Buying Crypto Smartly: A Guide to Minimizing Costs

Buying cryptocurrency often comes with a host of hidden costs: deposit and withdrawal fees, trading fees, and wide spreads. As a result, the final purchase price can be several percentage points higher than you initially planned.

However, these costs can be avoided with a systematic approach. Here's a guide to help you find the best deals and buy cryptocurrency with minimal expenses.

Step 1: Choose the Right Exchange

Your costs begin with your choice of trading venue.
How to choose a crypto exchange to minimize expenses?

• Security and Reputation: Start with major exchanges that have a long track record. Dubious platforms promising "zero fees" often compensate in other ways.
• Fees: Compare not only trading fees but also deposit and withdrawal fees for fiat currencies. Sometimes, low trading fees are offset by high withdrawal costs.
• Liquidity: On an exchange with low trading volume, you'll be buying at an inflated price and selling at a discounted one due to a wide spread.

This is why most beginners start with trading on Binance. It is one of the best crypto exchanges for starting out because it offers a balance of high liquidity, low fees, and a wide selection of assets.

Step 2: Use Limit Orders

Stop using market orders—this is the main secret to where to buy crypto cheap.

• A market order executes immediately but at the best available price at that moment, which may not be favorable.
• A limit order allows you to specify the exact price at which you are willing to buy the asset. You dictate the terms, rather than accepting whatever the market offers.

Using limit orders is a key skill that saves significant money over the long term.

Step 3: Choose Liquid Trading Pairs

Trading illiquid assets ("shitcoins") is always associated with a high spread (the difference between the buy and sell price) and the risk of slippage.

Start with the best cryptocurrency pairs, where trading volumes are in the millions of dollars per day:

• BTC/USDT, ETH/USDT — on these pairs, the spread is minimal, and liquidity is at its maximum 24/7.
• Trading obscure coins can lead to a situation where you simply can't find a buyer for your asset at a reasonable price.

Step 4: Optimize Your Transactions

Every withdrawal from an exchange is subject to a fee, which is often fixed and can be significant for small amounts. If you withdraw $10 after every trade, the fees could eat up all your profits.

Optimize your actions: make several trades and withdraw funds in one larger transaction when necessary.

Conclusion: How to Buy Cheaply?

1. Choose a major exchange with high liquidity and low fees.
2. Use limit orders instead of market orders.
3. Trade liquid pairs (BTC, ETH), not exotics.
4. Optimize your withdrawals from the exchange.

There's no magic—just discipline and common sense.

FAQ

Q: Which exchanges are best for beginners?
A: Large, liquid exchanges with a good reputation. Binance, Bybit, and OKX are a good starting set.

Q: What are the best cryptocurrency pairs?
A: Those with consistently high trading volume, such as BTC/USDT and ETH/USDT.

Q: How else can I save on fees?
A: On some exchanges (like Binance), you can pay fees with their native token (BNB), which gives you a discount.

Q: Can I buy crypto with a credit card?
A: Yes, but it's often the most expensive way due to high fees from payment gateways. P2P trading on the same exchange, like Binance, is usually more cost-effective.

‍

This material is for informational purposes only. Please evaluate the risks independently before investing.

‍