Coinbase Fees: Full Breakdown of How To Minimize Costs
Written by
Jacob Wade
Edited by
Elizabeth Constantineau
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When you’re looking to invest in cryptocurrency, Coinbase is an appealing option to start. But if you start using Coinbase without digging any deeper, you’ll end up paying fees that can add up over time.
Coinbase fees can be somewhat complicated, especially for beginners. There are multiple exchanges built into Coinbase — each with their own fee structure. This guide will help you understand the full breakdown of Coinbase fees and how you can minimize your costs.
Coinbase Fees Explained
Coinbase does not charge any fees for holding supported cryptocurrency on your crypto wallet. However, it does charge a miner’s fee for transfers of cryptocurrency off the Coinbase platform. Plus a myriad of other fees, depending on how you use Coinbase.
Here is a breakdown of Coinbase fees that you will incur on the platform.
Coinbase Transaction Fees
Also known as the Coinbase Fee, this is a confusing fee structure that considers multiple factors. The user will pay either a flat fee or a variable percentage of the transaction, depending on region, product and payment method. Coinbase does not publish these fees, but they are usually 1% or higher.
Your final fee could vary from the estimate for these reasons. Coinbase will disclose the information including fees when the transaction is being filled.
If you have a Coinbase One subscription, you will not pay transaction fees but you may have to still pay a spread fee.
Spread Fees
Coinbase includes the fees for spread in the price whenever you purchase or sell your crypto. It will also be included in the exchange rate if you convert your crypto.
The spread allows Coinbase to temporarily lock in a price for trade execution while you review the transaction details before submitting your transaction. This spread applies to all cryptocurrency transactions on the Coinbase platform and while using the Coinbase Card.
There is no spread charged when using Coinbase Advanced, because you are placing orders directly on the order book.
Staking Fees
When you stake your crypto on the Coinbase platform, Coinbase charges a commission on rewards that you earn. Here’s a breakdown:
- 35% for ADA, ATOM, DOT, MATIC, SOL and XTZ
- 26.3% for ADA, ATOM, DOT, SOL and XTZ if you’re an eligible Coinbase One member
- 25% for ETH
Network Fees
When you transfer cryptocurrency off the Coinbase platform, you will be charged a network fee. These fees vary based on the type of cryptocurrency being transferred, and the prevailing network fees for a stand alone wallet-to-wallet send.
Thanks!
You can also transfer bitcoin using the Lightning network, and Coinbase charges a flat 0.1% processing fee for bitcoin transfers using that network.
Funding Fees
When you add cash or withdraw funds from your Coinbase account, there may be a fee assessed, depending on the funding method used. Here are the fees for funding or withdrawing fiat currency from your account:
| Deposit Fee | Withdrawal Fee | |
|---|---|---|
| ACH | Free | Free |
| Wire (USD) | $10 USD | $25 USD |
| SEPA (EUR) | €0.15 EUR | Free |
| Swift (GBP) | Free | £1 GBP |
Loan Fees
If you are borrowing USD from Coinbase or another affiliate of Coinbase using BTC as collateral — and the BTC collateral is sold (as per the loan agreement) — you are charged a flat fee of 2%.
Coinbase Card Fees
While the Coinbase card doesn’t have transaction fees, you will pay a spread fee when spending your cryptocurrency balance using the card. If you use your Coinbase card at an ATM, you may be charged operational fees. Be sure to double-check your card agreement to confirm.
Coinbase Advanced Fees
In June 2022, Coinbase Pro was phased out and replaced by Coinbase Advanced. This is the advanced trading platform of Coinbase that is suitable for more experienced traders.
Coinbase Advanced fees are similar to those of the previous advanced trading platform, Coinbase Pro, and are based on a maker/taker model. The fees have a maximum of 0.40% maker and a maximum of 0.60% taker, based on your 30-day trailing volume. Here’s a quick explanation of maker and taker orders.
- Maker orders: “Makers” create orders for other traders to take. They add liquidity to the order book. These orders are not filled immediately.
- Taker orders: “Takers” take orders created by makers. They remove liquidity from the order book. These orders are made at market price and filled immediately.
- Partial orders: Partial orders are when a portion of the order is filled immediately, while the rest is left on the books to be filled at a later time. If this happens, the first part is assessed on the “taker” side. The remainder will be filled as a “maker” order.
Once an order is placed, the fees are calculated based on the pricing tier to which you belong at the time of placing the order. You can check your tier by logging in to your account. There are no subscription fees required to trade in Coinbase Advanced, and there are no spread fees either.
