If you are getting into cryptocurrency and have heard of Coinbase, you must already be knowing about Coinbase and Coinbase Pro. But do you know which one is better? After all, there is so much more to them and in this article, we will be taking a look at both platforms. So, let's get the ball rolling and start our Coinbase vs Coinbase Pro review.
When it comes to beginners, is sort of becoming a one-stop-shop for purchasing Bitcoin, and rightly so! It is no run-of-a-mill kind of a crypto exchange. In fact, since its founding in 2012, Coinbase has become one of the giants in the crypto world. The reason? Coinbase is a simplified platform that is easy to navigate for those new to the crypto-sphere and at the same time, it also provides extensive features to advanced traders through Coinbase Pro.
The Coinbase platform has earned a reputation for being one of the most user-friendly. Readily available to residents of the United States, Coinbase lists its most popular quotes in USD.
Compared to Coinbase, the Coinbase Pro is not that popular. In fact, many people don't even realize that Coinbase also has a professional trading platform known as Coinbase Pro. Formerly known as GDAX, it rebranded in 2018. Now the question is how do Coinbase Pro vs. Coinbase match up? Keep reading for a Coinbase vs Coinbase pro full comparison so that you can get an answer to your question.
Coinbase vs Coinbase Pro: What is Coinbase?
Coinbase was founded by Brian Armstrong in 2011. It's considered one of the leaders in the industry, and a primary mover when it comes to new crypto adoption levels. Other platforms have focused on becoming decentralized (DEX) but not Coinbase.
Instead, the platform has secured its niche as the best on-ramp for newcomers to crypto assets. As a result, the platform prides itself on being user-friendly while boasting advanced security settings.
Let's take a closer look at how Coinbase works. As the leading crypto exchange for the mainstream user, Coinbase has become an essential introduction to the altcoin financial world for many investors new to cryptos.
The platform has a solid coin count with more than 100+ cryptocurrencies for trading, investment, and staking.
Coinbase's interface lives up to its reputation for ease of use. Signing up and buying crypto assets both prove streamlined and can happen in mere minutes. The platform also offers educational resources and rewards those users who go thorough these resources with free crypto.
When compared to other exchanges, Coinbase always ranks at the top when it comes to high liquidity. This status keeps investors shielded from a volatile market and price slippage.
Coinbase vs Coinbase Pro: What is Coinbase Pro?
While the Coinbase name change has brought increased interest to the platform formerly known as GDAX, it's also led to unfortunate confusion. Both exchanges often get referred to as "Coinbase."
What is Coinbase Pro? The company's exchange permits users to set up advanced order types, including limit orders, market orders, and stop orders. You can save money while buying and selling by using the "limit order" option to avoid transaction fees.
Aren't these features standard to many crypto exchanges? Yes. But decided to only include them on the "pro" version to keep their introductory platform straightforward.
Like Coinbase, you can access Coinbase Pro from either your laptop or the Coinbase Pro mobile app. The app features everything you expect from an advanced trading platform, all at the convenience of your fingertips.
Coinbase vs Coinbase Pro: How Coinbase Works?
Coinbase can be accessed in two ways, its website and its platform. Both emphasize ease of use, proving streamlined and intuitive.
To trade on Coinbase, you'll click "buy" or "trade." From there, you'll move to a screen where you get to make choices about whether you're buying or selling, which assets you'll be using, and the amount you're transacting in USD.
Coinbase vs Coinbase pro: How Coinbase Pro Works?
What is trading like on Coinbase Pro? Basically, you'll find it's quite similar to the Coinbase interface, as you can start on it by selecting "asset." Then, head over to "buy" or "sell," and then enter the amount you'd like to invest. That said, one of the major differences between Coinbase and Coinbase pro is that on Coinbase Pro, you can specify an order type. Otherwise, the app will default to the Market.
So, what happens if you choose to leave the default Market? Your order will behave like one in Coinbase, finding the best available price on the market selected. That said, you stand to save significant money by trading outside of the Coinbase Market.
Trading Bitcoin on Coinbase
How to begin trading Bitcoin on Coinbase? The first thing you need to do is decide the USD amount you'd like to spend on Bitcoin, which will show you the price of Bitcoin available on Coinbase.
Are you wondering how prices on Coinbase Market compare to those of other markets? Well, they come with a markup of roughly 0.50 percent. While you may consider this cost worthwhile for the simplicity and convenience of the exchange, you must factor in the other Coinbase fees that await you.
Let's say you use a credit card to purchase your crypto on Coinbase. No doubt, this is a refreshingly convenient option, especially for crypto newbies. But you'll end up paying a "Coinbase fee" of 2.49% percent. That's over $12 on a $500 Bitcoin transaction! It is definitely something that you must give a thought to while you are considering Coinbase for your crypto purchases.
So, what's a better way to trade on Coinbase? For starters, fund your Coinbase wallet from your USD bank account. Yes, a bank account is an ideal way to load USD into a Coinbase account, as it is the least costly option available on Coinbase.
