how to pay less fees on coinbase

Coinbase offers multiple strategies to minimize fees: utilizing the Pro account, placing limit orders, taking advantage of the maker-taker structure, trading with stablecoins, and subscribing to Coinbase One.

Oct 26, 2024 at 05:48 pm

How to Pay Less Fees on Coinbase

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, and trade digital assets. However, the platform is known for its high fees, which can eat into your profits. If you're looking to save money on Coinbase fees, here are a few tips:

1. Use a Coinbase Pro account

Coinbase Pro is Coinbase's professional trading platform that offers lower fees than the standard Coinbase platform. Coinbase Pro maker fees start at 0.04%, while taker fees start at 0.08%. Standard Coinbase maker fees start at 0.50%, while taker fees start at 1.00%.

2. Use limit orders

A limit order is an order that specifies the price at which you want to buy or sell a specific amount of cryptocurrency. Market orders, on the other hand, are executed immediately at the current market price. Limit orders are generally cheaper than market orders, because they don't incur any taker fees.

3. Take advantage of Coinbase's maker-taker fee structure

Coinbase offers a maker-taker fee structure, which means that the maker (the person who adds liquidity to the exchange) pays a lower fee than the taker (the person who removes liquidity from the exchange). If you're looking to save money on fees, try to place maker orders rather than taker orders.

4. Use a stablecoin

Stablecoins are cryptocurrencies that are pegged to the value of a fiat currency, such as the US dollar. Stablecoins don't fluctuate in value as much as other cryptocurrencies, which makes them ideal for trading. Coinbase offers a number of stablecoins, including USDC and USDT. If you're looking to save money on fees, trade using a stablecoin rather than a volatile cryptocurrency.

5. Use Coinbase One

Coinbase One is a subscription service that offers a number of benefits, including lower fees. Coinbase One members pay a monthly fee of $30, but they receive a number of benefits, including free limit orders, reduced taker fees, and access to premium features. If you trade crypto regularly, Coinbase One may be a good option for you.

By following these tips, you can save money on Coinbase fees and maximize your profits.