Why does Coinbase charge 1% fees?

[subwoofer12]

I guess I don't understand why they still charge 1% on the Wallet page when you can just transfer it to the exchange and sell in 5 seconds
If I sold in Wallet I would have paid $42.24



So I just transferred to the Exchange



And paid $10.88 in fees (0.25%)

[KenR]

How they're suppose to run a business without charging the service fees ? Most of the bitcoin related services survive solely on service charges.Bitcoinmixing for instance.1% by coinbase as addressed by their FAQ section,they offer you lot of other bullshit in  the name of security and network propagation.Live with it.

[alyssa85]

The people who use the wallet are noobs and are willing to pay those charges. The people who use the exchange are speculators, and they wouldn't use coinbase's exchange if their fees were out of line with other exchanges. Coinbase can only put it's fees up on the exchange if other exchanges also do this - and they might in the future, if more exchanges fail and it's down to just one or two.

[traderbit]

It says that the balance will appear after 1-2 business days, sometimes it does not worth especially if you plan to exchange them immediately, also as far as i know they pay the transaction fees when withdrawing bitcoins so they should cover these fee.

[Quickseller]

When you trade on the exchange you will still need to pay a commission (unless your order is not filled immediately) of 0.2%, and not everyone is able to use their exchange, although I believe if you have their USD wallet enabled then you can use their exchange.

Interestingly enough, when you buy/sell via coinbase (not their exchange) the order is apparently routed to their exchange as a "market" order.

I do agree that it is probably almost always a good idea to trade on their exchange, even if you are executing a market order as you will end up saving 0.8% in commissions. The only exception to this might be if you are selling someone some of your existing bitcoin for a premium and wish to simultaneously purchase an equal amount so you end up with the same amount of bitcoin, as if you make a deposit to your USD wallet then it will take about a week for the funds to be available for trading, however if you purchase via coinbase then you can buy right away. 

[mixan]

they don't charge on sending receiving any transaction. I think this is where the company makes their money. From the buy sell transactions.
If not how would they still survive? Come on now They have too make money some how to survive.

[unholycactus]

they don't charge on sending receiving any transaction. I think this is where the company makes their money. From the buy sell transactions.
If not how would they still survive? Come on now They have too make money some how to survive.

The point OP is trying to get across is that if you use the Coinbase wallet ONLY to sell your coins, you pay 1%.
As opposed to transferring your coins from the wallet to the exchange and then selling with a 0.2% fee.

I suppose this is a new feature they haven't adjusted.
If you're unable to sell on the exchange (which could be more restrictive than the wallet), someone would be ready to pay the 0.8% premium.

[zenitzz]

Every company has a 1 percent transaction fee for withdraw to local currency, it's not a problem because sometimes in other companies you get 3% fee transaction.

[Karpeles]

It is a free market, so they can charge anything they want.

Since most people are dumb or lazy, and they pay for their dumbness/lazyness

Accept to pay 1% instead of 0.25% by far is not the biggest dumb thing that people do without even notice

[mobnepal]

Some find it quite long process to goto exchange deposit bitcoin and exchange it there at market price. So rather than doing so they are happy to pay 1% fee to change it within their coinbase wallet. 1% is still reasonable fee looking at some service taking 10% fee in echanging cash to coin and vice versa.

[subwoofer12]

Since most people are dumb or lazy, and they pay for their dumbness/lazyness

*laziness

If you're unable to sell on the exchange (which could be more restrictive than the wallet), someone would be ready to pay the 0.8% premium.

Slightly less, 0.75%
Actually, my account was just enabled for the Exchange this week. My state doesn't even appear in the list yet https://www.coinbase.com/legal/licenses?locale=en

Interestingly enough, when you buy/sell via coinbase (not their exchange) the order is apparently routed to their exchange as a "market" order.

They probably changed the way the Wallet's price is calculated then, it used to use Bitstamp's API to pull the latest price and then add in their fee
https://www.reddit.com/r/Bitcoin/comments/1mjjfb/how_i_successfully_manipulated_coinbases_price/

The people who use the exchange are speculators, and they wouldn't use coinbase's exchange if their fees were out of line with other exchanges.

They're competing with Bitstamp, their minimum fee is also 0.25% (Bitstamp charges more in fees actually because they also charge maker fees)

I trade on Huobi most the time, the only fee they charge is a withdrawal fee for CNY, they don't have any trading fees. I just use Coinbase to get back to USD

[subwoofer12]

You want fast? You must pay more

Nope. The fee is lower and it doesn't take any longer.

I swear unholycactus is the only one in this thread who understands the point I'm trying to illustrate

[Quickseller]

Interestingly enough, when you buy/sell via coinbase (not their exchange) the order is apparently routed to their exchange as a "market" order.

They probably changed the way the Wallet's price is calculated then, it used to use Bitstamp's API to pull the latest price and then add in their fee
https://www.reddit.com/r/Bitcoin/comments/1mjjfb/how_i_successfully_manipulated_coinbases_price/

I want to say that since they opened their exchange they started filling their "coinbase" orders via their exchange, which makes sense because it does not subject them to the same counter party risk that using bitpay would subject them plus not having to pay trading fees to bitpay.

You want fast? You must pay more

Nope. The fee is lower and it doesn't take any longer.

If you already have USD in your account, and wish to buy bitcoin then it would be maybe ~a few seconds quicker to use coinbase verses the coinbase exchange. It might make more sense to sell bitcoin via coinbase if you do not have the bitcoin in your coinbase account and send the bitcoin to your "instant sell" (or whatever it is called) address as they will lock in the price as soon as their node sees the transaction but will not credit your account until it has three transactions, and this is verses having to wait for 3 confirmations and then placing a sell order.....this would be beneficial in a rapidly falling market, but would probably not make sense in most situations.

I swear unholycactus is the only one in this thread who understands the point I'm trying to illustrate

A lot of people are just posting garbage after reading the topic in order to increase their post count.