Is Coinbase Free to Use? Guide to Coinbase Fees

Dave Miller with Online Cloud Security

Dave Miller – Tech Enthusiast & Security Expert – November 18th, 2021

Is Coinbase Free to Use Guide to Coinbase Fees

Buying and selling crypto on an exchange is the most convenient way to trade cryptocurrency like Coinbase, however is Coinbase free to use? There are countless cryptocurrency exchanges, but many of them are of questionable quality—trust is crucial in an uncontrolled market. Coinbase, a cryptocurrency exchange based in San Francisco, is another such well-known and reputable network. Since its inception in 2012, it has garnered over 73 million members and generated more than $1 billion in income the year before. In addition, funds kept on Coinbase are typically protected.

Is Coinbase, however, free to use? How much are Coinbase Fees? Is it possible to reduce Coinbase fees? In this Guide to Coinbase Fees, I’ll break it all down for you. Continue reading to learn everything there is to know about Coinbase fees.

Table of Contents

What is Coinbase?

When most individuals think of purchasing their first Bitcoin, they picture Coinbase. Coinbase, founded in 2012, has evolved to become a cryptocurrency juggernaut with 6.1 million users worldwide and is among the most reputable cryptocurrency trading sites on the market. Coinbase is a trading website and app where people can buy, trade, and store over 30 various digital currencies. Coinbase is oriented toward novices and beginners in trading crypto, whereas Coinbase Pro, a more suitable choice for experienced traders, is for enthusiastic and skilled investors who make high-volume payments and want additional trading possibilities.

The exchange grew in popularity to the point that it became publicly traded on NASDAQ on April 14, 2021. Coinbase shares, denoted by the symbol COIN, began trading at $381 and reached a record of $429.54 before ending at $328.28 on the first day of trade. The marketplace managed over $223 billion in assets and completed more than $335 billion in deals in the first quarter of 2021. 

Coinbase has three main products: cryptocurrency brokerage solutions, a specialist trading platform called Coinbase Pro, and the newly announced Coinbase Prime for institutions.

These three platforms are distinct. For regular cryptocurrency traders, you may simply transfer to Coinbase Pro, in which you can trade a more excellent range of cryptocurrencies. On the other hand, Coinbase Prime is intended for institutions that want access to ample liquidity sources. Ultimately, Coinbase’s easy-to-use consumer site is just for purchasing and exchanging well-known cryptocurrencies.

Coinbase provides both an easy-to-use consumer platform and a professional trading platform. While the latter was formerly known as GDAX, it was relaunched as Coinbase Pro in 2018. This has caused considerable consternation since many individuals now call to both the consumer and professional trading platforms “Coinbase.” So, without further ado, let’s get to the vital point: “Is Coinbase free?”

Is Coinbase Free to Use?

Coinbase charges a fee for using its platform to trade. Just like any other online brokerage for trading stocks.

The fees for investing in Coinbase and Coinbase Pro vary, with Coinbase fees being more significant and more involved. When you are buying and selling cryptocurrencies, Coinbase takes a margin of around 0.50 percent and a Coinbase Price, which is either a set fee or calculated by criteria such as your location and the sort of payment you use.

This flat cost is determined by the transaction value and is detailed on Coinbase’s fee site. In addition, Coinbase Pro provides a simplified tiered fee scheme for more significant transactions, with charges ranging from 0% to 0.50 percent per trade and reduced payments for higher dollar exchanges. A business of less than $10,000, for example, has a 0.50 percent cost, whereas a transfer of $10,000 to $50,000 has a 0.35 percent fee.

Coinbase doesn’t charge consumers for storing their holdings in a digital wallet or transferring Bitcoin from a regular Coinbase account to a Coinbase Pro account. However, Coinbase’s charge might significantly reduce your gains, mainly if you’re not using Coinbase Pro.

How Much Does it Cost to Trade Crypto on Coinbase?

Fees on Coinbase might be convoluted, but they are determined by your account kind, trade size, and funding source. Numerous factors, like your country/region, the form of payment, and goods, can all influence the fee you end up paying.

