Coinbase is a digital asset trading platform and one of the leading cryptocurrency exchanges in the world. It is a USA-based exchange that offers its customers present worldwide to trade, stock, and exchange their crypto assets but at a significantly high charge!
While Coinbase has maintained its reputation as one of the best with the most advanced features, a user-friendly interface, and ease of use, it is still known as one of the highest-charging cryptocurrency exchanges as compared to its competitors.
Coinbase offers several services for your cryptocurrency exchanges, such as trading, staking, and storing as well as exchanging it into US dollars. With services from http://bit-indexai.co to help trade cryptocurrency assets to having a reliable platform to trade your digital assets, your world of crypto trade is made secure, reliable, and easy to access and use!
What Is Coinbase Charging You For?
Coinbase offers its customers a range of services to maintain and exchange their digital assets worldwide under a secure and encrypted platform making it one of the safest exchange options for your cryptocurrencies.
Coinbase and Coinbase Pro
Coinbase is a dual-platform service that offers its customers two types of services. While coinbase is available for all customers, Coinbase Pro can be acquired by customers for added benefits, services, and features compared to the Coinbase customers. This one-time payment usually saves the customers a lot of money in their recurring transactions as transaction charges and other fees are significantly lower for Coinbase Pro customers.
Transactions through Coinbase
Coinbase charges its customers a different transaction amount every time based on the amount itself. Therefore, for higher-value assets, you will have to pay a higher transaction fee that ranges from approximately $1 to $3 on a range of asset values.
However, transactions of $200 and above will incur a transaction fee based on your mode of payment. This change in fees, depending on the value, usually increases the overall costs incurred by a customer.
High Buying and Selling Charges
In trading, traders usually incur the buying and selling costs on each side of the transaction and these fees are added on top of the embedded spread for traders. However, in coinbase, the spread itself is 0.5% on each side of the trade, which is one of the highest as compared to other exchange platforms.
On top of the spread, the trading fees incurred on both sides of every transaction is also quite high. Due to this and added charges, the overall amount that the customers have to incur is much higher than usual.
High trading commission
For trading, coinbase has a unique maker-taker model in place for all of its trading commissions. In this model, the higher the trading amount, the lower the fees, and vice versa. This makes it more expensive for traders who trade in small amounts, greatly increasing their costs.
Cryptocurrency and Digital token Insurance
Coinbase offers its customers insurance policies that allow them to keep other assets secure. Unlike any other exchange platform, Coinbase offers insurance on cryptocurrency and digital tokens as well by securing them in wallets. Since these are not insured under FDIC insurance, there are lesser chances of fraud or theft under Coinbase’s security measures.
Additional Bank Charges
Some transactions take place outside Coinbase’s platform. These external transactions may involve currency conversions, interests, and international transfers and exchanges. Since they take place under the regulating platform of Coinbase, the customer usually assumes it to be an added cost which raises the overall costs.
Brand Operations and Marketing
Last but not least, the operation, maintenance, and branding costs that Coinbase incurs are exclusively high and make up a large chunk of the brand’s expenses. Through these, the platform maintains a brand image, security, and a smooth servicing platform for its clients so that they may utilize its services in the best way possible. However, this comes at a price, which is why the brand charges its clients premium servicing fees that allow it to maintain a user-friendly and seamless experience.
In conclusion, it is safe to say that while coinbase has high fees, it also provides its customers with the most premium experience of digital asset trading!