Coinbase has large withdraws fees – however there is a neat tricks allows you to avoid withdraw fees. Coinbase is the most popular exchange in the US and UK due to the ability to directly purchase cryptocurrencies with fiat. Many users use Coinbase not only to buy crypto, but also as a way to store their cryptocurrencies. With frequent withdraws, withdraw fees can add here – here are some top tips to avoid Coinbase Fees. To find out more about the best Cryptocurrency Exchanges in our Guide.
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.
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.
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.
- 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.
- Send fiat (ie USD) from your Coinbase account to your Coinbase Pro account. This is instant and does not cost anything.
- 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.
- 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.
Coinbase Trading Fees
Coinbase has the largest trading fees compared to all other Tier 1 Exchanges. As a base trading fee, Coinbase charges 0.50% fee on all trades (Maker and Taker). On top of this, Coinbase charges a transaction fee depending on order size.
|Less than $10||$0.99|
|More than $10, Less than $25||$1.49|
|More than $25, Less than $50||$1.99|
|More than $50, Less than $200||$2.99|
One possible method to reduce trading fees is by obtaining VIP status by increasing the monthly trade volume. For example, if more than $10,000 USD is traded within the period, the Maker and Taker fees drop to 0.35%, this means 30% reduce on trading fees.
Withdraw in another currency
Bitcoin has the most expensive transfer fees on Coinbase. One way to reduce transfer fees is to exchange Bitcoin to another cryptocurrency such as Litecoin or Bitcoin Cash. These coins will be cheaper to transfer, and could be exchanged back to Bitcoin once the transfer is complete on the receiving exchange.
Use another Exchange
If Coinbase fees are too expensive for you, you can always use another exchange such as Binance or The Pit. These exchanges offer more competitive withdraw rates and also have more types of cryptocurrency options. To find out more about the best Cryptocurrency Exchanges in our Guide.
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.