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What is Coinbase Pro?
Buying Bitcoin for the first time can be confusing – that’s why Coinbase was created. It’s a simple platform, designed for ease of use and simplicity. Most people will use Coinbase when they buy for the first time. Unfortunately, they charge a fee for that convenience.
Coinbase charges 1.49% on all transactions made with a bank account, and 3.99% for debit/credit cards – these expenses will add up quickly, especially if you are trading often.
The Global Digital Asset Exchange, more commonly known as Coinbase Pro, is one of the most popular cryptocurrency exchange platforms. Coinbase also owns Coinbase Pro, but it is not meant for beginners.
Coinbase Pro is a superb alternative for more experienced crypto traders. Transactions are instant once cash has been deposited, and better yet, free. If you play your cards right, you won’t have to pay any fees on Bitcoin, Litecoin, and Ethereum trades.
Coinbase Pro Interface
The interface of the exchange is sleek and straightforward, especially for more advanced traders.
The UI includes the order book, trade history, open orders, your balance, an order entry panel, and a candlestick price chart. The chart can be displayed as a line chart if you prefer, with time intervals between one minute and one day.
Coinbase Pro is beloved by many for its incredibly low fees, ranging from 0.1% to 0.25% for taker trades, and no fees at all for maker trades. Compared to Coinbase’s fees, an upwards of 4.00% for credit/debit card transactions, Coinbase Pro is advantageous for any crypto investor.
Trading fees can be completely eliminated, as long as you go about it properly. Coinbase Pro allows you to place a market order, a limit order, and a stop-limit order.
Placing a market order means you’re buying at current market prices – you are taking the market. You will receive your tokens right away, but it is not the best nor the cheapest way to buy.
Instead, place a limit order. This means you’ll only buy/sell your token when the price reaches a certain value. For example, let’s say Bitcoin is trading at $10,000. You would place a limit order for $9,999.00. This means your order will only be executed if the lowest asking price reaches $9,999.00. Coinbase Pro charges zero fees for limit orders.
To start trading with Coinbase Pro, a bank transfer is required. After verifying your bank account, an ACH bank transfer deposit will usually take 3-5 business days, and they are free.
Same day bank wires are also available, but only to Coinbase Pro customers with USD-denominated order books. Wire deposits appear in your Coinbase Pro account on the same day, as long as the order was submitted before the cut-off for that day – usually 2 PM. Note that same day wire transfers will cost you $10 USD in addition to your bank’s fees for wire transfers.
If you’re already a Coinbase account holder, you can transfer funds from your Coinbase account to your Coinbase Pro account, instantly and free of charge.
Depending on where you live, different trading pairs (BTC/USD, ETH/BTC, etc.) will be available to you. As far as fiat currencies go, Coinbase Pro supports the American Dollar, the Euro, and the British Pound.
Coinbase Pro is supported in the United States, except for Wyoming, Hawaii, and Minnesota. Most of Europe is also supported – Coinbase Pro has a full list of their supported countries on their website.
Limits and Liquidity
Deposits of Bitcoin, Ethereum, Litecoin and BCash to your Coinbase Pro wallet are unlimited – likewise, there is no restriction on deposits in USD via a wire transfer. You can trade to your heart’s content, as many times as you desire, without a limit on your balance or the number of trades you can make.
Coinbase Pro offers its users a highly liquid trading platform. You can withdraw $10,000 per day from an individual account, and $50,000 per day from an institutional account. They allow higher withdrawal limits upon request and approval.
For more information regarding limits and liquidity, check out their official trading rules page.
The Ethereum Flash Crash
On June 21, 2017, there was a flash crash on Coinbase Pro’s Ethereum exchange. A multi-million dollar selloff took place all at once, resulting in Ethereum’s price to drop from $319 to $0.10.
After launching an investigation, those who lost money were refunded by Coinbase Pro, and the price rebounded quickly. Some speculated they were tampering with the market, but their actions to resolve the situation cleared their name.
Coinbase Pro performs regular IT security checks and financial audits. Moreover, USD balances of up to $250,000 are FDIC insured. If you trade on their exchange platform, your funds are backed by the United States government.
Coinbase Consumer is Coinbase’s brokerage service. This is where you source bitcoins directly from them. Coinbase Pro is better suited for advanced traders, while Coinbase Consumer is better for new users.
Coinbase is the gateway drug of crypto – its simple and intuitive platform makes it easy for first time buyers. However, Coinbase’s simplicity comes at a price. You can learn more about Coinbase Pro vs Coinbase.
After a few trades, you’ll probably get the hang of things. There is no reason to pay such significant fees for every trade. Coinbase Pro is a popular and trusted exchange. Its miniscule fees and straightforward design render it a great exchange for the avid crypto investor.
Coinbase Pro’s limited coin selection is one of its major flaws – however, it will be intriguing to see if any new coins are added to the exchange following Coinbase’s announcement of ERC20 support.
If you are looking for a safe exchange with high volume and liquidity, Coinbase Pro is a compelling choice. Its low transaction fees make it a great option for those looking to trade a lot of volume.
Review by: Jordan Tuwiner
Rating: 4.5Visit gdax.com