For lesser transactions, you’ll spend a spread markup of 0.5 percent of the total trade with a fixed charge dependent on transaction size, as shown below:

TRANSACTION AMOUNT

FEE

$10 or less

$0.99

More than $10 and up to  $25

$1.49

More than $25 and up to $50

$1.99

More than $50 and up to $200

$2.99

Whereas one Bitcoin costs far more than these dollar sums, Coinbase allows you to buy fractional coins, allowing you to purchase modest sums. The price of the wider markup has been factored into the cost of your buy or transaction. At amounts exceeding $200, you’ll incur a comprehensive markup of 0.5 percent of the entire total trade.

A Breakdown of Coinbase Fees

When you read the Coinbase user agreement, you may notice that the fees are, to put the very least, perplexing. You also have strangely imposed restrictions and other restrictions that are disguised in the fine print.

In a word, each digital currency transaction you perform on Coinbase, whether buy and sell, incurs a charge. But, of course, each of these companies has its own set of prices, which may rapidly become complex and costly. In addition, fees vary depending on where you live and the payment option you use.

Fees for Storing and Trading Crypto

Free Service

Coinbase provides a complimentary wallet for storing crypto. These accept any of the cryptocurrencies accepted by Coinbase (including Bitcoin, Ethereum, and XRP). If you wish to move cryptocurrency between Coinbase wallets (from Coinbase to Coinbase Pro), there are no fees.

Fees for Transactions (outside of Coinbase)

If you move cryptocurrency outside of Coinbase, you must pay transaction fees to meet the expense of recording your activity to the blockchain. (The trading fees go to the ‘miners,’ who authenticate the blockchain transactions.)

For example, if you were to order a drink with Bitcoin from your Coinbase wallet, you’d very certainly suffer transaction costs. Coinbase gives a price quote, but the ultimate cost may differ from the actual costs.

Coinbase gives a price quote, but the ultimate cost may differ from the actual costs.

Using Coinbase to Purchase and Convert Cryptocurrency

Coinbase allows customers to buy cryptocurrencies instantly and change them to specific other cryptocurrencies. In both circumstances, you will be charged a fee by Coinbase. (For example, just as you might even have to spend a converting charge to turn US dollars to pounds, you’ll have to pay fees to Coinbase to change Bitcoin to Litecoin.)

Coinbase fulfills all transactions on Coinbase Pro, the Coinbase-affiliated trading marketplace. The exchange rate for cryptocurrencies on Coinbase is computed by summing a “margin” or “spread” to the Coinbase Pro exchange rate

The margin on digital currency transactions is around half a percent. This margin is intended to offset the cost of cryptocurrency purchased using borrowed funds. However, this gap is determined by market patterns and the change in the price between the moment the Coinbase Pro price was stated and the transaction was completed.

There is also an extra cost known as the “Coinbase fee,” either a fixed amount or a proportion of the transaction. These differ depending on the region and form of payment. The Coinbase charge is displayed before every transaction, but the margin is not; thus, you will not receive a perfect price on your costs.

Coinbase may reject transfers if the order size reaches the upper order size on Coinbase Pro or if the website is too slow. If the order quantity reaches the limit order size on Coinbase Pro, or if the system is too sluggish to complete the transaction, Coinbase may refuse the transaction. In addition, the payment will not be executed if the Coinbase Pro rate is inaccessible.

Fees for Buying and Selling Crypto

The Coinbase charge is the higher of a fixed cost or a variable, region-specific percentage. The following are the flat fees:

Transaction Amount

Flat Fee

<$10

$0.99

$10<x<$25

$1.49

$25<x<$50

$1.99

$50<x<$200

$2.99

Bank transfers are usually subject to a flat cost because the percentage charge is smaller. However, if you pay with a credit card, the flat cost will probably be smaller than the percentage fee. Thus it will not be imposed. This is due to the increased credit card interest rates, which result in a higher cost than the flat price.

You may be purchasing cryptocurrencies as just a long-term risky investment with the expectation of a significant profit over time. Putting your money into savings or an automatic investing portfolio is yet another approach to do this, don’t just throw all your money into crypto.

Coinbase Fees for Converting Crypto to Another Type of Crypto

Region

Credit/Debit Buys

Australia

3.99%

Canada

3.99%

Europe

3.99%

Singapore

3.99%

UK

3.99%

USA

3.99%

Currency conversions on Coinbase make it easier to transfer between two distinct cryptocurrencies by allowing you to do so in one transaction. So, for example, rather than trading your bitcoin on an intermediary to clear up funds to acquire Ethereum, you may switch the currency inside Coinbase straight from Bitcoin to Ethereum.

