Since our inception, Coinbase has been paying network fees on behalf of our customers to help support the growth of the Bitcoin and Ethereum networks. Coinbase now has over 6 million users worldwide, and this has become a significant cost.
Fees are assigned dynamically based on the current network conditions and will be paid by customers when sending an on-chain transaction. These fees go to miners of Bitcoin and Ethereum* transactions, not to Coinbase. The fees associated with any on-chain sends will be displayed on the send confirmation screen.
Transactions between Coinbase accounts are free and off-chain.
* Coinbase currently pays ETH miner fees on behalf of our customers