is another easy way of getting profit from cryptocurrencies. You simply trade bitcoin through a forex broker.
In conclusion, there are numerous cheap ways to buy Bitcoin and cryptocurrencies. However, you should do your due diligence and choose a platform that suits their investment goal.
It is common for beginners to have jitters. It is understandable when starting out. But here is the good news. You can use Mitrade's trading tools ( e.g. Trading Analysis/economic calendar) to identify the trading opportunities in the market. Try Mitrade today and you will never regret, we can promise that.
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* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. *CFD trading carries a high level of risk and is not suitable for all investors. Please read the PDS before choosing to start trading.
Risk Warning: Trading may result in the loss of your entire capital. Trading OTC derivatives may not be suitable for everyone. Please consider our legal disclosure documents before using our services and ensure that you understand the risks involved. You do not own or have any interest in the underlying assets.