Nobody likes cryptocurrency change fee. However, cryptocurrencies are not charities: they are profit-making businesses and they must earn money in a way. So fees are standard across the industry.
Fortunately, there is a new way to avoid paying the Coinbase fees. As discovered by YouTube’s Coin Mastery, the method never allows us to pay Coinbase fees – and this is surprisingly easy.
Basically, the method involves benefiting from the fact that GDAX and Coinbase belong to the same company, and GDAX does not charge for certain transactions.
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Nobody Likes Coinbase Fees
Coinbase fees are considered relatively high. The platform charges 4% for credit card deposits and the same for bank transfers. They know that the exchange has a large number of novice cryptocurrency users, and it’s expensive to get money from the ad to the crypto currency.
So if you sign up for Coinbase and try to get $ 200 worth of bitcoin, you pay a fee of about US $ 8. You pay 4% to buy Bitcoin with your credit card.
That’s why Coinbase is a million dollar company. They make a lot of money, because they are a new friendly way to buy bitcoins. However, if you are willing to take an extra step, you certainly do not pay any fees.
How does it work?
There is a better solution: Go to GDAX.com, which is owned by the same company that Coinbase owns. GDAX and Coinbase actually share the same back end. So when you buy bitcoins in GDAX, you get the same bitcoin from the same source as you do with Coinbase.
There is a reason Coinbase advertises this (they don’t know if they want to make more money): GDAX‘s bitcoin purchase process is less user-friendly. However, if you don’t want to deal with a small challenge, you pay 0% on your bitcoin transaction (yes, you are legally charged 0% when purchasing bitcoin).
This way, you link your bank account with your Coinbase account. You will then register to the GDAX and perform the verification procedures. Once your bank transfer enters your Coinbase account, you can instantly transfer it to your GDAX account (share the same background).
Once you have access to your money from your GDAX dashboard, you can go to the left side of the screen and order a marketplace where you buy bitcoin at the market price. However, Coinbase charges 0.3% for market orders.
If you want to avoid charges completely, you click the Limit button. With a limited order, you manually specify what your purchase bid will be.
Which price should you choose? See the scrolling list of the orders, then select a price in the middle. Enter this price and pay a zero fee – not a single fee, commission or fee. You’ll get bitcoin at full price. It’s that easy.
Step by step guide
Here is a clearer version for you:
Step 1) Verify with Coinbase and complete the verification process
Step 2) Connect your bank account to Coinbase and deposit money from your bank to Parabase
Step 3) Verify with GDAX and complete verification
Step 4) Transfer money from Coinbase to your GDAX account; They should appear instantly (they share the same background)
Step 5) Go to GDAX and trade using the trading window on the left side of your screen; order a limit and don’t pay any fees (if you place a market order, you pay 0.3%)
As a result, this gives the best result for American users who can deposit USD from a US bank account. Otherwise, international users will not save much more than fees and will still be able to pay for free bank accounts but still pay foreign currency fees.
