Going by a company announcement made by Crypto exchange giant Coinbase on the 17th of December; it was launching a new feature which would enable Crypto investors to convert their digital assets into other Cryptocurrencies. This it said was part of its 12 Days of Consecutive Announcement.
Spread To Fluctuate Depending On Market Volatility
The new feature, which has been dubbed the ‘Convert’, will enable users convert their digital assets at a cheaper fee than it would cost them to selling the digital assets and buying a different one which is the normal process that most Crypto investors utilize. According to the announcement the initial roll out will enable users convert between Litecoin, Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and 0X.
Therefore, a trader would be able to convert Ethereum to Ethereum Classic directly without having to sell Ethereum then buy Ethereum Classic, which would make it two separate transactions that would warrant two separate fees. Going by the information on its pricing page the exchange would be charging a 1% spread on digital assets conversions on the platform. This fee is, however, not fixed and could vary depending on the market standing as a result of the volatility of the sector.
The statement reiterated this saying that fact saying that the spread could be higher or lower depending on the Digital Currencies fluctuations experienced in the market and on Coinbase Pro between the time of making the quotation and the time of executing the orders. The statement also said that the exchange would not be charging a separate fee for the conversions.
Coinbase Partners With Paypal
The exchange said that it would be making the new feature available to its customers across all the thirty four countries where it provides access to native payment solutions. It is accessible on the website and on the mobile app.
Last week Coinbase announced that it will be partnering with Paypal, a partnership that would see users based in the US transfer their fiat balances in their Coinbase accounts into their Paypal accounts for no charge. Prior to this partnership, US users had to wait for up to two business days to receive withdrawals made from the exchange, therefore, it is a feature that has been long awaited. Through the partnership, the process has not only been made easier, it has also been made cheaper.
Allan Osgood, Coinbase’s project manager stated on the exchange’s blog that apart from incurring no extra fees for the transfers, the feature has facilitated fast withdrawals that would allow users enjoy affordability and easier transfers of fiat balances as well as.
Answer To User Request
He went further to add that the development of this new feature was in response to requests received from Coinbase’s clientele requesting increased flexibility when it came to accessing their digital currencies and using the currencies at will. He said that through this feature users will be able to get what they want: the smooth transfer of fiat currency balances into cash funds instantly.