Coinbase and fees

Freddythefearlessfish

I'm new to crytpo currency and trying to be cautious, but I've decided to dip my toe in and register with coinbase.  But my question is what is the best way of getting cash into coinbase to start.

My instinct is that credit cards often give better exchange rate than bank account, but I don't know how coinbase charges.  If coinbase charge the creditcard as cash then there are a whole load of fees to pay that I'd rather avoid.  It seems odd, but I can't find anything on this online - I'm probably being stupid, but when I search for coinbase and creditcard I just get details of coinbase's own creditcard.

masonic

It would normally be treated as a cash advance transaction as you'll be pre-loading GBP to a holding account. Bank transfer is usually the cheapest way of funding, but you may be restricted to debit card initially.

R_P_W

Use coin base pro - the buying and selling fees are cheaper than the standard version (don't think it costs anything extra to use pro).  I personally do that but prefer the interface of the standard app, so I buy in pro and then transfer the coins across.

footlooseboss

Freddythefearlessfish said:
I've decided to dip my toe

Easy mode: when I signed up I got about £30 credit for via Coinbase ‘learning rewards’ - if you’re eligible, ideal for experimenting. Also covers fees if you want convenience.

help.coinbase.com/en-gb/coinbase/getting-started/getting-started-with-coinbase/learning-rewards-faq-and-terms

Advanced/fee minimisation mode: I deposit GBP to Luno linked to crypto-friendly bank (Revolut) via open banking (no fee). Then place a post-only (maker) order to GBP-BTC, again no fee. Then do the same BTC-LTC (or BTC-BCH or BTC-XRP) since it’s cheaper to send. Then send to wallet.

The middle ground (more convenient than Luno, lower fees than Coinbase) is something like Coinbase pro as mentioned before. Personally I couldn’t ever get a bank registered, so I recommend using services that support open banking as this seems to avoid issues/blocked payments. If I remember correctly (18 months since), Ziglu (1.25%) and Gemini are options but there are probably others nowadays with lower fees. 

I have £40 referral code for Luno but not sure I’m allowed to post it anymore. Will try to answer DMs otherwise plenty on Google.

From financial conduct authority (fca.org.uk/investsmart/investing-crypto):

Most crypto-related activities are not regulated, as of yet, in the UK. It’s true that crypto businesses operating in the UK do have to register with us and abide by our anti-money laundering rules. But, once your money is in the crypto ecosystem, there are no rules to protect it, unlike other investments. 

So, if you make any crypto-related investments, you’re unlikely to have access to financial services compensation scheme … if something goes wrong.