Coinbase is a major digital currency exchange that operates in over 30 countries in the world. It is focused towards new, inexperienced users who wish to own a cryptocurrency such as Bitcoin. For beginners, however, the platform’s fee and pricing structure can be very confusing.
In this article, we will simplify Coinbase fees and explain the pricing structure.
Basic Coinbase services
Coinbase offers various services, which include Consumer, Pro and Wallet.
- Digital Wallet services allow you to store USD Coin (USDC) and other digital currency coins. There is no cost for opening a wallet, an no transfer fees when transferring digital currency to another wallet.
- Coinbase consumer services are for people looking to own digital currency in a simplified manner. Users can simply buy and sell crypto coins using fiat currencies (such as USD). However, this convenience comes at a cost.
- Coinbase Pro services are for advanced users who wish to trade coins and make exchanges. Pro accounts are free to set up, and the associated transfer fees are much lower than for consumer services.
Coinbase fee and pricing
Fees charged by Coinbase vary depending on a lot of factors, such as the service you’re using, method of payment, location and so on.
Coinbase charges the actual exchange rate of a digital currency, plus a 0.5% surcharge. This is what they refer to as the quoted price. For example, if 1 Bitcoin is for $1,000, you will be shown a price of $1,005 per Bitcoin. Sometimes, if the Coinbase exchange is unavailable to get you a price quote based on existing market value, Coinbase may use other exchanges to quote a price, in which case the surcharge will be more than 0.5%.
Additionally, Coinbase will also charge a commission on top. This is either a pre-defined flat rate,or a percentage, whichever is higher. The parameters of flat rate are as follows.
- Transaction below $10 - Flat charge of $0.99
- Transaction between $10-25 - Flat charge of $1.49
- Transaction between $25-50 - Flat charge of $1.99
- Transaction between $50-200 - Flat charge of $2.99
A commission charge of 1.49% (or 3.99% in case of Debit/Credit card transactions) will be applied instead if that amount is higher. For example, purchasing $10 worth of coin will cost $0.99, and $100 will cost $2.99. However, buying $100 worth of coin using a credit card will cost you $3.99, since the commission amount in this case will be higher. In case you purchase $50 worth of coin using credit card, the flat rate of $2.99 is higher than the calculated 3.99% commission (which is $1.99), hence in this case the flat price of $2.99 will be charged.
For USD Coin (USDC), the exchange rate is $1 = 1 USDC. A charge of 3.99% on USDC conversion, or $0.99 flat rate is charged, whichever is higher.
Pro users enjoy very small commission rates. Here, the concept of maker-taker applies.
- Maker - When you create a listing for a desired price you want to buy or sell a coin at. There might not be anyone available selling or buying at that price, meaning that your transaction is pending.
- Taker - When you just buy or sell a coin at the current market price.
Coinbase does not charge anything for makers. However, for takers the fee ranges are as follows.
- Transaction worth $0-10m - 0.3% charge
- Transaction worth $10-100m - 0.2% charge
- Transaction above $100m - 0.1% charge
Standard buy/sell involves a 1.49% charge, where debit/credit card buy involves a 3.99% charge.
In the US, ACH transfer is free, whereas wire transfer for deposit costs $10, and for withdrawal costs $25. In the UK, bank transfer will cost 1 GBP, whereas in Europe (SEPA), bank transfer in is free whereas bank transfer out costs 0.15 EUR.
Note that some banks might add additional charges as per their policy.