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Cheapest Ways to Buy Bitcoin

Cheapest Ways to Buy Bitcoin

Introduction

Bitcoin continues to dominate the cryptocurrency industry, with more investors than ever looking to add it to their portfolios. But as any crypto investor knows, the costs associated with buying Bitcoin can eat into your investment returns over time.

Whether you're making your first Bitcoin purchase or you're looking to optimize your strategy, understanding how to minimize fees can make a significant difference in your long-term results. After all, every dollar saved on fees is another dollar invested in Bitcoin.

Understanding Bitcoin Purchase Costs

Before diving into specific platforms, it's important to understand the different types of costs you'll encounter when buying Bitcoin.

Transaction Fees vs. Spreads

When purchasing Bitcoin, you'll typically encounter two main types of costs:

Transaction Fees: These are the explicit charges that exchanges impose for executing your buy orders. They're usually calculated as a percentage of your purchase amount and may vary based on your trading volume or loyalty status.

Spreads: Even when a platform advertises "zero fees," they're likely making money through the spread—the difference between the buying and selling price of Bitcoin. A platform might buy Bitcoin at $60,000 and sell it to you at $60,500, effectively charging you a 0.83% spread without calling it a fee.

Many newcomers focus solely on the advertised transaction fee, overlooking the sometimes substantial costs hidden in the spread. A platform advertising a 0% fee but with a 1.5% spread is actually more expensive than one charging a 0.5% fee with a 0.2% spread.

Maker vs. Taker Fees

Advanced trading platforms typically distinguish between maker and taker fees:

Maker Fees: When you place a limit order that doesn't immediately match with an existing order, you're adding liquidity to the market as a "maker." These fees are typically lower to incentivize users to add liquidity.

Taker Fees: If you place a market order that executes immediately against an existing order, you're "taking" liquidity from the market. These fees are usually higher.

For example, if Bitcoin is trading at $60,000 and you place a limit order to buy at $59,500, you'll pay the maker fee if/when your order is filled. But if you buy immediately at the market price of $60,000, you'll pay the higher taker fee.

Hidden Costs to Watch For

Beyond the obvious transaction fees and spreads, be aware of these additional costs:

Deposit Fees: Some platforms charge for adding funds, especially when using credit cards (often 3-5%).

Withdrawal Fees: Moving your Bitcoin to your personal wallet often incurs a fee. These can vary wildly between platforms and may change based on network congestion.

Network Transaction Fees: Every Bitcoin transaction requires miners to include it in a block, for which they charge a fee. During high-traffic periods, these fees can spike dramatically.

Cheapest Platforms to Buy Bitcoin

Now let's examine the most cost-effective places to buy Bitcoin:

Cash App: Best for Direct Deposit Users

Fee Structure:

  • 0% on BTC purchases made through direct deposit conversion

  • 0.75-3% for standard purchases (varies by order size)

Cash App has transformed from a simple payment app into a significant Bitcoin on-ramp. Its standout feature is the ability to automatically convert a portion of your direct-deposited paycheck into Bitcoin with zero fees.

For those already using Cash App for banking purposes, this represents perhaps the lowest-friction way to accumulate Bitcoin. However, standard purchases outside the direct deposit program incur variable fees that can reach 3% for smaller transactions, making it less competitive for one-off buys.

Kraken Pro: Best for Active Traders

Fee Structure:

  • Maker fees: 0-0.25%

  • Taker fees: 0-0.40%

Kraken's advanced trading platform offers sophisticated tools without the elevated costs found on more beginner-friendly interfaces. With maker fees starting at just 0.25% and taker fees at 0.40% for most trades, Kraken Pro represents excellent value for those comfortable with a more complex trading interface.

The platform becomes even more cost-effective as your trading volume increases, with fees decreasing substantially for high-volume traders. While the learning curve is steeper than with services like Strike or Swan, the potential savings justify the effort for regular traders.

