As we know, there’s no such thing as a free lunch, Fee is the way cryptocurrency exchanges make money.
They’re built to earn on commissions at each step the user takes.
But wait! I thought the idea behind Bitcoin revolution is cutting out the middleman entirely.
If we can remove the middle man, why are people still choosing to trade on exchanges that charge high fees?
At present, cryptocurrency exchanges are the platforms where the maximum number of Bitcoin transactions occur.
A centralized cryptocurrency exchange acts as a third party that mediates the transactions between buyers and sellers of Bitcoin. In exchange for their service, a couple of fees are charged when you buy and sell cryptos, namely transaction fees, trading fees, withdrawal fees, deposit fees, and escrow fees.
While almost all exchanges charge fees for you to do business on their platforms, it’s possible to find a place where you can buy bitcoins with no middleman taking commissions.
By removing the middleman, it can dramatically lower (if not eliminate) costs. Saving even the smallest amount on fees can have a huge impact on your expected returns, especially if you plan to become a profitable day trader.
As we continue our series on how to buy Bitcoin, we will now show you how to buy Bitcoin easily without fees (any country).
If you’re new to the world of cryptocurrency, you might want to check out the different ways of buying Bitcoin later:
- Buying Bitcoin with cash
- Buying Bitcoin with debit/credit card
- Buying Bitcoin with Paypal
- Buying Bitcoin with Bank Account
- Buying Bitcoin from ATM
- Buying Bitcoin with gift cards
If you’re not ready to start investing yet (with your hard-earned money), don’t lose heart. You can still earn free Bitcoin during your spare time. Check this out later…
Besides, you can firstly, with no commission, purchase USDN stablecoin on Waves.Exchange, which is pegged to USD in ratio 1 to 1, and then exchange it for BTC. These two easy steps equal buying Bitcoins without fees on crypto exchanges.
Buying Bitcoin with No Fees
As the exchange ecosystem continues to grow, more and more crypto exchanges are offering lower fees in an attempt to entice new users. With that said, there’s only a select few that allow you to buy Bitcoin without paying any fees!
One of the better examples includes LocalCoinSwap , the leading peer-to-peer crypto marketplaces in the world.
LocalCoinSwap is a trustworthy place to buy and sell Bitcoin directly with other people in 200+ countries, using various payment methods, including PayPal, Gift Cards, Wire transfer, Cash, and Prepaid cards.
It is fully peer-to-peer, offering a cheaper and more efficient way to buy Bitcoin without needing a trusted third party.
Unlike a traditional Bitcoin exchange, there’s no middle man to help you buy Bitcoin. And thus, LocalCoinSwap does NOT have a fixed market price.
It simply facilitates direct trading between potential buyers and sellers, so the price depends on the two parties coming to an agreement.
But how do you know the person you’re buying from will send you the exact amount of coins?
That’s the great part about LocalCoinSwap’ escrow service. The escrow service protects both buyers and sellers by holding the Bitcoin until the trade is complete. And all with a ratings and review system to ensure accountability on both parties, so that your coins is safe and secure.
On LocalCoinSwap, registering, buying, and selling Bitcoin is completely free.
LocalCoinSwap has a 0% trading fee. Allowing you to convert fiat money into Bitcoin with no commission for this operation at all!
But there’s an escrow fee, or better known as advertising fee of 1% that is charged to those who are advertising their buy/sell offers.
If you’re buying or selling without creating advertisements, there’s no fee charged!
Plus, you’ll get a free Bitcoin wallet to secure your coins online.
Transferring coins between wallets of LocalCoinSwap is also free of charge.
The only fee you need to pay is Bitcoin transaction fee, that’s when you want to withdraw your coins from your LocalCoinSwap wallet to your own Bitcoin wallet.
Do note that you’re not paying this fee to LocalCoinSwap, you’re paying this fee to miners for getting the transaction included in the Bitcoin network.
This Bitcoin transaction fee is minimal compared to the withdrawal fee charged by most traditional Bitcoin exchanges.
With LocalCoinSwap, users can execute two types of trades:
- Without creating advertisement: meaning that you are taking someone’s offer to buy or sell Bitcoin at a certain price. This method allows you to buy Bitcoin with zero fee!
- Create Advertisement: meaning you are the original creator of the order in the first place. 1% advertising fee will be charged.
How to Buy Bitcoin without Fees using LocalCoinSwap
In this tutorial, I’ll show you exactly how to buy Bitcoin without having to pay any fees at all.
The process of buying Bitcoins using LocalCoinSwap is pretty simple and straight forward.
