Coinbase is one of the most widely acclaimed cryptocurrency exchanges in the UK and the US. It allows people to purchase cryptocurrencies with fiat currencies directly. Apart from cryptocurrency trading (buying and selling), coinbase also offers storage and conversion services. Such frequent usage of the exchange by the people that includes the US citizens (US citizens are barred by most of the crypto trading exchanges), adds up to the high withdrawal fees that most people are not aware of. Also, some people must avoid most common trading mistakes before trading, like is Coinbase legit. However, such high fees can be easily avoided by switching to a more upgraded version of Coinbase that allows traders to save on their transaction fees.
How Much Money Does Coinbase Charge?
Coinbase has the most expensive fee structure as compared to other Tier 1 cryptocurrency exchanges. It charges a fee as high as 0.50% on crypto purchases and sales. There is a fee for every single transaction made on the platform, be it buying or selling. When selling, the fees are automatically deducted from the initial amount entered by the trader. On top of it, there is a Coinbase fee which is the greater of the flat fee charged based on the order size or a variable fee percentage charged based on the payment type selected by the trader and his region of operation.
The flat fees for smaller transactions are as follows:
- If the transaction amount is $10.99 or less, the trading fee is $0.99
- If the transaction amount is in the range between $11 and 26.49, the trading fee is $1.49
- If the transaction amount is between $26.50 to $51.99, the trading fee is $1.99
- If the transaction amount is between $52 to $78.05, the trading fee is $2.99
Thus, the exchange charges a flat fee for smaller transactions, but the fees add up abruptly on a frequent usage of the services.
The variable fees charged by Coinbase are as follows:
- Transactions up to $200 made within the Coinbase system via bank transfers or USD wallet are free but above $200; the variable cost of 1.49% applies.
- If a transaction of $78.06 or more is made via a debit or a credit card, and then the entire proceeds are transferred into the trader’s PayPal account, Coinbase charges a variable fee of 3.99%. There are fees outside of a trader’s Coinbase account, e.g., some traders are charged a 3% of foreign exchange fee, but that depends on the payment bank.
Coinbase crypto to crypto conversion fees
For crypto-to-crypto conversions, e.g., from USDC to BTC or from BTC to ETH, Coinbase charges a spread margin of a maximum of 2%. However, the exact margin depends on the market fluctuations prevailing at the time of conversion.
Can You Avoid Paying Coinbase Fees?
The high Coinbase fee can be avoided if the traders switch on to the upgraded version of Coinbase called Coinbase Pro. The standard Coinbase application is more of a broker, whereas the Coinbase Pro is an exchange suitable for the professional cryptocurrency trader.
What are the fees on Coinbase and Coinbase Pro?
Coinbase Pro operates on the maker-taker tariff model, where the person placing the order at a market price is considered a “taker” if the order is filled immediately. On the other hand, he will be regarded as a “maker” if the order placed is not instantly matched by an order that is already existing. In such cases, where only a part of the order placed is matched immediately, the trader needs to pay the taker fee for that portion only and later pay the maker fee for the total order remaining when it is met. For instance, irrespective of being a taker or a maker, a person depositing up to $10,000 will be charged a transaction fee of 0.5%.
However, for the same transaction fee, a fee of 1.49% will be charged for a Coinbase bank transfer and 3.99% for a USA debit card transfer in the USA. Thus, Coinbase Pro’s fees are charged as a percentage of the transaction made, which depends on the total amount traded by users in a month. Click here to know the services and features offered by Coinbase.
Coinbase and coinbase pro have a lot of similarities. Both have access to similar currencies, both are controlled exchanges with insurance, and both offer highly secure storage digital assets.
For those who are new to the cryptocurrency space, Coinbase is a great starting point. With its genuine user interface, manageable charting, and user guidance built right in, one can become a crypto connoisseur in no time. For actively trading crypto and access to high-level charting, spot trading, and meager fees, Coinbase Pro is just the answer. Moreover, if a trader wants to waive the network fee, it is better to transfer the coins from Coinbase to Coinbase Pro. However, the trader has to incur the trading fees on Coinbase Pro, which is relatively lower than the typical Coinbase application.
No matter which platform you choose, one must be aware that investing in cryptocurrencies is highly risky, so never invest more than you are willing to lose.