how to avoid coinbase fees

To minimize Coinbase fees, consider using its professional trading platform (Coinbase Pro), limiting transactions, exploring alternative exchanges, or employing alternative payment methods like debit cards and stablecoins.

Nov 26, 2024 at 04:16 am

How to Avoid Coinbase Fees

Coinbase is one of the most popular cryptocurrency exchanges in the world, but its fees can be a turnoff for some users. Here are eight tips on how to avoid Coinbase fees:

1. Use Coinbase Pro: Coinbase Pro is a professional trading platform that offers lower fees than Coinbase. To use Coinbase Pro, you need to create a Coinbase account and then activate Coinbase Pro. Once you have activated Coinbase Pro, you can transfer your funds from Coinbase to Coinbase Pro and start trading.
2. Limit your transactions: Coinbase charges a fee for each transaction, so it's important to limit the number of transactions you make. If you're only making a few small purchases, it may be worth it to pay the fees. However, if you're planning on making a large purchase, it's worth it to take the time to find a way to avoid the fees.
3. Use a different exchange: There are many other cryptocurrency exchanges that offer lower fees than Coinbase. If you're not happy with Coinbase's fees, you can switch to a different exchange. Some popular alternatives include Binance, Kraken, and Gemini.
4. Use a debit card: Coinbase charges a 3.99% fee for debit card purchases. If you want to avoid this fee, you can use a different payment method, such as a bank transfer or a wire transfer.
5. Use a stablecoin: Stablecoins are cryptocurrencies that are pegged to the value of a fiat currency, such as the US dollar. Coinbase charges a lower fee for stablecoin purchases than it does for other cryptocurrencies. If you're planning on making a large purchase, it may be worth it to buy a stablecoin first and then convert it to the cryptocurrency you want to buy.
6. Use a hardware wallet: Hardware wallets are physical devices that store your cryptocurrencies offline. Coinbase charges a fee for withdrawals to hardware wallets. If you're planning on storing your cryptocurrencies in a hardware wallet, it's worth it to find a different exchange that offers lower withdrawal fees.
7. Use a peer-to-peer exchange: Peer-to-peer exchanges allow you to buy and sell cryptocurrencies directly with other users. Coinbase does not charge a fee for peer-to-peer transactions. However, you will need to be careful when using a peer-to-peer exchange, as there is always the risk of fraud.
8. Refer friends: Coinbase offers a referral program that allows you to earn $10 for each friend that you refer to the platform. If you have a lot of friends who are interested in buying cryptocurrencies, you can use the referral program to earn some free money.