How do coinbase make money

[avatar_kiyoshi]

Fast ... and fees to merchand (1%).
Simple.





like Paypal.

LOL.

although they fees is in % like paypal but the fees is not really high like paypal and it's natural i think, although 1% fees every transaction is really good enough for build a branch company.
but i'm not using this

[ranochigo]

1% is a good profit, have you seen exchanges that has only 0.2% and make a good profit (i think) then 1% is x5.
Did you know that you have not to pay tx. fee when you use coinbase to send bitcoins?

I think you don't have to pay tx fees only if you are sending to another Coinbase account. AFAIK you still need to pay for on-chain txs.

For onchain transactions, you don't have to pay the transaction fees [1] unless you are sending a small amount. AFAIK, they do have fees when converting to different currency and trade fees too.

[1]https://support.coinbase.com/customer/portal/topics/601112-sending-receiving-bitcoin/articles

[coinpr0n]

1% is a good profit, have you seen exchanges that has only 0.2% and make a good profit (i think) then 1% is x5.
Did you know that you have not to pay tx. fee when you use coinbase to send bitcoins?

I think you don't have to pay tx fees only if you are sending to another Coinbase account. AFAIK you still need to pay for on-chain txs.

For onchain transactions, you don't have to pay the transaction fees [1] unless you are sending a small amount. AFAIK, they do have fees when converting to different currency and trade fees too.

[1]https://support.coinbase.com/customer/portal/topics/601112-sending-receiving-bitcoin/articles

My bad then, didn't know since I actually don't use Coinbase. But I guess it makes sense if they are controlling all the private keys in the backend to handle everything themselves.

[lorylore]

1% is a good profit, have you seen exchanges that has only 0.2% and make a good profit (i think) then 1% is x5.
Did you know that you have not to pay tx. fee when you use coinbase to send bitcoins?

I think you don't have to pay tx fees only if you are sending to another Coinbase account. AFAIK you still need to pay for on-chain txs.

For onchain transactions, you don't have to pay the transaction fees [1] unless you are sending a small amount. AFAIK, they do have fees when converting to different currency and trade fees too.

[1]https://support.coinbase.com/customer/portal/topics/601112-sending-receiving-bitcoin/articles

My bad then, didn't know since I actually don't use Coinbase. But I guess it makes sense if they are controlling all the private keys in the backend to handle everything themselves.

Yes you don't have any private keys so all money stays to them.
Here is an article where is mentioned that they pay the fees.

Does Coinbase pay bitcoin miner fees?[url]

[neochiny]

2 days ago it seems as if coinbase had the same sell and buy price, so how can they make money? and have the prices been changed?

 they make money by the fees when your having transaction to them. it is only a small fee so sometimes you will not notice it.
and i also think they also make money when you buy to them some coins.

[lorylore]

2 days ago it seems as if coinbase had the same sell and buy price, so how can they make money? and have the prices been changed?

 they make money by the fees when your having transaction to them. it is only a small fee so sometimes you will not notice it.
and i also think they also make money when you buy to them some coins.

I think the opposite. You do not have to pay the transactions fees.
Here is an article where is mentioned that they pay the fees.

Does Coinbase pay bitcoin miner fees?

[josephno1]

I think they get a reward for every arrest made using personal information they supplied to the government. lol

(y)

This is amazing lol!!!!! CoinBase does also dox its users
All jokes aside though, coinbase does charge a fee

[Vagnavs]

Just wanted to comment. If you decide to buy anything on the dark web. Don't use your coin base account..

There are many good things on the dark web, such as prescriptions. You can save a lot.. But that's just what I've heard

[RGBKey]

They make money on fees for buys and sells, which a lot of people do many times a day with a lot of coins. Their fees net them a crap ton of money.

[btccashacc]

Just wanted to comment. If you decide to buy anything on the dark web. Don't use your coin base account..

There are many good things on the dark web, such as prescriptions. You can save a lot.. But that's just what I've heard

coinbase will trace your transaction like gambling
http://cointelegraph.com/news/113207/coinbase-is-tracking-how-users-spend-their-bitcoins

[jackg]

Does the transaction fee increase the speed the transaction will be confirmed or does it have not affect, as coinbase transactions seem to be slower than others with a transaction fee.

[btccashacc]

Does the transaction fee increase the speed the transaction will be confirmed or does it have not affect, as coinbase transactions seem to be slower than others with a transaction fee.

you can cashout your bitcoin from coinbase without fee

[mordekaiser]

coin base acts more like a broker dont they?

depending on certain prices, they can delay the honored price. I heard way back some guy on the reddit thread said they held his buy order then released their revised price.

I wish i can find it again to link it here.

[lorylore]

Does the transaction fee increase the speed the transaction will be confirmed or does it have not affect, as coinbase transactions seem to be slower than others with a transaction fee.

I use coinbase too but the transaction speed is normal.

Sometimes the speed is fast sometimes is getting slower, it really depends of the network and the number of transaction at that time.

At the time of  "stress-test" the fee has a big role which affect the speed of transaction to be confirmed.

[eternalgloom]

Just wanted to comment. If you decide to buy anything on the dark web. Don't use your coin base account..

There are many good things on the dark web, such as prescriptions. You can save a lot.. But that's just what I've heard

coinbase will trace your transaction like gambling
http://cointelegraph.com/news/113207/coinbase-is-tracking-how-users-spend-their-bitcoins

These are some questionable practices for sure, I'd personally avoid them.

But to stay on topic, how can they not be profitable, they're hugely popular and their 1% fees are pretty high. 

[coinpr0n]

I am surprised to see how much volume the Coinbase Exchange has been doing. It's currently over 13% of all USD volume / relatively close to Bitfinex volume (https://bitcoinaverage.com/markets#USD). I guess all the people who have their banks hooked up just find it more convenient to buy on their exchange even though they charge a 1% fee.

[a7mos]

I don't understand one thing with coinbase , how they pay that huge amount per referral . it is really strange for me . their fees are low so how they can afford it ?

[lorylore]

I don't understand one thing with coinbase , how they pay that huge amount per referral . it is really strange for me . their fees are low so how they can afford it ?

I am curious too, in euro market it is if your referral buys 100€ you will get 75€.
I still don't know how they can earn at least 75% from that.
It's known that to buy you should verify some steps like Banks account, Phone number, ID... do they earn by these?

[a7mos]

I don't understand one thing with coinbase , how they pay that huge amount per referral . it is really strange for me . their fees are low so how they can afford it ?

I am curious too, in euro market it is if your referral buys 100€ you will get 75€.
I still don't know how they can earn at least 75% from that.
It's known that to buy you should verify some steps like Banks account, Phone number, ID... do they earn by these?

Mmaybe , I don't know
But what I know that they are already famous between betcoin users  . why they need this campaign unless they want to get new people to use bitcoin

[lorylore]

I don't understand one thing with coinbase , how they pay that huge amount per referral . it is really strange for me . their fees are low so how they can afford it ?

I am curious too, in euro market it is if your referral buys 100€ you will get 75€.
I still don't know how they can earn at least 75% from that.
It's known that to buy you should verify some steps like Banks account, Phone number, ID... do they earn by these?

Mmaybe , I don't know
But what I know that they are already famous between betcoin users  . why they need this campaign unless they want to get new people to use bitcoin

They are famous but maybe they are getting loosing their users so they want to promote more to be the #1
There are many competitors like other exchanges so it decrease the number of coinbase users, because of their fees and other verification.
And one thing is that they don't give you the private key so they hold your bitcoins.