Whether you’re a crypto novice or a veteran crypto investor, Coinbase is a name you’re probably familiar with. Founded in 2012, Coinbase has cemented itself as the default crypto exchange for the United States, boasting over $300 billion in trading volume in the last quarter alone.
But if you are looking to get started with a Coinbase account on your own, you must first decide which version of the trading platform you want to use. Coinbase Pro is a significantly modified version of the more simplified Coinbase experience, offering enhanced features commonly found on exchanges like Binance.
Which begs the question: Do you even need the Pro version? What is the exact difference between Coinbase and Coinbase Pro? And most importantly – which one is the best?
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Coinbase vs Coinbase Pro: Overview
While there are plenty of mobile apps for buying stocks, the same cannot be said for cryptocurrencies. At launch, Coinbase was primarily aimed at those just starting out in the crypto world, and that’s the quality that still holds true. Where most Bitcoin exchanges are a nightmare to use, Coinbase allows users to buy BTC with their bank account and credit card or fiat currency as it is called in the crypto world.
However, over time, its platform and audience has matured in many ways. Coinbase facilitates cryptocurrency trading in a variety of USD-based trading pairs, opening the market to hobbyists and serious investors alike. Therefore, a more advanced trading platform is needed.
Coinbase Pro is an advanced cryptocurrency exchange. With lower fees and powerful trading options like limit and stop orders, it is a brokerage for advanced traders looking to trade digital assets more often. For example, if you are looking to mine and sell cryptocurrencies yourself, you need better margins to be profitable.
There is no real best Coinbase platform; Each cryptocurrency exchange has its own benefits and problems. While the standard platform is user-friendly and allows anyone to buy crypto with a debit card, the Pro version of the Coinbase wallet is more powerful and charges lower transaction fees.
What makes Coinbase so good?
For starters, Coinbase is one of the largest cryptocurrency exchanges in the world. Available as a website or mobile app on Android or iOS, the platform allows any user to buy and sell cryptocurrencies with fiat currencies like USD or EUR.
Not only is the app secured with two-factor authentication, but the FDIC authorized insurance policy also protects your investments from fraud or theft. However, Coinbase does not give users access to their private keys, instead offering password-managed accounts.
Coinbase charges a percentage of each sale as a transaction fee, with an additional fee charged for credit card purchases. The higher fees discourage large-scale investors from moving away from Coinbase, although it doesn’t make a small difference to the average user. And if fees are a concern, there’s always Coinbase Pro.
Advantages of Coinbase Pro
For proper cryptocurrency trading using the toolset and features available on the stock market, you should switch to Coinbase Pro. Formerly known as GDAX, Coinbase Pro offers the complete functionality you would expect from a crypto exchange, such as the ability to trade crypto pairs or monitor their portfolio.
The crypto platform also offers a more developed user interface, with advanced charting functions for better understanding of the markets. Coinbase Pro’s fees are also much lower than the standard app, although there’s no flat-fee pricing scheme yet.
Instead, the fee structure follows a producer-payer module. If you are adding liquidity to the order book, you pay a creator fee, but if you are making a listed trade, you pay a buyer fee. The low fees on both ensure that Coinbase Pro is one of the most competitive crypto brokers in the US and Europe.
You can even use the Coinbase Pro API to set up automated trading or monitor a portfolio. Previously, Coinbase Pro also offered margin trading through USDC pairs, but the feature was later disabled due to regulatory concerns.
Which cryptocurrency exchange is best for you?
Both Coinbase and Coinbase Pro perform the basic function of a cryptocurrency exchange: buy Bitcoin and other cryptocurrencies like Ethereum (ETH) and Litecoin (LTC) using a variety of payment methods, from options through ranging from debit and credit cards to things like bank transfers or ACH transfers. The difference comes from their features and user interface.
Coinbase is a great choice for those just starting out in the crypto world. You don’t have to settle for just blockchain database technology but it is also possible to start speculating on cryptocurrencies as an asset. Its ease of use allows even complete novices to start investing in cryptocurrencies, using fiat currencies of US dollars or GBP instead of BTC trading pairs. Security features like two-step verification and FDIC insurance protect you from fraud found in some of the lesser-known digital wallets.
On the other hand, Coinbase Pro offers a great platform for serious crypto traders. Lower transaction fees make buying and selling cryptocurrencies more often and in larger volumes well worth it. Advanced features such as limit and stop orders help the platform hold up against exchanges like Binance.
So, if you are new to crypto and just want to get your feet wet, choose Coinbase. But if you are a veteran in the field of crypto trading and want an exchange that won’t accept you, then Coinbase Pro is the platform for you.
