Let’s be honest. It can be super confusing on how to buy Bitcoin without getting wrecked in fees and charges.
It’s hard to know if you are getting a good deal.
And where do you keep it once you buy it?
It’s hard to know if you’re doing it right because it’s all so new! Not to mention all the information out there…
I’ve done a lot of research on this topic and a lot of math.
So I am going to CLEAR IT ALL UP for you!
In this article I am going to show you:
- How to save the most money on fees
- How to easily buy Bitcoin
- How to do it safely
- Where to keep your crypto SAFE
- How to get a 5% return on the bitcoin you buy (optional)
- How to automate the entire process
Full disclaimer – I am not getting paid for this article these are simply services I like to use. The links included are affiliate links. Using them helps support me. All research was done by the author Vanader.
Let’s start with fees – who charges the least?
The big 3 we are going to cover are:
All 3 of these are legal and easily accessible in the United States. All 3 are on the lower side of fees, but who is the obvious winner?
I ran the numbers manually – using a good old-fashioned pen, paper, and a calculator. Then I realized that if I had just kept scrolling… I would have found what I was looking for!
The good news is that my math matched. Based on the exchange rate and transaction fees Swan Bitcoin is the clear winner.
Swan Bitcoin wins. They are the cheapest place to buy Bitcoin, especially on a recurring basis!
If you want the most affordable way to regularly buy Bitcoin – use Swan Bitcoin
If you want to buy bitcoin with your phone one time, use CashApp.
If you want to buy Ethereum (ETH) or other popular cryptocurrencies – use Coinbase.
Let’s start with how to purchase.
There are a lot of places you can buy Bitcoin, but none of them are as good as Swan Bitcoin. Here’s Why:
- They have the lowest fees overall
- Recurring Bitcoin purchases with no additional charges
- Automatic withdrawals to an external wallet (no fees)
- Easy to contact and communicate with
- Well respected members of the crypto community are involved
The whole point of Swan Bitcoin is to setup recurring purchases.
You automate your Netflix and Amazon Prime payments. Automate your investments! It is the BEST way to invest in a volatile asset like Bitcoin.
It’s called dollar-cost averaging. The idea is that by spreading out your purchases you won’t get hit hard when the price changes. It’s how I invest in everything. I buy a little very often.
If you want to learn more about this subject you want my YouTube explainer here.
Click here to open your own Swan Bitcoin account and get $10 in BTC
So I set up a recurring purchase on Swan Bitcoin – now what?!
The hardest part is done! Congrats! Now it’s time to put that Bitcoin in a safe place.
Safe place? What do you mean?
Well, since cryptocurrency is digital we have to keep it in a safe place for digital items.
That means we need to get our own digital safe – also known as a hardware wallet.
or we can put it into a secured interest bearing savings account with BlockFi.com
Let’s talk about the two different options so you can decide for yourself.
Option #1
Hardware wallet – store your crypto in a hardware wallet. It’s just like buying a digital safe.
Once you set up a new wallet on your Nano Ledger (brand of hardware wallet) you can send Bitcoin to it. Once the Bitcoin is on your hardware wallet, you can rest assured knowing that it can’t be hacked – stolen – or destroyed.
The only way you can lose your Cryptocurrency is if you lose your passphrase.
Pros:
- The safest way to store Bitcoin – there isn’t a better way
- Multiple layers of security with a great support team
Cons:
- Can be challenging to setup
- If you lose the password or secret keys – you lose your Cryptocurrency
I own multiple hardware wallets. The security can’t be beat.
Option #2
Earn interest on your crypto – deposit your Bitcoin with BlockFi and they will pay you 5% rate of return for allowing them to keep it safe.
I spoke with a rep from BlockFi before writing this blog post. They passed my tests 🙂 When you make a deposit with BlockFi it goes into cold storage that is backed by Gemini – a respected cryptocurrency exchange.
They are able to pay you such high-interest rates because they lend the cryptocurrency to other businesses for a higher rate of return. It’s how banks use to do business.
Pros:
- Very easy to setup
- Very easy to use
- The rate of return is very good (compounding interest + appreciation ?)
- You can take loans out in USD against your Crypto
Cons:
- You don’t own your crypto
- Not FDIC insured or backed
- If BlockFi goes away – your crypto goes away
I use BlockFi as a tool to grow my cryptocurrency and take loans out against it. It really is the best way to safely get a return on your Bitcoin.
You can sign up for a BlockFi account here!
Decide which option is best for you. option #1 if you don’t like risk.
Option #2 if you are ok with risk and want a better return.
Time to automate the process!
Now that you know where to buy Bitcoin and where to keep it, it’s time to talk about how to automate it!
We already know how to automate the purchases.
Let’s talk about how to automate the withdrawals and transfers.
At the bottom of your Swan Bitcoin dashboard there is a link to setup auto-withdraw.
It’s really that simple. Just type in the Bitcoin address from your hardware wallet.
OR
Type in your Bitcoin address from BlockFI.
No matter which option you choose, you are fully automating the Bitcoin buying process like a pro.
You are dollar cost averaging into the market – which is the best way to invest
You are putting your Bitcoin in a safe place.
You are taking advantage of interest, appreciation or both!
You have full control.
Now you know more than 90% of Bitcoin owners.
Share this blog post so we can spread the word and change that!
If you like learning from me – checkout my website vanader.com
I teach people business – money and crypto
I also run a business school which can be found here.
Keep educating and be good to future you!
-Vanader
