Summary: Despite Coinbase's recent fee schedule update in September of 2022, they are still one of the most expensive exchanges to buy crypto in the world.
Their platform is in excess of 600% more expensive to use than the industry average on popular competitor exchanges like Uphold (0%) or Kraken (0.1%).
Coinbase Fees Breakdown
Platform Highlights
- Starting Fees at 0.6% Taker and 0.40% Maker.
- Coinbase's fees are 6x higher than industry average.
- ACH Transfers are free to deposit USD via any payment method.
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What are Coinbase's Fees?
Coinbase has updated their fee structure as of September 2022 in an effort to provide more competitive pricing to alternatives like Binance and FTX. That said, it falls very short of industry-standards and is still 0.6% per trade for retail investors. For reference, this is 6 times higher than other platforms like FTX who charge 0.1% for Taker orders.
You can see the full Coinbase's full fee schedule which was updated as of 20 September 2022 below.
What is Maker vs Taker on Coinbase?
Maker and Taker orders are the two types of orders that a trader can place on the Coinbase exchange. Maker orders are placed on the order book in advance (limit order) and Taker orders are filled immediately from the order book (market order).
Maker orders generally have lower fees than Taker orders because they provide liquidity to the market. On the other hand, Taker orders take liquidity away from the market by instantly filling their trade.
Why are Coinbase Fees so High?
Coinbase is one of the most popular cryptocurrency exchanges, and it charges some of the highest fees in the industry. There are a few reasons for this:
- Coinbase is a US-based company and is subject to US Securities and Exchange Commission regulations, which are generally more stringent than those in other countries. This means that Coinbase has higher compliance costs, which are passed on to users in the form of higher fees.
- Coinbase is one of the most user-friendly exchanges, and its simplicity comes at a cost. The company has developed an easy-to-use platform that makes it ideal for first-time users, but this also means that it doesn't offer some of the more advanced features that more experienced users might want.
- Coinbase is one of the most popular exchanges, which means that it has a lot of users and a lot of trading volume. This high volume results in higher fees, as Coinbase charges a percentage of each transaction.
Coinbase Wallet Fees
The Coinbase Wallet DEX conversion fees are also the most expensive compared to other on-chain wallets. The Coinbase Wallet currently charges 0.5% per swap, which is 5x more expensive than decentralized platforms like UniSwap that charges 0.1% per trade.
Coinbase Pro Fees
Coinbase also offers an advanced trading platform called Coinbase Pro. It is an order book style exchange that allows users to trade over 50 different crypto pairs against US Dollars.
The fees on Coinbase Pro are significantly cheaper than the retail Coinbase App and start at 0.4% per trade.
How to Avoid Coinbase Fees
Despite many users thinking Coinbase is expensive, it is actually a very cheap exchange if you know how to use it properly. As mentioned earlier, Coinbase's fees per transaction when you deposit funds via a Bank Transfer are a mere 0.5% per trade.
To avoid fees on Coinbase, it is recommended that you do not buy with a Credit Card or Debit Card, but via a Bank Transfer. Banks like Wells Fargo and Chase Bank enable clients to deposit US Dollars to Coinbase for low fee trading.
About Coinbase
Coinbase is a digital asset trading platform that allows its users to buy, sell, and store cryptocurrencies. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam, and it is headquartered in San Francisco, California. Coinbase allows its users to buy and sell Bitcoin, Ethereum, Litecoin, and over 500 other cryptocurrencies. The company also offers a Coinbase Wallet, which allows users to store their cryptocurrencies and interact with DeFi applications.
Coinbase has been praised for its user-friendly interface and ease of use. The company has also been criticized for its high fees and lack of customer support. Overall, Coinbase is a popular digital asset trading platform that offers its users a simple way to buy, sell, and store cryptocurrencies.
Final Thoughts
Coinbase is a popular and user-friendly digital asset trading platform. It allows users to buy, sell, and store cryptocurrencies with relatively low fees. Coinbase also offers an advanced trading platform called Coinbase Pro which has lower fees than the regular Coinbase App. To avoid high Coinbase fees, it is recommended that you deposit funds via a bank transfer. Despite its high fees, Coinbase is a convenient platform for those looking to buy, sell, and store cryptocurrencies.
The best way to save money on Coinbase is to use the bank transfer option whenever possible. This will allow you to avoid the higher credit card and debit card processing fees associated with other payment methods. Additionally, if you are an experienced trader, Coinbase Pro offers lower fees than the regular app. Ultimately, it is up to you to decide which platform best suits your needs and budget.
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Author
Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
