There are a lot of different digital currencies out there, and Coinbase is one of the most popular.
It has grown tremendously in popularity since it was first introduced and has become one of the most popular bitcoin wallets in the world.
One of the main reasons for their success is how easy they make it for people to avoid fees. In this blog post, we will explore some of these strategies so you’ll learn how to avoid Coinbase fees.
1. Coinbase Account Limits
You can avoid Coinbase fees by buying and selling bitcoins within the limits of your account.
When you create a new account, it is automatically assigned a purchase limit of $1,000 weekly and a sell limit of $5,000 per week. These limits are gradually raised as you successfully use the service.
2. Coinbase Vault
Coinbase Vault is a service that you can use to store coins for long periods. In order to be eligible, you need to have a minimum amount of cryptocurrency in your account.
The coins are locked down in the Vault, so they cannot be moved or accessed by anyone else during this period.
This means when you set up the Coinbase Vault service, you can avoid fees on transferring coins to the Vault.
3. Use Purchase Requests
Purchasing bitcoins is usually not free if you’re paying out of your own pocket. However, if someone sends an amount that they owe you, then the transaction will be free.
You can select “Request Payment” in order to generate a transaction code. You can use this code to ask for payment from anyone you owe or who owes you money.
Coinbase also does not charge fees for adding money to your USD wallet using ACH bank transfer.
4. Minimum Payment Amount
If you need to make small payments of less than $1,000 per week, it is possible to use your USD wallet on Coinbase.
Any purchases of $1,000 or more will be subject to fees, and you should switch back to using a credit or debit card if necessary.
5. Use the Same IP Address
If you want to avoid Coinbase fees, it is important that you remain within limits for each of your accounts.
Each account is linked to your IP address, so if you attempt to make purchases using different IP addresses at the same time, then fees will apply.
You can avoid the fees by ensuring that all of your accounts are established with the same address.
6. Avoid Trade Fees
The primary way to avoid fees from Coinbase is to not trade your digital currency when the market price dips in value.
The whole purpose of buying and selling coins is to take advantage of the rise in value, so it’s counterintuitive for people to sell when prices are low.
You should also know that when you withdraw bitcoins to your bank account, there is a 1% fee involved.
Also, if you use a bank account or Coinbase USD wallet to purchase and sell bitcoins, then the fees do not apply.
If you choose to use a credit or debit card, then there is a fee, but it will be smaller than the standard 3% of your order value.
7. Avoid Fiat Currency Withdrawals
Finally, one of the best ways to avoid Coinbase fees is to avoid selling bitcoins for fiat currencies.
These charges are frequently much higher than other payment methods, so you should only use them if necessary.
It’s also best to avoid withdrawing BTC directly into your bank account as this has a 1% fee and is also not recommended.
Conclusion
These are some of the ways you to avoid fees on Coinbase;
1. Use Coinbase Account Limits
2. Coinbase Vault
3. Use Purchase Requests
4. Minimum Payment Amount
5. Use the Same IP Address
6. Avoid Trade Fees
7. Avoid Fiat Currency Withdrawals