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

[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.

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.

Yeah, if there's a service that kind of a little bit high but isn't really that expensive. It's good to consider that you're also helping the business to continue and as well as giving the convenience to each of their customers including you.
The transaction fee that they are asking shouldn't be a big thing unless it's totally expensive to the point that it's no longer acceptable.

[Twinkledoe]

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.

Yeah, if there's a service that kind of a little bit high but isn't really that expensive. It's good to consider that you're also helping the business to continue and as well as giving the convenience to each of their customers including you.
The transaction fee that they are asking shouldn't be a big thing unless it's totally expensive to the point that it's no longer acceptable.

At least you are sure that no matter what, they will not screw you with your money. It is like using exchanges with higher transfer fees (i.e. 50k-150k sats) as compared to low tx fee (10k-20k sats), the waiting time with higher transfer fees is very short while with the lower one, it might take days or weeks. So which one would you choose, of course the one with higher transfer fees. At least you have peace of mind that you will get your money on time.

[batang_bitcoin]

Yeah, if there's a service that kind of a little bit high but isn't really that expensive. It's good to consider that you're also helping the business to continue and as well as giving the convenience to each of their customers including you.
The transaction fee that they are asking shouldn't be a big thing unless it's totally expensive to the point that it's no longer acceptable.

At least you are sure that no matter what, they will not screw you with your money. It is like using exchanges with higher transfer fees (i.e. 50k-150k sats) as compared to low tx fee (10k-20k sats), the waiting time with higher transfer fees is very short while with the lower one, it might take days or weeks. So which one would you choose, of course the one with higher transfer fees. At least you have peace of mind that you will get your money on time.

Exactly. Your money is safe and they have a support that you can complain with if ever you have encountered with something bad. Unlike to those exchanges that you are too conservative with fees, sometimes that will also dictate their kind of service.
And the fees also depends on the network so this has nothing to do with the exchange and they always give that reminder that delays might happen if you will not choose the priority.

[shoreno]

i dont think that dex'es are the solution for the high fees  .ive been an avid user of dex'es but i observed that they still have a minimum fee ( trading fee and withdrawal fee ) they dont really differ on the cex'es  but dex'es only have an advantage when it comes to privacy because dex'es were known to be anon  . coinbase accumulated fees are too big but that is true that fees were really expensive and will become more expensive when the price of cryptos pumped up  .

[disconnectme]

For now, most of the exchanges rely on the trading fees they generated from spot trading but I can see that changing with time as more products enters the space, exchanges business is getting very competitive and most new exchanges are struggling to attract users and because they don't have that huge competitive advantage over others they will close shop soon

[alyssa85]

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.

There are too many Dex's and all of them have very low liquidity - you can place an order and wait a week for it to be filled.

Rationally some Dex's ought to close and the remaining ought to consolidate, but that doesn't seem to be happening.

[leea-1334]

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.

That is exactly the point,,, sometimes it is not about the fees but the trust and reputation. Everybody in the US for sure knows that to get a exchange running there you need to pass all the hoops and laws, and if Coinbase can do it, that means you can trust it.

Would I pay 1% fee at an exchange not regulated or 4% fee at regulated exchange? For sure the 4%.

But would I pay less at a DEX with non custody wallet? For sure this!

[shinratensei_]

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.

There are too many Dex's and all of them have very low liquidity - you can place an order and wait a week for it to be filled.

Rationally some Dex's ought to close and the remaining ought to consolidate, but that doesn't seem to be happening.

how long your order will be filled will depend on how much liquidity in the market place of your token. For your information, if I have ever experienced my order didn't even get filled for more than two months of waiting.


Those dexs are operating under their own company and we know that so many dapps protocol has already made to provide a better system for dex to build its dapps in the various protocol.
That's impossible for them to be consolidated from one to each other.

So many dexs make the volume in the market have divided even more to the various new dexs. I remember some dexs are getting less and less size of volume every day.

It looks like the dex is getting overloaded.

[Flux0z]

$2 Billion is an incredible amount. It's safe to say that 1% of that on any DEX could make those running them pretty wealthy long term. There's a few DEX projects out there that rewards people to run the DEX, which MIGHT be the one of the best opportunites in crypto right now.

I'm accumulating projects like Blocknet like a mad man, for this very reason