Why are miner fees so high on Coinbase Wallet?

3 answers

• Nov 23, 2021 · 3 years ago
  Miner fees on Coinbase Wallet are higher due to several factors. Firstly, Coinbase Wallet prioritizes transaction speed and security, which requires higher fees to incentivize miners to include the transactions in the blockchain quickly. Additionally, Coinbase Wallet uses a dynamic fee structure that adjusts based on network congestion, ensuring that transactions are processed even during peak times. This can result in higher fees when the network is busy. Lastly, Coinbase Wallet operates as a custodial wallet, meaning they hold the private keys on behalf of users. This adds an extra layer of security but also incurs additional costs, which are reflected in the higher miner fees.
  688344
• Nov 23, 2021 · 3 years ago
  The high miner fees on Coinbase Wallet can be attributed to the competitive nature of the cryptocurrency market. As one of the largest and most popular wallets, Coinbase Wallet needs to ensure fast and reliable transactions. To achieve this, they offer higher fees to miners, incentivizing them to prioritize Coinbase Wallet transactions over others. While this may result in higher fees for users, it also guarantees faster confirmations and a smoother user experience.
  470157
• Nov 23, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that the high miner fees on Coinbase Wallet are a result of their commitment to security and user experience. By offering higher fees, Coinbase Wallet can attract more miners to process their transactions, reducing the risk of network congestion and potential delays. While this may seem costly, it ultimately benefits users by providing faster and more secure transactions on the Coinbase Wallet platform.
  457115