Are you ready to buy your first (tiny fraction of) bitcoins without paying any fees?
Step 1: Create a Free LocalCoinSwap Account
First of all, go to LocalCoinSwap official site and register an account. It’s free and you’ll get a free bitcoin wallet.
Step 2: Search for a Bitcoin Seller
Next, go to the main page and start searching for a user who wants to exchange their Bitcoin with your fiat currency.
In the search box, select “Buy Bitcoin”, choose your country and payment method and click enter.
Not sure of how you want to pay? Then choose “Any” as your payment method.
LocalCoinSwap will immediately show you a list of relevant sellers according to your search.
Step 3: Choose your preferred seller
Your aim is to find a trader with good reputation score and a high amount of trades.
Also, look for a seller that will response to your message as quickly as possible.
Step 4: Place an order
Once you click on the “Buy” button, you’ll get more information about the trade, make sure you read, understand and agree the terms of trade before you place an order.
Every seller has different terms and conditions. Most require you verify your identity with photo and document, while some don’t.
If you agree to trade, enter the amount you wish to buy and click “Send trade request”.
Don’t click the button if you’re not ready to buy Bitcoin with the seller. Because if you don’t make a payment within a given timeframe, the trade will be automatically cancelled.
Step 5: Pay the Seller
After the seller accepts your trade request, they’ll send you information on how to make the payment. For example, if you select buy bitcoin via bank transfer, they’ll give an account number to send your money.
You can rest assured you’re getting a real deal, the seller’s bitcoins are already locked in the LocalCoinSwap escrow system.
Follow the instructions from seller, deposit the specific amount of cash into the given account number within the payment window.
Step 6: Complete the transaction
Once you make the payment, upload receipt as a proof of payment and click “I have paid” button to complete the transaction.
After the seller confirms receiving your money, the escrow will release bitcoins to your LocalCoinSwap wallet instantly.
That’s it. Now you’ve successfully completed your first Bitcoin trade without paying fees.
Is LocalCoinSwap safe to use?
Yes.
LocalCoinSwap is legitimate and I’ve personally tested and used it. It’s one of the cheapest ways to buy Bitcoin without paying fees- especially useful for those live in developing countries where banks that support accounts of cryptocurrency exchanges are limited.
Remember, you’re dealing with strangers on LocalCoinSwap. Undeniably, it also attracts a small number of scammers who aim to defraud honest traders.
But don’t worry. Here are a few things you can do for a smooth transaction and stay safe while trading Bitcoin on LocalCoinSwap:
- Enable Two Factor Authentication (2FA) to enhance your account security. If you need help, check out this article.
- Always communicate and conduct all of your transaction on the LocalCoinSwap platforms. There’s no escrow service that can protect you if you do all or part of your deal outside the platform.
- If you’re a buyer, check that the seller’s payment account details are compatible with their LocalCoinSwap’ verified name.
- Never click on the Cancel Trade button if you’ve already make a payment to the seller.
- If you’re a seller, never release the Bitcoin from escrow manually before you verify that your payment has been received!
- If there are any disagreements in the trade, open a dispute.
- Don’t open any links that your buyer/seller is sending to you.
- Bookmark LocalCoinSwap in your web browser. And use the bookmark every time you visit the site to avoid accidentally clicking phishing websites
It’s best to trade with users with an established account, have a complete profile, a high positive feedback rating (at least 98%).
If you incorporate this safety measures, you don’t have to worry about getting scammed.
How to Keep Your Bitcoin Safe?
Move out your Bitcoin from your LocalCoinSwap wallet to your own hardware wallet like Ledger or the Trezor once you complete a transaction.
Don’t store your Bitcoin on LocalCoinSwap any longer than you need to.
Leaving bitcoins on exchanges are risky:
- Mt Gox where users lost $450 million or more in 2014
- Bitfinex hack where users lost $72 million in 2016
- NiceHash was hacked for $60million in 2017
- Coincheck lost a staggering $530million in early 2018,
- Binance was hacked for $40 million in 2019
“There are only two types of exchanges, the ones that have been hacked and the ones that WILL BE HACKED.” ~Winson, Founder of Coinzodiac.
Whether you’re new to cryptocurrency or an advanced user, securing your Bitcoin investment is your main priority.
For more information on how to protect your Bitcoin and crypto investment, visit this article with all my tips.
Conclusion
There you go. Now you know how to buy some bitcoins instantly with zero fees. You can avoid paying all the unnecessary charges, save you money and help you get the most Bitcoin with your fiat money!
Do you have any problem or question following this tutorial to buy bitcoins without fees? Tell me in the comment!
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