Coinbase Advanced Trade: Best for Existing Coinbase Users

Fee Structure:

  • Maker fees: 0-0.40%

  • Taker fees: 0.05-0.60%

  • Coinbase One subscription: Zero fees on up to $10,000 in trades monthly

While standard Coinbase is notorious for high fees, Coinbase Advanced Trade offers a significantly more competitive fee structure. For those already using Coinbase's ecosystem, transitioning to Advanced Trade can deliver substantial savings without needing to create accounts on new platforms.

The Coinbase One subscription ($30/month) can eliminate fees on up to $10,000 in monthly trades, potentially saving hundreds of dollars for active traders. However, users should remain vigilant about potential spread increases during volatile market conditions, as some have reported higher effective costs during these periods.

Strike: Best for Bitcoin-Only Enthusiasts

Fee Structure: Average 0.93% spread, no explicit transaction fees Withdrawal Fees: None

Strike has built a reputation as one of the cleanest, most straightforward Bitcoin-focused apps. While the spread fluctuates between 0.1% and 1% depending on market conditions, the average user experiences a competitive 0.93% cost. The absence of withdrawal fees makes Strike particularly attractive for those who prefer to move their Bitcoin into self-custody.

The platform's laser focus on Bitcoin (rather than supporting hundreds of altcoins) has allowed it to optimize its operation costs and pass those savings to users. For Bitcoin purists who don't need the bells and whistles of larger exchanges, Strike offers a compelling value proposition.

River Financial: Best for Recurring Buyers in the US

Fee Structure: 0% on recurring purchases, 0-1% on other transactions Availability: US-only

River Financial has carved out a niche by eliminating fees on recurring Bitcoin purchases. This approach heavily favors dollar-cost averaging—a strategy where you invest the same amount at regular intervals regardless of price.

For American investors who want to "set it and forget it," River offers perhaps the most frictionless way to accumulate Bitcoin over time. The platform's sleek interface and excellent customer service further enhance the user experience, though the US-only limitation remains its primary drawback.

Advanced Strategies to Minimize Bitcoin Purchase Costs

Beyond choosing the right platform, several strategies can further reduce your costs:

Timing Your Purchases

Market Conditions: Bitcoin's price volatility can significantly impact spreads. During periods of extreme volatility, spreads often widen as platforms hedge against rapid price movements. Patient buyers might save by waiting for calmer market conditions.

Network Congestion: Bitcoin transaction fees fluctuate based on network activity. Using block explorers like mempool.space can help identify periods of lower congestion, potentially saving substantial withdrawal fees if you're moving Bitcoin to self-custody.

Choosing the Right Payment Method

Payment method selection can dramatically impact your total costs:

Bank Transfers (ACH in the US): Generally the cheapest option, mostly free or less than 0.5%. Debit Cards: Moderate fees, typically 1-3%. Credit Cards: Highest fees, often 3-5%, plus potential cash advance fees from your card issuer.

Wire transfers typically offer a middle ground—higher fees than ACH but faster settlement times, which can be valuable during volatile markets.

Dollar-Cost Averaging Benefits

Beyond potentially lower fees, dollar-cost averaging (DCA) offers another cost advantage: reduced impact of spreads during volatile periods. By spreading purchases across time, DCA naturally reduces your exposure to temporarily widened spreads that often accompany market turbulence.

