For those who are just starting to invest in the world of crypto, Coinbase is a logical first step. The world’s first publicly traded crypto exchange is both highly accessible and easy to use. It also offers all the most well-known cryptocurrencies you are likely to hear about, such as Bitcoin, Ethereum, Cardano, and Solana.
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But the deeper you get into crypto, the more frequently you can start trading, which can quickly get expensive when using Coinbase. To help combat this, here are some cheaper alternatives to the Coinbase crypto exchange.
Robinhood has had its share of controversy, but it remains one of the best places to trade cryptocurrency cheaply. This pioneering app-based trading platform charges $0 to buy or sell a wide variety of cryptocurrencies, and its pricing structure is simple: there are no commissions on crypto exchanges, although you had to pay the difference. With Coinbase, pricing isn’t just more expensive, it’s more complicated.
To start, you’ll pay a $3.99 fee if you use a debit card to buy or sell crypto on Coinbase, but you’ll only pay $2.99 with a linked bank account. You will also pay a spread, which is where transaction costs can get trickier.
Coinbase divides transactions into “taker” and “maker” transactions. If you buy or sell crypto at market price, you are a “taker” and your transaction generates commissions between 0.05% and 0.60%. If you place a limit order that is not executed immediately, you are a “maker” and will pay between 0% and 0.40% when your trade is executed.
The bottom line is that while Robinhood has its limitations, including not offering as many cryptocurrencies as Coinbase, it is a cheaper option.
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Webull and Coinbase are very different experiences. One of Coinbase’s strengths is that it appeals to newcomers to crypto and first-time investors in general. The interface is easy on the eyes and easy to understand, and at a glance, visitors can see what is happening in the overall crypto market and with specific currencies.
Webull, on the other hand, is for advanced traders who only need specific, high-level information. Webull is also optimized for a mobile device, for active traders on the go. Perhaps most importantly, Webull does not charge any commission for crypto trades.
While no one wants to pay commissions on any of their trades, whether you prefer Coinbase or Webull will generally depend on what kind of investor you are. Active traders will generally choose Webull, both for its non-existent commissions and its advanced interface. Those just starting out or looking for a simpler to use web interface might give Coinbase a thumbs up, even if they have to pay commissions.
Binance.US is not a completely free crypto trading platform, but it is much cheaper than Coinbase. The maximum commission on Binance.US is 0.5%, but that’s only if you specify a limit price on your buys and sells. For general spot trades using market orders, your fee is no more than 0.1%, or $1 for every $1,000 you trade. This is similar to Coinbase’s “Maker/Taker” structure, but ends up being much cheaper for market orders.
With increased trading volume, your fees may drop from there. Every day, Binance.US determines your trading volume over the past 30 days, as well as your current BNB balance. Your trading fee level is determined approximately one hour later. If you pay your fees with Binance coin, symbol BNB, your trading fees are reduced by 25%.
There is no doubt that there are crypto exchanges and trading platforms that are cheaper than Coinbase. However, that doesn’t necessarily make them better. Some may have larger spreads to compensate for their lack of commission, while others may not offer the variety of cryptos available on Coinbase. Still others might have user interfaces better suited to advanced traders.
If you want to know which exchange is best suited for your needs, find out how each platform works firsthand. The one you’re most comfortable with might be the best option for you, even if it costs a bit more.
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3 Cheaper Crypto Exchange Alternatives to Coinbase
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