Coinbase’s latest transaction fee spike irks users as company ties with Bitstamp

The cryptocurrency market has always banked on popular services and products to ensure mainstream adoption across sectors. These services include products like cryptocurrency exchanges, and the latest decision was taken by the world’s largest cryptocurrency exchange in terms of users, Coinbase, which has ruffled some feathers in the market.

Larry Cermak, the Director of Research at The Block, recently tweeted:

“Coinbase just hiked their fees for retail and became the most expensive exchange (tied with Bitstamp) for retail investors. They used to charge 0.15% maker and 0.25% taker. Now they charge 0.5% for both maker and taker. Yikes.”

According to data, the trading fees levied by Coinbase Pro and Bitstamp are above and beyond that of its competitors. Both the exchanges share a 50-50 split in the taker fee and the make fee amount to a 1 percent increase in the overall fee.

The next exchange on the list was Gemini ActiveTrader and Bittrex, both of which saw a 0.6 percent and 0.5 percent increase in their trading fees. Almost all other exchanges plateaued their rates around the 0.35-0.4 percent range, a sample size that included popular platforms like Kraken, Poloniex, Huobi, and bitFlyer. Encephalopath, a cryptocurrency enthusiast, replied to Cermak’s tweet by stating:

“No deposit/withdrawal fees on @nashsocial either, will save a lot of fees.  @lawmastera comparison including deposit/withdrawal fees would be more apt. For example, a 1 ETH deposit, sell at X price, buy back at X price (standardised value + ex fees) then withdrawal from exchange.”

Coinbase was also in the news recently when Brian Armstrong led company declared that Coinbase users would earn rewards on their respective USC holdings. Reports suggest that United States customers will witness their Coinbase accounts, basically becoming an uninsured savings account with a 1.25 percent APY rewards rate.

That feature does not need to be triggered by the users as anyone eligible in the Coinbase repository will automatically start earning rewards. These deposits appear in the tab called ‘rewards pending’ tab within the Coinbase application.

Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.