All you need to know about Coinbase Fees
Coinbase Fees have to do with the company Coinbase. Founded in 2012, Coinbase is a company that offers cryptocurrency wallets or online accounts for digital currencies. It also provides clients with the ability to buy and sell cryptocurrencies using the same wallets.
Company policy is that cryptocurrency trades are for fiat money. In other words, there is no way to exchange a cryptocurrency for another digital currency. When Coinbase was initially set up, all the company’s services were free.
However, nowadays fees are chargeable for – in effect – most transactions. As the fee structure is somewhat complicated, it is best to inform oneself fully before trading.
Coinbase Fees – Transaction fees
Although Coinbase has no cryptocurrency dealing fees as such, it does charge so-called network fees. The system appends the amount due to every transaction, automatically. Ultimately, it passes payments to the digital miner as a reward for completing the transaction.
The Coinbase system calculates the network fee automatically. Importantly, the amount due may vary as a dynamic function of overall current transaction volumes of the cryptocurrency. The transaction screen displays the fee due for the respective transaction before finalizing and sending payments.
However, Coinbase also offers a way to send digital currencies free of charge. There is the possibility of using a standard email address instead of a wallet address. Such an email address must have been registered with Coinbase as a receiving account.
For transactions of this type, there are no fees. Notably, these operations take place outside the secure blockchain, but they do offer the apparent advantage of speed.
Coinbase Fees – Fees for purchases and sales
If you decide to buy or sell a cryptocurrency on Coinbase, the charges vary according to the payment method. For example, standard transaction fees amount to 1.49 percent of the transaction value.
If you pay the entire purchase by SEPA transfer, there are no additional fees. However, for cryptocurrency purchases completed by credit card, 3.99 percent of the transaction amount is payable.
Thus, if you bought cryptocurrencies worth €100, you would pay a total of €101.49 by SEPA transfer, whereas by credit card the sum would be €103.99. However, currency purchases that are made by credit card are available immediately.
In contrast, bank (SEPA) transfers to Coinbase can take up to five days to process correctly. Also, the SEPA transfers must be carried out manually. So, if you make currency gains the following day, it is usually more advantageous to pay by credit card.
This is because the Coinbase fees incurred are less significant than the realized profit. In summary, it is best to think twice about which payment method to use when buying cryptocurrencies. Worthy to know about the Coinbase Fees.
For sales, Coinbase charges 1.49 percent of the total transaction amount. This means, therefore, that if you sell cryptocurrencies worth €100, then €98.51 will be passed on to the seller. If you decide not to re-invest the money and to receive a payout instead, this is only possible by SEPA transfer. For this, Coinbase charges a processing fee of €0.15.
Other Coinbase fees
Coinbase continues to offer many of its services free of charge, and there is little indication that this is likely to change. The company does not charge any fees for maintaining wallets. Similarly, the Coinbase application is available free of charge.
Additionally, it is possible to register multiple wallet addresses free of charge. There are also no fees for verification of identity to unlock the purchase and sale of cryptocurrencies. Other free Coinbase services include recurring transactions, for example, standing orders, or account history reports for preparing periodic tax office returns.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.