How to Buy Bitcoin Without Fees

Many exchanges

Have you Heard of Coinbase?

The chances are you have, but Coinbase charges an average fee of 2.5% on each transaction (3.99% for credit/debit card use and 1.49% via bank account).

You may not know this, but Coinbase also runs a less popular, but very convenient trading platform called Coinbase Pro, which allows its users to buy Bitcoin with low, and even zero fees!

On the other hand, if you don't already have a Coinbase account, then you should create one now - they’re the best for newcomers. And hey, here is a special link that will allow you to get a $10 bonus if you deposit $100 or more.
 

Coinbase Pro: Secret Revealed

With Coinbase Pro, users can execute two types of trades:

1. Taker trades: meaning that you are taking someone’s offer to buy or sell Bitcoin at a certain price
2. Maker trades: meaning you are the original creator of the order in the first place. Being a maker will allow you to buy Bitcoin without fees!

Check out this link to understand how Coinbase Pro’s fees work.

First thing’s first - let’s get set up on Coinbase Pro. If you already have setup your Coinbase account, then you can skip this paragraph and jump straight to “Deposit from Coinbase.”
 

Sync your Bank Account

If you are new to the Coinbase platform, then you will need to sync your bank account with Coinbase Pro to deposit cash to get started.

To add your bank account, follow the below steps as mentioned from their website:

1. First, open your trading view by going to pro.coinbase.com/trade
2. On the left side under Assets, select the Deposit option
3. Find the Currency Type drop-down menu and select USD
4. Next, select the Bank Account tab and click on ADD BANK
5. You will be redirected to Coinbase to complete the bank account verification process
    

Deposit from your Bank Account

To deposit funds once your account is synced, simply:

1. Click on the left column under Assets and select the Deposit option
2. Find the Currency Type drop-down menu and select USD
3. Next, select the Bank Account tab. If your bank account is already verified, then it should be listed there under Source.
4. From the drop-down menu, select the verified bank account you wish to deposit from
5. Last, enter the USD amount you would like to transfer and then select the Deposit from Bank option to confirm

In case you decided to deposit money using the regular Coinbase platform, or if you already deposited money before reading this tutorial, then we should explore how to deposit funds from Coinbase to your Coinbase Pro account.
 

Deposit from Coinbase

Depositing from your Coinbase wallet to Coinbase Pro is the process as above for depositing from your bank accounts, except when the deposit window shows, select Coinbase Wallet, instead of SEPA Transfer. Check out the below video to see what we mean.

Select the Right Trading Pair

Once you have funds deposited, the fun begins. It’s time to get trading.

The first step is choosing the trading pair

Additionally, there are USDC pairs, a stable coin offered in Coinbase Pro so users do not need to deposit USD, and can still speculate on the USD price fluctuations the same exact way.

Find that trading pair by clicking on the asset list towards the top left of your Coinbase Pro trading view. Once you click on that, you will see a dropdown of several trading pair options.

Choose one, and you are ready to buy and sell!

Now, it’s time to learn how to avoid these fees holding you back. Here’s the magic...

First thing’s first: Understand the Order Book

It’s pretty easy:

• The order book represents the list of makers orders.
• Green orders are buy orders (traders willing to buy Bitcoin) and red orders are sell orders (traders willing to sell their Bitcoin).
• The trading is auction-based: the best offers will be filled first, whether we are referring to the highest buy bid or to the lowest sell bid.
• At the top of the green orders, you’ll find the highest buy bids. At the bottom of sell orders, you’ll find the lowest sell bid.
   

Be Reassured Before You Place Your First Order

Whatever you do, don’t rush your trades. Take your time. What if you fill the wrong numbers in the fields? What is the worst case scenario?

Well, rest assured. Coinbase Pro has got your back. Let’s say that, by mistake, you get confused with the numbers and place an order to buy one bitcoin at $100,000 - oops!

Since Coinbase Pro is a platform that wants to protect its users, your trade will be filled at the best available market price.

If Bitcoin is currently priced at $3,456, then your order will be filled at this price, not at $100,000. Still, you should not rush your trades.
 

Place an Order as a Maker

Here we go, what we’ve been waiting for. To buy Bitcoin without fees requires being a maker, not a taker.

To place trades as a maker, follow the below steps:

1. Double check you have selected the correct trading pair
2. Choose the ‘limit’ option
3. In the ‘limit price’ field, enter the price you would like to buy or sell at per unit of BTC. For example, $3,450 per BTC.
4. In the ‘amount’ field, enter the amount of BTC you would like to buy or sell. For example, 1.40 BTC.
5. Validate your order and you’re all done! If you followed the previous examples, you’ll buy/sell 1.40 BTC for the total price of $4,830 (1.4 * $3,450).

Here is a quick clip showing you how it’s done:

Once your order is validated, it should appear in the “open orders” section.

Until your order is filled, meaning a taker has completely bought or sold into your order request, it will stay as an open order.

If you want to buy purchase 10 Litecoin

To repeat, be sure to trade all orders as a limit to be a maker if you want to be fee free!
 

Place an Order as a Taker

This is even simpler. Simply enter the amount of Bitcoin you want to buy, and validate the order.

To place trades as a taker, follow the below steps:

1. Double check you have selected the correct trading pair
2. The ‘market’ option is chosen by default, so there is nothing to be done here
3. In the ‘amount’ field, enter the amount worth of BTC you want to buy or sell. For example, enter $60 if you want to trade $60 worth of Bitcoin.  
4. Validate your order and you’re all done!

Note: Placing an order as a taker on Coinbase Pro will incur low fees (~ 0.1%).

Well, there you have it, folks. Now that you know how to buy Bitcoin without fees, you will be able to save a TON of money.