How does Coinbase generate revenue through its cryptocurrency exchange platform?

1 answers

• Dec 26, 2021 · 3 years ago
  Coinbase generates revenue through its cryptocurrency exchange platform by charging transaction fees. Whenever users buy or sell cryptocurrencies on Coinbase, they are required to pay a small fee, which contributes to Coinbase's revenue. Additionally, Coinbase offers premium services such as Coinbase Pro, which comes with advanced trading features and lower fees for high-volume traders. Coinbase also earns revenue through its institutional-grade platform, Coinbase Prime, which caters to institutional investors and charges subscription fees. Another source of income for Coinbase is margin trading, where users can borrow funds to trade with leverage. Coinbase charges interest on these borrowed funds, generating revenue from the interest payments. Lastly, Coinbase generates revenue through its Coinbase Commerce platform, which allows businesses to accept cryptocurrency payments. By charging fees for this service, Coinbase adds to its overall income.
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