When it comes to trading fees, it is something that you will have to pay on both platforms. Both Coinbase and Coinbase Pro have a tiered fee structure, which starts from $0-$10,000. If you come in Tier 1, you will have to shell out 0.6% in the Taker fee and 0.4% in the Maker fee. The lowest Taker fee on both platforms is 0.05%, whereas the lowest Maker fee is 0.00%. But for the lowest trading fee, your trading volume should be above $500 million. Yes, we really mean $500 million!
Trading fees on Coinbase and Coinbase Pro is quite straightforward. The higher your monthly trading volume is, the lower will be your trading fees. Also, the Maker Taker fee model will remain the same even if you use Coinbase Global or the US version.
Trading Bitcoin on Coinbase Pro
How does trading Bitcoin on Coinbase Pro compare to Coinbase? Like its simplified counterpart, Coinbase Pro, too, makes trading a cinch. Besides, with Coinbase Pro, you'll also gain access to more charts and data. But, if you're new to the platform, ignore these for now. As in the previous example, if you got through the default Market, you'll see the same results.
What makes Coinbase Pro better? The very fact you can opt for other markets gives Coinbase Pro an edge. These usually have fees below 0.5 percent. You can also trade crypto-to-crypto pairs like Bitcoin and Ethereum.
There's a caveat to all of this, though. Many exchanges often advertise impossibly low rates, but you must pay attention to the fine print here. It's because small traders ultimately pay much higher fees than those advertised.
Coinbase Pro allows margin trading of up to three times on USD pairs. You can short or long Bitcoin and other cryptos. How? By borrowing funds from the exchange.
That being said, remember that there are many excellent alternatives to Coinbase and Coinbase Pro. Some, like Binance and Kraken, come with much more affordable fees. Explore the world of options available to you when it comes to selecting a platform.
The Pros and Cons of Coinbase
While Coinbase represents an excellent springboard into the crypto world, users end up paying for this convenience and simplicity. Despite all this, it remains a great platform for managing crypto funds.
It also comes with an excellent mobile application that's easy to use. The app provides you with everything you need to monitor crypto values. It also enables you to send or receive coins with ease.
With , you'll also enjoy two-factor security practices that prevent scammers and hackers from illegitimately accessing your Coinbase wallet and funds. That means peace of mind, especially for those relatively new to dealing in altcoins.
As for the disadvantages of using Coinbase, the fees charged by the platform add up rapidly. They prove quite high compared to other platforms within the industry.
Because of the massive number of users on Coinbase, its customer service is also a significant problem. You'll find it frustrating to get in touch with a living, breathing human being. This lack of responsiveness proves especially frustrating since your concerns are money-related.
Want a detailed Coinbase review? Check out Coinbase Review: What You Need to Know Before Using it.
The Pros and Cons on Coinbase Pro
What are the benefits of Coinbase Pro?
Coinbase Pro is designed for advanced traders. That said, it's also a fantastic way to avoid the regular fees charged by Coinbase. These fees can add up quickly, and they sit well above those of other companies, so it's worth your while to circumvent them.
If you rely on your credit or debit card for most crypto transactions, making the switch from Coinbase to Coinbase Pro is especially important. Ultimately, wiring your fiat currency to Coinbase Wallet and then transacting in Coinbase Pro will save you the most money.
The only thing you need to do here is to plan ahead. Transactions will take a little longer to go through.
Like , you'll also have to deal with less-than-stellar customer service with Coinbase Pro, too. Getting the help you need takes time, although Coinbase has assured customers they're working to remedy the current situation.
Nevertheless, the best way to avoid dealing with customer service is to avoid making mistakes in the first place. While easier said than done, the following tips will help.
Always double-check that any funds you're depositing are going into the correct Coinbase wallet address in the correct crypto. As for deposits and withdrawals, we recommend small test transactions to make sure everything looks okay before you make a bigger transaction.
Overall, Coinbase Pro has a definite edge over Coinbase when it comes to advanced features. It is especially better for advanced users and active traders, due to its advanced charting features. On top of that, Coinbase Pro supports features including the current market price chart, candlestick chart, and depth chart, which are crucial for active traders involved in advanced crypto trading.
Coinbase vs Coinbase Pro: The Takeaway
Coinbase owns Coinbase Pro, and you'll enjoy free access to both platforms when you sign up and create an account. So, having a Coinbase account will also come with an account on Coinbase Pro as well.
But Coinbase ultimately proves more akin to a mix between a brokerage and a crypto wallet. Buying and selling digital currencies from the platform utilizing fiat currency is a cherry on the cake.
As for Coinbase Pro, it operates as a cryptocurrency exchange. The platform lets investors sell and buy from one another. Overall, you'll also find a wider range of cryptos supported by Coinbase Pro.
That said, you can use your Coinbase credentials to sign into Coinbase Pro. If you opt to store funds in your wallet, know that they'll be insured for a maximum of $25,000 by the FDIC. This applies whether you're using or Coinbase Pro.
