Coinbase fees: How can you avoid the fees (2023)?
Are you curious how fees work on Coinbase? In this article, I will explain how the fees work and teach you how to avoid high transaction costs.
A cheaper crypto exchange?
By following the steps in this article, your transaction fees will drop from 1.5% to 0.6%, which of course makes a big difference.
However, at Binance, you can buy crypto at 0.15% transaction fees, which is even more favourable. Use the button below to open an account directly:
How much transaction fees do you pay at Coinbase?
You pay the spread on every transaction: this is the difference between the buy and sell price of a cryptocurrency.
Coinbase also charges transaction fees. According to the Coinbase website, these fees depend on the user’s location, payment method, and market liquidity.
I have conducted research, and on average, users pay between 1% and 1.49% for each crypto transaction.
Avoiding Coinbase transaction fees with Coinbase Pro
The Coinbase Pro application is the ideal way to avoid high transaction fees. Users of this exchange pay lower transaction fees. A distinction is made between takers and makers.
As a taker, you open the position directly at the prevailing price, which lowers liquidity. As a maker, you place an order that increases market liquidity. Makers are more favourable for Coinbase, so you pay lower transaction fees for this type of transaction.
In the overview below, you can see the fees you pay at Coinbase Pro: https://pro.coinbase.com/fees
When you have a high trading volume in a 30-day period, your costs decrease further. For example, if you trade more than $10,000, the fees decrease by more than 25%!
How to switch from Coinbase to Coinbase Pro?
There is actually no good reason to use the standard Coinbase, since the costs are much higher there. Fortunately, you can easily switch from Coinbase to Coinbase Pro:
- Login to Coinbase Pro
- Go to the Coinbase Pro trading page
- Find the cryptocurrency you want to deposit within Coinbase Pro
- Select your Coinbase account
- Press deposit to execute the transaction
You don’t pay transaction fees for moving your cryptocurrencies from Coinbase to Coinbase Pro.
Cheaper crypto withdrawals with Coinbase
By switching from Coinbase to Coinbase Pro, you also pay less for withdrawing cryptocurrencies. Within Coinbase, a network fee is charged, while this is not the case with Coinbase Pro. It is therefore wise to move your coins to Coinbase Pro before sending them.
Depositing money at lower costs with Coinbase
It is never wise to buy cryptocurrencies with your credit card. Coinbase charges higher fees for deposits on the platform with a credit card. You pay an extra 2% for this, which is significant.
By depositing money into your Coinbase account with your bank account, you can save a lot. The transaction fees for deposits with your bank account are much lower.
Conclusion: how can you reduce costs on Coinbase?
You cannot completely avoid costs on Coinbase, but by making smart decisions, you can significantly reduce them:
- You can choose a cheaper crypto exchange with lower transaction fees.
- Switching to Coinbase Pro significantly reduces transaction fees.
- By only depositing money with a bank transfer, you can lower costs.