For digital currency transfers, the spread margin might be as high as 2%. In addition, US dollars may also be used as virtual money, which is a valuable option for American customers. This means you may purchase and sell cryptocurrencies without having to pay a higher transaction charge.

Currency exchanges are critical when trading cryptocurrencies against one another. If you trade, you want to preserve your earnings, and conversion expenses eat into those gains.

Coinbase supports proof of stake; however, as of February 2020, you must have a particular currency on the platform, Tezos (XTZ). If you opt to stake Bitcoin, Coinbase will collect a 25% fee on any profits you generate with it. Currently, betting Tezos on Coinbase yields a five percent yearly return, which includes Coinbase’s fee. However, based on the number of people involved in the staking procedure, this pace may differ.

Coinbase Fees for Selling Crypto

Coinbase will charge you a 1.49 percent fee if you wish to withdraw your money from the network and swap it for your own fiat money or USD. In other terms, if you purchased cryptocurrency and then traded it at the same price, you would have to pay more fees to Coinbase because the fees would charge you both when you bought and when you sold crypto. 

As a result, purchasing will be lucrative only if the currencies increase in value. If you can make a profit in this volatile market, you may earn a lot of money. However, earnings from trading crypto may be subject to capital gains taxation. Calculating how much taxes you owe might be difficult because these are not ordinary incomes from everyday work.

Coinbase Pro Fees

Coinbase Pro fees are much less expensive and less problematic than those ordinary on the regular Coinbase platform. Transactions worth more than $200 Coinbase will impose a 1.49 percent fee for regular payment options and a 3.99 percent cost for card transactions.

Here are some key figures:

  • Coinbase costs up to 2% in spread fees for cryptocurrency conversions.
  • Crypto transactions between Coinbase accounts are free.
  • External transfers are subject to a network cost.
  • PayPal charges a fee of 2.5 percent.

Keep in mind that these costs vary depending on the payment method. The ones mentioned above are solely applicable to inhabitants of the United States. For a more detailed analysis, go to Coinbase’s fees and pricing page.

Fees for Coinbase Prime

Coinbase Prime brokerage provides institutional clients with safekeeping, trading, data analysis, and other services. As well as other benefits, The Coinbase Prime program allows you to keep and exchange your cryptocurrencies for free. Following then, the seller will charge a monthly charge depending on the number of trades that transpired.

The Market Maker Program provides clients that supply substantial volumes of liquidity with extra liquidity advantages, such as reduced fees which are more affordable than Coinbase’s usual rates.

Coinbase Prime assesses a maker charge for each maker order and a taker cost for each taker order submitted to the order form. The amount is included in the quotation asset and is defined as the ratio of the number of orders by Coinbase Primes. Thus, the trader’s existing account is debited by subtracting a charge for the price whenever the customer puts the order.

Coinbase vs. Coinbase Pro: Which is Better in Terms of Fees?

Coinbase and Coinbase Pro are two different but connected products. Coinbase was founded in 2012 to provide a user-friendly environment for users with no expertise to buy various bitcoin via bank transfers. With the increased interest and acceptance in cryptocurrencies, the group grew in 2015 to launch Coinbase Exchange, a US-based crypto exchange that allows for Bitcoin and cryptocurrency transactions. Since Coinbase Exchange was becoming too complex for its more “friendly” consumers, they chose to rename it GDAX — Global Digital Asset Exchange (now recognized as Coinbase Pro).

Coinbase is a cryptocurrency exchange where consumers buy, sell, transmit, receive, and store their bitcoins.

Coinbase Pro (previously GDAX or Coinbase Exchange) is a specialist trading exchange.

  • Coinbase Pro, in addition to providing the same features as Coinbase, allows customers to accomplish the following:
  • Invest cryptocurrency; place markets, stop, and cease orders; and use more comprehensive trading graphs to assess short-term patterns
  • Most notably, Coinbase Pro features lower costs, and in some restricted transactions, $0 fees.

Coinbase

Coinbase will incur you a Margin of 0.5 percent. However, this can be greater in turbulent markets. Therefore, they also impose a Coinbase Fee, which is the greater of a Flat Fee based on trade size, and a Dynamic Fee based on where you reside and how you pay. For instance, if you purchase $100 of bitcoin in the United States, you must pay a minimum charge of $2.99, or 2.99 percent, with the 0.5 percent premium, for a maximum of 3.49 percent.