Supported Currencies on Coinbase and Coinbase Pro
In terms of the number of digital currencies supported on Coinbase and Coinbase Pro, the Pro version has a clear edge, as it supports 250+ digital assets, whereas Coinbase supports 107.
Security Features on Coinbase and Coinbase Pro
Coinbase and Coinbase Pro both have solid security features. In fact, it doesn't matter if you have a standard Coinbase account or a Coinbase Pro account, as both are good in terms of security. Let's take biometric fingerprint logins for example. Both Coinbase and Coinbase Pro support biometric fingerprint logins. There's also two factor authentication, which is a must as it creates a second layer of security for users regardless of them being a Coinbase or Coinbase Pro user.
In case you are wondering if your funds in and Coinbase Pro are covered under the Federal Deposit Insurance Corporation, the answer is no, as cryptocurrency funds do not come under FDIC. But the US dollar funds are kept in pooled custodial bank accounts that are covered under FDIC insurance meaning your USD fiat currency deposit is applicable. Yet, it is crucial to keep in mind while trading cryptocurrency that your crypto funds do not come under FDIC insurance.
Besides, Coinbase has taken crime insurance to cover a part of user funds against theft or cybersecurity attacks. So, Coinbase's insurance policy has ensured that its user funds remain secured regardless of the situation the platform faces. Also, both Coinbase and Coinbase Pro are centralized exchanges so you aren't in control of your private keys.
Coinbase vs Coinbase Pro: Buying and Selling Cryptocurrencies
When it comes to a new foray into the world of cryptos, nothing beats the easy-to-use platform of Coinbase. Whether you take or leave the fees, the platform has definitely done its job when it comes to creating a simplified, streamlined interface. The same can be said about Coinbase Pro, as well. It's just that Coinbase Pro is far more suited for advanced users due to the plethora of features available at their disposal. All in all, both Coinbase and Coinbase Pro are user-friendly platforms.
That said, if you'd like to duck out on the exorbitant fees, particularly when it comes to credit and debit cards, Coinbase Pro is a better option. But, don't let all of the bells and whistles associated with this platform overwhelm you.
Working in Coinbase Pro will also provide you with exposure to the Maker-Taker Module. The platform uses this module to decide how much to charge users in trading fees. That means you'll pay between 0 and 0.5 percent per transaction.
What you ultimately pay will depend on the number of transactions you're involved in each month. When transacting as a maker, you'll be the individual approaching others with an offer. That means you're contributing to the booking order. Here, you must select a buying price that's less than the limit order selling price. And you'll pay a maker fee to do this.
However, if you bite on a trade that's already in the order book, you're a taker. You'll pay a taker's fee for your transaction. Maker fees are lower than taker fees. Remember that these fees may always be applied to buy or sell orders, and you may even see a mix of both. But when we factor in the other Coinbase charges like fees influenced by the payment method, transaction fee, variable fee, and more, we find that Coinbase Pro has lower fees compared to Coinbase. So, Coinbase charges comparatively higher than Coinbase Pro.
When it comes to the payment method, supports multiple options. But the payment method you can use will depend on your nationality. For example, in Canada, Coinbase users can opt for PayPal as a payment method, which is not available to users in Costa Rica. The Coinbase Pro users, too, have a variety of payment options available to them from a bank account to a simple PayPal transaction and even wire transfers. The payment method available to you on Coinbase Pro will again depend on your nationality. US residents, for example, can fund their Coinbase pro account by making a wire transfer from their bank account or even ACH transfers. UK-based users can make a bank account transfer to fund their Coinbase Pro account.
Compare with the best alternative exchanges
| Exchange | ||
|---|---|---|
| Nexo | Best overall crypto lending platform. | Go to site → |
| CoinLoan | Best for crypto loan borrowers. | Go to site → |
| YouHodler | Most versatile crypto lending platform. | Go to site → |
| Bit.com | Best crypto derivatives platform. | Go to site → |
| Matrixport | Best for institutional investors. | Go to site → |
| Gemini | Best crypto exchange for U.S. investors. | Go to site → |
| Binance | Best overall crypto exchange. | Go to site → |
| Kraken | Best U.S. crypto exchange for advanced traders. | Go to site → |
Coinbase vs Coinbase Pro: Diving into the Crypto World
As you can see, deciding between vs Coinbase Pro depends on a variety of factors. These include how confident you feel navigating a complex interface like Coinbase Pro. If you can't stand the thought of extra fee charges, you might eschew the ease of Coinbase for its more advanced platform. Also, there are no account fees for new users to create an account on Coinbase or Coinbase Pro.
Coinbase has also made user education its priority and thus it rewards a Coinbase user with free crypto if they learn the tidbits about cryptocurrencies that Coinbase presents in an engaging way.
Of course, both of these sites mark just the start when it comes to diving into the exciting world of cryptocurrency. When you find the right exchange for your unique needs, not only will you watch your money grow, you'll gain knowledge in the process. Hopefully, our comprehensive Coinbase vs Coinbase Pro review has answered all the questions you may have about these platforms.
Are you ready to find out more about the wide world of crypto platforms? Check out our reviews covering a wide selection of platforms.