When buying cryptocurrency, there are three main types of fees that you should be aware of:
- Deposit fee
- Trading fee
- Fee withdrawal
Each platform has a different fee structure, so before creating an account, think about how you plan to deposit funds, how often you want to trade, and how you will withdraw. For example, if you want to hold your assets in an external portfolio, check the costs involved in doing so.
Coinbase actually has two platforms, one designed for beginners and Coinbase Pro, which is aimed at more experienced traders. Trading fees are much lower at Coinbase Pro, so if you plan to trade even semi-regularly, it is good to know how it works.
Let’s take a look at how these three platforms compare:
Depositing cryptocurrency into KuCoin is free and does not require KYC approval. However, the only way for US users to purchase cryptocurrency on the platform with fiat money is via third-party transfers such as simplex or banxa. Certified KYC customers from other countries may be able to deposit funds via bank transfer, depending on where they live.
Before we get into the trading fees, let’s say you bought $500 of Bitcoin (BTC) using a third-party app. Pay attention to the amount of BTC you will receive and check it against the current price. For example, we only got $480 worth of Bitcoin on an app, which is basically a 4% fee.
Once you have crypto assets on the platform, the trading fees are lower than a lot of exchanges, including Coinbase. KuCoin uses a maker maker system and deducts fees if you pay while keeping its original KCS token. Level 0 (entry pricing level) charges the manufacturer a fee of 0.1%. Fees are also slightly higher for less popular cryptocurrencies.
Read more: Full KuCoin Review
Coinbase makes it extremely easy to convert dollars into Bitcoin or any other popular cryptocurrency. However, it is not easy to understand how much fee you pay. Coinbase fees depend on the payment method and transaction amount.
For example, to buy $500 of Bitcoin via a debit card, you must either pay a 3.99% processing fee or a $2.99 set fee – whichever is higher. In this case, the processing fee is $19.95.
You’ll also pay an unlimited spread (which should be around 0.5% of each transaction) – which is included in the quote you see before you buy.
Read more: Full Coinbase Review
The fees on Coinbase Pro are not only lower than the fees charged on the main platform, but they are also more transparent. For starters, you can deposit money via bank transfer for free.
For trading, you will pay a trader fee which goes down for higher monthly trading volumes. The basic level for people who trade less than $10,000 per month, charges a maker fee of 0.5%. So it would only cost $2.50 to buy the same worth of bitcoin as $500.
For anyone who wants to buy with fiat money, Coinbase Pro comes out on top in terms of fees.