Coinbase is the most popular cryptocurrency exchange that makes it easy for you to trade online by buying and selling bitcoin.
In recent years this website has experienced tremendous growth with millions of users buying and selling different currencies freely.
The secret behind this growth is that the site is exceedingly simple to sign up and begin trading.
Also, it supports a large number of cryptocurrencies and at lower pricing especially when trading with Coinbase pro.
However, if you are a beginner you may have wondered why after logging in to make your first transaction, you noticed that Coinbase charged you more than the price the ticker was displaying.
I know you may have asked yourself if that is a normal thing or not. In this particular article, I will make you understand the charges and so answer your questions.
Coinbase like any other website has charges on convenience services it offers to you when buying and selling cryptocurrencies.
When you make your transaction to purchase a litecoin from Coinbase you will not be buying from an individual but from a middleman whose agenda is to make it easy for cryptocurrency learners.
What you should know about Coinbase is that every service offered is chargeable.
For instance, if you want to convert your currency, there is a conversation fee that varies depending on payment methods and your location.
The fees are displayed on the trade preview screen and surfaced before you make your transaction.
However, don’t be shocked when you see charges during bank transfers because in some cases Coinbase may charge you on any bank transactions.
Coinbase prices vary from country to country and by the modes of payments you choose to use.
When you make payments using your debit or credit card and you are using dollars, it will be of much benefit to you as you will only have a 4 percent fee.
So if you are thinking of trading with Coinbase and you see charges imposed in your transaction, just remember that is how they are making their money by finding people to buy the bitcoins you are trading on.
This is very much understandable because it is like any other company providing daily services to consumers. “is it a must for me to pay?”Maybe you are asking yourself this question.
The answer is No because Coinbase has an alternative for you which is a Global Digital Asset Exchange (GDAX) which is fee-free but more complicated if you are new to it.
This full-fledged cryptocurrency exchange allows you to freely trade litecoin, bitcoin, and other currencies.
Unlike coins base, GDAX isn’t much friendly because you are strictly to use credit or debit cards when making transactions .which means you will have to convert your flat currency into litecoin or bitcoin by yourself instead of coins base to convert it for you.
Even though there will be some little changes that will apply but they won’t be much worse than that of conversion service.
GDAX can be more boring when you are just a beginner on cryptocurrencies but immediately you get and understand the trading basics about it, you will enjoy making transfers from your coin base to GDAX.
Reasons why you should trade using Coinbase:
- Coinbase website is well designed thus making it easy for beginners to use.
- Coinbase is designed to support different types of cryptocurrencies and in large numbers.
- Coinbase provides excellent security to its active customers.
Despite the charge fees as one of the limitations of coins base, there are a lot of benefits that you can get when you trade with them compared to other sites.
Trading with Coinbase will easily enable you to achieve a lot and have a sustainable business.