Coinbase is putting its commission-free cryptocurrency trading service to the test.

Coinbase is experimenting with a subscription service that allows consumers to trade on the largest cryptocurrency exchange in the United States without paying per-transaction costs.

Customers would still have to pay so-called spread costs when selling or buying cryptocurrencies through the service. Coinbase clients now pay a commission plus a spread charge. The cost of a subscription was not disclosed.

In a statement released on Wednesday, Coinbase stated, “We’re always looking to learn more about how we can best serve our clients in diverse ways.” “Right now, we’re in the early stages of development, so everything about the future product experience will be changed by user feedback.”
The trading platform is experimenting with its cost structure in the face of increasing competition from businesses like Robinhood, which do not charge trading fees and are rapidly acquiring customers. More than half of Robinhood’s transaction income currently comes from cryptocurrency.

According to Owen Lau, an analyst at Oppenheimer & Co., the subscription might help Coinbase’s revenues become more predictable. Because of the volatility of its sales, which are closely connected to interest in and price of Bitcoin and other popular cryptocurrencies, Coinbase has avoided providing ahead forecasts. As of November 4 at 10:44 IST, the price of bitcoin in India was Rs. 49.9 lakh.

“That would eliminate a lot of future volatility,” Lau remarked. “I see that as a plus for multiples expansion.” Trading is just unpredictably unexpected.” Coinbase now generates most of its money from trading fees, however, it has been attempting to diversify its income streams.

On November 9, Coinbase will release its quarterly earnings. Analysts predict a double-digit sequential drop in third-quarter revenue, owing to a decline in trading volume and active users following a second-quarter plunge in Bitcoin, which likely dampened investor excitement early in the third quarter.
According to Lau, to help mitigate any income loss, Coinbase might offer membership to customers who trade less frequently first.

“If you ask someone who trades a lot, you’ll lose a lot of money in transaction costs,” he warned. “I imagine Coinbase would do it cautiously at first and attempt to locate a pilot section to see whether it makes sense.”
The subscription service test was initially reported by the Block.

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