While some crypto businesses are struggling to stay afloat during this cryptocurrency bear market, the crypto exchange giant Coinbase continues expanding its feature set.
As part of the 12 days of Coinbase announcements, the popular exchange has launched an exciting new feature called “Convert” which allows customers to convert their cryptocurrencies into other digital assets.
The new feature offers cryptocurrency investors a new way of exchanging digital assets that is much cheaper than selling a crypto asset just to buy another crypto asset. For when you go through this process, the investor must pay a trading fee for selling and then again for buying.
Coinbase’s new “Convert” feature eliminates these trading fees while offering seamless conversion between crypto assets.
As stated in the official Coinbase blog post:
As a crypto-first company, it’s important that we build features that let people take advantage of the unique attributes of cryptocurrency. That’s why we’re beginning to roll out a new feature called Convert, which customers can use to convert one cryptocurrency into another.
Convert Crypto Assets
The Convert feature will start by allowing customers to convert between Bitcoin (BTC) and Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), 0x (ZRX), or Bitcoin Cash (BCH) seamlessly.
Here’s how it works. Wsers can now make one simple conversion from say Bitcoin to Ethereum without having to sell their Bitcoin and then buy Ethereum. There is only 1 transaction taking place instead of 2, like there is in the traditional method of trading on Coinbase.
Thus, users using the Convert feature will enjoy half the fees.
To further clarify, when purchasing or selling digital assets, Coinbase charges a 0.50% spread that may vary for digital currency purchases and sales. On top of the spread, they also charge a flat fee which varies depending on the amount purchased or sold.
When using the traditional method, users who want to buy Ethereum with their Bitcoin will incur the above-mentioned fees twice — once for each transaction.
The new Convert feature only charges users a single variable fee of 1%, with no additional fees, which offers convenience and savings for users.
Users can convert their coins via the Coinbase website or the official Coinbase mobile application for Android and iOS devices. The feature is currently only available to U.S.-based customers now but will roll out shortly to all 34 countries in which Coinbase offers native payment access.
What Will Coinbase Announce Next?
The newly launched Convert feature is day 8 of the 12 days of Coinbase program. Another notable announcement was Coinbase’s partnership with PayPal. Coinbase customers based in the U.S. can now withdraw funds from their cash account to their PayPal account instantly and for free.
This feature and the Convert feature have been long-awaited by Coinbase customers, and begs the question: what can we expect next from Coinbase?
By Jeremy Wall