Coinbase is one of the most popular cryptocurrency exchanges. However, there are now two versions of Coinbase available to users. What are the differences between these two platforms?
The coinbase vs coinbase pro fees 2021 is a comparison between Coinbase and Coinbase Pro. This article will help you compare the two services and decide which one is best for your needs.
Coinbase and Coinbase Pro (previously GDAX) are two of the most widely used bitcoin trading platforms. Coinbase is well-known for being the best site to purchase Bitcoin, Litecoin, and Ethereum. GDAX was the platform on which professional traders built their fortunes.
Until recently, Coinbase operated both of these services under two different names, GDAX and Coinbase Pro.
You’ve come to the correct spot if you’re wondering what the difference between Coinbase and Coinbase Pro is.
Continue reading to learn about the modifications made by the business when it changed the platform and combined the purchasing and selling processes into one.
What is the difference between Coinbase and Coinbase Pro?
Coinbase is one of the most well-known bitcoin exchanges in the world. It was established by Brian Armstrong in 2011 and is credited for helping to drive today’s acceptance levels for cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) (LTC).
Coinbase (and Coinbase Pro) are cryptocurrency exchanges, which means they act as an online brokerage for buying and selling all kinds of digital assets. Users may open a free account and purchase cryptocurrencies from other users at current market prices, or trade themselves if they want.
Any currency you buy on Coinbase will be stored until you wish to sell, trade, or move it to another wallet.
The business behind Coinbase and Coinbase Pro is the same. Their duties, however, are dissimilar. We’ll go through the differences in more detail later.
Both accounts are free and allow you to purchase and sell a variety of cryptocurrencies. Coinbase Pro, on the other hand, offers a wider range of cryptocurrencies).
What’s the difference between the two?
Coinbase and Coinbase Pro are two separate accounts that may be used to purchase cryptocurrency using fiat money (like USD or Euro).
Coinbase is a cryptocurrency brokerage that allows users to purchase different currencies such as Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), as well as a wallet to store their holdings.
Coinbase Pro, on the other hand, is a cryptocurrency exchange that enables investors to sell and purchase with one another.
Both offer a smartphone app, which is ideal for busy traders who like to trade while on the move. But, exactly, what’s the difference between the two? Is there a difference in terms of security? What if you need more features?
Beginner investors will enjoy Coinbase’s simplicity, while more experienced investors will appreciate the sophisticated capabilities provided by Coinbase Pro. The simplicity of usage of ordinary Coinbase accounts is, without a doubt, what makes it so user friendly.
Advantages of Coinbase Pro
The tone of Coinbase Pro is different, making it more difficult for customers to buy bitcoins. Because you can’t use your debit or credit cards on the site, you can only use fiat money, which may turn off some investors.
The platforms vary in terms of buying choices and costs, but both are safe and simple to use. While the costs on Coinbase’s plan may be greater than those paid by other online or physical exchanges today, this does not imply you should avoid it!
Coinbase Pro is an easy-to-use bitcoin trading platform with sophisticated capabilities for seasoned investors. Pro customers, understandably, want to trade their digital assets in real time, which is available on a fully functional exchange like Coinbase Pro.
Coinbase Pro has an easy-to-use interface with real-time charting features like moving averages and exponential moving averages so you can understand what’s going on in the market before you make a transaction.
For most traders, the real-time trading function on Coinbase Pro is what makes it so attractive. If you’re attempting to purchase 1BTC on Coinbase for 55k, but the real-time price is 54.5k, it’s a no-brainer to utilize the real-time pricing.
You also have access to detailed information on all of your transactions, including buy/sell orders, price charts, order books, and transaction history; plus, you have access to detailed information on all of your transactions, including buy/sell orders, price charts, order books, and transaction history. Stop orders (to safeguard gains), limit orders (for precise entry points), and margin trades, which allow users to leverage their holdings, are available in Coinbase Pro.
Fiat currencies such as USD, GBP, and EUR are supported by both Coinbase and Coinbase Pro. But wait, there’s more! On each platform, you may select from more than 50 altcoins, but there are some variations in what is available: for example, Coinbase has Bitcoin Satoshi Vision (BSV), but not Golem or Loom Network. LOOM and GNT, on the other hand, are available on both platforms, but they are presently only supported by Coinbase Pro.
Overall, Coinbase Pro outperforms Coinbase in terms of advanced trading options.
