Çoinbase® Pro:
How Coinbase works
Coinbase allows users to buy, sell, and trade cryptocurrency. It accepts several payment methods, including ACH transfers from a bank account, debit cards, money wires, and PayPal. ACH transfers are the most cost-effective option, because you can deposit money from a bank account without any extra fees.
This crypto exchange offers quite a few features, including:
Simple and advanced trading options
A debit card to spend crypto and earn crypto rewards
A Coinbase Earn program to earn free crypto by completing educational modules
A crypto staking program
It also offers Coinbase Wallet, a digital crypto wallet. The advantage of keeping your crypto in a wallet instead of on an exchange like Coinbase is that you'll have full control over it. Note that you don't need to be a client to use Coinbase Wallet. It's available free of charge to anyone and can store both cryptocurrencies and non-fungible tokens (NFTs).
Fees overview
Coinbase's trading fees are complex and depend on several different factors, starting with the trading tool you choose. The exchange offers a simple trade and advanced trade option and charges different fee amounts for each one.
Advanced trade is recommended, because it has much cheaper fees. It uses a tiered fee table based on your trading volume. The table also has a maker-taker model, where orders that aren't filled immediately incur a maker fee, because they add liquidity to the order book. Orders that are filled immediately incur a taker fee, because they take liquidity.
Here's the Coinbase fee schedule for advanced trades:
| 30-DAY TRADING VOLUME IN U.S. DOLLARS | TAKER FEE | MAKER FEE |
|---|---|---|
Up to $10,000 | 0.60% | 0.40% |
$10,000 to $50,000 | 0.40% | 0.25% |
$50,000 to $100,000 | 0.25% | 0.15% |
$100,000 to $1,000,000 | 0.20% | 0.10% |
$1,000,000 to $20,000,000 | 0.18% | 0.08% |
$20,000,000 to $100,000,000 | 0.15% | 0.05% |
$100,000,000 to $300,000,000 | 0.10% | 0.02% |
$300,000,000 to $500,000,000 | 0.08% | 0.00% |
Over $500,000,000 | 0.05% | 0.00% |
Data source: Coinbase.
Coinbase doesn't publish upfront fee amounts for simple trades. Instead, it says that it calculates fees at the time you place an order. However, the exchange is consistent about the fees it charges.
On simple trades of $205 or more, Coinbase charges a variable percentage fee of just under 1.5%. It charges a flat fee on smaller trades. Here are the flat fees Coinbase charges depending on the transaction amount:
| TRANSACTION AMOUNT | FEE |
|---|---|
$10 or less | $0.99 |
$10-$25 | $1.49 |
$25-$50 | $1.99 |
Over $50 | $2.99 |
Data source: Coinbase.
Those are the only commissions that Coinbase charges. It charges additional fees for certain payment methods, such as debit cards and PayPal. Purchases made through an ACH transfer from a bank account or funds in your Coinbase USD Wallet won't have any extra fees.
How Coinbase fees work
The easiest way to understand Coinbase's fee structure is with a few firsthand examples. The table below breaks down how much you'd pay for crypto purchases of $10, $100, and $1,000 with each trade option:
| TRANSACTION AMOUNT | SIMPLE TRADE FEE | ADVANCED TRADE FEE* |
|---|---|---|
$10 | $0.99 | $0.06 |
$100 | $2.99 | $0.60 |
$1,000 | $14.68 | $6.00 |
Data source: Coinbase *Advanced trade fees are based on the taker fee in the lowest pricing tier.
Cryptocurrency selection
Coinbase has one of the most impressive cryptocurrency selections, with well over 150 cryptocurrencies available for trading. Most of the market leaders, such as Bitcoin, Ethereum, and Cardano (ADA), are on Coinbase. It also has just about every type of cryptocurrency, including serious projects, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), and smaller tokens.
Although Coinbase doesn't have everything, there aren't any major gaps in its lineup. This exchange is also proactive about adding new cryptocurrencies for investors to check out.
See if Coinbase has the crypto you want: Cryptocurrency Availability: Where Can You Buy Your Favorite Tokens?
Is your cryptocurrency safe with Coinbase?
Your cryptocurrency is safe with Coinbase, as it's one of the most secure exchanges. It stores over 98% of client funds in cold storage, meaning those assets are stored in devices that aren't connected to the internet. This provides greater security against hackers, making it the method of choice for secure cryptocurrency storage.
LEARN MORE: What Is Cold Storage in Crypto?
Coinbase carries crime insurance that covers assets stored online. Cash balances stored in Coinbase accounts are covered by FDIC insurance up to a maximum of $250,000 per customer, just like assets held in a savings or checking account at a bank.
Two-factor authentication (2FA) is required on all Coinbase accounts for added security. You also have the option of whitelisting withdrawal addresses so your crypto can only be withdrawn to addresses on your whitelist. For those who want even more security, Coinbase offers vaults, which require that withdrawals have a 48-hour waiting period and the approval of one or more designated parties.
Coinbase has an excellent track record, but it did have a security incident in 2021. Hackers exploited a vulnerability in its SMS account recovery tool to steal funds from over 6,000 clients. Coinbase fixed the issue and reimbursed those clients in full.
Coinbase is right for you if:
You want a top-notch trading platform, user-friendly mobile app, and access to a wide variety of cryptocurrencies to buy and sell.
You're new to cryptocurrencies and looking for a platform with plenty of educational resources.You're interested in opportunities to earn free crypto, including staking and interest programs.
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