Strike launched BTC trading services that will allow users to buy the coin with no added fees while at the same time, it criticized Coinbase for charging users huge fees as we can see in our latest coinbase news today.
In a bid to secure financial freedom for all, fintech company Strike announced that the clients can now purchase BTC with no extra fees on the platform. Announcing the development today, Strike noted that it launched a “Bitcoin Tab” feature which will make buying bitcoin cheaper, simpler, and more secure. With the new service, users that want to buy BTC on the platform will not incur more fees outisde of the market spread which is a feature that most trading platforms like Coinbase have not been able to achieve.
The fintech company added that bitcoin’s tab service will lay the foundation for even more offerings in the future as it is also preparing to help the users increase their holdings while getting paid and getting rewards in BTC among others. It also plans to launch a new option “paid in bitcoin” service that will allow the users to convert the paycheck for BTC with no added fees. Strike launched BTC trading services by adopting the Bitcoin Lightning Network and reducing the cost of BTC transactions on the platform. The firm noted that it will not charge any more fees as users will be required to pay an execution cost of 0.3% with the company working to reduce the fees below 0.01% as its volume surged.
While the service is yet to commence, Strike created a waitlist that will see traders gain early access to these features. Coinbase is the biggest and most trusted exchange in the US and it continues to go grow despite being the most expensive trading platform. In Q1 2021, the total of $771 million out of Coinbase’s $1.8 billion revenue was surpassed through hefty BTC fees levied on the exchange’s users as Strike announced. The statement further suggested that 84% of the total revenue Coinbase reported in Q1 of this year was due to the high trading fees that users were required to pay.
Coinbase faced plenty of criticism for these fees which sometimes sees users pay up to 3% of the amount they transact. Alesia Haas, the CFO of Coinbase said that the exchange isn’t really concerned about offering competitive fees.
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