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 cryptocurrnecies. 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.
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.
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.
How To Avoid Coinbase Fees
As seen above, Coinbase and Coinbase Pro are under the stewardship of one company. To avoid paying charges, 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 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.
While reviewing orders on Coinbase, you can set a price in the middle section. The selected price should be placed in your account, and no charges will be incurred. Additionally, you will also be free from commissions. Coinbase will then show you an open order for the set price. However, your order will not initiate by default.
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 entails moving between two different platforms that are owned by the same company.
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.
- 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.
- They have limited device support. Coinbase Pro is yet to have a mobile application. Additionally, the website sometimes freezes when we have many customers accessing it a go.
- Growing currencies. With Coinbase Pro, the number of compatible coins is on the rise. This development might include complexities in the blockchain in the future.
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 can sell Bitcoin and move them between both platforms.
Image Source: Coingape
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