Coinbase Fees: Here’s a Full Breakdown of How To Minimize Costs
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When you ’ re looking to invest in cryptocurrency, you ’ re going to find Coinbase as an appealing option to start buy cryptocurrencies. But if you start using Coinbase without digging any deeper, you ’ re going to pay fees that can add up over time .
Trying to gain penetration as to what the Coinbase fees are can be slightly difficult, to say nothing about avoiding them. This guide is approximately good that — a breakdown of Coinbase fees and what you can do to maximize your investments.
What Types of Fees Does Coinbase Charge?
There are several fees Coinbase applies to transactions — margin or banquet fees and what the platform calls the Coinbase Fee. hera ’ s a look at each type :
- Margin or spread fees: The margin (or spread) is explained by Coinbase as a service charge of up to 2.00% that is added to the exchange rate on Coinbase Pro. This is the name of the Coinbase-owned exchange that processes all transactions.
- Coinbase Fee: The Coinbase Fee is the one that tends to get confusing because there are so many factors at play. The user will pay either a flat fee or a variable percentage of the transaction, depending on region, product and payment method.
The flat fees charged by Coinbase are as follows :
|Total Transaction Amount||Transaction Fee|
|$10 or less||$0.99|
|More than $10, less than or equal to $25||$1.49|
|More than $25, less than or equal to $50||$1.99|
|More than $50, less than or equal to $200||$2.99|
here are the variable fees for users in the U.S. :
|Payment Method for Purchase or Payout Method for Sale||Effective Rate of Conversion Fee (After Waiver)|
|U.S. bank account||1.49%|
|Coinbase USD wallet||1.49%|
|Debit card buy||3.99%|
|Instant card withdrawal||Up to 1.5% of any transaction and a minimum fee of $0.55|
Coinbase considers both fees when you preview a transaction. A U.S. customer making a buy above $ 204, for model, will have the tip assessed at the 1.49 % rate up to the maximum purchase sum .
You can verify this by initiating a purchase on Coinbase.com and previewing the buy at $ 205. note that the fee just grows in lockstep with the come purchased up to your maximum .
As you might imagine, these fees add up to quite a bit in funds that you might otherwise have invested. This begs the motion : How do you avoid fees on Coinbase ?
How To Minimize Coinbase Fees
The key to minimizing fees on Coinbase is understanding the associate between Coinbase and Coinbase Pro .
What Is Coinbase Pro?
once known as GDAX, Coinbase Pro is the favored trade platform used to fulfill orders placed via Coinbase. It is a platform designed for crypto enthusiasts and is meant to provide a more detailed expression at the cryptocurrency markets, enabling traders to make more informed decisions .
Because both are owned by Coinbase, transfers between them are moment and free. This is significant because the fees assessed for the lapp actions are far lower on Coinbase Pro than they are on Coinbase .
The breakdown of these transactions is a bit more technical. They follow what is referred to as a maker-taker exemplary. here ’ s an overview of types of transactions you might make :
- Taker orders: Orders made at the market price and fulfilled immediately are considered “taker” orders and are charged a fee between 0.04% and 0.50%.
- Maker orders: Orders that are not filled immediately are placed on the books and designated as “maker” orders that come with fees between 0.00% and 0.50%.
- Partial orders: Partial orders are when a portion of the order is filled immediately, while the rest is left on the books to be filled at a later time. If this happens, the first part is assessed on the “taker” side. The remainder will be filled as a “maker” order.
Keep in mind that with Coinbase Pro the fees are based on the amount of the transaction, so you actually pay less for deal more :
|Pricing Tier||Taker Fee||Maker Fee|
|Less than $10K||0.60%||0.40%|
|$10K to $50K||0.40%||0.25%|
|$50K to $100K||0.25%||0.15%|
|$100K to $1M||0.20%||0.10%|
|$1M to $10M||0.18%||0.08%|
|$10M to $50M||0.15%||0.05%|
|$50M to $100M||0.15%||0.05%|
|$100M to $300M||0.08%||0.02%|
|$300M to $500M||0.05%||0.00%|
|$500M and up||0.04%||0.00%|
How To Use Coinbase Pro To Minimize Coinbase Fees
now that you understand what Coinbase Pro is and how the fees work, its attract for trade should be obvious. hera are the steps for doing so :
- Use your Coinbase credentials to sign in to Coinbase Pro.
- Select “deposit” under the wallet balance section.
- Choose the type of currency you’d like to transfer (USD, BTC, etc.).
- Select the Coinbase.com option.
