What is Coinbase Pro?

Most people looking to buy BTC or ETH for the first time head to Coinbase. It’s a simple way of easing themselves into the world of cryptocurrency buying and selling. However, as convenient as this reputable exchange may be for beginners, it’s restrictive once you start wanting to do more.

So, what about Coinbase Pro? What does this exchange from Brian Armstrong’s suite of products offer that its sister site does not?

What is Coinbase Pro?

Coinbase has become well known in the space as the perfect place for beginners to get their feet wet. But it has a few restrictions that are off-putting for professional and even intermediate cryptocurrency traders.

To start with, Coinbase is more of a place to transact with cryptocurrency rather than to actually trade. It lacks the sophistication of a trading platform and the charting tools and orders that traders need to be effective.

Coinbase Pro (as the name suggests) is more suited to the needs of professional or frequent traders.

It was rebranded from GDAX (Coinbase’s original name for its pro-trading platform) and given a new interface in 2018. Being US-based and equally regulated, Coinbase Pro has the same limitations when it comes to cryptocurrencies and tokens listed. However, that’s pretty much where the similarities stop.

This isn’t the platform for you if you’re looking to trade Cardano or MIOTA. But if you’re happy with BTC, ETH, and the other few crypto assets listed on Coinbase and Coinbase Pro, you can take advantage of its other features, such as significantly lower fees.

Coinbase Pro allows you to learn the fundamentals of trading

If you’re new to trading but eager to improve, set trading rules, and learn how to use charts, this is a logical step for you. The trading interface may look intimidating at first, but Coinbase Pro has plenty of advantages to offset that.

You can place limit, market, and stop orders, for example. This means that you can make your crypto assets work for you 24 hours a day and not miss out on making a call while you’re sleeping.

For those willing to further their trading education, there are plenty of charts to help you analyse trends. You’ll also pay fewer fees, and even have the chance of zero-fee transactions with certain order types.

Why you should change to Coinbase Pro

If you’re used to using Coinbase but getting frustrated with the lack of trading options or high fees, it may be worth switching to Coinbase Pro. Also, if you find yourself trading every day and want to take advantage of short-term price fluctuations, your profits will likely be eaten up by the hefty Coinbase fees.

Coinbase Pro definitely isn’t for everyone though, and the clue is in the name. If you’re simply HODLing your Bitcoin for the long term, you won’t need a sophisticated trading platform like this (or any other that allows for day trading). You may as well stick with good old-fashioned Coinbase.

Moreover, if you’re still phased by the clunky interfaces of cryptocurrency exchanges and the lengthy addresses when sending funds, you may not want to throw a complex trading portal into the mix.

But, if you’re ready for the challenge, you’ll save some significant percentage points on commission fees, even if you’re not a regular trader.

A closer look at Coinbase Pro

As previously stated, the cryptocurrencies available are the same as on Coinbase. So, if it’s more options you’re looking for, Coinbase Pro still comes with these same limitations. However, there’s a difference when it comes to trading pairs.

With Coinbase Pro, not only are you allowed to trade with your country’s home currency, but you can also trade with three of the world’s largest fiat currencies: USD, GBP, and EUR.

While Coinbase Pro is certainly harder to use than Coinbase, it’s generally easier and safer than many other trading platforms out there. This makes it a good second step in your self-education on trading cryptocurrencies.

Fees and trading capability are the main differences between the two platforms. While standard fees on Coinbase Pro start at 0.3%, you can get free trades by making non-market orders. This means that if you’re willing to set up a limit order and wait for your trade to execute, you’ll be rewarded with zero fees.

Stop and market orders

You can also place regular market orders just like you do on Coinbase if you’re willing to pay a slightly higher price. And you can also place stop orders so that, if the Bitcoin price tanks overnight and you don’t want to hold lower than a certain price, you won’t wake up to your worst nightmare. Your stop order will have ensured that you sold before dropping below your specified price.

Having a stop order function is essential for any trader who wants to be able to sleep in peace while the markets carry on moving.

The takeaway

If you’re not an active trader and you don’t mind HODLing your BTC, there isn’t much reason to navigate the interfaces of a professional platform like Coinbase Pro. However, if you’re ready to take the next step and get more out of your crypto trading, it’s an excellent place to learn.

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