Coinbase is the biggest cryptocurrency exchange in the United States, dealing with approximately 100 different cryptocurrencies. It also offers various security features ensuring the safety of your trades, so it’s no wonder that the platform is so popular. However, trading on it might be a bit expensive. That’s why before you start using it, let’s check are Coinbase fees high.
Coinbase has high fees and a complex fee structure compared to other crypto exchanges. Its trading and transaction fees go from 0.5% to 4.5%, depending on the payment method, cryptocurrency, transaction size, and platform. On top of these, other fees may apply as well.
You Won't Believe What Happens When You Click This Link - Earn THOUSANDS in FREE Crypto Now! 🤑
This crazy new website is giving away FREE cryptocurrency like Bitcoin and Ethereum just for completing simple surveys, offers, and watching videos! All you have to do is click the link below, sign up for a free account, and start earning points towards REAL crypto rewards!
Some users are reporting earnings of over 5,000 points (worth up to $50!) credited in just minutes after signing up. That's right, you can get PAID to browse the internet! 💰
Don't miss out on this limited time opportunity to score BIG on free crypto! Click below and join now before it's too late.
Act fast - this is too good to be true!
If you want to learn why are Coinbase fees high, how they compare with other exchanges, and how to lower or avoid them, I am more than happy to explain it all to you in the article below.
Yes, Coinbase Fees Are High
Coinbase is one of the largest crypto exchanges in the US. While the platform might be famous for allowing its users to deal with almost 100 different cryptocurrencies, it is also known for its high fees. Transaction fees on Coinbase go from 0.5% to 4.5%, and that will depend on numerous factors.
The complex fee structure is certainly something that deters people from cashing out on Coinbase, with transaction costs themselves depending on two important factors:
- Coinbase charges a fee, which is either a flat price or a variable fee based on the payment method and the amount of assets you buy.
- Coinbase also charges a spread of roughly 0.5 percent for bitcoin sales and purchases. These prices may be higher or lower based on market volatility.
How Do Coinbase Fees Compare to Other Cryptocurrency Exchanges?
How can you know if some fees are high if not by comparing them with competitors that charge for similar services? When you compare Coinbase with other exchanges like Binance, Kraken, and Gemini, you’ll see just how high the fees go.
If you are still on the fence about using Coinbase, make sure you compare it with other platforms first. To make it easier for you, I made a table showcasing the different costs among these exchanges:
| Coinbase | Binance | Kraken | Gemini | |
| Fees per credit/debit card purchases | 3.99% | 3.5% or $10 | 3.75% + $0.20 | 3.49% |
| Fees Per Trade | 0.50% per trade | 0.015% – 0.10% purchase + trading fees | 0% to 0.26% | Fixed fee for trades under $200 or 1.49% for trades over $200 |
| Additional Fees | 1.49% for Coinbase wallet or bank account purchases | $15 per US wire transfer | 1.7% + $0.10 for online banking processing |
Coinbase.com Charges a Variety of Fees
To understand fees better, you should know precisely what Coinbase charges its users. Transactions are subjected to a variety of costs, including margin or spread fees, as well as the Coinbase Fee. Let’s see what each of these actually mean:
- Margin (Spread) fee is defined as a service charge of up to 2 percent, which is added to the exchange rate.
- Coinbase Fee will require you to either pay a variable percentage of the transaction or a flat rate. This will depend on the location, payment method, and product.
For example, if the total amount of your transaction is $10 or less, the flat transaction fee will always be 0.99. For transactions of more than $50, less than or equal to $200, the fee will be $2.99.
When it comes to variable charges, the users in the States, as I already pointed out, will pay different fees depending on their payment method.
| Payment method | The effective rate of conversion fee |
| Coinbase USD Wallet | 1.49% |
| Instant card withdrawal | Up to 1.5% of any transaction with a minimum fee of $0.55 |
| Bank Account in the US | 1.49% |
| Debit card purchase | 3.99% |
Is There a Way to Reduce Coinbase Fees?
As you can already tell, the fees on Coinbase are relatively high in contrast to other brokers, so it’s preferable to avoid them if at all possible. If you don’t want to start using some other platform, my advice is to start using Coinbase Pro.
Even though the name itself suggests that this is a version that should only be used by professionals, don’t be put off by it. While Coinbase Pro requires a few extra steps, it is not significantly more complex than the regular version you are currently familiar with.
Don’t be scared off by Coinbase Pro, especially if you want to save money on fees.
Use Coinbase Pro To Minimize Transaction Fees
If you start using a Pro version transferring money from the original Coinbase account won’t cost you a thing. Once you have a chance to use Coinbase Pro, you’ll see the costs charged for the same activity are significantly lower than on Coinbase.
You should know that the fees on Coinbase Pro are based on the number of transactions you have, so you will actually pay less if you trade more.
Is Paying Coinbase Fees a Smart Choice?
After going through the fees and comparing them with other platforms, what is the final verdict? Well, Coinbase is a good choice for people with merely a passing interest in cryptocurrencies or who are starting to learn about it. The cost may be justified in return for the convenience of trading in fiat currency and using a user-friendly interface.
Furthermore, as I showed you, the Coinbase network makes it simple to reduce fees. All it takes is a little know-how. If you follow the things you’ve learned here, using Coinbase won’t leave you broke.