coinbase vs coinbase pro taxes!
If you've ever bought or sold cryptocurrency, you know that it's a complicated process. While there are some exchanges out there that make the whole process simpler and easier, others can be tricky to use. One thing that sets Coinbase apart from all other exchanges is how much they charge for transactions: The company charges users 0.25% for both buying and selling cryptocurrencies on their platform, which is about half what other exchanges charge for similar services (Coinbase Pro charges fees of 0.5%). This makes sense given their size in the market—they have hundreds of millions of dollars worth of assets on hand at any given time! But what does this mean when filing taxes?
Coinbase and Coinbase Pro have different fees.
Coinbase is a trading platform, similar to what you'd find on Coinbase Pro or another exchange like Kraken. The difference between the two platforms is that CoinBase Pro charges lower fees than its competitor when buying or selling cryptocurrencies. In other words, if you're trading with a credit card or bank account (as opposed to buying or selling bitcoin), then your transaction will cost less using CoinBase Pro than using Bitcoin Cash (BCH).
The fees for Coinbase Pro and CoinBase differ from one another in that the former charges a flat fee while the latter levies a percentage of each transaction. As such, if you're just buying or selling bitcoin or other cryptocurrencies, then it makes sense to use BCH rather than cash out via credit card.
Coinbase and Coinbase Pro offer different methods for paying taxes.
If you are using Coinbase Pro, you have the ability to pay your taxes with a credit card. This is an option that is not available in the Coinbase dashboard.
As mentioned above, Coinbase offers two ways for paying taxes:
You can use a bank account or wire transfer (if you're eligible).
You can also use your credit card on Coinbase Pro and pay any applicable fees associated with this method of payment.
If you do decide to pay your taxes with a credit card, note that fees will be assessed. You'll also need to provide your full Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Coinbase and Coinbase Pro charge different transaction fees for instant transfers, but their charges are structured the same way.
Coinbase and Coinbase Pro charge different transaction fees for instant transfers, but their charges are structured the same way. The difference is that Coinbase's fee is charged to the sender, while Coinbase Pro's fee is charged to the receiver.
Coinbase: Instant exchange, or IEX (instant exchange), is a digital wallet that allows you to send money directly from one account without having to wait for an email confirmation or anything else before sending your funds. You can also transfer funds through this service if you have another cryptocurrency in another exchange account—it will automatically convert them into USD on its website so that you can then send them wherever else needs it most urgently!
Coinbase Pro: Coinbase Pro is an advanced trading platform that comes with a variety of features, including margin trading and stop loss. You can use it to exchange cryptocurrencies for USD or EURO currency or vice versa. The service charges 0% fees on all trades (except for withdrawals), so you don’t have to worry about spending money unnecessarily—it’s free!
Both Coinbase and Coinbase Pro allow you to sell cryptocurrency.
Both Coinbase and Coinbase Pro allow you to sell cryptocurrency. However, the differences between the two platforms are stark.
Coinbase Pro is one of the oldest cryptocurrency exchanges in existence, but it’s also a trading platform for professional traders who want more advanced features than what's available on Coinbase's basic platform.
Coinbase Pro charges a fee for each trade made through their system (which includes buying and selling digital currencies), whereas there is no fee when selling BTC or ETH with your credit card at Coinbase directly—you're only charged 0% (or less) when using this method anyway!
Coinbase Pro is the advanced trading platform from Coinbase, which is widely regarded as one of the most beginner-friendly exchanges around. It offers a variety of tools for seasoned traders and investors who want to place orders at exactly the right time in order to maximize their profits.
Neither platform lets you buy or sell using fiat currency.
You can’t buy or sell using fiat currency on Coinbase or Coinbase Pro. This means that if you want to buy bitcoin with your credit card, you’ll have to use an alternative cryptocurrency exchange like CEX.io or BitPanda.
Coinbase and Coinbase Pro do not support bank transfers in any way—they don't even offer servicing options for them! If you wanted to transfer money from your bank account into a digital currency account at either platform and then convert it back into dollars again (for example), this would require setting up an account at another platform first (like Kraken), then transferring funds over there before converting back into dollars again through Coinbase itself (and then finally depositing the cash into another bank account).
Why is this important? Well, if you wanted to use your credit card on Coinbase or Coinbase Pro but didn’t have access to another platform like CEX.io or BitPanda, you'd be out of luck! You wouldn't be able to make the purchase in the first place. This means that if you're looking for a way to buy bitcoin with your credit card online—you won't find it here!
Both platforms make it easy to transfer between your own accounts, but they charge different amounts.
Coinbase and Coinbase Pro both make it easy to transfer funds between your own accounts, but they charge different amounts. In general, the transfers on Coinbase are more expensive than those on Coinbase Pro. Here's how much each platform charges:
For transferring funds between USD wallets ($10), you'll pay $1 (the same amount as with all other exchanges). This fee applies whether or not you're transferring from a USDC wallet (which is currently in beta). You can avoid this fee by opening an account in your local currency—but there aren't many places where that's possible yet!
For transferring funds between USD wallets and USDC wallets ($10), you'll pay $10 for each transaction (this includes any currency conversion fees). Again though—this could be avoided by opening an account in your local currency!
For transferring fiat currency between Coinbase Pro accounts ($10), you'll pay $10 for each transaction (this includes any currency conversion fees). This is the same amount as with all other exchanges. For converting one cryptocurrency into another (1%), you'll pay 1% of the amount converted (so if you're converting $100 worth of Bitcoin into Ethereum, it will cost you $1).
It's important to understand the fee structure of exchanges when filing taxes on crypto gains.
It's important to understand the fee structure of exchanges when filing taxes on crypto gains. You'll need to calculate your gains and losses, which involves subtracting the value of your coins at purchase from their current value.
The easiest way to do this is with a tool like this one: https://www.coinbasepro.com/tools/calculate-crypto-gains-and-losses/.
Conclusion.
While there are a few things that may be confusing about tax reporting for cryptocurrency, it is important to remember that the IRS is still working out what they need to do in this area. As this article has discussed, there are three main ways you can pay taxes on your gains—there's no right answer; however, you should make sure that whichever method you choose will not cause problems with your federal or state tax filing!