Special Considerations for Different Buyer Types

Your optimal platform depends largely on your purchasing habits:

Small Purchases ($100 or less)

Small buyers face the greatest percentage drag from fees. Platforms with flat fees or minimum charges can devour a significant portion of small investments. For these buyers:

  • Strike offers consistent value with its tighter spread and no minimum fees

  • Cash App direct deposit conversion provides the most cost-effective option if available to you

  • Consider batching smaller purchases into larger ones to reduce the fee impact

Large Investments ($10,000+)

Large buyers should focus on platforms with tiered fee structures that reward higher volumes:

  • Kraken Pro offers decreasing fees as volume increases

  • Consider OTC (over-the-counter) desks for purchases over $100,000, which can offer custom pricing and reduced slippage

Moving and Storing Your Bitcoin

The fees don't stop once you've purchased Bitcoin. Consider these costs when planning your storage strategy:

Leveraging Your Bitcoin Without Selling

Before diving into storage options, it's worth mentioning that hodling isn't your only option once you've acquired Bitcoin at the best possible rates. Services like Arch allow you to access the value of your Bitcoin without selling it—providing loans backed by your Bitcoin and other crypto assets. This approach can be particularly valuable during market downturns when you need liquidity but don't want to sell at lower prices. By using your Bitcoin as collateral, you maintain your position while accessing cash for other needs or opportunities.

Self-Custody Options and Withdrawal Fee Considerations

Exchange Withdrawal Fees: These vary dramatically between platforms, from free (Strike) to 0.0005 BTC or more on some exchanges.

Transaction Batching: Some exchanges batch withdrawals, resulting in lower per-transaction costs that they may pass on to users.

Timing Withdrawals: Network fees fluctuate throughout the day and week. Weekends typically see lower network congestion and correspondingly lower fees.

Cost Analysis of Different Wallet Types

Software Wallets: Free to set up but require on-chain transactions for sending Bitcoin.

Hardware Wallets: Initial cost of $50-200, but offer significantly enhanced security for larger holdings.

Multisig Solutions: Higher setup complexity and potentially higher transaction costs due to larger transaction sizes, but offer enhanced security for substantial holdings.

Cold Storage Cost-Benefit Analysis

For long-term holders, the one-time cost of moving Bitcoin to cold storage (hardware wallets or other secure offline storage) is easily justified by the elimination of ongoing custody risk. Consider:

  • The one-time withdrawal fee vs. the ongoing risk of exchange hacks or insolvency

  • The psychological benefit of full ownership and control

  • The potential tax benefits of securely holding for longer time horizons without the temptation to trade

Conclusion

The cheapest way to buy Bitcoin ultimately depends on your specific needs, purchase frequency, and amount. Remember that the true cost of buying Bitcoin extends beyond the immediate transaction fee. Consider factors like withdrawal fees, security infrastructure, customer service quality, and insurance protection when making your decision.

The cheapest Bitcoin purchase isn't always the one with the lowest advertised fee, but rather the one that best balances explicit costs, implicit costs, security, and convenience for your specific situation.

About Arch

Arch is building a next-gen wealth management platform for individuals holding alternative assets. Our flagship product is the crypto-backed loan, which allows you to securely and affordably borrow against your crypto. We also offer access to bank-grade custody, trading and staking services, powered by BitGo.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry significant risks, and you should conduct thorough research before making any investment decisions.

ChainFi, Inc (dba "Arch Lending" and referred to as "Arch" on this website) is not a bank. 


Loan Services. Crypto backed loans (“Loans”) are offered to U.S. borrowers by ChainFi, Inc. NMLS #2637200. NMLS Consumer Access.


Loan Availability. Loan availability may vary based on jurisdiction. Loans are current not available to U.S. residents of AL, CA, DE, HI, MN, MS, MT, NV, ND, RI, SC, SD, TX, VT, VA, or WA or to U.S. businesses in CA, DC, HI, MT, NV, NM, ND, RI, SD, or VT. We encourage you to contact us to determine if our loans are available in your state.


Loan Agreement. Loans are issued pursuant to a loan agreement between Arch and you. This legally binding document outlines your rights, obligations, interest rates, repayment schedules, potential fees, default consequences, and any other terms and conditions related to your loan. Your loan agreement may contain state-specific provisions. By signing the loan agreement, you acknowledge your acceptance of these terms, so please ensure you understand every aspect before proceeding. 


