Are trading fees too high? Coinbase Generated Nearly $2 Billion in Trading Fees

[johnbc]

Coinbase CEO Brian Armstrong recently said Coinbase has generated close to $2 billion in trading fees.

https://www.vanityfair.com/news/2019/10/brian-armstrong-confirms-coinbase-is-profitable

At this point it is worth asking: Are trading fees too high?

In the market for traditional products, intermediaries get a big slice of the business. According to this CEO's statements and the results of the crypto industry it seems that the same case is being repeated here.

Unlike traditional markets crypto have a solution already available. Decentralized exchanges.

These allow transactions with very low or even zero fees.

If the DEXs are a solution to the high fees maybe it will be demonstrated in the next years.


RELATED INFORMATION
More than 42% of all people in the blockchain industry work for cryptocurrency exchanges:
https://www.theblockcrypto.com/genesis/44300/research-42-of-blockchain-industry-employees-work-for-exchanges

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[leowonderful]

Meh. Most decentralized exchanges don't support many pairs and/or don't have much trading volume and low liquidity, and I'd much rather just pay the fees that are present on centralized exchanges while trading as a result. I support them nevertheless, but I just don't find them to be good enough at the moment to justify moving over to them, though if more people start using them in the future it's certainly possible decentralized exchanges become more viable in the future. Fees do suck and they can be pretty significant especially when trading on leverage, but I don't find them to be too outrageous and some places even offer a fee rebate if you enter your trades through limit orders.

[mahibul49]

coinbase is a big exchange and wallet service and there are lots of things they are doing..they are a buisness instituion so definitely they are a profitable company..they have source of income

[batang_bitcoin]

Coinbase is a business and they have to profit to continue their expenditures like the salary of their employees and other cost of their operations. I haven't used coinbase for a long time because I don't see it fit with my favor but if the fee is others concern then they should stop using them and try to get into decentralized exchanges which mostly have low volumes. The convenience that this kind of exchange brings to the users is of one concern why many are coming back to them and keep on using them.

[johnbc]

Of course they offer very good services.
The same can be said of Binance, which continually conducts studies on the industry, which helps its evolution.

They must earn, be profitable. That's the idea of doing business.

coinbase is a big exchange and wallet service and there are lots of things they are doing..they are a buisness instituion so definitely they are a profitable company..they have source of income

[Wysi]

Coinbase is a business and they have to profit to continue their expenditures like the salary of their employees and other cost of their operations. I haven't used coinbase for a long time because I don't see it fit with my favor but if the fee is others concern then they should stop using them and try to get into decentralized exchanges which mostly have low volumes. The convenience that this kind of exchange brings to the users is of one concern why many are coming back to them and keep on using them.

Yes people need to think from an organization's point of view as well and I normally uses Coinbase or Binance and trust me they have really good support team which comes at a cost, Initially even I use to feel the same about the trading fees but eventually understood the fact they cannot do charitable services. Sometimes transaction fees are pinch especially when the value of bitcoin is high and if we have to transfer small amount.

[republicrypto]

i think nope,
if coinbase generated about $2 billion thats normal,
because coinbase are a big exchange with wallet services too my friend
of course the trading fees will be huge
regards

[o48o]

No, they just hit the goldmine early. Very high percentage of crypto users has been using coinbase for buying with fiat for example. They are trusted, old and reliable newb friendly exchange. If there were more competition the fees would divide with other exchanges, but it takes time until they will get the same reputation. For example i am not suggesting any other new exchanges for my parents, because i have seen so many exit scams and i want those gullible people to be in safe hands even if that pays them more.

[Perfect35]

DEXex are gradually coming up to fill the gap for high fee, but at the moment, traders and investors alike will still continue to patronize centralized exchanges for some reasons, which decentralized exchanges cannot for now fulfill. Coinbase has high traffic caused by traders and investors on their exchange, so it is likely that they would have generated such huge amount of money.

[tenakha]

Are trading fees too high?

There is a no-charge exchange, even pays you in every trade: bgogo Actually, these kinds of exchanges are too much. But, if you are looking for DEX, investigate bithumbDEX that does not charge transaction fee. You can also try 0x, which offers a zero-fee trade. There is an option for everything, but we are "against" DEXs.

