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| Coinbase Testing Subscription Service That Reduces Transaction Fees |
Coinbase, the largest US cryptocurrency exchange, is testing a new subscription service that could lower monthly transaction fees.
The subscription service, which will be called Coinbase One, exempts Coinbase from commissions charged on transactions. But customers still have to pay a distribution fee to buy or sell cryptocurrencies.
There is currently no information on the subscription fee, and the company plans to make this available for a small number of users to get started with.
The platform confirmed testing of subscription plans. A spokesperson for the platform said: “Customers in the test group can buy, sell and transfer cryptocurrency via the platform at no cost per transaction (spread fees still apply).
He added, “We are always looking to learn more about how we can best serve our customers in different ways. We are still in the initial stage. So everything about the future of the products depends on the feedback we get from users.”
In addition to reducing transaction costs, the subscription service also has other features such as priority phone support even on holidays and weekends, account protection, user hacking and money theft, and the maximum compensation is 100 ten thousand US dollars.
Given the user complaints that surfaced earlier this year, it is worth noting these two new features as customers reported having their accounts closed or hacked and users struggling to contact customer support for the platform.
It also provides improved customer support and account protection
According to Bloomberg, the platform's interest in subscriptions could be to compete with competitors like Robinhood, which do not charge transaction fees.
Robinhood offers something called Robinhood Gold, a monthly subscription service that gives users access to high quality market data and margin trading.
Subscription services can also be a source of income. In addition to diversifying the platform's retail business, most of the platform's revenue comes from transaction fees.
Before Coinbase publishes its final earnings report on November 9th. According to reports, analysts expect sales to decline in the second quarter due to the decline in the value of the Bitcoin business. Subscription income can help reduce your low quarterly income.