how to buy on coinbase without fees

By utilizing Coinbase Pro's lower trading fees and employing strategies like placing limit orders and staking assets, you can effectively minimize the impact of fees and maximize your savings when trading cryptocurrencies on Coinbase.

Nov 24, 2024 at 10:24 pm

How to Buy on Coinbase Without Fees: A Step-by-Step Guide

Navigating the world of cryptocurrency trading can be daunting, especially when fees seem to lurk around every corner. Coinbase, one of the most popular crypto exchanges, is no exception. However, with a bit of savvy, you can minimize the impact of fees and maximize your crypto savings. This comprehensive guide will provide you with step-by-step instructions on how to buy on Coinbase without fees.

Step 1: Understand the Fee Structure

Before diving into the strategies, it's crucial to have a clear understanding of Coinbase's fee structure. Coinbase charges two main types of fees:

• Maker/Taker Fees: These fees apply when you place a trade order. Makers are users who add liquidity to the market by placing limit orders, while takers are those who remove liquidity by filling orders already in the order book. Maker fees are typically lower than taker fees.
• Spread Fees: These fees are built into the price of the cryptocurrency. When you buy or sell crypto on Coinbase, you will pay the spread, which is the difference between the buying and selling prices.

Step 2: Use Coinbase Pro

Coinbase Pro is a more advanced platform offered by Coinbase. It provides lower trading fees compared to the regular Coinbase platform. Here are the steps to use Coinbase Pro:

1. Create a Coinbase Pro account.
2. Transfer funds from your regular Coinbase account to your Coinbase Pro account.
3. Place limit orders instead of market orders. Limit orders allow you to specify the price at which you want to buy or sell crypto, avoiding taker fees.

Step 3: Stake Your Assets

Coinbase offers a feature called Coinbase Earn, which allows you to earn rewards by holding certain cryptocurrencies on the platform. By staking your assets, you can generate passive income, which can offset the cost of transaction fees. Here's how to stake on Coinbase:

1. Go to the "Earn" section of Coinbase.
2. Select the cryptocurrency you want to stake.
3. Click "Start Earning."

Step 4: Use a Limit Order

A limit order is an order to buy or sell crypto at a specific price. When placing a limit order below the current market price for buying or above the current market price for selling, you can avoid triggering an immediate taker fee. The downside is that your order may not be executed if the market price doesn't move in your favor. To place a limit order:

1. Go to the "Order" tab on Coinbase Pro.
2. Select "Limit" as the order type.
3. Enter the price at which you want to buy or sell crypto.

Step 5: Refer New Users

Coinbase offers a referral program that incentivizes users to refer new members to the platform. By referring new users, you can earn rewards in the form of crypto. These rewards can be used to offset transaction fees or increase your crypto holdings. Here's how to refer someone:

1. Generate your referral link from the "Referrals" page on Coinbase.
2. Share the link with your friends and family.
3. When someone uses your link to create a Coinbase account and trades $100 or more, you will receive a referral bonus.

Step 6: Use Advanced Trading Tools

Coinbase Pro offers advanced trading tools that can help you minimize fees. These tools include:

• Trading Bots: Bots can automate your trading strategies and execute trades without incurringtaker fees.
• Stop-Loss Orders: These orders allow you to set a threshold price at which your crypto will be sold automatically. This can prevent significant losses and avoid incurring unnecessary fees.
• Trailing Stops: Similar to stop-loss orders, trailing stops automatically adjust the threshold price as the market moves in your favor, allowing you to capitalize on profitable trades while minimizing downside risk.

Step 7: Explore Other Exchanges

If the fees on Coinbase are too high for your needs, consider exploring other crypto exchanges. Each exchange has its own fee structure and features. By researching and comparing different platforms, you can find an exchange that offers the most competitive fees and suits your trading style. Some popular alternatives include Binance, Kraken, and Gemini.

Step 8: Use a DEX

A decentralized exchange (DEX) allows you to trade crypto directly with other users without the need for an intermediary like Coinbase. DEXs typically charge lower fees or even no fees. However, they can be more complex to use and less user-friendly compared to centralized exchanges like Coinbase. Some popular DEXs include Uniswap, PancakeSwap, and Sushiswap.