Bitcoin trading fees on PayPal, Robinhood, Cash App and Coinbase: what you need to know

With bitcoin's price hitting a new all-time high on Monday, many retail investors will inevitably want to buy the most well-known of crypto assets. Both novice traders and experienced investors will need to beware of any extraneous costs that could impact earnings. Here is how much the commissions are worth on some of the most suitable platforms for buying and selling bitcoin (BTC).

PayPal

The largest app on this list, PayPal (read our guide to buying Bitcoin with PayPal) is one of the newcomers to the world of bitcoin trading. It has a very low rate of $ 0,50 for purchases under $ 25,00. Its highest commissions are 2,3% on purchases from $ 25,00 to $ 100, which gradually decrease until it reaches the lowest rate of 1,5% for purchases over $ 1.000. In this case, it must be remembered that bitcoin purchases on PayPal remain firmly within the fintech giant's territory.

Robin Hood

Robinhood is an investment app that has always kept all types of trades free. This also applies to cryptocurrency purchases. Robinhood also places limit orders on all purchases and sales, so they are not executed if the market suddenly moves against the customer after an order has been placed. Robinhood launched BTC in 2018 and promised withdrawals would come soon, but that hasn't happened yet.

Coinbase

Coinbase has made a name for itself by making cryptocurrency trading simple, and it's still an app that many tech-savvy retail buyers who haven't yet taken the plunge with cryptocurrencies are likely to know. Coinbase's fee structure is clearly defined, starting at $ 0,99 for purchases under $ 10, going up to 1,49% for any purchases over $ 200. Buyers should also note that Coinbase adds a 0,5% spread to all purchases and sales, which means that users always buy for a little more than the market price and sell for a little less.

Cash app

Square's Cash (SQ) app allows people to easily exchange money, but it has also become a way to buy stocks, pay small businesses, and even buy bitcoins. In fact, Square's Cash app has led the way in bringing bitcoin purchases into a traditional wallet. The company changed its bitcoin buy and sell fee structure last year. The Cash app does not explicitly specify its fees and has a dedicated page where it recognizes both a trading fee and an occasional increase when the price is very volatile.

Conclusions

It is important to note that there are other factors to consider for buyers who are seriously considering investing in cryptocurrency. For example, users who want to control their assets will want to use an app that allows them to withdraw bitcoins, which not everyone does.
That said, for anyone who just wants to try, for example, investing $ 100, any of these apps will serve the purpose well and more will surely come.