Here’s how Coinbase Advanced fees are assessed:
| Tier | Taker Fee | Maker Fee |
|---|---|---|
| Up to $10,000 | 0.60% | 0.40% |
| $10,000 to $50,000 | 0.40% | 0.25% |
| $50,000 to $100,000 | 0.25% | 0.15% |
| $100,000 to $1,000,000 | 0.20% | 0.10% |
| $1,000,000 to $15,000,000 | 0.18% | 0.08% |
| $15,000,000 to $75,000,000 | 0.16% | 0.06% |
| $75,000,000 to $250,000,000 | 0.12% | 0.03% |
| $250,000,000 to $400,000,000 | 0.08% | 0.0% |
| $400,000,000 or more | 0.05% | 0.0% |
If you are just exchanging stablecoins, the fees are even lower. Here are the fees for stablecoin transactions using Coinbase Advanced:
| Tier | Stablepair Taker Fee |
|---|---|
| Tier 1 | 0.001% |
| Tier 2 | 0.0015% |
| Tier 3 | 0.002% |
| Tier 4 | 0.003% |
| All other users | 0.0045% |
Members of the Coinbase Exchange Liquidity Program can get discounts by providing liquidity to Coinbase.
How To Minimize Coinbase Fees
How do you avoid fees on Coinbase? Part of it is understanding the link between Coinbase and Coinbase Advanced.
How To Use Coinbase Advanced to Minimize Coinbase Fees
Now that you understand what Coinbase Advanced is and how the fees work, its appeal for trading should be obvious. If you already have a Coinbase account, you should be able to toggle on the “Advanced” feature to enter the trading platform.
Once you’re in advanced mode, don’t get overwhelmed with all the charting and order book data. Just focus on the order form, which lets you choose a currency pair (such as BTC-USD), and trade one asset for another.
For example, if you want to buy bitcoin with your U.S. dollar balance, you can choose the BTC-USD pair, select “Buy” on the order form, and choose how much BTC you want. You can see the fee in real-time, and save 50% (or more) vs. using regular Coinbase to place the order.
Once you place a few trades on Coinbase Advanced, it should feel intuitive, and you can save a substantial amount in Coinbase fees in the long-run.
Are Coinbase Fees Worth It?
For those who have only a casual interest in cryptocurrency or those who are just learning about it, the price may be worth it in exchange for the convenience of trading in a fiat currency and using a highly intuitive interface.
It’s easy to minimize fees using Coinbase Advanced. It just takes a bit of know-how. For most beginning traders, you can just focus on the order form and ignore the fancy charting and other trade data. Place a small order to get familiar with Coinbase Advanced, and then you can size up your orders from there.
If you decide to become an active trader, the fees charged by Coinbase Advanced will be justified, since they reduce with your trading volume.
Final Take
There are several ways to get involved in the crypto space, but centralized exchanges like Coinbase are an entry point for a lot of people because of their simplicity, ease of access and ability to trade the more popular coins, such as bitcoin and ethereum.
Despite the comparatively high fees, Coinbase is worth checking out because of its ease of use and security features. Moreover, you can always use Coinbase Advanced features to minimize your fees.
FAQ
Here are some common questions about Coinbase's fees.- Are Coinbase fees high?
- Coinbase fees are somewhat high relative to similar crypto platforms, which is why so many users look for ways to avoid or minimize them.
- Why are Coinbase fees so expensive?
- Coinbase is one of the most popular crypto exchanges and is now a publicly traded company. Because of the high demand and the need to make a profit for investors, Coinbase fees are very high.
- How do I avoid paying fees on Coinbase?
- To avoid paying high Coinbase fees, you can consider using Coinbase Advanced. The fees tend to decrease in Coinbase Advanced when the trading volume increases, but it's a more complicated structure that might be hard to access for a newcomer to crypto trading.
- What are Coinbase fees for?
- When you use Coinbase to make trades, you pay for the convenience of trading without needing a true exchange. You can also make trades in USD, which is much easier to conceptualize than the raw decimal numbers that cryptocurrencies are broken down into.
- Can I have multiple Coinbase accounts?
- No – maintaining multiple accounts with Coinbase is against its terms of use.
- Does Coinbase report to the IRS?
- As of the tax year 2024, you'll receive a 1099-MISC if you are a Coinbase customer and are required to pay U.S. taxes if you have earned $600 or more in rewards or fees from Coinbase. All capital gains and losses should be reported on Form 8984.
- How much does Coinbase charge for $1,000?
- The fee for a $1,000 trade on Coinbase will vary by the type of currency and method of payment. On Coinbase Advanced, for a transaction of $1,000, the fees are 0.60% for the taker and 0.40% for the maker. This means you’d pay $6 or less placing a $1,000 trade on Coinbase Advanced.
- Does Coinbase Pro have fees?
- Coinbase Pro has been phased out and was replaced by Coinbase Advanced.
Branford Shaw, Suchetana Bhattacharyea and Amber Barkley contributed to the reporting for this article.
Information is accurate as of Aug. 9, 2024, and is subject to change.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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