Trading and Investing

Coinbase Vs Coinbase Pro: Is The Upgrade Worth It?

Published
July 27, 2021
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    In the world of cryptocurrency, Coinbase and Coinbase Pro have gained immense name and fame. Coinbase acts as a stepping stone for beginners owing to its simplicity, ease of use, and security whereas Coinbase Pro caters to the needs of professional traders. Even though both platforms allow you to buy and sell cryptocurrency, they both go about it in different ways.

    In this article, we'll learn the differences between Coinbase Vs Coinbase Pro and explore whether or not the premium version is worth the upgrade.

    Coinbase

    Founded in June 2012, Coinbase offers its users an online cryptocurrency exchange to buy, sell, send, or receive up to 56 different currencies, such as Bitcoin, Ethereum, and the likes. For someone who is new to the crypto world, Coinbase is an amazing starting point. Its simplicity offers the best on-ramp for beginners.

    Coinbase doesn't charge a fee for signing up for an account. But it must be noted that there are other fees involved, such as funding using a credit card, trade fees, and a fee for accessing the Coinbase wallet.

    Pros

    • Perfect for newbies in the cryptocurrency world
    • Live price alerts along with a watchlist
    • Use debit or credit cards to buy and sell
    • Use PayPal for withdrawals
    • Cold storage accessed by two-factor authentication
    • Availability in a long list of countries

    Cons

    • Higher and more complex fees than most cryptocurrency exchanges
    • Insecure private keys
    • Minimum types of trading allowed
    • Tracks the spending of cryptocurrency

    Coinbase Pro

    Coinbase Pro is the premium version of Coinbase. It has been built for more experienced traders and investors by taking transactions to the next level. Similar to Coinbase, it offers users the buying, selling, receiving, and conversion of transactions, but with additional features.

    Instead of charging fees based on the payment type, as Coinbase does, Coinbase Pro uses a maker-taker fee model. A maker-taker fee, also known as payment for order flow, is a fee that depends on the kind of buyer and seller you are. It is calculated in percentage and decreases as the trade volume increases over the past 30 days period.

    Pros

    • More advanced trading options with user-friendly charts
    • Simple and low fee structure
    • Cold storage with two-factor authentication
    • Added trade choices including stop and limit orders

    Cons

    • Not beginners' friendly
    • Fees are higher compared to other platforms
    • Limited chart overlays and indicators
    • Absence of mobile app
    • Insecure private keys

    Coinbase Vs Coinbase Pro: Comparison

    Coinbase and Coinbase Pro are the two most well-known names among the best cryptocurrency exchanges. Even though both platforms have some common features like accessibility, mobile application, and digital wallets, they are unique in many ways. The premium version, Coinbase Pro offers more types of transactions and charges much lower fees and is perfect for active traders. Whereas on the other hand, Coinbase is designed for new crypto users but charges higher fees.

    Coinbase Vs Coinbase Pro: Ease Of Use

    Both Coinbase and Coinbase Pro have all of their features available on a web browser. Also, they come with a user-friendly mobile app on both Android and iOS.

    Coinbase has a pretty simple sign-up and verification process. After signing up, you can connect your bank account or credit card to instantly begin your crypto purchases. On the other hand, the user interface of Coinbase Pro might seem a little intimidating at first. This is because, unlike Coinbase, Coinbase Pro is designed for advanced traders and investors who require additional features. So, Coinbase Pro might seem a little intimidating for beginners.

    Coinbase Vs Coinbase Pro: Fees

    To understand the fee structure of the platforms, it's essential to know how Coinbase and Coinbase Pro work. Coinbase and Coinbase charge their users differently, Coinbase being the more expensive of the two. Considering market fluctuations, the flat fee of Coinbase is around 0.50% per transaction. Apart from that it also charges extra fees depending on the type of account used for the transaction. For example, it will charge 1.49% for a U.S. bank account and Coinbase USD wallet, and charge as high as 3.99% on credit or debit card transactions.

    A summary of Coinbase's fee based on the type of account is shown below

    Type of account Fees Charged
    U.S. Bank Account 1.49%
    Coinbase Wallet/ Coinbase USD Wallet 1.49%
    Debit Card/ Credit Card 3.99%
    USD Deposit Free
    Wire Transfer $10 ($25 outgoing)
    ACH Transfer Free
    Instant Card Withdrawal Up to 1.5% of any transaction and a minimum fee of $0.55


    Coinbase Pro has adopted the maker-taker fee method and thus charges less. This is because Coinbase Pro uses tiers, with more or higher dollar transactions coming with lower costs.

    Transaction Taker Fee Maker Fee
    Less than $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 million 0.20% 0.10%


    Keeping its fee structure in mind, Coinbase is considered best for buy-and-hold investors who hold on to an investment after purchasing the currency. Coinbase Pro on the other hand is geared more towards professional trading and offers them a lower fee.

    Coinbase Vs Coinbase Pro: Supported Currencies

    Both Coinbase and Coinbase Pro offer the buying, selling, and trading of 40+ cryptocurrencies and support fiat currencies like British Pound Sterling (GBP), and Euro (EUR), and US Dollar (USD). Both the platforms include most of the popular cryptocurrencies, except the fact that Coinbase Pro supports Loom Network (LOOM), Golem (GNT), MATIC, SKALE, and SUSHI but doesn't offer Bitcoin Satoshi Vision (BSV). Conversely, Coinbase offers BSV, but LOOM and GNT aren't supported.

