Entering the world of cryptocurrencies can be an impossible journey when you don’t know where to go. It is a confusing investment opportunity that scares people and that is why many don’t enter the market despite it booming with potential.
Keeping all of this in mind, you will have heard of Coinbase as a leader in the world of cryptocurrencies. This is a heralded company that continues to set the standard as a gateway to buying/selling cryptos.
While Coinbase is great, it offers two platforms under its name – Coinbase and Coinbase Pro.
You will learn more about each platform in this comparison along with what the benefits are. You will also gain insight into which one is the right fit for your needs.
Coinbase vs Coinbase Pro: Key Features and Differences
- Simple Interface
The main feature you’re going to notice with Coinbase is its simple interface. The interface is not going to get in the way of you entering the market and it will be as seamless as possible.
This includes syncing your bank accounts/credit cards to the platform. Everything is as straightforward as it should be for beginners.
The interface lists all of the rates, how to sync your accounts, and what the rates are. All of this information is readily available making it easier than ever before to join in on the fun. Of course, due to the nature of this platform, you are also going to end up paying quite a large fee per transaction.
It is important to keep this in mind as the fees are higher on Coinbase than Coinbase Pro.
- Set Prices
When you log into Coinbase, you are going to see a long list of prices. These prices are up-to-date with what is happening in the crypto market. Remember, the crypto market doesn’t close, so it is going to be changing around the clock, unlike the stock market.
Due to this, you are going to want tangible information without having to deal with confusing data as seen on Coinbase Pro.
For beginners, it is a lot easier to deal with the listed prices that flash on the main screen.
The benefits include:
- Ideal for Beginners
- Easy to Set Up
- Good for Storing Cryptos
These set prices are easy to understand and will let you know how much has to be paid to get your hands on the cryptos you’re after.
This simplicity is a big reason for Coinbase growing in stature and becoming a mainstay in the crypto world. It simply works and that is what you are paying for.
3. Instant Buy Option
Want to keep things as straightforward as possible once you are on Coinbase?
With the “Instant Buy” option, you won’t have to think twice about putting in a limit order or anything else. Instead, you will take your synced account and just make the purchase. This is perfect for those who are going to make larger purchases and want to buy within seconds.
Coinbase and its team have made sure to make the process as seamless as possible. This means you are not going to have to wait around for a long time even if the transaction is a large one.
The limit is set at $10,000 for your daily transactions making it easy to buy a good amount per day.
- Limit and Stop Orders
While Coinbase Pro offers almost all of the features that are available on Coinbase, it kicks things up a few notches for advanced traders that want a bit more.
This includes limit and stop orders on the open market.
You are going to be linked to Coinbase’s trading market, which means you can see what the current prices are. Once you see these prices, you can put in a limit order and wait for it to be filled. This ensures you don’t have to pay the “Instant Buy” fee that you would on Coinbase.
This is critical when it comes to making regular trades and wanting to save as much money as possible. With how the platform is laid out, many traders don’t pay a cent in fees when they are using the platform.
The only time you are going to pay is when you are the “maker” of a trade. This means you set a new price to complete the transaction. If you are a “taker” you just follow the set price and that is why you save on fees.
- Margin Trading Up To 3x
Are you into margin trading and going against the market?
This is only available on Coinbase Pro and is a great way to short the market if you feel it is going to tank in the near future.
You can leverage your funds 3x making it easy to put in a larger investment.
The benefits include:
- Ideal for Shorting the Market
- Leverage Your Funds
- Access to Multiple Markets at Once
This is good for those who are advanced traders and like to see the market from all directions. Otherwise, you can only invest in cryptos through Coinbase, which isn’t as effective if the marketing is trending down.
With the help of COinbase Pro, you can easily move forward with a margin trading strategy and do it will limited fees.
- Crypto-to-Crypto Trading
Coinbase Pro is a platform that is all about expanding your horizons as a trader.
This means you get the opportunity to pursue crypto-to-crypto trading if that is what you wish to do. Instead of having to insert funds into the account, you can use your cryptos in the wallet as a trading option.
This is great for those who prefer dealing with cryptos and don’t want to sync their bank account. Coinbase Pro makes it possible to do this without missing a beat.
Everything is done to not only have access to these types of trades but also other markets. Instead of only one market, you get to trade on different markets through a single platform. This is perfect for traders looking to make a quick profit.
Who Should Consider Coinbase?
Coinbase is perfect for beginners and it is a good entry into the world of cryptocurrencies.
If you are someone that has never done this before and doesn’t know where to begin, it is likely smarter to stick to Coinbase. This is a simple interface that is the face of Coinbase and everything it stands for. Most beginners will want to start here.
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The beauty of this platform is you are going to have a simple list of rates that are routinely updated. This makes it easy to find what you are looking for, sync your bank account/credit card, and make the purchase.
It doesn’t get easier than this!
This is a major plus for those who are just getting their feet wet and don’t want to make mistakes.
Who Should Consider Coinbase Pro?
Coinbase Pro is where you start gaining access to a long list of advanced features such as options trading/margin trading and trading across different markets.
For the average person, these features don’t matter, but for those who are trying to up their game, it will be the only way to go.
If you want access to those features and options trading, Coinbase Pro is the only option in front of you. Otherwise, you are going to be locked out of those features on Coinbase.
Plus, you are going to have the opportunity to save quite a bit of money if you are a regular trader. Those who are going to be trading all the time can easily save on fees to the point where they are charged 0% with limit orders.
This is ideal for those who are regular traders and want to reduce unnecessary expenses that are commonly seen on Coinbase.
- Bank Account Transactions – 1.49% of Transaction Amount
- Debit/Credit Card Transactions – 3.99% of Transaction Amount
2. Coinbase Pro
- Taker or Maker Fees – 0.5% of Transaction Amount
Summary: Final Tips for Deciding Which Version is Best for You
When it comes to deciding between Coinbase and Coinbase Pro, it will depend on what your goals are.
A person that is beginning and doesn’t want to use a complex interface should lean towards Coinbase. It is a straightforward interface that lists the price and allows you to quickly sync your bank account and/or credit card.
With Coinbase, you don’t have to think about anything but for that benefit, you are going to be asked to pay a hefty fee per transaction. This can start to add up if you are going to be making multiple tiny transactions.
To avoid those fees, you should start looking towards Coinbase Pro. Not only are the fees lower, but you are also going to have the option to trade options at 3x leverage. It is these additional features that are a must for intermediate and/or experienced traders.
Look for what works best for your situation and go from there.