If you purchase with a credit or debit card, your cost will be considerably greater. More data is available on Coinbase’s Pricing & Fees website. However, most traders are unlikely to read the tiny print. It is one of the reasons Coinbase is generating vast amounts of money off of ignorant market makers.

Coinbase Pro

Coinbase Pro transaction fees are established in a graded system that is industry standard and is based on maker/taker position. Depending on monthly trading activity, these costs begin at 0.50 percent and gradually decrease for more prominent volume traders. However, the majority of retail dealers will wind up paying 0.5 percent.

The Key Takeaway

The primary distinction between Coinbase and Coinbase Pro is the pricing. All deals are completed in the exact location, and the same trusted custodian holds your crypto. Whereas the order input interfaces may differ in appearance, the primary inputs remain the very same. 

The most significant distinction is in fees, with Coinbase Pro being substantially less expensive than Coinbase. With some study and persistence, it’s straightforward to find a better offer. Most investors, including beginners, will be interested in investing in Coinbase Pro and eliminating excessive fees. 

As traders gain confidence, individuals should contemplate creating numerous exchanging profiles to obtain the most excellent liquidity at any time.

Coinbase Fees: How to Minimize Them

Using Coinbase Pro (GDAX) to minimize Coinbase Withdrawal fees.

Withdrawal fees from Coinbase might be exorbitant. However, because the same organization controls Coinbase and Coinbase Pro (GDAX), transferring funds between Coinbase to Coinbase Pro would be quick and accessible because it is a transaction from one Coinbase wallet to the other.

Withdraw in Another Cryptocurrency

On Coinbase, Bitcoin has the highest transfer costs. One approach to avoid high transaction fees is to convert Bitcoin to another currency. Litecoin and Bitcoin Cash are two examples. Such coins will be less expensive to send and converted back to Bitcoin after the transport is completed on the destination exchange.

Use a Different Exchange (or a Decentralized One)

If Coinbase’s costs are too high for you, you may always utilize another exchange like Binance or FTX Exchange. In addition, some businesses provide more reasonable withdrawal rates and a broader range of coin possibilities.

Is It Worthwhile To Pay Coinbase Fees?

To be honest, I believe Coinbase’s costs are perfectly reasonable considering the moment we’re in but also the importance of the service they offer. They’re rapidly growing their service quality and establishing ERC20 compatibility. In addition, tokens will allow individuals to immediately acquire various tokens and create a user-friendly experience for consumers to enter into cryptocurrency.

For individuals with a passing interest in cryptocurrencies or who are just getting started, the fee may be worthwhile in return for the ease of dealing in a fiat currency and adopting a relatively straightforward interface.

It is simple to reduce fees while utilizing the Coinbase system. It only requires a little technical expertise. As with most new traders, the restrictions placed on your Coinbase Pro profile are more than sufficient to enable routine activity. It may appear overwhelming, but utilizing Coinbase Pro is a terrific opportunity to enhance your awareness of the bitcoin sector and acquire trading expertise.

Final Thoughts

To be honest, I believe Coinbase’s costs are perfectly reasonable considering the moment we’re in but also the importance of the service they offer. They’re rapidly growing their service quality and establishing ERC20 compatibility. In addition, tokens will allow individuals to immediately acquire various tokens and create a user-friendly experience for consumers to enter into cryptocurrency.

For individuals with a passing interest in cryptocurrencies or who are just getting started, the fee may be worthwhile in return for the ease of dealing in a fiat currency and adopting a relatively straightforward interface.

It is simple to reduce fees while utilizing the Coinbase system. It only requires a little technical expertise. As with most new traders, the restrictions placed on your Coinbase Pro profile are more than sufficient to enable routine activity. It may appear overwhelming, but utilizing Coinbase Pro is a terrific opportunity to enhance your awareness of the bitcoin sector and acquire trading expertise.

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Dave Miller with Online Cloud Security

Dave Miller

IT Consultant at Online Cloud Security

Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.

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About Online Cloud Security:

Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information. 

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Online Cloud Security Logo (500x500px)

About Online Cloud Security

Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information. 

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