HOW TO SAVE TRANSACTION FEES WITH COINBASE PRO? – PART 1
You can follow this method, but I can show you a little trick that you can do. If you create a Coinbase account, you also have access to a Coinbase Pro account and go to a website called pro.coinbase.com
It’s the same way. The only difference is that they charge you much less. It’s a bit more overwhelming and more upscale. But don’t worry about it, we’ll walk you through this as well and get you comfortable with it so you can save on fees in the future. Let’s take a look here, go to our Orders page, and then we can see what kind of fee they charge us if we go to the top right corner, you can click the ‘Orders’ button.
You click ‘Fees’ here
As you can see, this is my real account.
You can see the fee being charged. They only have 0.1% in the making and 0.2% for taking. And we can see that, at a very basic level, it starts with just 0.5% maker and taker fees. That’s 6 times less than the 3% fee Coinbase tries to charge us for doing the same thing. Even if you don’t have volume, it’s cheaper when you trade on Coinbase Pro because they want to give you the incentive to trade a lot. Even if you haven’t traded anything yet, even if you only buy 10$, 100$, a very small amount, you will still save 6 times your money on deposits. fees here. So it’s always worth it to use Pro Coinbase versus Coinbase.
HOW TO SAVE TRANSACTION FEES WITH COINBASE PRO? – PART 2
As you can see, you have a different fee for making and taking. Let’s talk a little bit about what it means. Taking the market in a kind of exchange term means you are taking the market price. That means you are just taking whatever price the market decides Bitcoin or Ethereum or any other cryptocurrency has value or not. This is the same as when you go to Coinbase and click the Buy button. You are the one capturing the market. They just said, Hey, here’s the Bitcoin price today. That’s the price someone is willing to sell you Bitcoin for right now. Do you want to accept that price? You say, okay, I’ll take that price. That’s why you are a taker in the market. You are just taking the price the market offers you.
However, you can also be a market maker. Now, what does it mean to create markets? It means you set your price. You say, Hey, I’m not going to buy Bitcoin for $60,000. I think that’s pretty high. I want to buy it for $50,000. So you place what is called a limit order.
A limit order means it doesn’t execute immediately like a market order.
A market order is an investor’s order to a broker to buy or sell stocks, bonds, or other assets at the best price available in the current financial markets.
That’s when you just say, Hey, Bitcoin is $60,000, someone will sell me Bitcoin right now for $60,000. Let me pay you $100, give me $100 in Bitcoin. That is you are executing a market order at today’s market rate. However, when you do a limit order, you say, I can wait, I know that Bitcoin is going to drop. I don’t think it will be $60,000 forever. I’m waiting until it’s $50,000. You know what, I’m going to place a standing order here. I would say, hey, when Bitcoin drops to $50,000, I’ve got $100 here. I am willing to buy whenever someone is willing to sell at that price.
HOW TO SAVE TRANSACTION FEES WITH COINBASE PRO? – PART 3
After the market at any point in the future, will drop to that price, while your limit order is still outstanding. If it hasn’t expired you can set an expiration date for this, if it’s still there, when someone likes, hey, I’m ready to sell my Bitcoins for $50,000. The market, this exchange, will automatically give you $100 at $50,000 per Bitcoin over the current market rate if that makes sense. So let’s go in and see how we’re going to make that happen. Let’s say we’re buying Ethereum with US dollars because that’s really what we’re going to do.
First, we will have to deposit some US dollars into Coinbase.
When you do this, it will allow you to buy immediately. However, it will not allow you to withdraw immediately, they lend you money. Because it takes a while before your bank transfers the funds via ACH transfer to Coinbase.
But they want to let you buy at the current price you’re trying to buy because cryptocurrencies are volatile. It moves up and down every day. No one knows what the price will be like in 7 days when your money arrives. Coinbase will usually give you a pretty generous limit. You can see right here it says you have a $35,000 daily limit left.
That means I can deposit $35,000 from my bank today. And immediately bought that one. It says their funds are immediately available for trading. That’s pretty awesome. So you might think, wow, that’s amazing. Why do I only have $1,000 at my bank, but they will fund me $35,000. Awesome, I’m just going to take that $35,000 now and try to deposit it before they realize that the bank might not have it. Then I will buy Bitcoin, I will buy Ethereum, and I will transfer, I will try to scam Coinbase. That’s why they won’t allow you to withdraw your money until it’s actually in your account. So if you do this. If you try to deposit more money than your bank has. It was fine at first. They will allow you to get that amount in your account. They will allow you to buy Bitcoin and Ethereum. But when they try to take that money from you for a couple of days, if you don’t have it, they’ll lock your account and they’ll say, hey, please give it back to us. Otherwise, we won’t let you have any of this. That’s why they won’t let you withdraw for about 5 to 7 days or how long it will take for them to get the money from your bank to confirm that you have the money you are trying to deposit. We’re not that rich here. Put your $100 right here.
This will be an instant deposit. You can click ‘Preview Deposit’ and ‘Deposit USD’.
Now we’ve got $100 here. You can see it says there are six days to withdraw.
Since it will take six days until I can get this money out, the funds will be available for trading immediately and will be available for withdrawal in six days.
Now you can see that they didn’t lie to me. I have $100 right away that I can use to buy and sell Ethereum or any other cryptocurrency.
If I want to buy and sell something else, I go here.
I choose a different cryptocurrency than the US dollar. I want to buy some Dogecoin.
I can transfer to DOGE-USD, and I can buy DOGE with USD.
I can transfer to BTC-USD.
This is Bitcoin.
BTC is a symbol trader for Bitcoin. ETH is the symbol of Ethereum. So we’re going to do Ethereum.
That’s where most of the NFTs exist today.