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Is the Coinbase One subscription for $0 transaction fees worth the money?
Coinbase One, the new subscription service from the US-based exchange, offers users $0 transaction fees, $1 million in account protection, and 24/7 customer support. Currently, the service users are reporting will cost $30/month is being rolled out to customers across the U.S. Information on how to sign up for a free trial is explained below.
Why offer a subscription model?
Given the high fees on the standard Coinbase app, this may be appealing for many users. Coinbase is an apparent first on-ramp to crypto for many people new to crypto. It is a name they have heard of, it is listed publically on the New York Stock Exchange, and the user interface is simple to understand.
Most beginners likely don’t want the complexity of something like Coinbase Pro, and they don’t like the risks they associate with non-US-based exchanges. I tested some transactions this morning, and to sell £10 worth of BTC on Coinbase will cost be £0.99 in fees. Suppose I want to buy £100 that increases to £2.99. What is even more outlandish to those experienced with exchanges is that this does not include the spread.
Coinbase charges a spread on top of the 3% fees. As a result, buying crypto in small amounts on the Coinbase app isn’t suitable for those wanting to dollar cost average into Bitcoin. This is where Coinbase One will come into its own.
Dollar-Cost average and $0 fees
I appreciate that Coinbase Pro and other exchanges offer much better rates, charts, and order types, but those features are for a specific type of investor. Mainly they are trading tools; those who want to invest in Bitcoin regularly don’t need these features. However, they do need a way to set recurring buys so they can dollar cost average over time. This feature is missing from most, if not all, centralized exchanges. Many apps that support regular buys charge high fees and offer a large spread.
Apps such as Coinbase, BlockFi, Ziglu, and Uphold allow these features and charge for each transaction. If you wanted to invest $10 per day into Bitcoin, that would cost you around $30 per month. If the price of Coinbase One does release around that price, you would be getting improved customer support and account protection essentially for free.
On the other hand, if you are trading crypto or making a few one-off transactions, then Coinbase Pro is likely a better solution if you want to stick with Coinbase.
Account protection
The beta service that first appeared last November appears to be evolving throughout this testing phase. Initially, the guarantee focused simply on an “Account security guarantee.”
Keep your peace of mind knowing your account is protected from unauthorized access.
However, this has now consolidated into “$1M Account Protection,” with the “account protected” linked to a whole page on definitions and eligibility. According to internet archives, Coinbase made this change around March 13th as the service moved out of a “pilot launch” and into a complete beta.
The criteria to qualify for the protection are relatively lengthy and include having your Coinbase account “in good standarding” and having completed the photo I.D. verification. Further, if you have previously reported that your account had been compromised and Coinbase denied the request, you will no longer be eligible to claim again.
As expected, the protection also does not cover social engineering scams, so this will not protect users who are conned into sending crypto to fake companies. However, it also does not cover sending crypto to the wrong address, losses resulting from a security vulnerability on your device, any loss you do not “promptly” report to Coinbase or any crypto in your Coinbase wallet.
You will also not be covered if you use the Coinbase API to link to any third-party applications such as portfolio managers. That leaves me wondering what you are covered for? You are likely covered if Coinbase themselves are hacked, but if that happens, I wonder where they will get the funds to reimburse use...
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By CryptoSlateCoinbase One, the new subscription service from the US-based exchange, offers users $0 transaction fees, $1 million in account protection, and 24/7 customer support. Currently, the service users are reporting will cost $30/month is being rolled out to customers across the U.S. Information on how to sign up for a free trial is explained below.
Why offer a subscription model?
Given the high fees on the standard Coinbase app, this may be appealing for many users. Coinbase is an apparent first on-ramp to crypto for many people new to crypto. It is a name they have heard of, it is listed publically on the New York Stock Exchange, and the user interface is simple to understand.
Most beginners likely don’t want the complexity of something like Coinbase Pro, and they don’t like the risks they associate with non-US-based exchanges. I tested some transactions this morning, and to sell £10 worth of BTC on Coinbase will cost be £0.99 in fees. Suppose I want to buy £100 that increases to £2.99. What is even more outlandish to those experienced with exchanges is that this does not include the spread.
Coinbase charges a spread on top of the 3% fees. As a result, buying crypto in small amounts on the Coinbase app isn’t suitable for those wanting to dollar cost average into Bitcoin. This is where Coinbase One will come into its own.
Dollar-Cost average and $0 fees
I appreciate that Coinbase Pro and other exchanges offer much better rates, charts, and order types, but those features are for a specific type of investor. Mainly they are trading tools; those who want to invest in Bitcoin regularly don’t need these features. However, they do need a way to set recurring buys so they can dollar cost average over time. This feature is missing from most, if not all, centralized exchanges. Many apps that support regular buys charge high fees and offer a large spread.
Apps such as Coinbase, BlockFi, Ziglu, and Uphold allow these features and charge for each transaction. If you wanted to invest $10 per day into Bitcoin, that would cost you around $30 per month. If the price of Coinbase One does release around that price, you would be getting improved customer support and account protection essentially for free.
On the other hand, if you are trading crypto or making a few one-off transactions, then Coinbase Pro is likely a better solution if you want to stick with Coinbase.
Account protection
The beta service that first appeared last November appears to be evolving throughout this testing phase. Initially, the guarantee focused simply on an “Account security guarantee.”
Keep your peace of mind knowing your account is protected from unauthorized access.
However, this has now consolidated into “$1M Account Protection,” with the “account protected” linked to a whole page on definitions and eligibility. According to internet archives, Coinbase made this change around March 13th as the service moved out of a “pilot launch” and into a complete beta.
The criteria to qualify for the protection are relatively lengthy and include having your Coinbase account “in good standarding” and having completed the photo I.D. verification. Further, if you have previously reported that your account had been compromised and Coinbase denied the request, you will no longer be eligible to claim again.
As expected, the protection also does not cover social engineering scams, so this will not protect users who are conned into sending crypto to fake companies. However, it also does not cover sending crypto to the wrong address, losses resulting from a security vulnerability on your device, any loss you do not “promptly” report to Coinbase or any crypto in your Coinbase wallet.
You will also not be covered if you use the Coinbase API to link to any third-party applications such as portfolio managers. That leaves me wondering what you are covered for? You are likely covered if Coinbase themselves are hacked, but if that happens, I wonder where they will get the funds to reimburse use...