What is the best way to buy a small amount of Bitcoins ($5 to $10) daily?
I would not recommend that. You should at least buy $100 worth of Bitcoins.
Bitcoin isn’t something that you can buy next store i.e; pay a visit, handover cash and you should have your Bitcoins.
To buy Bitcoins with Fiat there are three methods:
Buy with Credit Card - You can buy Bitcoin, Litecoin, Ethereum at Coinbase - The best option for users coming from United States and Europe and many other countries with $10 BONUS on a purchase of $100. You can also use CEX.IO, Coinmama for their easy to sue Credit card options. They usually charge ±7% other exchanges are pretty much expensive.
Bank account (Bank wire) - You can use exchanges like Coinbase, bitstamp and bittrex to make a transfer/wire from your bank account and make a purchase of your favorite Crypto. But remember, most exchanges such as bittrex provides this facility to those willing to invest at least $10,000.
Individuals - Find individuals like me, handover cash (if nearby) and make a purchase with Fiat.
Why should you not buy small amounts?
Bitcoin transaction fees currently stands at $5+. I just made a $10 transaction and paid $5.32 as fees. Meaning that I received only $4.68 which is ridiculous.
Bitcoin fees are at it’s peak these days and will remain so for a while.
Now imagine you are making a $10 buy from CEX.IO or Coinmama with your credit card. Here’s how it should go.
Bought $10 bitcoin.
Exchange fees: 10 x 7% (at min)= $0.7
Visa/Master card fees: No idea.
Forex Mark-up: 3.5% (last time charged by my bank. Applies only if you have other than USD currency)
BTC transaction fees: $5+
Just in case you want to make a transfer from exchange you won’t even be able to do so. So, why try smaller amounts? I don’t see any reason why you should go for the smaller volume purchases.
But what fees are when buying only with crypto, like Steem or SBD?
That depends from exchange to exchange. But they are very minimal as compared to buying with fiat. For example; bittrex would charge 0.25% while Binance charge 0.1-.15%.
Cool, I'll go with Bittrex when I'll have money to trade :))
If you have a Coinbase account, then you have access to GDAX. If you post an order above or below market price, then they will not charge you a fee. Poloniex will also reduce the fee from 0.25% to 0.15%.
Personally I use Localbitcoins, the commission is quite acceptable and it is much faster than other methods.
Never used Localbitcoins but yeah it's good. Btw I thought the commissions were ridiculously high.
Yes, I also consider that the commission is quite high, but it is as you say, it depends on the transaction that you are going to do, generally i do not make too many transactions between fiat and bitcoin money, so I have not had problems, but it is true that thetransactions with low amounts the commission is in fact even excessive.
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