Review of Conversion Pricing on Coinbase

[cbrennanpoole]

THE PROBLEM:

LRC 1430-1435 CANDLESTICK: 09 Feb 2021:
O: 0.6703
H: 0.6703
L: 0.6662
C: 0.6662
V: 68,258

NOTE: HIGH OF RANGE FROM 1430-1435:= 0.6703

AVG COST PER SHARE AFTER CONVERSION:

0.67580043173598848 (SEE IMG)

DIFFERENCE IN CONVERSION: 0.67580043173598848 - 0.6703=

0.005500431735988465

ACTUAL COST TO CONVERT:

0.005500431735988465 * 462.0256891 = 2.5413407631675797

Converting Crypto on Coinbase App

Is Coinbase Shaving Money?

When using the iOS App Coinbase claims that conversion from one coin to another on their consumer APP and transferring from PRO to the APP is a free service provided by the company.

ACTUAL COST OF CONVERSION: 287.91 / 426.0256891 = 0.6758043173598848

Fractions of Pennies is Where Wealth Gaps Sit...

Due Diligence

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Breadcrumbs Research

Coinbase Help Center >> Trading and funding>>
Coinbase pricing and fees disclosures

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Coinbase Legalese Review

Upon further review, Coinbase does in fact disclose a fee and margin for transactions.

The problem is the app does not represent this and it is misleading to newcomers to the platform.

This user design failure could be detrimental to the Defi/Crypto/Blockchain community and should have never gone on this long with little to nothing on the net showing this.

Sad to say, but even the crypto cause looks to be part of the corporatocracy suffocating US. Well, Coinbase is, at the very least. 😡

Cryptocurrency Transactions: Pricing and Fees Disclosure

Legalese Verbatim

General

In addition to sending or receiving cryptocurrency through Coinbase, customers can:

1. Purchase or sell a single cryptocurrency
   • “cryptocurrency purchase” or
   • cryptocurrency sale, or
2. Convert one type of cryptocurrency into another type of cryptocurrency (a “cryptocurrency conversion”).

When you request a cryptocurrency transaction, Coinbase will attempt to fill that order through one or more orders on Coinbase’s trading platform, Coinbase Pro.

Consumer Exchange and Pro Exchange Rates

Coinbase establishes the exchange rate for cryptocurrency transactions (“consumer exchange rate”) by adding a margin, or spread (the “spread”), to the market exchange rate on Coinbase Pro (“Pro exchange rate”).

Coinbase may also charge a separate fee (in addition to the spread) that is either a flat fee or a percentage of the transaction (the “Coinbase Fee”), as further described below in the section entitled Buy/Sell Transactions. Coinbase Fees may vary based on your location, payment method, and other circumstances. In some cases, we may charge an additional fee on transfers to and from your bank account.

*We will always notify you of all Coinbase Fees (not including the margin) and any other service fees that apply to each transaction immediately before you confirm each transaction and in the receipt we issue to you immediately after each transaction has processed.

Transaction Rejections

Coinbase reserves the right to reject a transaction if Coinbase is unable to fill a corresponding order on Coinbase Pro due to changes in the market price of a cryptocurrency, an order exceeding the maximum order size on Coinbase Pro, or an order timing out due to slow server response time. In rare circumstances, the Pro exchange rate may not be available due to outages or scheduled maintenance. To provide you with uninterrupted services at such time, we may derive market pricing data from unaffiliated currency exchanges. Exchange rates quoted in these circumstances are subject to a quoted spread exceeding 50 basis points.

Buy/Sell Transactions

Coinbase charges a spread of about one-half of one percent (0.50%) for cryptocurrency purchases and cryptocurrency sales. However, the actual spread may be higher or lower due to market fluctuations in the price of cryptocurrency on Coinbase Pro between the time we quote a price and the time when the order executes.

Coinbase Fee

We also charge a Coinbase Fee (in addition to the spread), which is the greater of :
- a) a flat fee or
- b) a variable percentage fee determined by region, product feature, and payment type. The flat fees are set forth below:

1. If the total transaction amount is less than or equal to $10, the fee is $0.99 | €0,99 | £0,99 | C$.99
2. If the total transaction amount is more than $10 but less than or equal to $25, the fee is $1.49 | €1,49 | £1,49 | C$1.49
3. If the total transaction amount is more than $25 but less than or equal to $50, the fee is $1.99 | €1,99 | £1,99 | C$1.99
4. If the total transaction amount is more than $50 but less than or equal to $200, the fee is $2.99 | €2,99 | £2,99 | C$2.99

Example,

If you are in the United States and wish to purchase $100 of bitcoin and pay with a US bank account or your USD Wallet, the flat fee would be calculated as $2.99.

As noted below in the variable fee section, the variable percentage fee would be 1.49% of the total transaction, or $1.49.

Since the flat fee is greater than 1.49% of the total transaction, your fee would $2.99.

If you wanted to purchase bitcoin with a debit card, we would charge a fee of 3.99% since the variable percentage fee is higher than the flat fee.

Variable percentage fee structure by location and payment method are shown in the last section below.

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These fees do not apply to cryptocurrency conversions.
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As a reminder, the Coinbase Fee will always be the greater of the minimum flat fees described above or the variable fees described below.

Credit Transactions

If you borrow USD from Coinbase or an affiliate of Coinbase, and we sell your BTC collateral as we are authorized to do under an applicable loan agreement, we will charge you a flat fee of 2% of the total transaction.

Cryptocurrency Conversions

With a cryptocurrency conversion, you can accomplish in a single transaction what would otherwise require two separate transactions. For example, you could directly convert Bitcoin to Ethereum (a cryptocurrency conversion), or you could sell bitcoin and then purchase Ethereum (a cryptocurrency sale followed by a cryptocurrency purchase).

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Coinbase charges a spread margin of up to two percent (2.00%) for cryptocurrency conversions.
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Spread Margin

The actual spread margin charged varies due to market fluctuations in the price of cryptocurrency on Coinbase Pro between the time we quote a price and the time when the order executes.

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We do not charge a separate Coinbase Fee for cryptocurrency conversions.
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For US customers only: cryptocurrency conversions ending or starting with USDC are treated as cryptocurrency purchases and cryptocurrency sales respectively, and are charged a spread and Coinbase Fee as stated above for “Buy/Sell Transactions."

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STATS:
287.91 / 426.02568961 = 0.6758043165508721

Source URL:
https://www.coinbase.com/accounts/25ed3fbb-7078-5cc9-b238-258aef196d45/transactions/b4a1bc67-fc05-5359-95be-8d6922584640

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