When you want to buy Bitcoin or other digital assets on Coinbase, you’ll notice that the prices are usually higher than the going market rate. For example, at the time of writing this article, the market price of Bitcoin was $9,700 but Coinbase was selling it for $9,900. So, why is Coinbase buy price higher than market?
The most likely reason is that Coinbase is trying to make a profit on each transaction. They’re a business after all and need to generate revenue to stay afloat.
By marking up the prices slightly, they can do just that.
Of course, this isn’t always the case. Sometimes, market prices on Coinbase can be lower than other exchanges.
This is usually due to supply and demand. If there’s more demand for Bitcoin on Coinbase than other exchanges, then the prices will naturally go up.
At the end of the day, it’s important to remember that Coinbase is a for-profit business. They want to make money just like any other business.
So, when you see that the buy price is higher than the market rate, it’s probably because they’re trying to make a quick buck off of your trade.