Coinbase is one of the most significant Bitcoin and altcoin exchanges, and here we will review what fees they charge you.
Coinbase charges different fees you should be aware of before signing up with Coinbase.
There are spreads and additional exchange fees. Exchange fees can be flat or vary by location and payment method.
We will describe the difference between a spread and a fee.
Also, we will summarize all the different fees and compare them with Kraken and Binance so you will get a complete guide on buying bitcoin with the lowest fees.
Intro Coinbase Transaction fees
Coinbase offers a crypto wallet service free of charge.
This means that Coinbase will store your funds (fiat and crypto) at no cost.
Coinbase does not charge any transfer costs or withdrawal costs. It means that they don’t charge you for transferring cryptocurrency from Coinbase to another wallet.
However, Coinbase will charge network transaction fees, such as miners’ fees, for transactions outside Coinbase. This fee is based on an estimate of the network transaction fees.
Intro Coinbase Exchange fees
Coinbase collects its fees to run its platform in two different ways.
- By using spreads
- Charge a separate flat fee
What is Coinbase spread?
Coinbase charges a spread of about one-half of one percent (0.50%) for cryptocurrency purchases and sales.
The spread is the difference between a buy and a sell order.
An example of a spread
- You buy 1 Bitcoin for $10.000
- If you want to sell it immediately at the market price, the market price would be $9.950 with a spread of 0.5% (10.000*0.005=50)
However, the actual spread charged by Coinbase may be higher or lower due to market fluctuations.
This is because the price of the cryptocurrency can change between the time Coinbase quote a price and the time when the order executes.
Read the full Coinbase review.
What is Coinbase flat fee?
Coinbase also charges a flat fee (in addition to the spread). The flat fee is based on one of the following circumstances (You will pay the greatest of the alternatives)
- Flat fee or
- A variable percentage is determined by the region, product feature, and payment type. Read more about the variable fees by location and payment method.
The flat fees are set forth below:
- For transactions less than $10, the price is $0.99 or equal.
- For transactions between $10-$25, the fee is $1.49 or equal.
- For transactions $25-$50, the fee is $1.99 or equal.
- For transactions between $50-$200 the cost is $2.99 or equal.
What fees does Coinbase charge for Cryptocurrency conversions?
Coinbase offers their customers to convert cryptocurrencies with a single transaction for additional fees.
You can convert Bitcoin to Ethereum instead of selling your Bitcoins for USD and then buy Ethereum for USD.
This will reduce your number of transactions (1 instead of 2 in the example above)
For this service, Coinbase charges a spread margin of up to two percent (2.00%) for cryptocurrency conversions.
The actual spread varies due to market fluctuations between when Coinbase quotes a price and when the order executes.
There is no separate Coinbase Fee for cryptocurrency conversions.
Coinbase Fees VS Kraken Fees
Kraken is another great crypto and Bitcoin exchange, and here we will compare the fees charged by Coinbase with the fees charged by Kraken. Both crypto exchange sets a different fees scheme.
Kraken charges maker and taker fee, and you fee level are based on your trading activity over the last 30 days.
As shown in the table below, the fees range from 0% to 0.26%.
Let’s say you put a limit buy order for Bitcoin worth $1000.
You will end up paying 0.16% if this is your first trade.
Compared to Coinbase, these are meager fees.
Coinbase charges 0.50% for every exchange order and an additional flat fee.
Could you read our full Kraken review for more information regarding the Kraken exchange?
In addition, see our staking comparison: Kraken staking rates VS Coinbase staking rates.
Coinbase Fees VS Binance Fees
Binance uses a different fee scheme than Coinbase but a similar to Kraken.
Binance also has different loyalty levels for the fee structure and uses maker and taker fees.
Also, they base this level on the trading volume for the last 30 days.
However, they have different fees depending on whether you pay with the Binance native token, BNB, or not.
Generally, the fees start at 0.1% and go as low as 0.012%. However, they never reach as low as Kraken, which is a 0% fee.
But, the basic level is cheaper than Coinbase and Kraken since it starts at 0.1%. Read more about Binance in our Binance review.