Coinbase may have helped cryptocurrency reach parts of the mainstream appeal. There’s no questioning they positioned themselves quite well in the markets. Many people may not have invested if it weren’t for their service.
But, anyone in crypto having used Coinbase for investing can tell you the fees suck. A lot of average users don’t seem to notice them, in fact. This is a ton of money going to Coinbase versus the user’s investment.
Want to end high fees? This article shares the best Coinbase alternative and how to use it.
Coinbase is a great introduction to cryptocurrency. They paved the way with their online and app-based platform. Coinbase secured $100M funding creating market legitimacy fraught with scams and hacks.
The problem with Coinbase is found in its fees:
Then there are banking fees:
Those transferring thousands of dollars into Coinbase will spend hundreds. The average works out to about 4% per transaction. It’s a high price for the brand name, platform, and recognition.
There are several candidates for a coinbase alternative. But, Binance is a recommendation because of their strong support and low fees.
The Binance exchange supports dozens of cryptocurrencies including:
The platform includes their own BNB (Binance Coin).
Binance uses BNB for its exchange transactions if set in the account preferences. Otherwise, exchange fees apply based on your crypto-matching. The crypto-matching includes BTC, ETH, and USDT markets.
You’re here to reduce trading fees so more money is invested in crypto. Binance has a great fee structure you’ll appreciate. It’s one of the lowest among cryptocurrency exchanges.
Binance users have several VIP statuses reducing maker and taker fees. This fee structure is determined by the prior 30-day activity. The higher your trade volume, the lower your transaction fees.
Withdrawal fees vary based on the crypto investment’s blockchain. One may expect a 0.0005 BTC withdrawal fee with Bitcoin. Or, 0.04 XMR withdrawal fee with Monero.
Verify exchange rates by checking Binance’s fee schedule. The exchange rate updates when logged in, accounting trading volume and VIP status.
Coinbase Pro (formerly Gdax) is an excellent index for crypto trades. Except, the offering is sparse.
The exchange limits your selection to BTC, ETH, LTC, ETC, and BCH. These are the same as the normal Coinbase platform.
We can combine Coinbase Pro and Binance to get the lowest fees.
You could leverage BNB coin and a high VIP status to further reduce fees. Binance does occasional airdrops for BNB holders, too. This would reduce trading fees to zero with the added airdropped coins.
Sell and transfer funds back to Coinbase for a nominal fee. Congratulations, you’ve successfully saved potentially hundreds in crypto fees!
The platforms and exchanges we have today may become outdated in a few year’s time. There may be new players popping up completely eliminating fees all-together. We’re seeing this with stronger P2P exchanges.
Until then, the best Coinbase alternative is Binance for their low fees and high support. Try it out and see the difference.
Want more ways to invest your money? Check our investment section!