One often overlooked feature of Coinbase is the ability to setup recurring transactions. These can be a very handy way to steadily build up a cryptocurrency portfolio.
Setting up Recurring Transactions in Coinbase
Recurring purchases are very easy to setup. When you are making a regular purchase, simply click the checkbox beside the line ‘Repeat this buy’ and select the appropriate option. You have the option of choosing Daily, Weekly, Every two weeks or Monthly—as shown in the screenshot below.
Once you have done that you can continue with your regular purchase as normal. The summary screen that is presented will now include information about your repeat purchase. As you can see from the screenshot below, my CAD$50 Bitcoin purchase is set to repeat weekly.
That’s all you need to do. Your repeat purchase will continue indefinitely unless you change the end date by editing the transaction options.
A note about fees
Coinbase has a minimum purchase amount of CAD$1.00. However, it charges a sliding scale for fees between $1.00 and $50.00, as outlined in the table below.
As an example, if you purchase $25 of Bitcoin every week for one year, your fees would be $77.48. A recurring transaction of $50 each week would incur charges of $104 over the same period. So the old adage ‘the more you spend, the more you save’ holds true. However, the amount of digital currency you purchase should entirely be dictated by your budget, and the level of comfort you have with the amount of cryptocurrency you would like to hold.
Another note worth mentioning is cash advance fees for credit card purchases. In some cases users have reported being charged cash advance fees on Coinbase purchases. However, Coinbase reportedly labels their transactions as regular purchases—and the Canadian government classifies digital currencies as commodities—so your bank should not be charging you cash advance fees. If they are you should contact them, ask them to stop and request a refund of any fees paid.
Editing Recurring Transactions
You can also check your current repeat buys by clicking Tools > Recurring Transactions.
Clicking the row for the corresponding recurring transaction will bring you to the summary page where you can Pause, Edit or Delete the transaction.
NOTE: Editing an ETH Recurring Transaction is currently not possible, so you will only see pause and Delete options on the summary page. You will need to delete the existing Recurring Transaction and create a new one. Coinbase is aware of this issue and are working on adding it back in for ETH repeat buys.
The screenshot below shows the options for editing a Bitcoin recurring transaction. You can change the amount, frequency and end date by choosing one of the available options (1 time, 2 times, etc.).
TIP: Make sure you have selected ‘CAD’ beside the Amount option to avoid any credit card statement surprises. For example, if you have selected ‘BTC’ with an amount of 0.05, your recurring transaction value would increase sharply should the value of Bitcoin rise significantly.
This is a great feature and can often be missed or ignored by Coinbase users. Having recurring transactions setup can help you slowly build your digital currency portfolio without the need to spend large amounts of money in one go.