As we all know, most people pay a 1.5% to almost 4% fee when buying cryptocurrency on Coinbase. So, if wanted to purchase $1,000 worth of Bitcoin right now on Coinbase, and will be using a debit card, they will charge me almost $40 in fees to do that. It’s too much. We have a way to show you how to do it for free, as in you will be able to buy Bitcoin or any other cryptocurrency that’s supported by Coinbase and you’re going to do this and pay $0 in fees and if you’re relatively new to cryptocurrency, or even if your more advanced. You’re going to have to learn this now because this is something that we wish somebody have clued me onto a lot sooner because in the end, it saves you a lot of money.
Let’s start off simple. So we’re on Coinbase, we all know a lot of people use Coinbase, especially the first time they buy Bitcoin or the first time they buy an Altcoin an it’s easy to explain why right? The service that Coinbase provides is simplicity, ease of use, I mean the only two options that Coinbase is Buy or Sell. But, that makes things incredibly straightforward and incredibly user friendly. In Coinbase, you’re getting simplicity and you’re getting convenience and for that convenience; for that service, you got to pay these big fees. Like we discussed earlier, if I wanted to purchase $1,000 worth of Bitcoin on Coinbase, if I did a direct bank transfer they will charge me 1.5% on fees and I would come up to about $15 or if I did a credit card, they would charge me 4% like almost $40.
You know, there is nothing wrong paying for this service. There is nothing wrong doing it this way, but for me, this is money that I would rather put to a better use. So let us see the solution to this, let’s see how we’ll be able to pay $0 in fees.
The solution to avoid paying the highest service fees when you are buying Bitcoin is to use “Coinbase Pro”. Coinbase Pro is an extension of Coinbase, they are run by the same company. So if you have a Coinbase account, you’re going to be able to log into Coinbase Pro with the exact same information. Pro might sound like something that might be only for professionals or maybe it sounds like something that you might need to pay for. But that’s not the case, you can log in at Coinbase Pro now and can check it out.
If you want to know the difference, the difference between Coinbase and Coinbase Pro? Coinbase is technically a “Broker” like a service where they acquire Bitcoin for you and then they charge you to do it. Whereas Coinbase Pro is and “Exchange” like Binance, where you can buy and sell Bitcoins and altcoins in the open market. So, Coinbase Pro is good for more active traders and it offers a lot of features you know, it’s not as simple as Coinbase but it is great for buying coins and paying “Zero Fees” and let.
It’s incredibly easy on how to do it. Go to Coinbase Pro, and you’re going to log in with the exact same information and you’re going to find the “Deposit Button/tab”, click on it, then it’s going to ask you for a currency type and you’re going to click whichever currency you need. And then you’re going to click “Bank Account” and then you’re going to link your bank account with Coinbase Pro. And that’s it! You can now buy Bitcoin with zero dollars in fees using Coinbase Pro which is the exact same thing as Coinbase, only it’s an exchange instead of the brokerage. One you do this, you’re never going to want to go back. You know, a lot of people get on Coinbase and that’s all they know, and this is a game-changer in my opinion, at least when you first find out about this.
How To Have $0 In Fees Buying or Trading!
Did you know that it is also possible to have zero dollars in fees when trading on Coinbase Pro? When you are making a trade on any exchange, you expect to have a small transactions fees. Well, on Coinbase exchange on Coinbase Pro, it cost 0.3%. And keep in mind that 0.3%, that is a fraction of 1% and is obviously better that 1.5% to 4%. But, you can also see from the list of the standard fees they charge that it is possible to have 0% fee. Let’s see the difference between maker fee and taker fee right now.
If you want to make advantage of free trades on Coinbase Pro, this is how you do it. It really is the difference between being a “Maker” versus being a “Taker”. So, if you were to buy or sell under the “Market Tab” in Coinbase Pro, that would mean that you’re a “taker” of the market. And what that means is that, when you do it on to this Market Tab, that means that you accept the price of Bitcoin or whatever cryptocurrency, you accept the price whatever the current market price is and if you did this, you would pay that 0.3% for the taker fee because you’re taking it from the market.
On the other hand, if you were to buy or sell under the “Limit Tab” in Coinbase Pro, you would be a “Maker” and this is where you can set the exact price point that you want to get in or out of, or in and out with.
When you do this, the trade wouldn’t necessarily go through immediately because you know what you would be doing was setting the price that you wanted to enter with or setting the price you wanted to exit with, which probably wouldn’t be the exact price the market is right now and then the buy or sell would go through whenever the market does reach that price point, whenever can find a buyer or a seller. But if you did this, under the Limit Tab, then you would be a market maker and you could do this all day and you could pay zero dollars in in fees.
So, you can see that utilizing Coinbase Pro will save you a ton of money in the long run.