Coinbase withdrawal fee may not be their most exciting feature, but knowing the fee before trading can help you manage your expectations. To use the Coinbase wallet, they offer many ease of use features (including security checks, backups, and a stellar interface) that make trading easy. In exchange for hosting your transactions, they charge a withdrawal fee.
Read on to learn about Coinbase, including what they are and what fees you can expect to pay. If you expect to become a top trader and investor on the popular cryptocurrency platform, you need to know every fee that you will incur.
What is Coinbase?
Coinbase is one of the world’s leading crypto trading platforms. They built an open trading system for the world to use as a branded way to invest in the world’s largest growing crypto marketplace. Investors that want to convert their native currency into digital money while investing and trading across a vast crypto network use Coinbase as their base of operations.
The main features of Coinbase include:
- A refined interface that makes buying and selling crypto simple
- Security and backup features that protect their users
- The ability to convert and trade currency between wallets and other merchants
- A network of users that you can link with your friends
Coinbase has become popular not only due to its features but its ease of use. Therefore, withdrawal fees allow them to continue to offer a secure trading system for their users. Any investor or trader needs to know how these fees are calculated before they start trading.
Coinbase Withdrawal Fee: How to Calculate It
Coinbase does not link to a conventional banking institution. This means that you can convert funds into crypto and withdraw them but you can’t directly trade them within your bank. You have to use Coinbase’s wallet.
To withdraw money after conversion from Coinbase, you must pay a 1% withdrawal fee. Coinbase applies this fee to the costs of networking your transaction on their secure system. The fee goes to the miners that manage blockchain to make sure your crypto trade remains secure.
The withdrawal fee adds to any network-specific fees that Coinbase must apply to your transaction. These can be hard to calculate, but once you’ve traded on the platform for a while, you’ll be able to see how they work on your chosen network. In general, the Bitcoin network charges between one and five dollars per transaction owing to its popularity. Other currencies often charge less than a dollar.
The Takeaway for Investors
Coinbase withdrawal fee must be paid but it doesn’t have to be a burden. They make it easy to use their secure trading platform in exchange for withdrawal and network fees payable when you make a trade. Earning, spending, and trading on the Coinbase platform is easy and made easier by their secure network. A withdrawal fee comes with the territory. After a few trades, you’ll see how they work and be able to budget for them in your future trades.