Interest Rates. Annual interest rates are subject to change and may vary based on loan type, the principal amount requested, and the borrower's jurisdiction of residence. 


Supported Assets. For the latest list of supported assets, refer to our Help Center.


No Financial, Investment or Tax Advice Provided. The information on this website, articles, guides, tools, or communications, is for general informational purposes only. It is not, and should not be construed as, financial, investment, tax, or other professional advice. Arch is not a financial advisor, investment advisor, broker, tax advisor, or accounting firm. We do not provide personalized advice or recommendations for your unique financial situation or goals. You should consult a qualified professional before making any financial, investment or tax decisions. Any examples, hypothetical scenarios, calculator results, or general discussions of financial or tax concepts are for illustration only and don't guarantee specific outcomes or apply to your personal circumstances. By using this website, you acknowledge you are solely responsible for your financial decisions and will seek independent professional advice as needed.


No Guarantee of Offers, Loans, or Returns. Your use or access to this website or platform does not guarantee the availability of any current and/or future offer, promotion, terms, loan, or return. All offers, promotions, terms, and loans are subject to availability and the sole discretion of Arch. We reserve the right to modify or withdraw any offering at any time without prior notice.


State-Specific Disclosures. Additional state-specific disclaimers may apply depending on your location. We encourage you to review all relevant disclaimers and terms carefully before proceeding.

*State of Idaho Disclaimer. In Idaho, ChainFi, Inc is doing business as Arch Lending and does not conduct activity under the name Arch.

ChainFi, Inc (dba "Arch Lending"), 595 Broadway, Floor 4, New York, NY 10012


For general questions, visit our Help Center or use the Intercom chat widget in the bottom right corner of any screen on this website. 


For customer service or complaints, email us at support@archlending.com, or call us toll-free: +1 855-272-4670 between Monday-Friday from 9am-7pm ET and Saturday-Sunday from 10am-5pm ET.

© 2025 All Rights Reserved

ChainFi, Inc (dba "Arch Lending" and referred to as "Arch" on this website) is not a bank. 


Loan Services. Crypto backed loans (“Loans”) are offered to U.S. borrowers by ChainFi, Inc. NMLS #2637200. NMLS Consumer Access.


Loan Availability. Loan availability may vary based on jurisdiction. Loans are currently not available to U.S. residents of AL, CA, DE, HI, MN, MS, MT, NV, ND, RI, SC, SD, TX, VT, VA, or WA or to U.S. businesses in CA, DC, HI, MT, NV, NM, ND, RI, SD, or VT. We encourage you to contact us to determine if our loans are available in your state.


Loan Agreement. Loans are issued pursuant to a loan agreement between Arch and you. This legally binding document outlines your rights, obligations, interest rates, repayment schedules, potential fees, default consequences, and any other terms and conditions related to your loan. Your loan agreement may contain state-specific provisions. By signing the loan agreement, you acknowledge your acceptance of these terms, so please ensure you understand every aspect before proceeding. 


Interest Rates. Annual interest rates are subject to change and may vary based on loan type, the principal amount requested, and the borrower's jurisdiction of residence. 


Supported Assets. For the latest list of supported assets, refer to our Help Center.


No Financial, Investment or Tax Advice Provided. The information on this website, articles, guides, tools, or communications, is for general informational purposes only. It is not, and should not be construed as, financial, investment, tax, or other professional advice. Arch is not a financial advisor, investment advisor, broker, tax advisor, or accounting firm. We do not provide personalized advice or recommendations for your unique financial situation or goals. You should consult a qualified professional before making any financial, investment or tax decisions. Any examples, hypothetical scenarios, calculator results, or general discussions of financial or tax concepts are for illustration only and don't guarantee specific outcomes or apply to your personal circumstances. By using this website, you acknowledge you are solely responsible for your financial decisions and will seek independent professional advice as needed.


