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QUESTION

What is the most cost-effective method to trade on Coinbase?

ANSWER

20

The most cost-effective method to trade on Coinbase is by using its trading platform, Coinbase Pro, which offers lower fees when compared to the regular Coinbase brokerage service. On Coinbase Pro, traders benefit from a maker-taker fee model, where fees are structured based on whether the trader provides liquidity to the market (maker) or takes liquidity away from the market (taker). To reduce costs, one could place limit orders that add liquidity, qualifying them as a maker and incurring lower fees. Additionally, traders should consider transferring funds via ACH or bank transfers as opposed to credit or debit cards to avoid higher transaction fees. Lastly, for larger transactions, carefully planning and executing trades during times of high liquidity can help get better prices and reduce the impact of slippage on execution costs.


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04.21.2024
CHEAPEST WAY TO TRADE ON COINBASE
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