Mark Garlick/Science Photo Library/Getty Images
Cryptocurrency has gone from a small alternative investment class to one that has a total market cap worth trillions of dollars. Most people interested in buying, trading or investing in crypto use a crypto exchange, like Coinbase.
Coinbase is a specialized cryptocurrency exchange that allows you to trade many different types of digital currencies. Coinbase also has a subscription service called Coinbase One, which offers a range of benefits like zero trading fees, customer support and enhanced security. Here’s a closer look at how it works and who might benefit from the service.
What are the benefits of Coinbase One?
Coinbase One is a monthly subscription-based service that is designed for frequent Coinbase users who want to streamline the process of buying and selling crypto within the exchange.
Here are some key details of what the $29.99 monthly subscription gets you:
- Zero trading fees: Users can trade eligible cryptocurrencies without having to pay trading fees, which can reduce costs for investors.
- Customer support: Subscribers receive priority access to customer support, which makes it easier to resolve any issues you run into more quickly.
- Streamlined experience: If you’re a frequent trader, the subscription features a unique interface designed for easier access to your trades.
- Tax filing support: Subscribers get a pre-filled Form 8949, which reports the sales and exchanges of capital assets. Coinbase also has a limited-time partnership with CryptoTax calculator, which you might also be able to take advantage of if you have a subscription.
What are some drawbacks of Coinbase One?
Coinbase One might be a good option for more frequent traders and those who are more involved in the crypto space, but as with any investment, there are some drawbacks to consider.
- Subscription fee: Whether the monthly fee is worth it depends on how much crypto you’re trading and what other investments you have in your overall portfolio. Be sure to strike a balance between what you’re paying to trade crypto and more tangible assets like stocks and bonds to maintain a diversified portfolio.
- Zero fees only apply to certain trades: While many trades are fee-free, this only applies to specific types of trades, so you might still incur costs depending on the type of crypto you’re buying. If you’ve exceeded a set trading cap for the month or are partaking in advanced trades, then you may encounter fees.
How to sign up for Coinbase One
Before signing up, take time to consider what your long-term financial goals and risk tolerance are. Crypto is notorious for being extremely volatile because its price is based solely on what others are willing to pay for it. If you’re already a frequent trader and are interested in signing up for the subscription, here are you next steps:
- Head to Coinbase.com. If you don’t already have an account, you’ll need to create one.
- Navigate to the “Profile & Settings” tab.
- Click on the Coinbase One selection.
- Pay for the subscription. You can do this by linking your bank account or debit card, or even pay using crypto.
Bottom line
Coinbase One may be a good option for investors who trade crypto frequently or have more experience with digital assets. The subscription gives investors access to additional benefits on the exchange. Coinbase One is notable for its zero-fee feature, but it depends on the type of trades you’re conducting and whether they’re more advanced. If you’re more of a crypto novice, it may be a better bet to stick with the non-subscription version of the exchange.
FAQs
-
No. Coinbase One is a subscription separate from Coinbase Advanced Trade, previously known as Coinbase Pro.
-
Yes, and you can also pause your membership. Head to the Coinbase One subscription page and navigate to “Manage Subscription” to pause or cancel.
-
No, you cannot get reimbursed because you sign up for Coinbase One.
Read the full article here
