Coinbase is going public
As of this writing, Coinbase is going to publicly trade soon.
Also as of this writing, Coinbase charges you per transaction to buy or sell cryptocurrency.
For example, if you wanted to convert $50 of USD into bitcoin, you might have to pay a processing free of around $2-$5.
But that’s not a big deal because…
AnchorUSD app, Coinbase’s competitor and an app that some people call “The Robinhood App of Crypocurrency,” doesn’t charge a processing fee at all.
This makes AnchorUSD more poised to appeal to the masses once cryptocurrency takes off and becomes even more mainstream than it already has.
AnchorUSD is better than Coinbase because they pay you more interest and don’t charge any fees
As of this writing, April 2021, Coinbase only offers interest on a few coins, such as Algorand and DAI.
AnchorUSD, however, offers interest on more than 10 different coins.
Take bitcoin for example.
AnchorUSD is currently paying 4% interest on your bitcoins that you are holding in their app.
Coinbase on the other hand doesn’t pay interest on your bitcoins at all.
This clearly makes AnchorUSD a much better app to hold your coins in while you’re accruing it or waiting to use it.
AnchorUSD also pays almost 8% on the USD that you keep in the app.
Coinbase doesn’t pay any.
“But how does AnchorUSD make their money if they’re paying you interest?” you ask.
From what I see, they also offer you the option to borrow based on the value of your coins.
When you borrow from them, using your coins as collateral, you have to pay them interest.
So that is one way they make their money.
Coinbase is on the wrong side of history if they don’t remove their processing fees
AnchorUSD app is akin to Robinhood app when it first came out.
At the time, brokerages like Etrade and Scottrade were charging investors $10 and $5 per trade respectively.
That wasn’t very friendly for the average individual investor to get started saving for their future.
So Robinhood came along and made trading free, without charging commissions or processing fees per trade.
Millions joined and switched to using Robinhood as their brokerage of choice.
The other mainstream brokerages were losing so much money and were afraid of going out of business so they made their trading with zero fees as well.
They stopped charging commissions and fees on their trading.
Which is why Coinbase is like the Etrade of the cryptocurrency world.
They’re big, offer lots of data and analytics, but charge you an arm and a leg to get started and to start building up your coins.
AnchorUSD looks like the real winner in the long run, and it looks like they’re just getting started.
*Note that none of this constitutes financial advice. We are not responsible for anything that you do because of this article. You’re responsible for your own actions. This article is for entertainment purposes.