Learn How to Avoid Paying Coinbase Fees – Coindoo

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Are you looking to use the Coinbase exchange to purchase cryptocurrency? The platform is an established and secure exchange, which is an important criterion when choosing a broker to handle crypto transactions.

In spite of its reliability and security, the fees are kind of high for both buying and selling procedures. The base rate for all transactions is of 4%.

The Effective Rate of Conversion Fee Payment Method for Purchasing (after waiver)

  • S. Bank Account- 1.49%, with a $0.15 minimum
  • Coinbase USD Wallet- 1.49%
  • Credit/Debit Card- 3.99%

The Effective Rate of Conversion Fee Payout Method for Sale (after waiver)

  • S. Bank Account- 1.49%, with a $0.15 minimum
  • Coinbase USD Wallet- 1.49%
  • PayPal- 3.99%

 Fees USD Deposit Method:

  • ACH Transfer- Free
  • Wire Transfer- $10 ($25 outgoing)

These fees are kind of high, but the exchange knows that new traders come to the platform due to its reputation. Not only does trading from crypto–to-crypto incur a high fee, but fiat conversions are especially costly.

But you are in luck, as there is a method of dodging those Coinbase fees. A YouTuber which goes under the name of Coin Mastery found a way which allows you to never pay Coinbase fees ever again and it is not complicated at all.

In short, the method takes advantage of the fact that Coinbase Pro (former GDAX) and Coinbase are under the ownership of the same company, and Coinbase Pro doesn’t ask for fees for certain trades.

So how can you avoid Coinbase fees?

Bearing in mind that Coinbase Pro and Coinbase are owned by the same company, you should know that the first one doesn’t charge fees for some trades, so there is a point which can be exploited to get out of paying fees.

Coinbase Pro is Coinbase’s platform aimed at more professional traders, which allow them to buy and sell cryptocurrencies with detailed technical analysis charting tools and many others.

You can avoid fees on Coinbase by leveraging Coinbase Pro! The first step is to sign up for Coinbase like you would normally do through their site. If you already have an account on there, then just login.

Source:
coinbase.com

Next step is to link your bank account with your Coinbase account. Afterwards, you sign up for Coinbase Pro and wait for your account to be verified. After you’ve transferred the bank funds to your Coinbase account, you can immediately move them to your Coinbase Pro account seeing as they have the same back-end.

Once you gained access to your funds by using the dashboard featured in Coinbase Pro, you then go to the left side of the screen and place an order. The default option that they offer here is a “market order”. Note that this market order comes at a fee of 0.3%.

To avoid this fee, place a “limit order”. By using the limit order, you are able to put in the buy bid for your order. That is the trick which actually sets you free from those Coinbase fees.

In case you do not know what a limit order is, we shall briefly explain it.

Limit Buying involves placing an order with certain conditions. Here you can state the quantity and at what price point the order should execute.

As you scroll down through the list of orders, you will then have to select a price in the middle. Put that price in your order, and you’ll then pay no fees, commissions, or charges whatsoever. You’ll be presented with an open order for that price, but this does not mean that your order will be executed for certain.

Even though this might sound like the perfect solution, there’s a downside to it as well. The disadvantage to using Coinbase Pro to bypass Coinbase fees is that this process takes a longer period of time to execute a Bitcoin purchase and you have to go through the hassle to switch between two different platforms even though they are under the same brand.

But there are some downsides to using Coinbase Pro itself as a platform:

pro.coinbase.com

CONS

  • The depth analysis charts featured are not yet professional.
  • The support team does not provide comprehensive answers, and there is a lack of clarifications in the FAQ list.
  • There are no applications that can be used on mobile devices, and the website has a tendency of freezing because of too many users on the platform.
  • The number of compatible currencies which is constantly growing could lead to the development of a complex blockchain, in the near future.

In spite of all this, Coinbase is a serious company and they are striving to better their platform which also includes Coinbase Pro.

When compared to most of its competitors, Coinbase Pro is a successful digital transactions platform which can be used by both the beginners and professionals.

You can sell your Bitcoins and move them back to your Coinbase account when you are ready to withdraw your earnings back to your bank account.

We hope that this hack presented in today’s article will help you avoid paying fees on the Coinbase exchange.