Coinbase vs Coinbase Pro are well-known cryptocurrency exchanges owned by Coinbase Global Inc. Both let you use fiat money (such as U.S. dollars or Euro) to buy various currencies.
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The major difference between the platforms is that the standard Coinbase is a broker. This means that it helps you get access to Bitcoin and therefore charges you a larger fee. But if you have a high trading volume, you can duly avoid some of the relatively costly rate fees attached for lower purchases.
Coinbase provides two account options which include the normal Coinbase trading platform, (which is actually more of a brokerage service) and Coinbase Pro which is used for more advanced trading.
Coinbase Pro is basically a cryptocurrency exchange. In other words, you can directly buy and sell Bitcoin on the open market instead of going through a broker type service like the regular Coinbase platform.
Coinbase is more appreciated by beginner investors for its simplicity, whereas seasoned users prefer the advanced options provided by Coinbase.
Both platforms also differ in features, supported currencies, purchasing options, and fees structure. You will learn about the differences in the guide below:
Coinbase vs Coinbase pro
FEATURES: Easy to use for newbies and PayPal may be used for withdrawing or sale
FEES: 0% to 50% per trade, 2.49% for Coinbase card transactions, and the fee varies for banking
NUMBER OF CRYPTOCURRENCIES SUPPORTED: 100+
SUPPORTED TRANSACTIONS: Buy, sell, send, receive, and exchange
MAXIMUM TRADING AMOUNT: Limits vary based on your payment method and region.
Withdrawals can be made with PayPal
Available in dozens of countries
Supports cryptocurrency purchase via debit or credit cards
Higher and complex fee structure
Limited trading types
The platform tracks your cryptocurrency purchases
FEATURES: Advanced charting display and crypto-to-crypto trading pairs
FEES: 0% to 0.50% per trade
NUMBER OF CRYPTOCURRENCIES SUPPORTED: 250+
SUPPORTED TRANSACTIONS: Buy, sell, deposit, withdraw, trade, stop order, time in force order, and limit order
MAXIMUM TRADING AMOUNT: Unlimited
More trading options
Simple fee structure
Only two indicators and overlays for charts
Beginners will encounter a learning curve
Fees may be higher than other platforms
Supported cryptos available
Both versions of Coinbase have a selection of over 120 cryptocurrencies each, which is greater in number than most other exchanges. Examples of some major cryptos you can trade on Coinbase and Coinbase Pro include:
Whatever types of cryptocurrency you want to trade, you will have a full menu to choose from on Coinbase. The exchange is also proactive about expanding its selection and therefore regularly updates its listing with new cryptocurrencies.
Moreover, Coinbase Pro gives the user access to more than 250 cryptocurrencies and a number of smaller cryptos that are not available on Coinbase such as Golem (GLM) and Loom Network (LOOM). Outside of those exclusive exceptions, you can buy and sell the same cryptocurrencies no matter which version of Coinbase you choose.
By default, Coinbase and Coinbase Pro store your cryptocurrency in digital wallets. If you have an account on both versions of Coinbase, you will also have two separate wallets, one on Coinbase and the other on Coinbase Pro. You can transfer funds between the two platforms for free.
Coinbase also offers a hot wallet, referred to as Coinbase wallet. A hot wallet is a digital wallet that you can download as an app on your computer or phone. Downloading Coinbase Wallet and storing your crypto there gives you full control over the wallet.
Coinbase is one of cryptocurrency exchanges with the best security features. Coinbase and Coinbase Pro have the same security features, hence they are at par in this regard, and both are among the safest places to buy crypto.
Coinbase gives protection through the following:
- Two-factor authentication (2FA): It is compulsory for all account holders use 2FA on Coinbase. When this feature is enabled, the user must provide two forms of authentication to access the account, such as entering a password and a code sent to an authenticator app on your mobile device.
- Data encryption: Coinbase follows payment industry best practices to encrypt data. The exchange’s website traffic runs over encrypted SSL, and its wallets and private keys are stored using AES-256 encryption.
- Address whitelisting: This optional security feature permits only withdrawals to crypto wallet addresses designated in your user address book. It is a good way to prevent funds theft, even if unauthorized access is gained to your account.
- Cold crypto storage: Coinbase stores 98% of its customers crypto funds in cold storage, in other words, these funds are kept offline. This is the most secure crypto storage option, as offline storage cannot be hacked. Drives and paper backups are distributed in safe deposit boxes and vaults around the world.
- Insurance for online funds: Coinbase maintains an insurance policy for crypto funds kept in hot (online) storage that protects digital assets against losses from theft, including cybersecurity breaches. Cash deposits of up to $250,000 per individual are covered by FDIC insurance, the same type of insurance that protects deposits with major U.S. banks.
