Coinbase is a widely accessed cryptocurrency exchange over the world. It plays the main role for the people who give preference to investing in cryptocurrency.
Because of its simplicity and user-friendly interface, it is loved by many people. But you must also know that Coinbase shows up with some of the major charges and fees which you need to be aware of. To speak the truth, there is a fee charged for every single transaction that you make.
Here, in this article you will get to know ‘Does Coinbase charge fees?’ and if Yes, how the Coinbase fees are charged. So you must continue to read this blog to understand Coinbase fees. We shall also discuss its withdrawal fees, transaction fees, etc.
Coinbase Fees breakdown
On looking into the Agreement that is for the Coinbase users you may feel like a bit confused to look at it least. In addition to that there are strange limits imposed and regulations hidden on that small image.
As a whole one can say that there are fees on every transaction on digital currency that you make on the Coinbase platform whether you buy or sell.
Coinbase Buy fees
The fundamental fees linked with the cryptocurrency are the fees on buying. You can wield the fiat currency e.g USD to buy crypto with Coinbase.
Coinbase enables you to buy with a bank account, credit or debit card, Paypal, etc. If you desire to use your Paypal to buy then take note that you shall be charged with the fees for Paypal’s transaction in addition to the Coinbase fees.
On buying BTC on Coinbase, the portion of the fees has been deducted automatically from the sum of the amount of the order.
Let’s assume that you entered as $100 as the amount on which you are looking to buy. And for this trading, you will be charged a fee of $2.99.
Including the fee, the total of your transaction will end at $100 but only $97.02 will be the buying price of BTC on the existing market value.
Coinbase Sell Fee
While performing a sale on the Coinbase digital currency, the fee that is usually charged will get deducted automatically from the sum of the amount that you had entered initially.
For example: If the key is in $100, the amount on which you are selling, then the fee will be 1.49%. As the charged fees get automatically subtracted, then the sum of the amount on which you are selling the crypto will be $98.51.
Where to Find the Coinbase Transaction Fees
Whether you buy or sell the BTC digital currency, you will get charged automatically on the mandatory fees. You will receive a full written sheet of the transactions in the local and digital currency along with the fees which are being debited on the screen of confirmation.
How much is the Coinbase trading fees
As per the Coinbase fee calculator, the fees that are usually charged by the Coinbase platform are a bit high. The fees can be added up, particularly when you employ the service frequently.
There are both fixed and flexible fees which depend on the transaction amount. On making small purchases, then you will get charged as a flat fee.
Listed below are some of the flat fees on small transactions:-
- On selling and buying with the amount at $10.99 or less, then the fee will be $0.99.
- On selling or buying in between $11 and $26.49, then the trading fee will be $1.49
- If you buy or sell from $26.50 – $51.98, the fee will be $1.99
- On buying or selling in between $52 – $78.05, the trading fee is $2.99
The variables are stated below:-
- On using the USD wallet or the bank account you can generate transactions up to $200 in the Coinbase system for trading (to buy or sell) crypto.
- On making transactions of $201 or more than that, a 1.49% variable will be included.
- If you sell or purchase at $78.06 or more by using your debit or credit card and then transferring the proceedings to the account on Paypal then Coinbase transfer fee charges will be 3.99%.
Coinbase vs Coinbase Pro Charge
Coinbase has two platform for trading:-
- A normal platform for trading that includes extra brokerage.
- The other is ‘Coinbase Pro’ which is an advanced trading platform.
Coinbase Pro is also a crypto exchange platform where one can buy and sell Bitcoins on an open market rather than getting through the broker class service as the normal Coinbase exchange platform.
There is a vital bonus in the Pro platform, if there is already a Coinbase Account then you can easily access the Coinbase Pro Account. Just log in by using the same username and password as used in the Coinbase account.
Although your Coinbase Pro wallet is not the same as the normal Coinbase wallet account, since the account was already connected, it becomes easy to perform an exchange between these two wallets.
There is a vast difference in fees between the two accounts. You can say that the fees charged by Coinbase Pro are much lower than the normal Coinbase fees but not as low when looked at from a competition viewpoint.
The Coinbase Pro won’t deliver you card purchasing, so those fees will be avoided. It will enable you to access different cryptocurrencies while trading on Coinbase Pro.
Coinbase Pro Fees vs Coinbase fees:
Fee on Withdrawal:
While talking on Coinbase and Coinbase Pro ( Coinbase Pro withdrawal fee) there is no direct withdrawal fee. Still a standard ‘Network Fee’ is added while withdrawing and the fee varies on relying upon how much busy the network of the specified coins is.
You cannot skip or avoid this fee. So if the Coinbase account is utilised by you then there will be some kind of transaction fee known as the ‘Coinbase withdrawal fee’ which will be charged from you.
Fees on Buying:
Coinbase and Coinbase Pro are different in their fee patterns. The regular or normal Coinbase is high and tricky to understand.
As per the website, the basic rate on all sale and purchase transactions is 4% but it may also differ depending on the location or mode of payment.
If you desire to buy Bitcoin with the debit card then you shall obtain the Bitcoin immediately but there will be a fee related to it. To avoid this related charged fee, you can use the bank account to buy where you need to wait for a while for making the transfer. Coinbase extends free wire transfers, bank account transfers and ACH transfers.
With the Coinbase Pro account, there you are restricted in terms of the method of payment. You cannot use a debit or credit card for selling or buying. Yet, the regular Coinbase platform allows transfer of the cryptocurrency in between the two accounts.
Depending on the payment mode, more fees are charged as Coinbase wallet fees. But Coinbase Pro does not charge any fee while adding money to the account as it is not a broker.
However, a fee is charged on using the money to buy Bitcoins. On the other side, there are charges as a transaction fee.
To buy cryptocurrency by using a limit order or limit purchase is just the simple means to save the money on trading.
A variable fee or a flat fee will be included on a transaction with the regular Coinbase wallet account.
Whereas Coinbase Pro gives a better option when compared to Coinbase. On dealing with the trading fees, it is seen that Coinbase Pro is the best option to go with.
Coinbase Pro Fees operates a prominent transaction module known as ‘Maker-Taker’ to discern the fee on trading.
Let us look on how this module works:-
- In Maker order we add the liquidity which indicates that the order has been added in the book of order in the form of either a buying or selling order.
- While trading as the maker, you need to make your own proposals. The price of buying that you choose must be less than the existing price of selling in limit order.
- ‘Maker’ needs to pay the trading fee as per the Coinbase terms which is known as the ‘Maker Fee’.
- ‘Taker’ means when the part of the book of order has been removed. Thereby, you are either selling or buying a trade that is named in the book of order.
- These methods of transactions are done immediately, but there you will be charged the Coinbase Pro trading fees with the fee charged in between .0%- .50% for the trading and it will depend on how much you had traded during the given month.
For the new users, Coinbase is the prominent platform. But when it comes to its fees, Coinbase fees too high, thereby it is not much worth the comfort to use. So just roll over to the Coinbase Pro in order to save some of your money while trading and purchasing and in addition to saving your money there will be options where you can do more with the cryptocurrency. The security services are the same as the regular Coinbase exchange platform. Most of the funds on Coinbase are maintained in offline cold storage which means that the users can feel safe and secure that the digital assets could not be hacked.