how to avoid coinbase network fee

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.