    The most popular cryptocurrencies included in both the platforms are:

    • Aave (AAVE)
    • Bitcoin Cash (BCH)
    • Cardano (ADA)
    • Ethereum (ETH)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Stellar Lumens (XLM)
    • Uniswap (UNI)

     The large collection of cryptocurrencies offered by both the Coinbase platforms gives it added value against other exchanges such as Gemini. Despite this, it can't stand in competition with most of the best crypto exchanges like Binance.

    Coinbase Vs Coinbase Pro: Security

    The two platforms offer the same level of high-security features as your login information is connected. The exchange initially adopted an initial public offering or IPO, which, it has announced, is moving towards a direct listing now, but continues to sell stock shares to the masses. In comparison to other exchanges, both Coinbase and Coinbase Pro's security standards are better and more secure.

    Some of the common security features of Coinbase and its premium version are:

    Two Factor Authentication (2FA) & Biometric

    Both the platforms offer a two-factor authentication (2FA) process and Biometric logins. The 2FA process is secure by SMS or Google Authenticator App. The feature is applicable for both login and trading.

    Built-In Crypto Wallet

    Both Coinbase and Coinbase Pro offer digital wallets which use AES-256 encryption for crypto storage. Additionally, they are secured with biometric access controls and an encrypted 12-word recovery phrase shielding your crypto assets.

    If you use Coinbase, you'll not have control over API keys, and must use the built-in wallet. However, Coinbase Pro offers compatibility with external wallets where you can store your private key on a hardware digital wallet.

    Cryptocurrency Vaults & Cold Storage

    In order to stay away from the eyes of online hackers, both the Coinbase platforms store 98% of their digital assets away from the internet in secured cold storage. Furthermore, an added layer of protection with crypto vaults can help prevent unauthorized withdrawals. These crypto vaults can be time-locked and need to be set up with the approval of multiple users. As a result, any withdrawal request can be canceled in case the approval time exceeds 24 hours.

    Coinbase Vs Coinbase Pro: Other Features

    On the basic level, both platforms allow users to buy and sell crypto very easily. However, they cater to the different needs of the various types of users it is designed for. A few common features of both the platforms are:

    • Accessibility: The functions of both platforms are available in 100+ countries with some restrictions. For example, you won't be able to sell on the platform in Mexico if you're a resident of Hawaii.
    • Coinbase Wallet: Coinbase provides a digital wallet that supports multiple coins and lets you earn crypto. Also, you don’t need to be a Coinbase user to access the crypto wallet.
    • Mobile Application: Both the accounts have iOS and Android apps which have pretty decent ratings. They offer a user experience that is similar to their web browser.
    • User education: Coinbase is designed specifically for beginners and thus both Coinbase and Coinbase Pro have a series of video tutorials and guides packed with updates from the market and how-to articles.

     However, some features are limited to just Coinbase and  Coinbase Pro. Let's take a look at them:

    Coinbase

    • Byte-sized educational videos and small bonus rewards
    • Updated current events, articles from around the web, and breaking news on the crypto space
    • Watchlist of cryptocurrencies with price alerts on big swings

    Coinbase Pro

    • Giving multiple trade options
    • Setting sell price for limiting the losses
    • Advanced charting views, like viewing the moving averages and minute-by-minute trading for each cryptocurrency
    • Multiple overlays for 12 and 26 days exponential moving averages (EMA)
    • Access to API keys using which you can integrate your Coinbase account with multiple third-party apps

    Final Verdict: Coinbase Vs Coinbase Pro?

    Now that we've learned all about Coinbase Vs Coinbase Pro, it'll be easier to understand if upgrading to the premium version is worth it. Both the platforms give you access to similar currencies, parting a few, and are regulated exchanges with insurance, and offer highly secured storage of your digital assets.

    If you're beginning your trading journey, Coinbase is the right fit for you and if you're an experienced day trader, upgrading to Coinbase Pro will give you many added advantages, such as viewing advanced charting and live updates. These features might seem a little imposing for first-time traders.

    Coinbase Vs Coinbase Pro FAQs

    1. What is the difference between Coinbase and Coinbase pro?

    In order to understand the fee structure of the platforms, it's essential to know how Coinbase and Coinbase Pro work. Coinbase and Coinbase charge their users differently, Coinbase being the more expensive of the two. Considering market fluctuations the flat fee of Coinbase is around 0.50% per transaction. Apart from that it also charges extra fees depending on the type of account used for the transaction. For example, it will charge 1.49% for a U.S. bank account and Coinbase USD wallet, and charge as high as 3.99% on credit or debit card transactions.

    2. Is Coinbase Pro as safe as Coinbase?

    The two platforms offer the same level of high-security features as your login information is connected. The exchange initially adopted an initial public offering or IPO, which, it has announced, is moving towards a direct listing now, but continues to sell stock shares to the masses. In comparison to other exchanges, both Coinbase and Coinbase Pro's security standards are better and more secure.

    3. Can I use a Coinbase account for Coinbase pro?

    Yes, your Coinbase account can be used to access Coinbase Pro as they use the same login settings.


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