Coinbase Fees- How to avoid them

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Coinbase has large withdraws fees – however there is a neat tricks allows you to avoid withdraw fees.

Reduce Coinbase Fees when sending Bitcoin

Coinbase and Coinbase Pro (previously known as GDAX are two of the more popular platforms around the world where people can buy, sell, and trade cryptocurrencies. Coinbase and Coinbase Pro currently operates in the US, Europe, UK, Canada, Australia, and Singapore. Users can trade cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.

Two Sides of the Same Coin(base)

Coinbase and Coinbase Pro are actually two separate but related products. Coinbase was started first and aimed to provide a user friendly platform for people with no experience to get into crypto. With the growing interest and popularity in cryptocurrencies, the company expanded to create a Coinbase Exchange to allow for Bitcoin and cryptocurrency trading. Because this exchange was beyond the original scope for their more “casual” users, they decided to rebrand this Exchange as Coinbase pro (Previously known as GDAX – Global Digital Asset Exchange).

Coinbase – a place for consumers to easily buy, sell, and store digital currency.


How GDAX and Coinbase compare

GDAX (formerly Coinbase Exchange) – an exchange for professionals to trade digital assets.

Use Coinbase Pro (GDAX) to Avoid withdrawal fees from Coinbase

Coinbase withdrawal fees can be very high. When users withdraw their coins from Coinbase directly, they will be charged a network transfer fee. However, since Coinbase and Coinbase Pro (GDAX) are owned by the same company,  sending your funds from Coinbase to Coinbase Pro is instant and free.

Coinbase Pro offers free Withdrawal fee for Digital Assets like Bitcoin

Additionally, Coinbase Pro does not charge any fees to withdraw. You can send your crypto from Coinbase Pro to any other wallet without paying any network transfer fees from your own pocket.

  1. Transfer fiat onto Coinbase. Coinbase charges ~1.5% when buying or selling via bank transfer and ~4% when using credit cards or PayPal.  Keep in mind that alternative payment methods will always have higher fees.  Coinbase actually offers some of the lowest credit card buy/sell fees in the industry.
  2. Send fiat (ie USD) from your Coinbase account to your Coinbase Pro account. This is instant and does not cost anything.
  3. On Coinbase Pro you can buy your desired crypto (bitcoin, ethereum, and/or litecoin). Why one should buy on Coinbase Pro is because with their maker-taker model, you can buy with a limit order and you’ll incur zero trading fees.
  4. As an optional last step, once you have your coins you may take advantage of Coinbase Pro ‘s zero withdrawal fees and send it to any other address or exchange without network transfer fees. The other exchange may have more choices in terms of alt coins that Coinbase Pro doesn’t have.

Updated 2019 to reflect name change of GDAX to Coinbase Pro

The content here is not financial advice. The above references an opinion and is for information purposes only.  It is not intended to be investment advice.  Seek a duly licensed professional for investment advice.

4 COMMENTS

  1. I transferred LTC from coin base to GDAX and was charged a fee.

    I was also charged a fee when I purchased LTC using debit card.

    Your post seems to suggest you can put fiat onto coinbase and transfer to gdax to avoid fees. Is this correct and if so how do I deposit fiat directly onto coinbase?

    Also looking at long term investment is now a good time to get into alt coins like stellar and ripple or have I missed the boat on these? Furthermore any forums/guides you could recommend id really appreciate. thanks!

    thanks

  2. i got verified on coinbase but i can’t withdrawal at all. it keeps saying i have 0 out of 0 withdrawal available. when i try to apply to have a withdrawal option, it redirected me to a 404 part of the site.

  3. This post fails to mention there is a minimum amount required in coinbase for it to even show up in GDAX. I think it’s like .1 or .01 BTC. That means that if you want to transfer anything out of Coinbase via GDAX that is less than that, you can’t do it. So if you are making small transfers you will have to pay the coinbase fee. Which for some reason is 2% on some days, 3% and 4% on others. can’t seem to figure that out.

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