Coinbase fees 2022 That’s how much it costs to trade bitcoin and co. on the crypto platform
Coinbase charges fees for trading cryptocurrencies. How high do these turn out to be? 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 and how expensive is Coinbase compared to other brokers? An overview.
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Trading cryptocurrencies such as Bitcoin and Ethereum proved to be very cumbersome and technically complicated for investors for a long time. Coinbase wants to change that and make cryptocurrencies accessible to the masses and thus a common investment. For buying and selling bitcoin and co. Coinbase charges fees – some features are free of charge.
How much are the trading fees on Coinbase? What payment method can I use to transfer funds to my portfolio for free? An overview of all important questions regarding the fees incurred on Coinbase.
Coinbase: fees, payment methods and security compared 2022
What is Coinbase?
Coinbase is a US trading platform on which users can buy and sell Bitcoin, Ethereum, Dogecoin and numerous other cryptocurrencies. The start-up, founded in 2012, has set itself the goal of making cryptocurrencies suitable for the masses. This is intended 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. Here’s how Coinbase aims to provide 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 on Coinbase took place on 14. April 2021 By direct listing. The issue price of Coinbase shares has been set at $250. But the price already started up 50 percent after U.S. trading began, rising to $420 at the peak of the trading day.
On 21. January 2022, Coinbase stock was trading at its previous low of $191.97. The crypto market is also experiencing a sharp sell-off. Previously, the crypto share price oscillates between $270 and just under $360 at its peak. This means that Coinbase shares are trading significantly below the issue price at the time of the IPO.
How to register with Coinbase?
In order to trade cryptocurrencies on Coinbase, interested parties must register beforehand. This requires an identification document for identification purposes. The crypto platform accepts passports or driver’s licenses in addition to ID cards. One of these documents is mandatory to submit to Coinbase via photo upload during registration. In addition, Coinbase already requires the customer’s full name, email address and a password during registration.
The photo identification process sets Coinbase apart from many other brokers like Etoro or TradeRepublic. Here, identification via video in combination with an official identification document is required.
What cryptocurrencies are currently tradable on Coinbase?
In total, the following are currently traded on Coinbase 103 cryptocurrencies tradable (as of 21. January 2022). In addition to the large and well-known currencies such as Bitcoin or Ethereum, there are also numerous smaller and lesser-known cryptocurrency. The portfolio of tradable cryptocurrencies is constantly being expanded at Coinbase, so that users will be able to invest in even more cryptocurrencies in the future. For example, the most recent addition was the fun currency Dogecoin, which has been in the media spotlight as Tesla founder Elon Musk fueled the Dogecoin price through tweets. The price subsequently increased by several thousand percent within a few months.
How do I trade cryptocurrencies on Coinbase?
Trading is very easy on Coinbase and is similar to online shopping in this respect. Investors select the desired cryptocurrency, a sum and the desired payment method – and the coins are already in the possession of the buyer. You are not tied to any terminal.
Customers can log in to 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 both Android and iOS in the respective app stores.
What are the fees for trading on Coinbase?
The fees for trading on Coinbase are currently at 1.49 percent of the invested amount. However, only if the investment is over $200. Up to this mark, flat fees take effect on Coinbase. So, for example, if you invest $1000 in bitcoin, you will pay $14.90 in fees for trading on Coinbase. These are charged directly against the amount invested, leaving the buyer with $985.10 invested in the cryptocurrency.
In addition, there is the spread. This is priced 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 is important to note here that the value depends on the fluctuations of the market and therefore cannot be given as a flat rate.
If you buy cryptocurrencies on Coinbase via Buy it now or per Credit card, the fees increase. In this case 3.99 percent of the traded amount as fees will be added. This would mean $39.90 in fees for an investment of more than $1,000. Here, too, the fees are charged directly against the invested amount. There is also a fee for withdrawals from the Coinbase account. This is currently 0.18 dollars per withdrawal from the Coinbase account to another account.
The amount of the Coinbase fee also still differs in terms of the amount invested, as mentioned above. 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 region, product feature and payment method. These flat fees apply to trading on Coinbase:
- If the total transaction amount is less than or equal 10 dollars the flat fee is 0.99 dollars.
- If the total amount of the transaction 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.
- If the total amount of the transaction is between $50.01 and 200 dollars the fee is 2.99 dollars.
- Above 200 euros, the percentage fees apply, but they differ depending on the selected payment method.
How do the fees for transfers differ depending on the payment method??
Deposits via SEPA bank transfer to the Coinbase account are free of charge. An instant purchase with a debit card or via credit card, on the other hand, costs 3.99 percent Fees. Accordingly, the SEPA transfer represents the cheap way to send money to your Coinbase portfolio. However, this is also the slowest option, which can be a disadvantage, especially in the fast-moving crypto market. SEPA bank transfer can be up to three business days last.
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How high are the fees with other brokers?
Besides Coinbase, cryptocurrencies can also be traded on various other platforms. The trading fees to be observed sometimes differ noticeably. For example, at JustTrade or Kraken, the fees for trading cryptocurrencies are much lower than on Coinbase. Two examples:
At the German crypto platform JustTrade fall for trading cryptocurrencies no order fees to. Here, only the spread must be taken into account. 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 value investments – such as shares – the minimum order volume is 500 euros for buy orders. The sale, on the other hand, is also possible under the limit of 500 euros. The maximum order size on JustTrade is 50.000 euros. The American crypto platform Kraken charges for instant purchases over the account balance No fees. However, if one buys cryptocurrencies from Kraken using a credit or debit card, there is a charge of 3.75 percent the traded sum plus $0.30 to.
How safe is Coinbase?
To increase security for its users, Coinbase makes use of two-factor authentication. This means that in addition to the password, a second access requirement can be stored by means of a TAN. Users can decide for themselves here whether a telephone number should be deposited, to which a code is sent, which is limited in time. Furthermore, the option of an authentication app on another end device is available. This offers high protection, as access to the Coinbase portfolio is linked to two terminals. This is particularly advantageous if the smartphone is lost, as it can prevent unauthorized intervention. In addition, a security key can be created and stored on a storage medium. Access to the account is only possible with this unique key.
All of these options increase security for Coinbase users and offer little chance for third parties to access your account. Coinbase’s website again uses AES-256 encryption to protect users’ banking information. Since data online is always more vulnerable to hacking than offline, Coinbase backs up 98 percent of all digital assets on an offline store. The crypto assets that are online for daily trading are protected by an insurance policy.