Coinbase fees 2022 the cost of trading bitcoin and co. On the crypto platform
Coinbase charges fees for trading cryptocurrencies. How high are they? A current overview.
Coinbase wants to make cryptocurrency trading suitable for the masses. However, there are fees for this. How high do these turn out to be and how expensive is coinbase compared to other brokers? An overview.
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Trading cryptocurrencies such as bitcoin and ethereum has long been very cumbersome and technically complicated for investors. coinbase wants to change that and make cryptocurrencies accessible to the masses and thus become a common investment. For buying and selling bitcoin and co. coinbase charges fees – some functions are free of charge.
How high are the trading fees on coinbase? Which payment method can I use to transfer funds to my portfolio free of charge?? All important questions about the fees incurred on coinbase at a glance.
Coinbase: fees, means of payment and security in comparison 2022
What is coinbase?
Coinbase is a US trading platform where users can buy and sell bitcoin, ethereum, dogecoin and numerous other cryptocurrencies. Founded in 2012, the start-up has set itself the goal of making cryptocurrencies suitable for the masses. This is to make bitcoin, ethereum and co. Become common assets of the future.
Coinbase therefore focuses on user-friendliness and cooperates with regulators. Trading and storing cryptocurrencies should be as easy as possible and similar to online banking. This is how coinbase wants to offer easy access to the long inaccessible crypto market.
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Since when is the coinbase share tradable?
Trading platform for cryptocurrencies coinbase share: an alternative to bitcoin?
The initial public offering of coinbase took place on 14. April 2021 via direct listing. coinbase share issue price set at $250. However, the price already started with a plus of 50 percent after the start of US trading and rose to 420 dollars at the peak of the trading day.
On 21. January 2022, coinbase’s stock was trading at its previous low of $191.97. The crypto market is also experiencing a fierce sell-off. Previously, the price of the crypto share oscillates between 270 and just under 360 dollars in the peak. This means that the coinbase share is quoted significantly below the issue price at the time of the IPO.
How to register with coinbase?
In order to be able to trade cryptocurrencies on coinbase, interested parties must register beforehand. This requires an identification document for identification purposes. The crypto platform accepts the passport or driver’s license in addition to the ID card. It is mandatory to submit one of these documents to coinbase via photo upload upon registration. In addition, coinbase already requires the customer’s full name, e-mail address and a password during the registration process.
The photo identification process distinguishes coinbase from many other brokers such as etoro or traderepublic. Here an identification via video in combination with an official identification document is necessary.
Which cryptocurrencies are currently tradable at coinbase?
In total, the current fees on coinbase are 103 cryptocurrencies tradable (stand 21. January 2022). In addition to the large and well-known currencies such as bitcoin or ethereum, it also includes numerous smaller and lesser-known cryptocurrency. The portfolio of tradable cryptocurrencies is constantly being expanded at coinbase so that users can invest in even more cryptocurrencies in the future. Recently, for example, the fun currency dogecoin was added, which was in the media spotlight because tesla founder elon musk fueled the dogecoin price with tweets. The price subsequently rose within a few months by several thousand percent.
How do I trade cryptocurrencies on coinbase??
Trading on coinbase is very easy and similar to online shopping. Investors choose the desired cryptocurrency, a sum and the desired payment method – the coins are already in the possession of the buyer. You are not bound to any terminal device.
Customers can log into their portfolio via laptop or computer and make purchases and sales there, or trade coins via the app on their smartphone. the app is available for free download for android as well as for ios in the respective appstores.
How much are the fees for trading on coinbase??
The fees for trading on coinbase are currently at 1.49 percent the invested amount. However, only if the investment is over 200 dollars. Up to this mark, flat fees apply on coinbase. For example, if you invest $1000 in bitcoin, you will pay $14.90 for trading on coinbase. These are directly offset against the invested amount, so that the buyer is invested in the cryptocurrency with 985.10 dollars.
In addition there is the spread. This is at coinbase at 0,5 percent. In trading, the term spread refers to the difference between the buying and selling price of an asset. It should be noted that the value depends on the fluctuations of the market and therefore cannot be given as a lump sum.
If you buy cryptocurrencies on coinbase via immediate purchase or by credit card, the fees increase. In this case 3.99 percent of the amount traded as fees. This would mean a fee of 39.90 dollars for an investment of more than 1000 dollars. Here, too, the fees are charged directly against the invested sum. There is also a fee for withdrawals from the coinbase account. This is currently at 0.18 dollars per withdrawal from coinbase account to another account.
The amount of the coinbase fee also differs as mentioned above with regard to the amount invested. Coinbase charges a fee –additionally to the spread. This is equivalent to a flat fee or a variable percentage fee and is determined based on the region, product feature and payment method. These flat fees apply to trading on coinbase:
- If the total transaction amount is less than or equal to 10 dollars the flat fee is 0,99 dollar.
- If the total amount of the transaction is between 10 dollars and 25 dollars the fee is 1.49 dollars.
- If the total amount of the transaction is between 25.01 dollars to 50 dollars the fee is 1.99 dollars.
- If the total amount of the transaction is between 50.01 dollars and 200 dollars the fee is 2.99 dollars.
- Above 200 euros, the percentage fees apply, which, however, differ with regard to the selected means of payment.
How do the fees for transfers differ depending on the means of payment??
Deposits via SEPA transfer to the coinbase account are free of charge. An immediate purchase with a debit card or via credit card, on the other hand, costs 3.99 percent fees. Accordingly, the SEPA transfer is the cheapest way to send money to your own coinbase portfolio. However, this is also the slowest option, which can be a disadvantage especially in the fast-moving crypto market. The SEPA transfer can be up to three business days last.
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How much are the fees with other brokers?
Besides coinbase, cryptocurrencies can also be traded on various other platforms. The trading fees that need to be taken into account differ noticeably in some cases. For example, at justtrade or kraken, the fees for trading cryptocurrencies are much lower than on coinbase. Two examples:
At german crypto platform justtrade, cryptocurrency trades fall to no order fees to. The only thing that needs to be taken into account here is the spread. This is a minimum of 0.30 percent when buying and selling cryptocurrencies. The minimum order volume on justtrade is 50 euros for cryptocurrencies, for all other investments – such as shares – the minimum order volume is 500 euros for buy orders. The sale, on the other hand, is also possible below the limit of 500 euros. the maximum order amount at justtrade is 50.000 euro. the american crypto platform kraken charges for immediate purchases via the account balance no fees. However, if you buy cryptocurrencies from kraken using a credit or debit card, you will fall 3.75 percent the amount traded plus 0.30 dollars to.
How secure is coinbase?
In order to increase security for its users, coinbase uses two-factor authentication. This means that in addition to the password, a second access requirement can be deposited by means of a TAN. Users can decide for themselves whether a telephone number should be stored to which a code is sent that is limited in time. Furthermore, the possibility of an authentication app on another end device is available. This offers a high level of protection, as access to the coinbase portfolio is linked to two terminals. This is an advantage, especially if the smartphone is lost, as it can prevent unauthorized tampering. In addition, a security key can be created, which can be stored on a storage medium. Access to the account is only possible with this unique key.
All these options increase the security for coinbase users and offer third parties hardly any chance to access their own account. In turn, coinbase’s website uses AES-256 encryption to protect users’ banking information. Since data online is always more susceptible to hacker attacks than offline, coinbase ensures that the data is always secure 98 percent of all digital assets on an offline store. The crypto assets, which are online for daily trading, are protected by an insurance policy.