Coinbase is one of the greatest Bitcoin exchanges and here we will review what fees they do charge you
Coinbase charges some different fees you should be aware of before you sign 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 with Kraken and Binance so you will get a complete guide on how to buy bitcoin with the lowest fees.
Intro Coinbase Transaction fees
Coinbase offers a crypto wallet service free or 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 dont charge you for transferring cryptocurrency from Coinbase to another wallet.
However, Coinbase will charge network transaction fees, such as miner’s fees, for transactions outside Coinbase. This fee is based on an estimate of the network transaction fees.
Intro Coinbase Exchange fees
Coinbase collect their fees to run their 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 cryptocurrency 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 cryptocurrency can change between the time Coinbase quote a price and the time when the order executes.
What is Coinbase flat fee?
Coinbase also charge 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 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 fee 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 fee 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 an additional fees.
You can convert Bitcoin to Ethereum instead of seeling 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 char charges a spread margin of up to two percent (2.00%) for cryptocurrency conversions.
The actual spread varies due to market fluctuations between the time Coinbase quote a price and the time 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 of Coinbase with the fees charged from Kraken. The both crypto exchange charges a different fees scheme.
Kraken charges maker and taker fee and you fee level is based on you trading activity the last 30 days.
As you can see in the table below the fees ranges from 0% to 0.26%.
Lets 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 very low fees.
Coinbase charges 0.50% for every exchange order and an additional flat fee.
For more information regarding the Kraken exchange, read our full Kraken review.
Coinbase Fees VS Binance Fees
Binance uses a different fee scheme than Coinbase but a similar to Kraken.
Binance also have different loyalty levels for the fee structure and they use maker and taker fee.
Also, they base this level on the trading volume for the last 30 days.
However, they have different fee levels dependent on if you pay with the Binance native token, BNB, or not.
In general, the fees start at 0.1% and goes as low as 0.012%. They never reach as low as Kraken which is 0% fee.
But, the basic level is cheaper than both Coinbase and Kraken since it starts at 0.1%. Read more about Binance in our Binance review.