In this article, you will learn how to avoid Coinbase fees. Coinbase is a popular exchange in the crypto industry. It offers services ranging from the trading of cryptocurrency (buying and selling), currency conversion to currency storage.
The Coinbase platform is targeting inexperienced users to easily buy and sell cryptocurrency with an user-friendly interface. Coinbase is asking a high fee for this service, which most beginning users don't know about.
How to Avoid Coinbase Fees?
There are several tips to avoid these high Coinbase transaction fees.
-Switch to Coinbase Pro
Coinbase feesThe Coinbase Pro application presents a more excellent opportunity for saving on your transaction fees. It is the upgraded version of Coinbase, which is suitable for the professional digital asset traders. You can see the normal Coinbase application as a broker and Coinbase Pro as an exchange.
- Credit And Debit Cards
In the way of example, consider buying Bitcoin on the Coinbase platform using a debit card or credit card. The purchase fees will be at least 3.99% of the value you are buying. The cost is fixed whether you are in Australia, Canada, the USA, Singapore, the United Kingdom, and even Europe.
However, a trick works for that crypto trader who is not in a hurry to have the purchase completed, but can wait for a few days to complete the transaction. The trick is in using a bank transfer method in stead of the card method. Though it may not be instant, it's worth the wait.
-Bank Transfers
In the UK and Europe, the maximum charge for a bank transfer is € 0.15. In the United States, the cost is 1.49%, even though all transactions attract a 4% base rate. However, using bank transfer would still be way cheaper than using a debit or credit card.
However, when using Coinbase, there are additional charges based on the amount being bought or sold on top of the transaction method's cost. First, there is a 0.5% spread fee for both purchases and sales, which may rise or fall in response to market changes on Coinbase Pro.
Why are Coinbase Fees so High?
Coinbase is one of the most popular cryptocurrency exchanges, and it charges some of the highest fees in the industry. There are a few reasons for this:
Coinbase is a US-based company and is subject to US Securities and Exchange Commission regulations, which are generally more stringent than those in other countries. This means that Coinbase has higher compliance costs, which are passed on to users in the form of higher fees .
Coinbase is one of the most user-friendly exchanges, and its simplicity comes at a cost. The company has developed an easy-to-use platform that makes it ideal for first-time users, but this also means that it doesn't offer some of the more advanced features that more experienced users might want.
Bottom Line
Coinbase is one of the most popular exchanges, which means that it has a lot of users and a lot of trading volume. This high volume results in higher fees, as Coinbase charges a percentage of each transaction. This article is about how to avoid Coinbase fees.
