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How does Coinbase calculate trading fees?

avatarChesty07Dec 24, 2021 · 3 years ago3 answers

Can you explain how Coinbase calculates trading fees for cryptocurrency transactions?

How does Coinbase calculate trading fees?

3 answers

  • avatarDec 24, 2021 · 3 years ago
    Sure! Coinbase calculates trading fees based on the volume of your transactions. The more you trade, the lower the fees. The fee structure is tiered, so the percentage fee decreases as your trading volume increases. This incentivizes users to trade more on Coinbase and helps to increase liquidity on the platform.
  • avatarDec 24, 2021 · 3 years ago
    Coinbase uses a maker-taker fee model. If you place an order that is immediately matched with an existing order on the order book, you are considered a taker and pay a higher fee. If your order adds liquidity to the order book, you are considered a maker and pay a lower fee. This model encourages users to provide liquidity to the market and rewards them with lower fees.
  • avatarDec 24, 2021 · 3 years ago
    At BYDFi, we have a similar fee structure to Coinbase. We also calculate trading fees based on trading volume, with lower fees for higher volume traders. Our goal is to provide a fair and transparent fee structure that benefits our users and encourages active trading.