Cheapest Ways to Buy Bitcoin in 2022

If you are looking for the cheapest way to buy Bitcoin, you have come to the correct spot. This article examines the best methods for acquiring bitcoin and some of the most affordable locations to purchase or trade bitcoin.

Bitcoin acquisition has related expenses. Using Bitcoin coins is likely the least expensive method. However, crypto exchanges are the most secure way to acquire Bitcoin. 

They enable the purchase of virtual currencies by using various payment methods. This includes credit cards, debit cards, and PayPal. The transaction fees charged by bitcoin exchanges vary.

Alternately, it is possible to trade Bitcoin online without owning the cryptocurrency. In this situation, you go long (buy) when you wish to raise your Bitcoin holdings and short (sell) when you want to dispose of the digital assets. 

The volatility of Bitcoin's price makes it a suitable asset for short-term traders and speculators.

What does bitcoin mean?

Bitcoin is a form of virtual money that can be used to make digital purchases and trade like stocks and bonds. You must utilize a bitcoin exchange to buy and sell Bitcoin and other cryptocurrencies.

A bitcoin exchange will allow you to swap Bitcoin for other assets, such as fiat dollars or other digital currencies. The top cryptocurrency exchanges are safe, inexpensive, easy to set up, user-friendly, and accept several financing methods. 

Bitcoin is a digital currency that can be purchased using fiat currency. Before purchasing Bitcoins, ensure you know the trading platform's terms and conditions. 

Some exchanges offer to store your coins for some time, but others let you trade straight on their platforms. Before making a purchase, you should also be informed of the costs levied by each exchange.

Here we have our top recommendations on where to get bitcoin.

List of cheapest ways to buy Bitcoin in 2022

1. First Coinbase

Coinbase is the largest cryptocurrency exchange in the United States and one of the largest in the world. Its "Pro" edition offers advanced traders fascinating tools and capabilities, including charts and graphs.

The site accepts various payment methods, including wire transfers, credit cards, and debit cards. It allows PayPal withdrawals as well.

Pros:

• Multiple choices for deposits and withdrawals

• BTC deposit protection

• Incredible services related to online and mobile wallets

• Exceptional security characteristics and two-factor authentication

• Simple to use

Cons:

• Users are not entirely hidden

• Support and assistance are not among the swiftest

• Deposits and withdrawals may be subject to a 72-hour delay

2. Localbitcoins

Depending on your area, LocalBitcoins allows a vast array of payment options. You may purchase and sell Bitcoin with debit and credit cards, as well as with Skrill. In addition, it allows local payment options such as M-PESA.

Pros:

• It maintains privacy when purchasing Bitcoins.

• It supports many payment options.

• There are no buying or selling restrictions.

• Local bitcoin transactions between users are immediate (10-60 minutes when sending Bitcoins to your Localbitcoin wallets)

Cons:

• High costs for cash transactions

• It does not support altcoins

• Large sums may require identification verification

• Delivery times are dependent on the vendor receiving payment.

3. Gemini

Gemini is a well-known Bitcoin exchange that the Winklevoss twins established. It is a regulated platform that makes purchasing Bitcoin and other cryptocurrencies simple and secure. 

However, it does not allow typical deposit and withdrawal methods like debit cards. To purchase Bitcoin on Gemini, you must connect your bank account and conduct an ACH or wire transfer.

Pros:

• Reputation for

• Licensed in 42 U.S. states and nearly 60 nations worldwide

• Deposit Instantly for ACH Transfers

• Dollar-to-crypto and crypto-to-crypto trading are available.

Cons:

• It seriously lacks in terms of payment options.

• It does not ensure complete privacy

4. Kraken

Kraken is a 2011 San Francisco-based cryptocurrency exchange. It serves consumers worldwide and is accessible in 176 nations. Hence, this firm supports 90 digital tokens and seven fiat currencies in addition to Bitcoin. 

It is now the largest bitcoin exchange regarding euro volume and liquidity. It enables traders to make deposits and withdrawals via bank and SEPA credit transfers.

Pros:

• It includes a built-in wallet

• It provides both personal and company accounts

• Two-factor authentication provides additional security

• Deposits are stored offline in a cold storage facility

• Multisig wallets lower the likelihood of theft.

Cons:

• It has previously had technical problems and downtimes

• The user interface appears obsolete

4. Bitstamp

Bitstamp is a notable Bitcoin exchange that was established in 2011. The Luxembourg Ministry of Finance authorizes it. Bitstamp is perhaps the most acceptable site for purchasing significant quantities of Bitcoins.

The deposit and withdrawal methods include SEPA bank transfers, credit cards, and debit cards. Credit cards can be used to purchase supported crypto assets by traders.

