how to avoid coinbase network fee

Coinbase's network fees can be avoided by utilizing Coinbase Pro for lower charges, exploring alternate exchanges with flat fees, employing hardware wallets for offline storage and direct transfers, opting for debit card payments, or leveraging stablecoins with no network fees on Coinbase.

Oct 26, 2024 at 10:48 pm

How to Avoid Coinbase Network Fees

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, and trade cryptocurrencies. However, Coinbase charges a network fee for each transaction. This fee can add up, especially if you are making multiple transactions. But there are a few ways to avoid Coinbase network fees.

1. Use a Coinbase Pro account

Coinbase Pro is a more advanced trading platform that offers lower fees than Coinbase. For example, Coinbase Pro charges a 0.50% maker fee and a 0.25% taker fee, while Coinbase charges a 1.49% maker fee and a 3.99% taker fee. So, if you are planning on making a large number of trades, it may be worth it to create a Coinbase Pro account.

2. Use a different exchange

There are other cryptocurrency exchanges that charge lower fees than Coinbase does. Some of the most popular exchanges include Binance, Kraken, and Gemini. These exchanges typically charge a flat fee for each transaction. For example, Binance charges a 0.10% trading fee, while Kraken charges a 0.16% trading fee.

3. Use a hardware wallet

A hardware wallet is a physical device that stores your cryptocurrencies offline. This means that your cryptocurrencies are not accessible to hackers. Hardware wallets also typically support multiple cryptocurrencies. If you use a hardware wallet, you can avoid Coinbase network fees by sending your cryptocurrencies directly to your wallet.

4. Pay with a debit card

Coinbase charges a 3.99% fee for debit card purchases. However, you can avoid this fee by using a different payment method, such as a bank transfer or a wire transfer. Bank transfers and wire transfers typically take longer to process than debit card purchases, but they are also cheaper.

5. Use a stablecoin

A stablecoin is a cryptocurrency that is pegged to a fiat currency, such as the US dollar. This means that the value of a stablecoin is always the same as the value of the fiat currency that it is pegged to. Coinbase does not charge a network fee for stablecoin transactions. So, if you want to avoid Coinbase network fees, you can use a stablecoin to make your purchase.

Conclusion

There are a few different ways to avoid Coinbase network fees. The best method for you will depend on your individual circumstances. If you are planning on making a large number of trades, it may be worth it to create a Coinbase Pro account. If you are only making a few trades, you may want to use a different exchange or use a stablecoin to make your purchase.