[safari88]

There is a no-charge exchange, even pays you in every trade: bgogo Actually, these kinds of exchanges are too much. But, if you are looking for DEX, investigate bithumbDEX that does not charge transaction fee. You can also try 0x, which offers a zero-fee trade. There is an option for everything, but we are "against" DEXs.

I try to search about bithumbdDex but unfortunately, they just have a mobile app i hope they can provide the desktop version so many people will use the dex.

At this point it is worth asking: Are trading fees too high?

i think the trading fees on coinbase is pretty high because they had 0.5% with total trading volume 24hr 200mln, so every day they can earn 1mln from the trading fees itself.

[sureshnsnet]

The coinbase is giving the crypto trading service from more than 5 years as per my knowledge so there is no doubt that they can generated $2 billion in trading fees, but they are changing more trading fees compared to other crypto exchanges.

Best way to use dex exchanges for avoiding trading fees and my best dex exchange is binance dex.

[Strongkored]

Maybe the trading fee is high, but if you see a lot of traders who trade there proving that they are satisfied and comfortable trading there, so the fee are not a problem for them. Meaning that as long as the Coinbase fee is still comparable to their service it's perfectly normal, and also have to remember that $2 Billion not a profit for a year, but the total profit from the first of their service start from 2012. My opinion Coinbase got profit greater in 2017 due the high BTC prices.
I don't think DEX is solution to reduce trading fee which trader should pay, not for the moment, maybe later after many trader more concern about to reduce trading fee and start using DEX as first choice to trade.

[btcdie]

Coinbase is a wallet, and the crypto exchange is quite large in volume. Coinbase was founded in 2012 [1] 3 years after the launch of bitcoin. in my opinion it's not a big trade cost, but high market liquidity and coinbase have been around for a long time. it's only natural that in my opinion the current coinbase CEO Brian Armstrong has earned nearly $ 2 billion.

________________
[1] https://en.wikipedia.org/wiki/Coinbase

[samcrypto]

Not that high but the volume of trades makes more profitable to some exchanges and we all know Coinbase is a good exchange too and thats why they earn a lot of money. They earn not just on trading fees but also in other way, so having a good exchange is a good business that can last Longer.

[flagpara]

This is the real profits from trading fee or you can earn from exchange. Coinbase didn't earn 2 billions for trading fee, only high volume can help you to rise this funds. Although Coinbase has high developers team and employee. You should check earned money from Binance trading fees.

[caffu chino]

current trading fees are quite cheap and I think that's standard. the reason why they can get such huge profits is because they have many users and each user gives them an profit. if you really want to be cheaper, use DEX, but I don't think this will be the same as when you use CEX.

[BlacksmithCorporation]

Coinbase is a leading exchange it has millions of users and according to the CEO of coinbase, the $ 2 billion fee has been calculated since Coinbase launched in 2012. So the fee Coinbase collected, In my opinion is not a very high fee.

[Cherylstar86]

current trading fees are quite cheap and I think that's standard. the reason why they can get such huge profits is because they have many users and each user gives them an profit. if you really want to be cheaper, use DEX, but I don't think this will be the same as when you use CEX.

Coinbase is one of the most know trading site in the world of crypto currency. In fact as the time passed by many users caught their attention about this trading site due to their great features which can make them comfortable. Nowadays, about their fees is just normal as before base on the previous years situation. On the previous years coinbase is not availabe on some countries due to some jurisdiction that need a clarification.

[johnbc]

Go to this site: https://www.bithumb.io/ you must only have metamask on your computer for the desktop version.

There is a no-charge exchange, even pays you in every trade: bgogo Actually, these kinds of exchanges are too much. But, if you are looking for DEX, investigate bithumbDEX that does not charge transaction fee. You can also try 0x, which offers a zero-fee trade. There is an option for everything, but we are "against" DEXs.

I try to search about bithumbdDex but unfortunately, they just have a mobile app i hope they can provide the desktop version so many people will use the dex.

At this point it is worth asking: Are trading fees too high?

i think the trading fees on coinbase is pretty high because they had 0.5% with total trading volume 24hr 200mln, so every day they can earn 1mln from the trading fees itself.