Pros:

• Outstanding Customer Service

• Fast trade executions

• Ample analytical instruments and resources

• Authorized and honest

• Simple to use

Cons:

• The registration procedure is cumbersome and perplexing

• Fees are relatively expensive and not transparent

5. CEX

CEX is a multifunctional London-based bitcoin and cryptocurrency exchange. It provides crypto trading and brokerage services. Thus, it has almost four million citizens who are distributed over the globe. 

The platform enables Bitcoin purchases using debit and credit cards and instantaneous withdrawals to a credit card or bank account. In addition to Bitcoin, CEX facilitates the trading, buying, and selling of 110 additional digital tokens.

Pros:

• It is accessible in 99.99 percent of the world

• Bank transfer deposits in U.S. dollars (USD), British pounds (GBP), and euros are free (EUR)

• Supports numerous payment methods

• It is secure and safe

Cons:

• A little bit difficult for novices

6. Binance

According to Coinmarketcap, Binance is the world's largest cryptocurrency exchange. It handles around six times higher daily trade volume than Coinbase, which comes in a distant second.

Binance is one of the finest and cheapest ways to purchase Bitcoin online, with minimal costs, 408 currencies, and support for different languages. In addition, the cryptocurrency exchange accepts various payment options, such as bank transfers, credit cards, and debit cards.

Pros:

• Meager rates

• Over 400 virtual currencies are available for trading

• Excellent mobile app

Cons:

• Binance US has restricted capabilities

• It does not permit crypto-fiat transactions

What are the advantages of purchasing Bitcoin?

Before you study the ins and outs of buying Bitcoin, you should determine if this asset aligns with your portfolio objectives. In the following sections, we examine important reasons why many U.S. and international investors seek exposure to Bitcoin.

1. Huge development since 2009

If you're seeking to purchase Bitcoin now, you are likely doing so in the hopes of earning substantial returns on your investment. Since its inception in 2009, Bitcoin has accomplished this feat.

During Bitcoin's first few years, each token could be acquired for less than one dollar. Even at the beginning of 2017, this digital money traded for only $1,000.

This implies that if you had invested more than five years ago and carried on until Bitcoin reached its all-time high of $69,000 in 2021, your investment would have increased by about 7,000 percent.

2. But when it is falling,

Perhaps the optimal time to purchase Bitcoin is when the larger cryptocurrency markets see a decline. This occurs when the Bitcoin price experiences a downward trend.

Even though this typically discourages new investors, purchasing the dip will allow you to enter the market at a bargain.

For instance, we said before that Bitcoin would reach $69,000 in 2021. In January 2022, however, the digital token's value dropped to $33,000. Importantly, if you were to purchase Bitcoin for $33,000 instead of $69,000, you would receive a savings of nearly 50 percent.

There are several opportunities to purchase the drop in this market since Bitcoin and other cryptocurrencies experience frequent price volatility.

3. Scarce supply

All global currencies undergo inflation, including the U.S. dollar, the euro, and the British pound. This is primarily due to the monetary and fiscal policies of the central bank, which result in so-called money printing.

In contrast, Bitcoin's supply cannot be influenced by a single individual or authority. In contrast, Bitcoins are automatically created every 10 minutes.

This will continue until roughly 2140 when the total quantity of tokens is limited to 21 million. From an investing standpoint, you are acquiring an asset comparable to gold in many respects.

Since both Bitcoin and gold have a fixed quantity, many market analysts refer to them as "stores of value."

4. Distributed and rapid transactions

Even though Bitcoin's blockchain network is not the most efficient, Bitcoin's cross-border transactions are nevertheless much faster than traditional payment methods. 

For example, regardless of where the sender and recipient are situated, Bitcoin transactions occur within 10 minutes.

In addition, costs are often less than $5 per transaction. This holds regardless of the amount being sent.

A key advantage of sending and receiving Bitcoin transactions is that the system is entirely decentralized. Again, this indicates that no individual, organization, central bank, or government can control the network.

5. Acquisitions of small units

The fact that digital money may be fractionalized is another critical advantage of purchasing Bitcoin. This indicates that you may buy a fraction of a Bitcoin.

For instance, if Bitcoin was valued at $40,000 and you wanted to spend $40, you would own 0.1% of one token. This is great for beginners who wish to acquire Bitcoin exposure without risking significant amounts of money. This enables you to practice dollar-cost averaging.

6. Acquire greater interest

Increasing sites now provide crypto accounts for various cryptocurrencies. This includes Bitcoin, allowing you to profit from your cryptocurrencies passively. 

The crypto interest platform Aqru offers a high 7 percent interest return on Bitcoin deposits, making it the most acceptable Bitcoin interest account available.

Why do individuals trade Bitcoin?

Bitcoin and other crypto-assets are exchanged on cryptocurrency exchanges as securities. Bitcoin is the first cryptocurrency to emerge and the largest by market capitalization. It is the most often traded cryptocurrency coin, and these are the reasons why:

As with other crypto assets, Bitcoin is notorious for its extreme volatility. It is common for the coin to move tenfold in a single day. For seasoned traders, extreme volatility presents an opportunity to generate enormous gains.

