Coinbase is testing new subscription for commission-free bitcoin trading

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Coinbase is one of the most popular exchanges for buying and selling bitcoin and other cryptocurrencies. The company has seen resounding success this year thanks to the growing popularity of bitcoin and other digital assets. Coinbase went public earlier this year and has announced new initiatives for customers in recent months. One of them is the loan product that Coinbase eventually had to give up. But that’s not the only exciting new product to come out of the exchange. Coinbase is currently testing a subscription service that will allow customers to trade bitcoin and other digital tokens without paying a commission to Coinbase. Coinbase could include additional perks like 24/7 customer support and hack insurance in the Coinbase One product.

Coinbase One subscription

A few weeks ago, Bitcoin hit a new all-time high, hovering around $ 67,000 per coin after a slump that lasted a few months. The previous record fell in mid-April. That is, there is renewed enthusiasm and a lot of interest in the cryptocurrency space. It’s not just bitcoin that is breaking records, as other digital tokens have reached new heights. And a few scams popped up along the way.

Coinbase is a place where traders can safely buy and sell tokens, but they must pay Coinbase a commission for each transaction. This could change in the future if the Coinbase One subscription program is successful.

The Block first reported on Coinbase’s new pilot program. The company has yet to make the subscription service available to all of its customers, but has confirmed testing:

Coinbase has started testing a subscription product for our customers. Customers in the test group will have the ability to buy, sell and convert digital currencies on the Coinbase platform with no Coinbase fees for each transaction (a spread fee always applies). We are always looking to learn more about how we can better serve our customers in different ways. Right now, we’re still in the early stages, so everything about the future product experience will be shaped by the feedback we receive from our users.

People who do a lot of transactions on the platform might find that paying a monthly subscription can be a better deal than paying a fee for each transaction.

The other advantages

People who do a lot of transactions on the platform might find that paying a monthly subscription can be a better deal than paying a fee for each transaction. But the price of Coinbase One was not disclosed. It’s unclear what Coinbase would charge customers each month. On the other hand, Bloomberg notes that analysts expect Coinbase to target customers who do not trade as much, in order to protect its income from those who trade a lot on the platform.

But the subscription service will come with additional benefits. Subscribers will benefit from priority telephone support “even on holidays and weekends”. More interestingly, Coinbase One will provide a safety net against hackers. Hackers regularly target individuals seeking to steal their crypto holdings. A screenshot of the Coinbase subscription program shows that the company will reimburse some losses:

If funds in your Coinbase account are stolen by someone you don’t know due to an account takeover, you may be entitled to a refund of up to $ 1 million in losses.

Fancy Robinhood?

The lower fees in favor of a subscription can make sense when it comes to competing with Robinhood. The exchange already offers commission-free trading and a monthly subscription called Robinhood Gold which provides buyers with additional benefits. But Bloomberg explains that there could be a different reason the Coinbase subscription exists.

A subscription model would bring more predictability to Coinbase. The stock exchange cannot issue forward-looking guidance to investors because its income fluctuates. The more users trade on the platform, the more money it can make. But the high volatility of the crypto space means that no two days are the same, let alone an entire quarter. The upcoming call for results may reflect this.

Analysts expect the company to report a sequential double-digit decline for the third quarter after lower trading. This is because bitcoin and the entire crypto ecosystem experienced a slump for most of the July-September quarter.

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