How do I avoid paying Coinbase fees?
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If you want to know how to avoid Coinbase fees, you have come to the right place.
If you want to trade digital currencies from the UK or the US, you will probably choose Coinbase.
On the downside, Coinbase charges high fees. Despite being a reliable cryptocurrency exchange platform, Coinbase charges a 4% fee on all transactions. It is important to note that the exchange still attracts many customers due to its market reputation. Apart from the high fees that affect cryptocurrency trading, fiat conversions on Coinbase are expensive.
Nevertheless, there are many ways to avoid these fees by taking advantage of Coinbase Pro. Also note that Coinbase and Coinbase Pro are part of the same company, with Coinbase Pro not charging fees for certain transactions. Both have fees, which will be covered in detail below, and then this guide will show how to avoid Coinbase fees.
Why is Coinbase so expensive?
The best way to avoid Coinbase fees.
Regardless of whether you are buying or selling digital currencies, Coinbase fees are always added or subtracted before the total amount of the buy/sell order is calculated. These fees can add up and are quite high compared to our recommended money-saving measure: use Coinbase Pro.
Coinbase Pro is used by experienced traders and is available to all Coinbase customers who have an account. You can follow the instructions on "Limit Order" & "Limit Selling" on this page to avoid Coinbase fees! So set up your Coinbase account and then follow the instructions to access the Coinbase Pro Dashboard:
How to avoid Coinbase fees
When purchasing digital currencies.
Any applicable fees will be added before the total amount of the order is calculated. For example, if you want to buy $100 worth of bitcoin, the fee is $1.49, so the total amount for the transaction is $101.49. This fee will be calculated based on your payment method and you will receive $100 worth of Bitcoin, which is why we want to avoid Coinbase's fees.
Selling digital currency
Fees are deducted from the amount when calculating the total amount for the transaction. For example, if you want to sell $100 worth of bitcoin, you will be charged $1.49, so the total amount for this transaction is $98.51. Bitcoin worth $100 will be removed from your account and $98.51 will be transferred to your preferred payment method.
A confirmation window will always appear showing you the total amount of the transaction in digital currency and local currency, as well as the transaction fees.
These fees are quite high, of course, but Coinbase knows that users prefer the platform because of its reputation. The platform charges high fees for both crypto-to-crypto transactions and fiat conversions. To avoid Coinbase fees, you would have to avoid trading.
But you are in luck! Because there is a method you can use to avoid these fees. A YouTuber who goes by the name of Coin Mastery has found a method that allows you to avoid Coinbase fees, and the good news is that it's very simple!
Avoid Coinbase fees
As mentioned earlier, Coinbase and Coinbase Pro are owned by the same company. Therefore, you can avoid the fees by taking advantage of the fact that Coinbase Pro does not charge fees on certain transactions.
First of all, you should know that Coinbase Pro is mainly aimed at experienced traders. The client base uses Coinbase Pro to trade digital currencies alongside informative technical analysis and other helpful tools.
The first step is to sign up through the Coinbase website.(Once you have access to your account, you will need to link your bank account to Coinbase.
Next, you will need to create an account with Coinbase Pro. As part of the security measures, you will need to verify some documents for your new account. Before you start trading, you should first transfer money from your bank to your Coinbase account. As soon as the money shows up, transfer it immediately to your now verified Coinbase Pro account.
Check your balance on the dashboard of your Coinbase Pro account. Go to the left side and place your order. In this case, Coinbase Pro offers the "Market Order" option by default with a 0.3% fee.
To avoid this fee, place a "limit order". This option allows you to place the buy bid for your order. This maneuver will keep you free from Coinbase fees.
At Coinbase, "Limit Selling" means that you place orders with certain conditions. Before you place this order, you declare the amount and the price point at which the order should be executed.
In order to use Coinbase Pro, you must first verify your account before you can start trading or even deposit money. To complete the verification process, you will need to upload an official document. Customers from the United States will need to upload a government ID or driver's license. You will also need to provide Coinbase Pro with your residential address and the last four digits of your social security number.
Users from the United Kingdom will need to upload a government-issued ID card and answer some verification questions based on the national identity database.
Users from other countries need to upload two identification documents, namely ID cards, driver's licenses and passports.
Difference between Coinbase and Coinbase Pro.
Coinbase obviously offers a user-friendly interface that allows all traders, experienced or novice, to carry out their transactions without any hassle. On the other hand, Coinbase Pro mainly aims to attract more experienced traders who want more control over their trades and advanced features.
Coinbase Pro is available in fewer regions as it offers more features.The Coinbase interface is very clean and foolproof, allowing users with no experience in cryptocurrency trading to trade at a set price as easily as if they were making a purchase on Amazon. However, this simplicity comes at the cost of information and options.
Coinbase Pro's user interface is the other extreme. When you first load the screen, you may feel overwhelmed due to the large amount of information. The account provides access to detailed price charts, depth charts, order books, and more trading options.
While reviewing an order on the account, you can set a price in the middle section. The selected price will be placed on your account and no fees will be charged. In addition, you are also free from commissions.
However, your order will not be triggered by default.
Even though this seems like a perfect solution, there are also many disadvantages. The biggest disadvantage of using Coinbase Pro to avoid fees on your Coinbase is that the process takes longer and you have to switch between two different accounts, which is quite annoying.
Disadvantages of using Coinbase Pro.
There are also some disadvantages to using Coinbase Pro, which are listed below.
Non-professional charts.
The main goal of the platform is to provide experienced traders with professional charts for in-depth analysis. However, the charts on the platform are far from being professional.
They provide simple, traditional charts that allow users to make predictions and understand how the market works or where it is heading.
Ineffective customer support
The support team has failed to provide coherent answers to customer concerns on several occasions. In addition, questions and answers at FAQ lack clarity and relevance. This is an issue that affects not only Coinbase, but also many other companies in the market. However, there are some projects being developed to mitigate these types of issues.
Limited device support
The platform does not have a mobile application yet.Also, the website sometimes freezes when many customers use it at the same time. This happens when the company experiences high trading volume during bull or bear markets. These spikes in trading activity are usually very difficult for companies to manage.
Growing currencies
The number of digital currencies being added to the platform continues to grow, which can lead to complexities in the blockchain in the future. If you are looking for a larger number of coins, you should try Binance.
Despite all these issues, Coinbase is working hard to ensure that all complaints on the platform are handled effectively.
Moreover, compared to most exchanges, Coinbase Pro is quite effective and can be used by both novice and professional traders. Still, every user wants to know how to avoid Coinbase fees.
Coinbase IPO
Coinbase recently launched its Initial Public Offering (IPO) to look for investors willing to indirectly enter the crypto market. While this has no impact on Coinbase fees, it is definitely a positive thing to mention.
It is worth noting that Coinbase continues to have a large number of users on board who want to access virtual currencies. Now that it is a publicly traded company in the United States, investors will naturally follow what Coinbase's customers are saying about their products. However, this would not help you avoid Coinbase fees.
Avoid Coinbase fees by using Binance.
Another strategy to avoid Coinbase fees (or even fees with Coinbase Pro) is to use another major exchange like Binance, which offers similar security and effectiveness when trading. Binance also lists hundreds of coins, while Coinbase only lists a few.
Binance allows users to buy Bitcoin, Ethereum, and other coins with a credit card, and then traders can take those "base" pairs and trade them for altcoins. Fees are lower on Binance than on Coinbase, especially if you use the Binance Coin (BNB) perk to lower trading fees.