how does coinbase make money?

Coinbase makes money primarily through transaction fees on its platform. When users buy, sell, or transfer cryptocurrencies on Coinbase, the company charges a fee for each transaction. The fee structure varies depending on the type of transaction and the user’s location.

In addition to transaction fees, Coinbase also generates revenue through its Coinbase Pro platform, which is designed for more advanced traders. Coinbase Pro charges lower fees than Coinbase and makes money through a spread on the price of cryptocurrencies, which is the difference between the buy and sell price of a particular digital asset.

Coinbase also generates revenue through interest earned on user funds held in Coinbase’s US-based brokerage accounts, and through its acquisitions of companies such as and Xapo.

Finally, Coinbase has also launched various other products and services, such as its Coinbase Card, which allows users to spend cryptocurrency, and its Coinbase Earn program, which allows users to earn cryptocurrency by completing educational tasks. These products and services generate additional revenue for the company.

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