At this point, you ’ ll be able to see the balance wheel available in your Coinbase wallet for the currency you ’ ve chosen. Again, transfers between the two platforms are dislodge and clamant, and there ’ s no restrict on deposits for digital assets .
Trades conducted with Coinbase Pro aren ’ metric ton adenine intuitive as they are on Coinbase — you ’ ll need to use accurate amounts quite than trading the equivalent volume of USD — but the tradeoff is that the fees are well lower .
The march for withdrawing your assets to Coinbase is identical, except you ’ ll choose “ withdraw ” under the wallet balance section rather than “ deposit. ” Transfers are instantaneous, but there is a default daily terminus ad quem of $ 250,000. If you need to regularly bow out more than this, you can request to increase limits via the limits page on your profile.
Coinbase vs. Coinbase Pro
To see a real-world example, let ’ s say you wanted to buy $ 2,000 worth of bitcoin. Why $ 2,000 ? Because that ’ s the default daily limit on both platforms using ACH transfers .
On Coinbase, that leverage would cost 1.49 %, or $ 29.36. Using Coinbase Pro, you can complete the lapp purchase and pay only $ 10 — about one-third of the tip charged on Coinbase .
You can besides use a debit tease to make purchases on Coinbase. however, again, you ’ ll wage handily for the public toilet. The fee for using debit cards on Coinbase is 3.99 %, which brings the fee full to $ 76.74 for a $ 2,000 buy .
Are Coinbase Fees Worth It?
For those who have only a casual concern in cryptocurrency or those who are equitable learning about it, the price may be worth it in switch over for the convenience of trade in a decree currency and using a highly intuitive interface .
It ’ south easy to minimize fees using the Coinbase network. It barely takes a snatch of know-how. For most beginning traders, the limits that are set on your Coinbase Pro report will be more than generous enough to allow for convention natural process. It looks intimidating, but using Coinbase Pro is a great way to deepen your understanding of the cryptocurrency outer space and gain experience as a trader .
How Much Does Coinbase Charge Per Transaction?
The amount you ’ ll pay in fees using Coinbase varies based on the transaction character and payment method acting. For a more detail look, see the section on Coinbase fees .
Are Coinbase Fees High?
Coinbase fees are reasonably high proportional to like crypto platforms, which is why so many users look for ways to avoid or minimize them .
What Are Coinbase Fees For?
When you use Coinbase to make trades, you pay for the public toilet of trading without needing a true exchange. You can besides make trades in USD, which is a lot easier to conceptualize than the raw decimal fraction numbers that cryptocurrencies are broken down into .
Do I Need Coinbase Pro?
Coinbase Pro is a more advance platform that is not optimized for the fooling drug user. Anyone can learn to use it. however, those conducting many or high-volume trades will get the most out of it .
Can I Have Multiple Coinbase Accounts?
Maintaining multiple accounts with Coinbase is against its terms of practice. tied so, Coinbase Pro allows you to manage multiple portfolios .
Does Coinbase Report to the IRS?
As of the tax class 2022, you ’ ll receive a 1099-MISC if you :
- Are a Coinbase customer
- Are required to pay U.S. taxes
- Earned $600 or more in rewards or fees from Coinbase Earn, USDC Rewards and/or Staking in 2020
All capital gains and losses should be reported on form 8984 .
Why Are Investors Taking an Interest in Crypto and Coinbase?
People all over the universe are taking more and more of an interest in cryptocurrency, and the tempt is clear. traditional invest in stocks or other assets may have seemed off-limits or uninteresting to certain investors. however, crypto is an exciting, volatile asset with values changing daily and an overall drift that seems to be going up .
many believe that cryptocurrency is the suffice to the problems created by centralize fiscal institutions. Others believe in the underlying engineering. still others plainly see the natural process and don ’ deoxythymidine monophosphate want to miss out on an opportunity to make some quick cash .
There are several ways to get involved in the crypto space, but centralized exchanges like Coinbase are an entry point for a lot of people because of their simplicity, ease of access and ability to trade the more democratic coins such as Bitcoin and Ether .
Data is accurate as of May 20, 2022, and is subject to change.
data is accurate as of May 20, 2022 .
About the Author
Branford Shaw is a freelance writer and web developer in the Washington D.C. area with a background in sales and scientific research. He received a B.S. in Biology at Hampton University, where he honed his skills as a technical writer. With a wide variety of interests and experience, he is able to learn quickly and write about as many diverse topics, but his areas of expertise are in technology, travel, personal development, and freelancing/entrepreneurship.