Earlier we wrote an article about the best crypto broker in the Netherlands .
As far as we are concerned, that is Litebit .
But what is the cheapest broker to buy coins like Bitcoin?
And of course also the different Altcoins.
That is Bitvavo . By the way, they are both broker and exchange.
We will further explain below why they come out so cheaply .
To determine which broker is cheaper than the rest, we naturally look at the costs. We will leave the other aspects out of consideration for the moment. We will come back to that later in this article why Bitvavo is the cheapest but not the best broker / exchange.
There are various costs that you incur when you want to buy crypto. The platforms and wallets are now free everywhere. You do pay costs for the transactions you make. In other words, buying and selling coins.
All brokers charge trading fees . This is a fee with which they earn their money. They also pay the costs for the blockchain. In addition, some charge additional transaction costs . This is often a matter of a few dimes.
With most brokers the fee they charge is 1-2%, depending on the type of coin you buy. At Bitvavo , however, this is a maximum of 0.25% and sometimes even completely free! Of course they will sometimes increase this, but now they want to acquire many customers this way.
That is why they are so cheap that they are the most economical for literally all 58 coins you can purchase there. It is therefore certainly advisable to use this portal if you mainly find costs important. For example if you expect to do a lot of transactions.
In addition to the low costs, they are currently recruiting extra hard to get a lot of customers. That is why you currently get the opportunity to trade for free up to 1000 US dollars via this promotional link .
They have arranged these kinds of actions. So even if this promotion is over, there will often be a new one.
Still, Bitvavo is not the best broker as far as we are concerned, because as mentioned earlier that is Litebit. Why is that the case?
Litebit also scores reasonably well in terms of costs. For example, they have extra low fees for Bitcoin and have recently lowered their rates considerably. But that is not everything. Litebit is a Dutch company with very good and fast Dutch customer service. It can even be reached by phone. And Bitvavo does not have the latter.
Litebit is therefore better for novice investors because of the good support and explanation. Buy coins for the long-term investment. That tactic or strategy is also called HODL, or "Hold On for Dear Life".
Bitvavo is better for the more experienced investor who does not need any help and can only look at the costs. In addition, the latter also has an exchange, which makes it more attractive for day trading, or in other words, doing many transactions.
Like Litebit, Bitvavo is a Dutch company. More of an exchange by the way than just a broker. Anyway, they just have a Chamber of Commerce number and a legal entity in NL, which is great. And of course, like all hip companies, they have an office on the Herengracht in Amsterdam.
They once started as a broker, but are now more of an exchange. This also partly explains the low costs. The difference between a broker and exchange is not only reflected in lower costs. With a broker you can only buy and sell, with an exchange you can also exchange coins against each other.
The following coins can all be purchased at Bitvavo and also stored there in their wallets. The latter is free. Where exchanges are even more sensitive to hacking, because there is simply more to be gained, Bitvavo ensures that there is extra security with Cold Wallets.