Coinbase’s competitor Binance makes Bitcoin trading free amidst the bear market. This could trigger a price war between Coinbase and Binance as both of them will try to retain as many users as possible. For active Bitcoin traders choosing Binance is a no-brainer now as they do not charge trading fees which often add up to quite a lot. Let’s see if Coinbase comes up with a strategy to counter this. During the bull market, the CEO of Coinbase said that they have a billion-dollar war chest to survive the bear market. So, it’s not that they are lacking in funds.
Binance makes it free to trade Bitcoin
You can now trade BTC without paying any fees for three pairs on Binance. They are BTC/USDT, BTC/USDC, and BTC/BUSD, the top three stablecoins and also the most used ones. Binance doesn’t stop here. While, for now, only Bitcoin is free to trade on the platform, they plan to add more coins to the list. These will probably be the most popular ones like Ethereum and Solana. It is clear that Binance is trying to attract users using this model and plans to make money off them when they trade or buy coins that are not on the free list.
Coinbase’s hefty fees
Currently, Coinbase is the largest crypto exchange in the United States. However, it is the only mainstream platform that charges hefty trading fees. For example, Bitcoin and Ethereum trading fees are at 1.5%. This doesn’t necessarily mean that you are getting a more bang for your buck with other platforms because they often have a spread between buying and selling prices and markup the prices as well. But since those costs are not visible to the average buyer, it is a much less painful expense.
So, it’s high time that Coinbase reduces its trading fees, if not make it zero altogether. They are already seeing users exiting their positions as volume increases with crypto prices going down. So, it is unlikely that those who stay would want to pay those hefty fees in this bear market. Since retail trading makes up most of their revenue, it is essential to retain users anyhow.
What are your thoughts as Coinbase’s competitor Binance makes Bitcoin trading free? And do you think Coinbase will take a step to compete with them? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.