Security of Coinbase vs. Coinbase Pro
Coinbase’s client assets are kept in cold storage for 98 percent of the time. They’re kept in secure boxes that are dispersed throughout the country. Because they are kept offline in a safe place, they cannot be hacked.
Users of Coinbase are covered by an insurance policy. It keeps track of its cash balances in the following ways:
- Custodial accounts in US banks in USD;
- Money market funds denominated in US dollars; or
- invests them in liquid U.S. securities. Treasuries
The procedure is complex, and your money may be kept in one of three ways. Holding USD in a US bank, on the other hand, will result in either pooled custodial accounts or FDIC insurance up to $250k per individual (per-depositor coverage limit).
Private keys are used to transmit and receive cryptocurrency in Coinbase wallets, and it is up to you to keep your wallet and money secure.
Coinbase vs. Coinbase Pro Fees
Coinbase determines the consumer exchange rate (“consumer exchange rate”) by adding a margin, or spread (the “spread”) to the market exchange rate on Coinbase Pro (the “Pro exchange rate”). Coinbase may additionally impose a second fee (in addition to the spread) that is either a flat fee or a percentage of the transaction (the “Coinbase Fee”), as explained in the Buy/Sell Transactions section below. https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees
In order to maximize their assets, every cryptocurrency trader should be aware of transaction costs. Trading costs are unavoidable on every cryptocurrency exchange, but which Coinbase account provides the best deal? Is Coinbase Pro a better bargain since it’s geared at more experienced traders? Is it really that different from Coinbase?
Let’s take a look at Coinbase Pro first.
Trading costs on Coinbase Pro
Maker-taker fees, also known as payment for order flow, are a kind of rebate that crypto exchanges get for participating in the cryptocurrency market.
They are called a “taker” and are charged that amount if you make an order at the market price and it is completed promptly.
If a user puts an order that isn’t immediately matched to one of those orders (until someone accepts it), it will be placed in “the book,” and only when someone matches their trade with them will they both charge each other – a maker fee is paid to the person who created the trading pairs.
The total USD trading volume of all order books over a 30-day period determines your taker fees. This covers transactions in US dollars, such as BTC-USD, as well as other currency pairings that quote their value in US dollars, such as ETH-BTC.
If you buy 1 Ethereum (ETH) using Bitcoin (BTC), it will be converted to an equal amount of money in US Dollars at the current conversion rate at the time of purchase using our most recent fill prices from various marketplaces where Coinbase offers this service. As bitcoin trading develops, tier-taker fee ratios will continue to shift. Coinbase has the ability to alter the fee structure (or any cryptocurrency exchange)
A wire transfer is the most safe and best method to avoid extra costs for bigger crypto trades on Coinbase Pro.
Fees on Coinbase
The costs charged by the standard Coinbase trading platform vary from those charged by the Pro structure.
Coinbase charges a 0.5 percent spread on trades, which is subject to change at any moment and may be greater in turbulent markets. Coinbase also offers fixed costs based on the value of the transaction, as well as variable fees based on where you reside and how you pay.
Because Coinbase lacks real-time trading and features like limit orders, you’ll likely pay a higher rate for your bitcoin than if you used Coinbase Pro.
Read my post on the definitive guide to Coinbase fees for additional details.
Methods of Payment
There will be an extra 2-3 business days delay before money are transferred into digital currency if you use your credit/debit card via their website (bitcoin). When opposed to linking your bank account, card transactions are sluggish. This is due to the security measures used by your banking institution to approve the transaction.
Due to variations in merchant processing expenses as well as risk mitigation problems from chargebacks, debit and credit cards have even higher rates than credit cards.
Coinbase accepts MasterCard and Visa debit cards for purchases.
Connecting a bank account to Coinbase and Coinbase Pro is the quickest method to trade while avoiding additional costs. You may send money from your US bank account for free.
You may now use Paypal to buy cryptocurrency on your coinbase account. Some people may believe that this is more secure than utilizing a bank account.
Wire transfers are useful for larger transactions or purchases.
GDAX vs. Coinbase Pro Has Been Improved
If you’re choosing between Coinbase and Coinbase Pro, you should be aware of the enhancements made to Coinbase Pro’s predecessor, GDAX.
There were a few modifications that traders noticed after the move to Coinbase Pro.
In the updated “my wallet” view in the top right corner of the screen, users may quickly see their balances and transaction history. This tool brings all of your account orders and transactions together in one place. Users like a more user-friendly interface.