No Guarantee of Offers, Loans, or Returns. Your use or access to this website or platform does not guarantee the availability of any current and/or future offer, promotion, terms, loan, or return. All offers, promotions, terms, and loans are subject to availability and the sole discretion of Arch. We reserve the right to modify or withdraw any offering at any time without prior notice.


State-Specific Disclosures. Additional state-specific disclaimers may apply depending on your location. We encourage you to review all relevant disclaimers and terms carefully before proceeding.

*State of Idaho Disclaimer. In Idaho, ChainFi, Inc is doing business as Arch Lending and does not conduct activity under the name Arch.

ChainFi, Inc (dba "Arch Lending"), 595 Broadway, Floor 4, New York, NY 10012


For general questions, visit our Help Center or use the Intercom chat widget in the bottom right corner of any screen on this website. 


For customer service or complaints, email us at support@archlending.com, or call us toll-free: +1 855-272-4670 between Monday-Friday from 9am-7pm ET and Saturday-Sunday from 10am-5pm ET.

© 2025 All Rights Reserved

ChainFi, Inc (dba "Arch Lending" and referred to as "Arch" on this website) is not a bank. 


Loan Services. Crypto backed loans (“Loans”) are offered to U.S. borrowers by ChainFi, Inc. NMLS #2637200. NMLS Consumer Access.


Loan Availability. Loan availability may vary based on jurisdiction. Loans are currently not available to U.S. residents of AL, CA, DE, HI, MN, MS, MT, NV, ND, RI, SC, SD, TX, VT, VA, or WA or to U.S. businesses in CA, DC, HI, MT, NV, NM, ND, RI, SD, or VT. We encourage you to contact us to determine if our loans are available in your state.


Loan Agreement. Loans are issued pursuant to a loan agreement between Arch and you. This legally binding document outlines your rights, obligations, interest rates, repayment schedules, potential fees, default consequences, and any other terms and conditions related to your loan. Your loan agreement may contain state-specific provisions. By signing the loan agreement, you acknowledge your acceptance of these terms, so please ensure you understand every aspect before proceeding. 


Interest Rates. Annual interest rates are subject to change and may vary based on loan type, the principal amount requested, and the borrower's jurisdiction of residence. 


Supported Assets. For the latest list of supported assets, refer to our Help Center.


No Financial, Investment or Tax Advice Provided. The information on this website, articles, guides, tools, or communications, is for general informational purposes only. It is not, and should not be construed as, financial, investment, tax, or other professional advice. Arch is not a financial advisor, investment advisor, broker, tax advisor, or accounting firm. We do not provide personalized advice or recommendations for your unique financial situation or goals. You should consult a qualified professional before making any financial, investment or tax decisions. Any examples, hypothetical scenarios, calculator results, or general discussions of financial or tax concepts are for illustration only and don't guarantee specific outcomes or apply to your personal circumstances. By using this website, you acknowledge you are solely responsible for your financial decisions and will seek independent professional advice as needed.


No Guarantee of Offers, Loans, or Returns. Your use or access to this website or platform does not guarantee the availability of any current and/or future offer, promotion, terms, loan, or return. All offers, promotions, terms, and loans are subject to availability and the sole discretion of Arch. We reserve the right to modify or withdraw any offering at any time without prior notice.


State-Specific Disclosures. Additional state-specific disclaimers may apply depending on your location. We encourage you to review all relevant disclaimers and terms carefully before proceeding.

*State of Idaho Disclaimer. In Idaho, ChainFi, Inc is doing business as Arch Lending and does not conduct activity under the name Arch.

ChainFi, Inc (dba "Arch Lending"), 595 Broadway, Floor 4, New York, NY 10012


For general questions, visit our Help Center or use the Intercom chat widget in the bottom right corner of any screen on this website. 


For customer service or complaints, email us at support@archlending.com, or call us toll-free: +1 855-272-4670 between Monday-Friday from 9am-7pm ET and Saturday-Sunday from 10am-5pm ET.

© 2025 All Rights Reserved