Unlike other cryptocurrencies and tokens, Bitcoin has sufficient liquidity to accommodate enormous requests. Its daily average trading volume is among the highest.

The Bitcoin market is open 24 hours a day, seven days a week. People like the ability to trade at any time, particularly on the weekends. Bitcoin futures hence allow traders to trade in either long or short.

Considerations to follow when purchasing Bitcoin 

Here are crucial factors to consider while looking for the cheapest option to get bitcoin:

1. Fees

Costs associated with purchasing and selling bitcoin might vary between crypto exchange platforms. Additionally, transaction costs for buyers and sellers vary.

2. Choice of investment 

If you wish to invest in Bitcoin or other cryptocurrencies, you should seek a platform that provides a diverse range. 

For instance, if you wish to invest in Bitcoin and Stock on the same bitcoin exchange, you should choose a cryptocurrency exchange that offers both investing alternatives.

3. Educational materials 

Some renowned Bitcoin exchanges provide vast libraries of articles, videos, and tutorials to educate consumers about Bitcoin and other crypto exchanges. 

Signing up with decentralized crypto exchanges that give proper education on Bitcoin's mechanism, trading, market risk, trading fees, etc., is advantageous for novice investors.

4. Bonuses

Many cryptocurrency exchanges provide sign-up incentives and minimal initial deposit requirements

 to promote crypto trading on their platform.  

Remember that the platform's incentive should not be the decisive decision. It can help you identify a low-cost solution for bitcoin trading.

5. User-friendliness

Depending on the investor, the answer might vary. For instance, if you purchase your first Bitcoin and want to purchase and sell the digital currency periodically, you want the most straightforward user interface possible.

However, an experienced trader may choose a trading platform with additional features such as graphing tools, order options, etc.

Other inexpensive methods to invest in bitcoin

Here are some other simple and inexpensive Bitcoin investment options.

• Bitcoin ATMs: They function similarly to conventional ATMs, except that they may be used to purchase and sell bitcoin.

• Bitcoin futures: Binance offers many methods for investors to trade on bitcoin futures, but this is not for beginners.

• Grayscale funds: Grayscale Investments is a digital asset manager for cryptocurrencies. Two of its investment advisory trusts, Grayscale Ethereum Classic Trust (ETCG) and Grayscale Bitcoin Trust (GBTC), are openly traded over-the-counter, meaning they are available for purchase through a variety of discount brokers.

What payment methods exist for purchasing bitcoin?

Here are the Payment Methods that facilitate Bitcoin transactions:

1. Credit/Debit Card:

Investing in Bitcoin using a credit card is unquestionably simple and quick since you need not leave your home. 

The transaction procedure is straightforward and efficient. However, you should be aware that the maximum purchase amount is relatively modest, and the costs are pretty hefty.

2. PayPal:

Paypal is the simplest method for purchasing Bitcoin, much more straightforward than credit cards. The fees are expensive.

3. Bank transfers:

This approach is sluggish, but the quantity that can be purchased is pretty high. Additionally, the fees are relatively inexpensive, particularly on exchanges. This is probably one of the most cost-effective techniques to get bitcoin.

4. Cash:

Cash transfers are the only way to purchase Bitcoin anonymously. Your identification is tied to your credit cards and bank accounts. 

Cash transactions are not included. Utilizing cash at a Bitcoin ATM is quick and straightforward. Therefore, one may purchase Bitcoin using LocalBitcoins, the most famous anonymous method.

Related questions – FAQs

1. Is free Bitcoin legitimate and authorized?

Yes, earning Bitcoins for free is an entirely legal and legitimate practice. It is a payment technique for utilizing or consuming particular services. Here, you should remember that you will receive a very modest amount of Satoshi.

2. Is it safe to purchase Bitcoin?

Bitcoin is a digital currency that can be purchased using fiat currency. Before purchasing Bitcoins, ensure you know the trading platform's terms and conditions. Some exchanges offer to store your coins for some time, but others let you trade straight on their platforms. Before making a purchase, you should also be informed of the costs levied by each exchange.

3. How can I acquire Bitcoins without incurring fees?

There are several fee-free places to purchase Bitcoins. Utilizing a Bitcoin ATM or visiting a local exchange is among the simplest methods. Find someone in your neighborhood who wishes to sell their Bitcoins and engage in a transaction with them.

Final thoughts

Purchasing Bitcoin is risk-free if you utilize a verified and reputable platform. Before purchasing Bitcoin on a particular site, you should conduct extensive research. 

In terms of Bitcoin's suitability as an investment, its value changes more often than most conventional assets. Bitcoin can be beneficial if you're interested in supporting a decentralized payment system. 

However, neither a warranty nor an insurance policy protects the value of the item you are acquiring.