Coinbase Fees

Coinbase Fees – Tips and Tricks

Coinbase is arguably the easiest way to buy cryptocurrencies but the fees can add up. This post explains all the fees involved with Coinbase and provides some tips to help reduce those fees and even avoid fees. If you are new to Coinbase use this link to sign up and you will receive $10 of free Bitcoin when you buy or sell $100 of Bitcoin.

Coinbase Transfer Fees

The cheapest way to buy cryptocurrencies is to first deposit your money to Coinbase via a bank transfer.  Transfers into Coinbase are generally fee free. You will have to think ahead a little as bank transfers generally take a few days to hit your Coinbase account. If you are in the US and use a wire transfer your fees will arrive quicker but you will be charged a fee of $10.

If you live in the UK Coinbase will not charge you additional fees but your bank may.  This is because transfers into Coinbase use SEPA (Single Euro Payments Area transfers). SEPA aims to make cross border transfers in the Euro zone as simple as a domestic transfer. As the UK uses pounds and not Euros it is likely you will be charged an admin fee of approximately £15 by your bank to make the transfer plus the conversion charge of GBP to EUR. If you are a UK resident there is a way round these banking fees

Trading Fees For Buying Cryptocurrencies

Investing in cryptocurrencies should be fun, but be sure you understand this site is not financial advice and the risks involved.

If you have gone along the bank transfer route when you came to buy the crypto you will be charged a fee of 1.49% of the total amount bought.

Both debit and credit cards are also accepted as forms of payment, the advantage being this enables instant payment rather than having to wait a number of days for the bank transfer. However, the fees are higher reflecting this additional convenience, the fees for a card purchase are 3.99%.   You will also need to be aware that certain banks have banned the purchase of cryptocurrencies using credit cards.  

Buying fees are added to your purchase price so for example if you were buying $100 of Ethereum on debit card your total would be $101.49.

Fees For Selling Cryptocurrencies

Fees again apply when you sell cryptocurrency.  You are charged a fee of 1.49% of the total transaction value.

Selling fees are taken away from the total sale price.  For example if you were selling $100 of Ethereum you would receive $98.51.

Coinbase Withdrawal Fees

Transferring money out from Coinbase to your bank account can also result in some fees, let’s run through some scenarios.

If you are a US customer a transfer out to your bank account will be free. If you choose to transfer the funds out more quickly via a bank transfer you will be charged $25.

In Europe you will be charged 0.15 EUR  to make a transfer to your bank account. UK customers need to be mindful they may be subject to international banking charges when making a withdrawal again as this uses a SEPA transfer.

Coinbase Fees Example 

The following runs through a practical example of buying and selling some cryptocurrency. This example assumes a free bank transfer was used to move funds.

Bank transfer – Buying and selling $1000 of BItcoin using Coinbase

Bank transfer In $0
Buying $1000 crypto $15
Selling $1000 crypto $15
TOTAL $30

Debit card – Buying and selling $1000 of BItcoin using Coinbase

Buying $1000 crypto $40
Selling $1000 crypto $40
TOTAL $80

Coinbase is extremely convenient and easy to use, you can sign up with this link to sign up and receive free Bitcoin,  if however you are looking to reduce your trading costs read on for the money saving tips below. 

How to Avoid Coinbase Fees (Coinbase Pro and other methods)

  • To avoid paying any fees on buying and selling use the Coinbase Pro method. Coinbase Pro is Coinbase’s own exchange and professional trading platform. To understand the difference between the trading platforms checkout Coinbase vs Coinbase Pro
  • Try and minimise purchases on card,  bank transfers are much cheaper
  • For US customers wire transfers incur charges but standard bank transfers don’t. Only use wire transfers if the reduced transfer time is required
  • UK residents to avoid the SEPA fees use the Revolut method

You can read the full list of charges on Coinbase.

Getting started with Cryptocurrencies

Check out these articles to get you started on your journey into Cryptocurrencies:

Avoid Coinbase Fees with Coinbase Pro

Dummies guide to the Blockchain

What are the fees in Coinbase

UK method – buying cryptocurrencies

 

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