The user interface has also changed. The difficulty of making transactions, withdrawals, and deposits was one of the concerns regarding GDAX. The new technique is less time consuming and requires fewer steps.
Coinbase Pro has released a new version that allows users to see, but not trade on, the order books of trading pairs. Due to local authorities’ requirements, they are unable to add additional exchanges or nations.
Developers want to make trading more simple, so they’ve created a new chart system that enables customers to browse over their previous data.
Are you worried about the transition to Coinbase Pro?
If you’re a trader who hasn’t yet made the move from GDAX to Coinbase Pro, know that Coinbase has gone to great lengths to make the transition as painless as possible.
To make the transition simpler, you’ll be able to view your transaction history, balance information, and new metrics the first time you log in to the new interface. Traders who are worried about revenue information and tax liabilities may find this information very useful.
Traders still have access to world-class analytic tools, with more being introduced to provide a comprehensive view of your selected market. Before jumping in headlong, new users may wish to spend a few days to become accustomed to the information being thrown at them.
The maker/taker fee model is used by both platforms. Liquidity-provider orders are charged differently than liquidity-taker orders. Users won’t have to relearn the best methods to optimize their transactions in order to make the most money thanks to a comparable charge structure.
Switching from GDAX to Coinbase Pro is simple and quick. In no time, you’ll be trading on the finest platform on the planet. And choosing Coinbase Pro over Coinbase is a no-brainer.
And, as usual, while you’re not actively trading, keep your bitcoin off the exchange! The Ledger Nano X is my favorite hardware wallet. If you really require a hardware wallet, use my affiliate link in the final line to purchase it straight from the manufacturer.
A hardware wallet, as opposed to a conventional coinbase wallet, enables you to store your money on a physical device, which has several benefits over cold storage.
You can also utilize your hardware wallet on various exchanges, which is useful if you want to trade your digital assets outside of Coinbase.
It’s always a good idea to have a secondary wallet for your assets in addition to your Coinbase wallet.
Coinbase Pro has several extra features.
More control over your bitcoin transactions is available with the Coinbase Pro trading platform. Stop orders enable you to establish a sell price to limit your losses, while limit orders allow you to set a purchase point if you expect the price to fall during trading.
These characteristics are very important, and any sophisticated digital asset exchange should have them. It doesn’t matter whether you’re trading equities or cryptocurrency.
Coinbase Pro grants access to your account to third-party applications through an API private key, allowing you to personalize how you utilize it.
Coinbase vs. Coinbase Pro (summary)
When comparing Coinbase and its more sophisticated cousin, Coinbase Pro, it’s clear to see why professional traders would choose the latter.
In addition, many ordinary Coinbase customers have upgraded to the Coinbase Pro platform as their knowledge has grown and they need more sophisticated capabilities.
Coinbase and Coinbase Pro have a lot of similarities, however they have distinct features. If you’re new to the cryptocurrency world, it’s best to start with Coinbase’s basic charting, which will walk you through the process of learning how to trade.
Beginners who are unfamiliar with investing or trading cryptocurrency will find the user interface to be extremely user-friendly. For some, ease of use is a top concern.
But if you want more sophisticated charting and spot-trading options (all with minimal costs), join up for a Coinbase Pro account now! Which is best for you? It all relies on your particular trading requirements. You are the only one who can make that decision.
We’re here to assist you, whether you’re a seasoned investor or a first-time buyer looking to get your feet wet in the crypto markets. We offer knowledge that will give you a leg up on the competition when it comes to the markets.
Look at Coinbase, read the reviews, and decide for yourself whether or not it’s a platform you want to utilize. If the debate between Coinbase and Coinbase Pro perplexes or worries you, read our guide to Binance, a fantastic exchange with reduced costs.
Coinbase is a cryptocurrency exchange that allows users to buy and sell cryptocurrencies with fiat currency. Coinbase Pro is an advanced version of the original Coinbase platform. The coinbase fees are different between both platforms.
Frequently Asked Questions
Is Coinbase pro the same as Coinbase?
Coinbase pro is not the same as Coinbase. It is a separate entity with different features and costs.
Is it cheaper to buy on Coinbase or Coinbase pro?
Coinbase is the best option for buying Bitcoin.
Which is safer Coinbase or Coinbase pro?
Coinbase is the safer option.
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