<\/span><\/h3>\n\n\n\nCoinbase users: <\/strong>The company has grown tremendously over the past several years. It now boasts over 56 million users across 32 countries and has a trading volume of $335 billion per quarter.<\/p>\n\n\n\nCoinbase revenue: <\/strong>Since 2014, the company has grown its revenue by more than 50% annually and shows no signs of slowing down soon. Coinbase revenue skyrocketed to $7.8 billion in 2021 from $1.2 billion in 2020. As of 2022, Coinbase generated revenue of $5.69 billion. <\/p>\n\n\n\n<\/span>How does Coinbase make money?<\/strong><\/span><\/h2>\n\n\n\nBy 2021, Coinbase grew its revenue to $7.8 billion, a 524% increase from 2020. So what is Coinbase’s business model and how does the platform generate its revenue? <\/p>\n\n\n\n
Coinbase’s business model includes several revenue streams. Coinbase makes money from retail users by charging of fees for transactions, the buying and selling of cryptocurrency, debit card fees, the charging of interest on credit balances, and other sources of income. <\/p>\n\n\n\n
<\/span>Fees for transactions <\/strong><\/span><\/h3>\n\n\n\nCoinbase generates a majority of its income through transaction fees. Earnings from trades are proportional to the cost and volume of exchanging one cryptocurrency for another or withdrawing funds from a wallet. The following are the current transaction fees that the platform charges:- <\/p>\n\n\n\n
– If the total of your purchase is less than $10, the cost will be $0.99.<\/p>\n\n\n\n
– Those with a transaction totaling more than $10 but less than or equal to $25 will be charged a $1.49 fee.<\/p>\n\n\n\n
– If you’re purchasing for more than $25 but less than $50, the fee will be $1.99.<\/p>\n\n\n\n
– If you’re purchasing for more than $50 but less than $200, you’ll be charged $2.99.<\/p>\n\n\n\n
<\/span>Fees for services (buying and selling cryptocurrencies)<\/strong><\/span><\/h3>\n\n\n\nCoinbase generates around 7 percent of its overall income via subscription and service fees. Coinbase’s services and subscription revenue are primarily comprised of Blockchain rewards, Custodial fee revenue (the cost to hold Crypto in its specialized cold storage solution), Campaign revenue, Interest income, and others. <\/p>\n\n\n\n
<\/span>Coinbase Debit Card<\/strong><\/span><\/h3>\n\n\n\nCoinbase also provides its customers with a debit card that can be used to make purchases with USDC. They announced that their Visa debit card would be available to other countries beginning in October 2020. Until then, the card was restricted to the British and European markets. There is no fee associated with the card, but Coinbase levies a fixed transaction fee of 2.49% on all purchases made with the card.<\/p>\n\n\n\n
Additionally, those in the US who use debit cards can get cash back on purchases. The company promises a maximum return of 4% in Stellar Lumens or 1% in Bitcoin.<\/p>\n\n\n\n
<\/span>Interest on Credit Card Balances<\/strong><\/span><\/h3>\n\n\n\nIf you buy a cryptocurrency using a credit card on Coinbase and then withdraw the cryptocurrency to your bank account, Coinbase will charge you a fee for the withdrawal. The fee you pay is because they make it easier for you to use your borrowed money to purchase the cryptocurrency of your choice.<\/p>\n\n\n\n
Additionally, Coinbase provides USD loans from itself or its affiliates. When a customer takes out a loan through Coinbase, the exchange takes their bitcoins as security and sells them for a fee. Users are charged a fixed fee of 2% of the total transaction amount.<\/p>\n\n\n\n
<\/span>Other revenue streams:- <\/strong><\/span><\/h3>\n\n\n\nCoinbase’s revenue sources include the revenue earned when it acts as the principal in a cryptocurrency asset sale. Customers who keep their cryptocurrency on the Coinbase exchange can put it at “stake” to earn interest. In exchange for its services, Coinbase receives a 25% fee from each successful transaction before distributing the funds. <\/p>\n\n\n\n
Additionally, if user orders do not reach the minimum transaction size for execution on its platform or if Coinbase needs to maintain its customers’ trade execution and processing timeframes during unanticipated system outages, Coinbase will keep custody of a small number of cryptocurrencies.<\/p>\n\n\n\n
The fees associated with Coinbase’s wallet service for sending cryptocurrency payments are lower than those associated with other cryptocurrency wallets.<\/p>\n\n\n\n
<\/span>Final thoughts<\/strong><\/span><\/h2>\n\n\n\nCoinbase is one of the leading financial institutions in the united states. Having been founded in 2012, it is a seasoned veteran in the financial services sector that has enjoyed widespread success, ranking among the top US exchanges, and is backed by several top venture capitalists. Currently, Coinbase provides consumers with a simple and convenient way to buy and sell digital currency, and the service is available in 32 countries worldwide.<\/p>\n\n\n\n
The company’s mission was to create an open financial system for users worldwide and make it more accessible. With this goal in mind, Coinbase has built a global exchange platform that makes it easy for anyone to convert digital currency into local currency or vice versa.<\/p>\n","protected":false},"excerpt":{"rendered":"
Are you curious about how does Coinbase make money? There is no doubt that Coinbase is one of the largest exchanges in terms of the number of users and trading volume. It is also the owner of two cryptocurrency brokerages that operate in the cryptocurrency area: Global Digital Asset Exchange (GDAX) – an exchange for…<\/p>\n","protected":false},"author":1,"featured_media":15734,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"qubely_global_settings":"","qubely_interactions":"","_editorskit_title_hidden":false,"_editorskit_reading_time":7,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_mo_disable_npp":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false},"categories":[56],"tags":[],"qubely_featured_image_url":{"full":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money.png",1200,800,false],"landscape":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-1200x750.png",1200,750,true],"portraits":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-540x320.png",540,320,true],"thumbnail":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-150x150.png",150,150,true],"medium":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-300x200.png",300,200,true],"medium_large":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-768x512.png",768,512,true],"large":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-1024x683.png",1024,683,true],"1536x1536":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money.png",1200,800,false],"2048x2048":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money.png",1200,800,false],"qubely_landscape":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-1200x750.png",1200,750,true],"qubely_portrait":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-540x320.png",540,320,true],"qubely_thumbnail":["https:\/\/bazaarexpert.com\/wp-content\/uploads\/2022\/10\/How-does-Coinbase-Make-Money-140x100.png",140,100,true]},"qubely_author":{"display_name":"bazaarexpert","author_link":"https:\/\/bazaarexpert.com\/author\/bazaarexpert\/"},"qubely_comment":0,"qubely_category":"Business Models<\/a>","qubely_excerpt":"Are you curious about how does Coinbase make money? There is no doubt that Coinbase is one of the largest exchanges in terms of the number of users and trading volume. It is also the owner of two cryptocurrency brokerages that operate in the cryptocurrency area: Global Digital Asset Exchange (GDAX) – an exchange for...","_links":{"self":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts\/15729"}],"collection":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/comments?post=15729"}],"version-history":[{"count":5,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts\/15729\/revisions"}],"predecessor-version":[{"id":15737,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/posts\/15729\/revisions\/15737"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/media\/15734"}],"wp:attachment":[{"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/media?parent=15729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/categories?post=15729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bazaarexpert.com\/wp-json\/wp\/v2\/tags?post=15729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}