Coinbase, Exchanges

How Do I Avoid Coinbase Fees?

Coinbase is a digital asset exchange company founded in 2012. The company is headquartered in San Francisco.

Coinbase allows clients to buy and sell digital currencies such as Bitcoin, Ethereum, and Litecoin.

Coinbase has been a subject of criticism in the past for their high fees. In this article, we will explore how to avoid Coinbase fees.

Coinbase has three types of fees: transaction fees, conversion fees, and deposit/withdrawal fees.

Transaction Fees:

Every time you buy or sell digital currency on Coinbase, you will be charged a transaction fee. The transaction fee is calculated as a percentage of the total transaction amount. For example, if you buy $100 worth of Bitcoin, you will be charged a $1 transaction fee.

If you then sell that Bitcoin for $200, you will be charged another $1 transaction fee. So in total, you would have paid $2 in transaction fees.

To avoid paying transaction fees, you can use Coinbase Pro, which is Coinbase’s professional trading platform. Coinbase Pro is designed for active traders and does not charge any transaction fees.

NOTE: WARNING: Coinbase fees can be substantial and vary depending on the type of transaction. Before making any transaction, please read Coinbase’s fee schedule and consider other options to avoid incurring high fees. Be aware that some payment methods may have additional fees, such as credit card processing, that can increase your overall cost.

Instead, Coinbase Pro charges a maker-taker fee schedule.

Conversion Fees:

Coinbase also charges a conversion fee when you convert between different digital currencies on their platform. For example, if you convert 1 Bitcoin to Ethereum, you will be charged a conversion fee. The conversion fee is calculated as a percentage of the total amount being converted. So if you were converting 1 Bitcoin to Ethereum, and the current market rate was 1 BTC = 10 ETH, you would be charged a 0.

1% conversion fee (10 ETH x 0.001 = 0.01 ETH).

To avoid paying conversion fees, you can use an alternate digital currency exchange that does not charge any conversion fees. Or, if you are converting between two different fiat currencies (e.g.

USD to EUR), you can use a service like TransferWise which uses the real mid-market exchange rate and only charges a small flat fee per transfer.

Deposit/Withdrawal Fees:

Coinbase also charges deposit and withdrawal fees for certain methods of funding your account or withdrawing funds from your account. For example, if you deposit funds into your account using a credit card, you will be charged a 3% deposit fee. And if you withdraw funds from your account via bank transfer (ACH), you will be charged a $25 withdrawal fee (USD).

To avoid paying deposit and withdrawal fees, you can use one of the following methods: bank transfer (ACH), wire transfer, or cryptocurrency transfer. Each method has different associated fees which can be found on Coinbase’s website under the “Funding Methods” section.

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