Is Coinbase Pro Worth It? Upgrade Is Smart for Active Traders

Investing in cryptocurrencies is becoming more mainstream. Mainstream cryptos like Bitcoin and Ethereum have gained in 2021 along with many altcoins. Amid the broader interest in cryptos, investors have a lot of choices in terms of crypto exchanges. Coinbase is among the world’s largest and most popular cryptocurrency exchanges. The question arises whether to go with Coinbase or Coinbase Pro. Is Coinbase Pro worth it?

Previously, Coinbase’s professional trading platform was called GDAX, which got rebranded to Coinbase Pro in 2018. In many respects, they are the same. Both of them provide access to similar currencies and are regulated exchanges with insurance. However, they do differ in many aspects.

Coinbase versus Coinbase Pro: Fees

The fees on both platforms can differ significantly depending on the types of trades made and volume. Coinbase charges a flat fee of 0.50 percent per transaction. It also charges extra fees based on the account used in the transaction. For example, a U.S. bank account has a fee of 1.49 percent. If you buy with a credit or a debit buy, Coinbase charges you a fee of 3.99 percent.

Since Coinbase has a high fee structure, it isn’t ideal for traders doing active trading. Coinbase Pro’s fees are much lower and are geared towards active traders. It takes maker-taker fees, which means that it gives users a discount for the number of trades performed on the platform. For a transaction of less than $10,000, a 0.50 percent fee is charged, which gets lowered to just 0.04 percent if the transaction is greater than $500 million.

Article continues below advertisement

Source: Coinbase Facebook

Now, the question still remains, is Coinbase Pro is worth it? The answer depends on your needs and your investment and trading style. Coinbase is good for beginners who don’t want to get caught up in the complexities of other things apart from buying and selling. It has in-built tutorial videos, which can come in handy for beginners.

Article continues below advertisement

Coinbase Pro is worth the upgrade for people who are familiar with advanced features and want to have more control with limit, stop, and margin orders. Users with an active trading routine should choose Coinbase Pro since you can save a lot of money on fees using it compared to Coinbase.

While Coinbase and Coinbase Pro might differ in a lot of respects, they both offer similar security options like built-in wallets, two-factor authentication, cold storage, and crypto-wallets.

In addition to Coinbase Pro, there are many other alternative platforms that crypto traders and investors can consider, including Binance, Kraken, Bithumb, and Robinhood crypto.


Be the first to comment

Leave a Reply

Your email address will not be published.


*