One Simple Trick to Avoid Coinbase Fees
Updated December 24, 2018 – How to Avoid Coinbase Fees.
Coinbase is a very popular gateway to access the Crypto world.
And for good reason. It’s easy interface and seamless connections to major banks make it the ideal way for most people to buy Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
But it’s expensive. As you can see, it costs $14 in Coinbase fees just to buy $1000 of ETH.
Over time paying those high Coinbase fees start to add up quickly and can eat into your crypto investment funds.
Is Coinbase Free to Use?
- Coinbase charges transaction fees for buying and selling cryptocurrency. Coinbase calles these trading fees “Conversion Fees”. Coinbase adds these fees to the amount of fiat currency you want to spend. This gives the total amount for the order. You can read more here.
- In general, Coinbase doesn’t charge a fee to store cryptocurrency in it’s hosted Wallet service.
- Coinbase itself does not charge for transfers of virtual currency to an address off the Coinbase platform. However, Coinbase will pass through any network transaction fees (e.g. bitcoin miners’ fees).
Well you’re in luck. There is a way to pay zero Coinbase fees.
How to Avoid Paying Coinbase Fees to Buy Bitcoin, Bitcoin Cash, Litecoin and Ethereum
Step 1 – Deposit USD
Instead of buying Bitcoin/Bitcoin Cash/Litecoin/Ethereum directly from Coinbase, Deposit USD into your USD wallet.
Click “Accounts” – “USD Wallet” – “Deposit”
Step 2 – Sign Up for GDAX
Now go to GDAX.com and click “Create Account”.
You may not know this, but GDAX is Coinbase’s own trading platform. So once you’ve created your GDAX account it will give you the option to link your GDAX and Coinbase accounts.
Step 3 – Deposit Funds into GDAX From Coinbase
Now that your GDAX and Coinbase accounts are linked, all you need to do is move some USD into GDAX to buy Bitcoin/Ethereum with.
This step couldn’t be easier. Just click on “Deposit”
Then click on the link for “Coinbase Account”, enter the amount of USD you want to transfer and click “Deposit funds”
Step 4 – Buy Your Cryptocurrency on GDAX With No Fees
Now you have a USD balance sitting in your GDAX trading account.
All you have to do is select whether its Bitcoin, Bitcoin Cash, Ethereum or Litecoin that you want to buy.
Now click on buy at “Limit” (not “Market”).
Choose your desired trade price and amount.
Then click on the “Advanced” drop-drop ensure the “Post Only” box is checked.
Now click Place Your Buy Order.
Note – to ensure you don’t pay any Coinbase or Gdax trading fees (known as maker/taker fees) it’s essential that you select a “Limit” order and that you check the “Post Only” box.
There you have it. You’ve successfully bought your favorite cryptocurrency at the your specific price all without paying Coinbase’s transaction fees. No Coinbase fees or Coinbase commissions. But you still get the safety and security of the Coinbase/Gdax platform.
I hope you’ve found this helpful (and it saves you some money).