It is the user’s responsibility to use a very strong password combination and maintain control of their Coinbase login details. Coinbase’s insurance policy does not cover losses from unauthorized account access due to a breach or loss of your login credentials.
Coinbase Vs Coinbase Pro: Fees
Transaction fees on Coinbase Pro are approximately cheaper than fees on the standard Coinbase platform. This places Coinbase Pro as the better choice for implementing cryptocurrency trades because you can save quite a bit as regards charges on every transaction.
On its standard platform, Coinbase calculates fees at the time you place the order based on a combination of factors, including payment method, order size, and market conditions. Smaller transactions have a flat fee, and larger transactions have a variable fee of approximately 1.49%.
Depending on the size of the transaction, these are the standard fee amounts:
Up to $10: $0.99
Above $10 to $25: $1.49
Above $25 to $50: $1.99
Above $50 up to $205: $2.99
$205 or more: 1.49%
In addition to transaction fees, Coinbase also charges additional fees for some payment methods, like using a credit card. You can simply avoid these fees by paying via an ACH transfer from your bank account.
On the other hand, Coinbase Pro uses a maker-taker model for its trading fees. The maker and taker fee structure shows the costs that Coinbase charges when you buy and sell. These fees always depend on the amount involved in the transaction.
This is how it works – If you place an order that is not filled immediately by an existing order, then you pay the maker fee because your order is providing liquidity. If you place an order that is filled immediately by an existing order, then you pay the taker fee, because your order is taking liquidity.
Maker-taker fees depend on your trading volume. Here’s the Coinbase Pro fee table for up to $20 million within a 30-day trading volume:
30-DAY TRADING VOLUME IN U.S. DOLLARS TAKER FEE MAKER FEE
Up to $10,000 0.50% 0.50%
$10,000 to $50,000 0.35% 0.35%
$50,000 to $100,000 0.25% 0.15%
$100,000 to $1,000,000 0.20% 0.10%
$1,000,000 to $20,000,000 0.18% 0.08%
To get a basic idea of how much you can save using Coinbase Pro, here is how much it typically costs to buy Bitcoin on each platform:
PLATFORM FEE ON $100 BITCOIN PURCHASE FEE ON $1,000 BITCOIN PURCHASE
Coinbase $2.99 $14.90
Coinbase Pro $0.50 $5.00
For more information on Coinbase pro transaction fees, check here
Are fees higher on coinbase or coinbase pro?
Although Coinbase has higher fees, it is more favorable to people who are new to investing in cryptocurrency. Coinbase Pro offers a wider range of transaction types with lower fees, this is a perfect choice for active traders.
Coinbase and Coinbase Pro are both excellent platforms with their own unique advantages. If a person is just learning about cryptocurrency, Coinbase is the right tool for that. It is easy to use, less complex to understand, and has plenty of educational modules. As a bonus, it even allows you to earn free crypto for completing those modules.
For cryptocurrency trading, Coinbase Pro is better because of its lower fees. By trading on Coinbase Pro, you will most likely pay a lesser percentage of what is paid in transaction fees on Coinbase.
Can you use both coinbase and coinbase Pro?
Yes, you can have an account for both coinbase and Coinbase pro. However, note that a single individual may only operate one account with Coinbase Pro and Coinbase.com.
If you already have a Coinbase account and would want to open a Coinbase Pro account, please use the same login email address from your Coinbase account for your Coinbase Pro account.
By doing this, your Coinbase account is automatically linked to the Coinbase pro account, and transferring funds of any currency between your Coinbase balance and your Coinbase Pro account is integrated into the experience.
To see how to create a Coinbase Pro account, click here:
When it is completed, select login. If you were already logged in to coinbase.com, you will be prompted to accept the Coinbase Pro User Terms and may be prompted to provide additional information.
Although your Coinbase and Coinbase Pro accounts are linked, they have their own separate wallets. But transfers from Coinbase to Coinbase Pro wallets are free.
To see how this transfer is done, check here
It is good to know that you don’t need to select between either of them. If you prefer Coinbase’s interface and resources, use that platform for research and planning your trades. When you’re ready to make a trade, switch over to Coinbase Pro to save on fees.
For more information:
How do I avoid coinbase fees?
Because the transaction fees on Coinbase is relatively higher in comparison to other brokers, it is better to avoid paying them as much as you can. The first step is to start using Coinbase Pro.
Although the name implies that it is an upgraded version to be used for professional trading, do not feel oppressed. There are a few additional steps while using Coinbase Pro, but it is not too different or difficult than the standard version you may be already used to.
If you are looking to save on fees, go for Coinbase pro.