A Guide On Avoiding Paying Coinbase Fees In 2019

Does Coinbase Charge a fee? What percentage does Coinbase take? 

If you’re new to crypto and you’re wondering if Coinbase charges a fee – the answer is yes, Coinbase do charge a fee. This is something most of the people don’t know, as they hear about the platform from a friend and probably start buying without doing the math. Coinbase charges a spread of 0.50% on digital asset purchase or digital asset sale. This is something standard and most of the crypto exchanges have it But, they also have a  “Coinbase Fee” which is quite costly

  • For less than $10, the fee is $0.99. 
  • Between $10 and $25, the fee is $1.49
  • Between $25 and $50, the fee is $1.99
  • Between $50 and $200, the fee is $2.99 

We can call this a flat fee, as most of them are pretty standard. What’s worse is that there are also some variable fees if you wish to purchase crypto with credit card. If you’re from Australia and you want to buy crypto with a credit card, you will be charged a fee of 3.99%. Same situation is for Singapore, Canada, and even UK or USA at instant credit card buys.  So, you probably lose a high amount of money by these fees. That’s why we’ve created a guide on avoiding paying Coinbase fees. Afterwards, you can keep your cryptocurrencies in your Coinbase wallet or you can transfer them to Coinbase Pro and start crypto trading.

Avoiding Paying Coinbase Fees

If you want to buy bitcoin or sell bitcoin – Coinbase is a top choice. The hardest part if to have a Coinbase account , which takes toughly 5 minutes, and afterwards you can easily trade cryptocurrencies.

And if you want to buy or trade cryptocurrencies from USA or UK, chances are high that you will settle for Coinbase. Over the years, the platform has established itself in the market with a high number of users using it to buy or selling cryptocurrencies. Additionally, the platform has not suffered any security breaches. These are among the most important factors you will look for when looking for a platform to handle your crypto transactions. The cryptocurrency news about Coinbase are mostly positive and the fact that you can purchase crypto with a credit or debit card makes Coinbase even better.

On the downside, Coinbase’s high fees can turn off potential customers. Despite being a reliable platform, Coinbase charges a fee of 4% on all transactions. It is important to note that Coinbase still attracts many customers due to its market reputation. Apart from the high charges affecting crypto-to-crypto tradings, fiat conversions are expensive on Coinbase. There’s a  fee charged for buying cryptocurrencies, and exchange fee and even  withdraw fees. This is the same way of operating as a bank, and not as a cryptocurrency exchange should be.  Basically, this makes the coinbase wallet one of the most expensive places to buy cryptocurrencies or buy bitcoin or even daily trading.

If you settle for Coinbase, then you can avoid paying these fees. According to Coin Mastery channel on YouTube, there are ways to avoid incurring Coinbase fees. According to them, it’s all about taking advantage of Coinbase Pro. It is worth noting that Coinbase and Coinbase Pro are owned by the same company with the former not charging any fees for specific transactions.

So, if you with to pay Coinbase fees – you can stop reading this article. But if you agree with us that Coinbase fees are a bit too high and its better taking advantage of a Coinbase Pro account – you’re on the right place.

If you want to buy bitcoin or sell bitcoin – Coinbase is a top choice. The hardest part if to have a Coinbase account , which takes toughly 5 minutes, and afterwards you can easily trade cryptocurrencies.

How To Avoid Coinbase Fees – From Coinbase to Coinbase Pro

As seen above, Coinbase and Coinbase Pro are under the stewardship of one company. To avoid paying Coinbase, it is all about exploiting Coinbase Pro’s lack of fees on certain trades.
First, it is important to point out that Coinbase Pro is Coinabse’s platform that targets experienced traders. These client base can use Coinbase Pro to exchange cryptocurrencies alongside informative technical analysis with other helpful tools. The advantage of Coinbase Pro is the trading fee, which is way lower than the Coinbase one.

The first step to avoid fees on this platform is to sign up usually through the website. If you have an existing account, log in.With access to your account, you are then required to link your bank account with Coinbase.

The next step is about creating an account with Coinbase Pro. Notably, your account will have to undergo some verifications as part of security measures. To starts any trade, you will have to transfer funds from the bank to your Coinbase account. Once the funds reflect, immediately transfer them to your now verified Coinbase Pro account.

On the Coinbase Pro dashboard, you will be able to see your funds. Move to the left side of the dashboard and place your order.  In this case, Coinbase Pro provides the “Market order” option by default at a fee of 0.3%. You can avoid these fees by placing a “limit order.” This option enables you to put in the purchase bid for your order. This maneuver will keep you free from Coinbase charges.

Under Coinbase, Limit Selling entails placing orders with some conditions. Before putting this order, you can explain the amount and the price point the order should execute.

The next step is about creating an account with Coinbase Pro. Notably, your account will have to undergo some verification as part of security measures. To starts any trade, you will have to transfer funds from the bank to your Coinbase account. Once the funds reflect, immediately transfer them to your now verified Coinbase Pro account. Important to mention here is that there are no withdraw fees from Coinbase to Coinbase Pro.

On the Coinbase Pro dashboard, you will be able to see your funds. Move to the left side of the dashboard and place your order.

In this case, Coinbase Pro provides the “Market order” option by default at a fee of 0.5%. You can avoid these fees by placing a “limit order.” This option enables you to put in the purchase bid for your order. This maneuver will keep you free from Coinbase charges.  There will probably be small buying fees applying to your purchase bitcoin order, but will be lower than usual. To understand this a bit more, read a bit about maker and taker and what does mean. The buying fees are vary depending on the trade volume. For a monthly trade volme between $50 and $100 millions, you’d have a 0% maker fee. This is the exchange fee for the maket option, but for the taker one there would be a fee charged of 0.10%.

Coinbase Pro can also be used for daily trading as its trade volume is pretty good and it allows a lot of individuals to buy or selling cryptocurrencies. Like any other thing, this trick has a downside as much as it seems to be perfect. The process of using Coinbase Pro to beat Coinbase charges is longer especially when planning to buy Bitcoin. The process might take an additional hour or a few extra minutes.

Among the most important things of Coinbase Pro, there’s the fact that the deposit of a digital asset has a flat fee of $0 ( free) for both deposit or withdraw options. So, the withdraw fees from Coinbase Pro are zero. You can also deposit fiat currency there for free, trough ACH. There are no fees for creating a Coinbase Pro account or for holding your funds there, there’s only a trading fee necessary to keep the crypto exchange alive.

Disadvantages of Coinbase Pro

Additionally using Coinbase Pro has some disadvantages as listed below.

  • Non- professional charts. Coinbase Pro’s goal is to provide professional traders with tools like in-depth analysis charts. However, charts on the platform are far from being professional.
  • Exchange fee is high – There are other crypto platforms ideally for daily trading – such as Binance – where the fee charged per trade is way lower than on Coinbase or Coinbase Pro. However, a transfer from Coinbase to Coinbase Pro is needed on avoiding coinbase fees.
  • Ineffective customer support. The support team at Coinbase Pro does not provide conclusive answers to customer concerns. Additionally, the FAQ section lacks clarity on some vital issues.

Despite the Coinbase Pro shortcomings, Coinbase has a good reputation in the market with owners working hard to better the platform.  Among peers, Coinbase Pro is a success because it is friendly to both beginners and experienced traders at large. The interface of both Coinbase and Coinbase Pro is easy as you buy bitcoin or you can sell Bitcoin and move them between both platforms. 

Image Source: Coingape

Support Zerocrypted