Fee Analysis for Coinbase's New Crypto-to-Crypto Conversions

Coinbase recently announced the rollout of a new feature allowing users to directly place coin-to-coin trades rather than going through an intermediary fiat step.

Previously, if a Coinbase customer wanted to purchase Bitcoin using Ethereum, they'd have to first sell their Ether holdings for USD, and then purchase Litecoin in a second transaction.

Normally, Coinbase normally charges a 0.50 percent fee on purchases and sales, or a flat fee ranging between $0.99 to $2.99, whichever is greater.

For digital currency conversions Coinbase charges a 1.00 percent fee.

1,000 Litecoin converted to fiat at 0.50 percent incurs a $5 fee.

Coinbase plans to make coin-to-coin conversions available in thirty-four countries with "Native payment access." The procedure will allow Coinbase to gather additional feedback and tweak the service accordingly.

The best solution to reducing fees and maximizing returns is to open a Coinbase Pro account.

On Coinbase Pro-makers, or those placing limit orders-are not charged any fees.

For retail customers, Coinbase recently added zero-fee PayPal withdrawals.

Coinbase is poised to secure the the United State's retail crypto market.