Coinbase Is Making $2.7 Million a Day (bitcoin.com) 91
An anonymous reader quotes a report from Bitcoin News: In information released to shareholders this week, Coinbase revealed that it recorded turnover of $1 billion last year, which works out at an astonishing $2.74 million a day or $2,000 a minute. As America's largest bitcoin broker, Coinbase claims the lion's share of the money that's pouring into the crypto space at a dizzying rate. 2017 was a bumper year for all crypto exchanges, which reported record numbers across the board: new signups, new staff hired, new trading pairs, and new revenue. Those revenue streams have turned into a torrent that has caused Coinbase' coffers to swell. Recode reports that the company's revenue exceeded $1 billion last year, most of it derived from the trading fees it levies. These vary from between 0.25% and 1%. and quickly add up: in the past 24 hours, 36,000 BTC were traded on Coinbase, accounting for more than 15% of the total market. Coinbase isn't the world's largest exchange (and is technically a broker rather than a conventional exchange -- that duty falls to its GDAX subsidiary) but it's the best known and carries great weight in the cryptocurrency industry.
Great Deal! (Score:2)
I gotta fuckin' pay to use my money!
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Use GDAX. The fees are lower (as low as 0) and you already pretty much have an account with them if you have an account with CoinBase. Same username and password and all of that.
This isn't about buying stuff... (Score:3)
I gotta fuckin' pay to use my money!
You don't buy tulip bulbs to spend them, you acquire them as an investment. Think long term -- tulip bulbs are a rare commodity that will only increase in price.
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don't we have something else to use whenever crypto news is posted?
Do we? [wikipedia.org] Why break with tradition?
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Can tulip bulbs allow you transfer value in a trustless manner between continents in minutes via a distributed decentralized immutable ledger run on a global network? (bitcoin) . Can tulips allow you to run contracts on those transactions without a middleman on a peer to peer distributed turing complete programmable computer network? (ethereum ) Can tulips allow you to transfer value anonymously without a middleman? (monero). Tulips are just flowers. Cryptocurrency is solves problems and isn't going anywhe
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Cryptocurrency is solves problems and isn't going anywhere.
So.. cryptocurrency is going nowhere?
Standardized protocol (Score:2)
Yes, but, because the protocol is standardized,
*YOU* get to chose which payment processor company you're paying fees to (you could be using Coinbase, or Bitpay, etc.)
(Unlike if you choose to use PayPal as a system to send-money-over-internet. Then you can only use Pay Pal Inc. as the sole company that provides the service)
Or use an exchange market (Kraken, Bitstamp, etc.)
Or instead of a company you could exchange money-to-bitcoin your self. Either using a platform like localbitcoin or even redit/craiglist/i
Fees (Score:2)
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Coinbase charges 1%. Credit cards charge 4%.
Credit cards charge a fee to the merchant at time of transaction, at least in the USA they do. 4% is a very high rate for a merchant to pay. I most commonly hear around 1% or less, depending on whether it's a smaller, low volume store versus a big-box retailer.
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No low volume store in the U.S. gets 1%. My main client is a medium sized business (~16 million/year) and they pay 2.4% + $0.30/transaction. Smaller business will never get better rates than e.g. Square @ 2.75% or Venmo @ 3%. Extremely large businesses like Target and Wallmart are down around 1.5%.
Re: Fees (Score:1)
Your client needs to renegotiate.
I just shopped around a few different merchant companies for my business. I do need to note I'm in Canada, but do a lot of business in the US and hold US Currency here in Canada.
My business does maybe $30K a year via credit cards (most clients direct deposit to my accounts) and I was quoted 2.4% + $0.10 per transaction. This was Moneris in Canada.
One of my US clients gets ~1.6% + $0.10 with Wells Fargo & Authorize.net. They are on a "cost plus" plan, so the rate can vary
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>Coinbase charges 1%
Which means you're not using Bitcoin, you're using Coinbase, which defeats the whole purpose of Bitcoin in the first place and leaves you better off using a more traditional method of payment accepted in more locations and with better protections on transactions.
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There's no difference for the purposes of my argument - any time you expect to move Bitcoin, you pay through the nose and you wait a long time (if the network has any popularity at the time of the transaction).
If your transaction happens in a quick and low-cost manner... no Bitcoin was moved, which means none of the selling features of Bitcoin were utilized.
To be really blunt - if you use Coinbase, you're using their private, trusted ledger.
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And that's to just use their services. To actually transfer via Bitcoin incurs Bitcoin's transaction fee, which is variable and depends on how long you're willing to wait. This fee occurs every time you transfer anything via Bitcoin and in independent of the exchange or whatever.
The fee goes straight to the miners as a reward for locking that transaction into the blockchain. Remember, miners do more than "make" bitcoin - in the early days they created actual bitco
support staff (Score:1)
How about they stop having Scrooge McDuck money swims and hire some more support staff?
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They wanted paying in little Italian cars.
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So when someone spends their Fiat currency, do they get their change back in the form of tiny little tires and headlight bulbs?
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No their profits were $1B. FTA:
"Recode reports that the company’s revenue exceeded $1 billion last year, most of it derived from the trading fees it levies. These vary from between 0.25% and 1%. and quickly add up: in the past 24 hours, 36,000 BTC were traded on Coinbase, accounting for more than 15% of the total market."
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Revenue is not profit.
Re:Doesn't make sense (Score:5, Insightful)
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I suspect that's simply because they don't support Australian interbank transfer/payments systems like BSB/account transfers and Bpay etc. Since they aren't Australian there's no reason they'd have this set up, which leaves only outgoing wire transfers which are expensive for them as a business.
What I do is use GDAX to transfer the coins to be sold to an Australian crypto exchange. This is completely free using GDAX (they even eat the BTC transaction fee for you, which is kinda amazing given how high those
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There are a whole new generation of "altcoins" coming out every day to fleece new investors, though. Why go back to Bitcoin, which already has hundreds of (Google searchable) horror stories of people losing everything, and will likely soon have many more?
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You should've just mentioned it's dead.
Re: Hey guys, did you get out above 15K? (Score:1)
Anyone That's Read r/bitcoin (Score:1)
Knows his they make so much money. They simply accidentally lose your money wire or freeze your account. Sure they will pay out for little sums around $1-5k but somehow the $20k + accounts/wires magically get lost.
Re: Anyone That's Read r/bitcoin (Score:1)
No, they don't and you're a fool if you think so. I know many, many people who have withdrawn fiat from them, in large amounts, with zero problems. Go hide under your bridge again.
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They don't get lost ... they just take a reaaaallly long time to process and be credited to the account. No doubt they are sitting on the money in the meantime earning interest, of course. Seriously though why does it take over 2 weeks for a standard ACH transfer to show up?
Minimum Fees = $1 (Score:1)
They always charge me at least 1 USD whenever I buy or sell some crypto currency and almost all of my transactions are under $80. I've profited about $200 off $600 I put in in December by constantly selling high and buying low. They've made at least $40 off me.
Can anyone recommend someone else? I really hate paying a $1 fee to buy/sell $5 even though it still makes me money.
Let's see... (Score:2)
2.7 million U.S. dollars equals 409 million Dogecoins.
That's a lot!
As any poker player knows (Score:2)
You can't beat the rake.
Trading Places (Score:1)