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The Shocking Truth About Coinbase Fees: What You Need to Know Before Investing

 

Coinbase is a San Francisco-based digital asset trading platform that was founded in 2012 by Brian Armstrong and Fred Ehrsam. It allows its users to buy, sell, and store cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and over 500 other digital assets. Despite being one of the most popular exchanges, Coinbase charges some of the highest fees in the industry. In this article, we will explore why Coinbase fees are so high and how you can avoid them.





Why does Coinbase charge you more?


One of the main reasons why Coinbase fees are so high is because the company is subject to strict regulatory compliance requirements in the US. Coinbase has to invest in compliance personnel and resources to meet these requirements, which can be expensive. Additionally, Coinbase is one of the most user-friendly exchanges, which means that it has a lot of users and a lot of trading volume. This high volume results in higher fees, as Coinbase charges a percentage of each transaction. The company has developed an easy-to-use platform that makes it ideal for first-time users, but this also means that it doesn't offer some of the more advanced features that more experienced users might want.


Who should invest in Coinbase?


Despite Coinbase's high fees, it is still a popular choice among investors who prioritize safety and security. Coinbase has a robust security system that includes two-factor authentication, encryption, and insurance coverage for its users' digital assets. Furthermore, Coinbase is one of the few crypto exchanges that are publicly traded, which adds an additional layer of credibility and accountability.


If you want to avoid Coinbase's high fees, it is recommended that you do not buy with a credit or debit card, but instead use a bank transfer. Banks like Wells Fargo and Chase Bank enable clients to deposit US Dollars to Coinbase for low fee trading. Additionally, Coinbase offers an advanced trading platform called Coinbase Pro which has lower fees than the regular Coinbase App.


In conclusion, Coinbase fees are high due to regulatory compliance costs, high trading volume, and the user-friendly platform. However, Coinbase is still a good option for investors who prioritize safety and security. To avoid high fees, it is recommended that you use bank transfers and Coinbase Pro. Ultimately, it is up to you to decide which platform best suits your needs and budget.

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