Without a doubt, Coinbase is currently one of the best and most secure online platforms for transacting cryptocurrency.
The platform offers several services, from storing cryptocurrency to selling, buying, and transferring.
The platform has gained popularity worldwide, and many people want to use it because of its secure and user-friendly systems.
As a result, their reputation is good. However, many people wonder why Coinbase fees are on the upper side. We will explore the reasons for this and how you can minimize the fees when using the platform. Every cryptocurrency trader, especially those new to Coinbase, will ask
Why are Coinbase Fees so High?
The answer to this is demand and supply. Coinbase has turned into one of the most trusted and used platforms in cryptocurrency. The platform has created a reputation for itself through secure and user-friendly systems.
As a result, the company has resulted to charging 0.5% for the purchase and sale of cryptocurrency. This figure can go high or low depending on the market fluctuations. However, Coinbase fees do not end there, hence making them high.
Types Of Coinbase Fees
Another reason Coinbase fees are high is because you pay two forms of fees when using the platform. You will pay a spread and Coinbase fee.
1. Spread Fees
These are also known as margin fees. This fee is charged on any sale or purchase of cryptocurrency using the platform. This fee starts from 0.50% and may change depending on the market.
2. Coinbase fee
This is a flat fee that Coinbase imposes on all transactions. This fee can be hard to understand for some people since it depends on the transaction amount you are making and may vary per region.
When you check with Coinbase, you will determine how much you will pay for a certain amount in your region.
How To Minimize Fees On Coinbase?
The secret to minimizing fees on Coinbase is understanding how to leverage a link between Coinbase and Coinbase Pro.
Coinbase owns both platforms. However, Coinbase Pro is designed to provide a more detailed approach to the market.
As a result, you will find out that transfers between the two are different. Then, fees on Coinbase Pro are lower than Coinbase even for similar actions.
Although the difference in fees may be slight, it significantly counts when you make huge transactions.
Conclusion
Coinbase fees are high because their two types of fees resulting from the high demand and supply of the cryptocurrency. Since the platform has earned itself a reputation as one of the best platforms, it is evident why their fees go this high. Explore using Coinbase Pro will help you cut some fees.
