TL;DR- When sending cryptocurrency from Coinbase to your wallet, Coinbase does not charge fees. However, depending on the cryptocurrency you’re sending, you will pay an ‘on chain’ network fee. Some cryptocurrencies have meager fees, while others don’t. Coinbase bundles your fees with other users to make them lower.
Are there fees if I transfer crypto from Coinbase to Ledger?
Transaction fees for coins on the Ethereum network (Ethereum or ERC-20 tokens) will be the highest until the Ethereum merge takes place in late 2022. ETH transactions are around $10 on average but go much higher during network congestion. Because of this, I rarely move ETH around.
Transaction fees for Bitcoin are small- usually less than $2 per transaction.
What about maker fees and taker fees?
We need not talk about taker and maker fees here, which only apply when you buy and sell cryptocurrency on an exchange. Today we’re just talking about sending crypto between Coinbase and Ledger and how much it costs. If you are interested in exchange fees, here are the fee schedules for a few of the big exchanges:
Will I pay fees sending my crypto from Coinbase to Ledger (and vice versa)?
Yes. Three things are for sure in life: death, taxes, and crypto fees.
The fee you’ll be paying by sending your crypto assets from Coinbase to Ledger is a transaction fee. The good news is that Coinbase bundles your transaction with other users’ transactions transferring simultaneously, and splits the network fees among you. So the costs for sending your crypto off Coinbase are usually small.
The approximate transaction fee for sending ETH is the highest, usually around $10 per transaction. Another example is sending some Solana with a transaction fee of less than $1. You can see the transaction fee has a lot of variances.
Ledger vs. Trezor, Coinbase vs. Coinbase Pro
Ledger nano is the best hardware wallet on the market today, with the Trezor T coming in at a close second. Ledger’s buy and sell suite, called Ledger Live, has high trading fees. Coinbase also has high prices, but I’d recommend doing your buys on Coinbase Pro before sending your crypto assets because Coinbase Pro fees are way cheaper than regular Coinbase’s, and if you have a Coinbase account already it’s super easy to open up a Coinbase Pro account.
Hardware cryptocurrency wallets are the way to go. There are so many scams and hacks in cryptocurrency today that it’s become unfunny. I have both a Nano X and a Trezor Model T, and I have found both experiences excellent, although I prefer the Ledger Live interface over the Trezor T software layer.
Your alternative to a hardware wallet or exchange wallet would be an online wallet like MetaMask, trust wallet, or Coinbase wallet. Still, these wallets can suffer hacks (link to my article) because they’re connected to the web and your computer.
With a hardware wallet, you physically have to plug in your wallet and authorize transactions by hitting buttons on your hardware. There’s nothing hackers can do to take your shit.
To transfer crypto assets from Coinbase to Ledger, you’ll take your funds out of your Coinbase exchange wallet, not to be confused with the Coinbase wallet browser extension (link).
How Coinbase Bundles the fees for your transaction
Transactions are combined by Coinbase and sent as a single transaction. Your charge is minimal because of this. However, Coinbase is just spreading the $10 or so transaction charge among all the little transactions that make up the more significant transaction.
Can I just buy cryptocurrency on Ledger Live with my bank account?
Yes, you could avoid this entire process of transferring crypto assets from Coinbase to Ledger by just buying cryptocurrency on Ledger Live. You’ll need to live in an approved country. However, Ledger Live has some of the highest fees for a crypto ‘exchange.’
Ledger Live also gives you lowball and highball quotes (to your detriment) when you buy or sell cryptocurrency on its software. You can check this by looking at quoted cryptocurrency prices on CoinGecko and then at what Ledger Live charges for the crypto. Don’t get ripped off!
Cryptocurrency does not have any central server that charges fees and handles transactions for everyone- this is the whole point. It’s secure, trustless, and decentralized. The computers that process cryptocurrency transactions, whether miners on a proof of work network or stakers on a proof of stake network, are awarded fees for doing the legwork to process the blockchain’s transactions.
On-chain fees are also referred to as network fees. Network fees on Bitcoin are usually around a dollar or two per trade.
These are the fees that are the most unpopular. Coinbase still has to pay the on-chain fees to send your crypto assets to your Ledger wallet. The key is to make your crypto transaction fees more economical by doing a smaller number of more significant transactions instead of numerous smaller transactions.
Fees add up
It’s always death by 1,000 cuts with fees. Cryptocurrency fees are notoriously high compared to transaction fees in traditional finance, despite all the promises that crypto has been making. At the same time, some cryptos like Stellar Lumens have low fees, and most cryptocurrencies, especially ones based on Ethereum.
If you’re looking for lower fees, you probably need to look at FTX. I think FTX is the most legit crypto exchange low-key despite all of Coinbase’s hype. Coinbase has notoriously high fees!
Connect your Ledger to MetaMask
You can connect your ledger hardware wallet to MetaMask as well.
How to send crypto from Coinbase to Ledger
You’ll first need to copy your hardware wallet address. The Ledger Live suite has addresses for each cryptocurrency it supports (link to listed cryptos), each with its wallet address.
Head over to your Coinbase account, go to the wallet for the crypto you’re sending, and paste that address into the send function and send. Be sure to double and triple-check the address before you send funds!