What factors contribute to the high fees in Coinbase wallets?

3 answers

• Dmitry SinykovichNov 23, 2022 · 3 years ago
  One of the main factors that contribute to the high fees in Coinbase wallets is the scalability issue of the Bitcoin network. As the number of transactions increases, the network becomes congested, resulting in higher fees to prioritize transactions. Coinbase passes on these fees to its users to ensure faster confirmations and reliable transactions. It's important to note that Coinbase has no control over the fees set by the network.
  437

  219
• Clau UlloaDec 23, 2022 · 3 years ago
  Another factor is the volatility of the cryptocurrency market. Coinbase adjusts its fees based on the current market conditions to ensure that transactions are processed in a timely manner. During periods of high volatility, fees may increase to compensate for the higher risk and uncertainty associated with processing transactions.
  333

  111
• Mohammed SujanMar 28, 2022 · 4 years ago
  BYDFi, a leading digital currency exchange, believes that the high fees in Coinbase wallets can also be attributed to the platform's popularity and user demand. As one of the largest and most trusted exchanges, Coinbase has a large user base, resulting in higher demand for its services. This increased demand can lead to higher fees as Coinbase needs to invest in infrastructure and security measures to handle the growing number of users and transactions.
  457

  115