why coinbase wallet transfer cost ether?

[real_newguy05]

Hi can someone help explain this to me:

1) If i send USDC token from kraken to coinbase wallet (not coinbase, but its wallet app). It just cost me $2.5 and done.

2) But if i try to transfer USDC token between the wallet app's wallet1 to wallet2, it says it cost ether and is very expensive

I dont understand why coinbase wallet app transfer between your own wallets cost ether, while transferring the same USDC from exchange like kraken to coinbase wallet does not.

[joniboini]

1) If i send USDC token from kraken to coinbase wallet (not coinbase, but its wallet app). It just cost me $2.5 and done.

When did you do this? Is this a fixed fee? As Bin mentioned above, your 2nd transfer needs gas (unless I misunderstood what you mean by 1st and 2nd wallet) and since Ethereum is busy as hell atm, paying $10 or more should be expected since you're interacting with a smart contract, while your first transaction is likely paid with batch transactions. In short, your first transaction is just one of many transactions that likely pay more than $100 or so, but each user get a tx fee and that's why the exchange still makes profits.

[TheUltraElite]

Between two different exchanges you are actually sending the money through the blockchain and the fee is incurred by their internal fee structure.

When you are sending in between coinbase wallets - you are sending the token known as USDC which is a ERC-20 token on the Ethereum blockchain and in order to send that you need to the gas fee (Ethereum). This is not the case with sending Bitcoin from Coinbase wallet1 to wallet2.

Now ether price is high and gas fees are also high. Probably that is the reason why you are seeing the fee to be pretty big. Still nothing you can do about it for now.

[real_newguy05]

thank you guys, that make sense now.

1) If i send USDC token from kraken to coinbase wallet (not coinbase, but its wallet app). It just cost me $2.5 and done.

When did you do this? Is this a fixed fee? As Bin mentioned above, your 2nd transfer needs gas (unless I misunderstood what you mean by 1st and 2nd wallet) and since Ethereum is busy as hell atm, paying $10 or more should be expected since you're interacting with a smart contract, while your first transaction is likely paid with batch transactions. In short, your first transaction is just one of many transactions that likely pay more than $100 or so, but each user get a tx fee and that's why the exchange still makes profits.

just yesterday, it's a fixed $2.5, i understand why now.  Love kraken everything is so much cheaper than coinbase to transact on

[jrrsparkles]

thank you guys, that make sense now.

1) If i send USDC token from kraken to coinbase wallet (not coinbase, but its wallet app). It just cost me $2.5 and done.

When did you do this? Is this a fixed fee? As Bin mentioned above, your 2nd transfer needs gas (unless I misunderstood what you mean by 1st and 2nd wallet) and since Ethereum is busy as hell atm, paying $10 or more should be expected since you're interacting with a smart contract, while your first transaction is likely paid with batch transactions. In short, your first transaction is just one of many transactions that likely pay more than $100 or so, but each user get a tx fee and that's why the exchange still makes profits.

just yesterday, it's a fixed $2.5, i understand why now.  Love kraken everything is so much cheaper than coinbase to transact on

Some exchanges have low and few others have high fee structure but when sending between the wallets you need to pay the required gas fee according to the network congestion. If you want to save fees then go for USDT tron which is almost fee of cost to transfer between wallets and many exchanges.