[Tutorial] Can I avoid Coinbase fees? Have a look at this trick and SAVE MONEY!
[Tutorial] Can I avoid Coinbase fees? Have a look at this trick and SAVE MONEY!

By Cesare | The Crypto Addict Man | 24 Mar 2020


Coinbase is one of the most known and used platform in the world, for buying, selling, transferring and storing cryptocurrencies.

It owes its fortune mainly to the fact that it is user-friendly, but this simplicity of use translates into high fees to be paid each time transactions are made.

Basically Coinbase charges a spread of 0,5% for purchases and sales, and additionally, they also charge a fee for using their platform which depend on the payment method.

For example in Europe we have 2 buying methods: Bank transfer or credit/debit card.

As you can see, with Bank transfer people pay 1,49% of fees. This percentage increase to 3,99% with credit/debit card!

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When you buy BTC through Coinbase, the amount of your fees is automatically deducted from the total amount of your order, so if you buy by credit card 100 euro in bitcoin, you will find yourself in your wallet only 96,01 euro in bitcoin.

Almost 4 euro in fees are too much!

The solution to avoid paying the highest service fees is called Coinbase Pro.

Coinbase Pro is a cryptocurrency trading platform owned and operated by Coinbase. It's an extension of Coinbase so you'are going to be able to log in Coinbase Pro with the same account.

Coinbase Pro uses a maker-taker fee model for determining its trading fees. Orders that provide liquidity (maker orders) are charged different fees than orders that take liquidity (taker orders). On Coinbase Pro it costs only 0,50%, which is a fraction of 1,49% and 3,99%!

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Why all this difference? The main difference between the platforms is that Coinbase is like a broker which can helps you get access to Bitcoin easily and it charges you a fee for it. Coinbase Pro, on the other hand, is an exchange, like Huobi or Binance. This means you can freely buy and sell Bitcoin and Altcoins on the open market.

Let's see how to buy Bitcoins by paying only 0.5% fees.

Once you logged in, click on deposit button on the left side and choose the asset you want to deposit. In this case we need to transfer FIAT currency (€ ),

Click on Sepa transfer and choose you portfolio.

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The information to make the transfer to Coinbase pro (Bank name, IBAN, etc.) will appear.

Therefore we have all the information to be able to make the transfer from our bank. Remember that no fees will be applied during in transfer by Coinbase.

Make the deposit through your bank and once you have euros in the wallet is time to buy the coin. Click on "Select Market" on top left and chose the tab EUR. It will display all cryptocurrencies available to trade.

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Selects BTC-EUR market (or any other crypto you wish to purchase). In the next window, click BUY and set the amount of euro you want to trade, (in this case i'm buying at Market price).

We can see that for 100€ the fees are only 0,5€, a fraction of the Coinbase standard version. Click on Place Buy Order and you will have the Bitcoin instantly in your wallet.

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Remember that when you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee which depends on the amount of money you are moving.

With this procedure we have saved a large percentage of money compared to the purchase on Coinbase standard.

That's all folks, I hope this tips can be helpful!

 

 


Cesare
Cesare

I'm an electronic engineer, geek&nerd inside and a cryptocurrency addicted. I'm trying to solve the biggest mystery in the universe, women!


The Crypto Addict Man
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