Coinbase Launches New 'Feeless' Crypto-to-Crypto Conversion Feature
December 19 2018 - 7:05AM
ADVFN Crypto NewsWire
While some crypto businesses are struggling to stay afloat
during this cryptocurrency bear
market, the crypto exchange giant Coinbase continues
expanding its feature set.
As part of the 12 days of Coinbase
announcements, the popular exchange has launched an exciting new
feature called “Convert” which allows customers to convert their
cryptocurrencies into other digital assets.
The new feature offers cryptocurrency investors a new way of
exchanging digital assets that is much cheaper than selling a
crypto asset just to buy another crypto asset. For when you go
through this process, the investor must pay a trading fee for
selling and then again for buying.
Coinbase’s new “Convert” feature eliminates these trading fees
while offering seamless conversion between crypto assets.
As stated in the official Coinbase blog post:
As a crypto-first company, it’s important that we build features
that let people take advantage of the unique attributes of
cryptocurrency. That’s why we’re beginning to roll out a new
feature called Convert, which customers can use to convert one
cryptocurrency into another.
Convert Crypto Assets
The Convert feature will start by allowing customers to convert
between Bitcoin (BTC) and Ethereum (ETH), Ethereum Classic (ETC),
Litecoin (LTC), 0x (ZRX), or Bitcoin Cash (BCH) seamlessly.
Here’s how it works. Wsers can now make one simple conversion
from say Bitcoin to Ethereum without having to sell
their Bitcoin and then buy Ethereum. There is only 1 transaction
taking place instead of 2, like there is in the traditional method
of trading on Coinbase.
Thus, users using the Convert feature will enjoy half the
fees.
To further clarify, when purchasing or selling digital assets,
Coinbase charges a 0.50% spread that may vary for digital currency
purchases and sales. On top of the spread, they also charge a flat
fee which varies depending on the amount purchased or sold.
When using the traditional method, users who want to buy
Ethereum with their Bitcoin will incur the above-mentioned fees
twice — once for each transaction.
The new Convert feature only charges users a single variable fee
of 1%, with no additional fees, which offers convenience and
savings for users.
Users can convert their coins via the Coinbase website or the
official Coinbase mobile application for Android and iOS devices.
The feature is currently only available to U.S.-based customers now
but will roll out shortly to all 34 countries in which Coinbase
offers native payment access.
What Will Coinbase Announce Next?
The newly launched Convert feature is day 8 of the 12 days of
Coinbase program. Another notable announcement was Coinbase’s partnership
with PayPal. Coinbase customers based in the U.S. can
now withdraw funds from their cash account to their PayPal account
instantly and for free.
This feature and the Convert feature have been long-awaited by
Coinbase customers, and begs the question: what can we expect next
from Coinbase?
By Jeremy Wall
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