Recently I started investing in Bitcoin and I came across unexpected fees that I wasn’t counting on when I started. I will cover these fees so that others will be aware of what costs are involved when you want to start investing in Bitcoin. The bitcoin exchange that I decided to use was MtGox because of the popularity.
The first fee that I came across was getting money into Paxum. Paxum is one of the few companies that you can use to get US Dollars into Bitcoin. With Paxum you have a few different options to get money to them such as via credit card transaction or a wire transfer. I decided to go with a credit card transaction because the fees were lower than the alternatives. Based on the amount you want to charge to your credit card they will charge a flat fee but also a small percentage.
The second fee that I ran into was once I transferred the money to MtGox. MtGox charges a small fee to get your money into the exchange. As far as a I know this fee can’t be avoided but it supports the exchange.
The third fee is charged every time you sell Bitcoins. This fee depends on how many transactions you have made in the past 30 days and this will decrease as you make more transactions. This starts at .63% and you can find a Fees Table on the bottom of the MtGox website.
The final fee that you will encounter is when you try to remove your money from the MtGox exchange and turn it back into money that you can use. Depending on how you decide to withdrawal the money your fees will change.
Overall the fees involved in Bitcoin Investing are something that you should be aware of but they are not necessarily a deal breaker.