In this Coinbase Pro Review, I will explain how to make these savings when buying Bitcoin. Plus, how to deposit, buy with a market and a limit order, the difference between a limit or a stop-limit order, and how to sell and withdraw.
Coinbase Pro is an advanced cryptocurrency trading platform from the popular US-based cryptocurrency exchange Coinbase. If you were lucky enough to have already purchased Bitcoin or Ethereum, it’s likely you have used Coinbase. Coinbase is normally the gateway for newbies to buy their first crypto assets.
However, purchasing the likes of Bitcoin on Coinbase (although very quick and simple) is not the most cost-effective way. By using Coinbase Pro, you can buy Bitcoin, Ethereum, etc., at a better price and reduce the trading fees to between 0% and 0.5%.
Coinbase Pro Review: How to use Coinbase Pro?
What is Coinbase Pro?
Coinbase Pro is a trading platform offering its users a secure way to buy, sell, and trade cryptocurrencies across 99+ trading pairs. Created back in 2015, Coinbase Pro is an evolution of the trading platform GDAX, which was rebranded to Coinbase Pro in 2018.
You can track the market and trade history and monitor open orders. One of the many benefits of using Coinbase Pro as opposed to Coinbase is the fact that the fees are greatly reduced to as low as 0%. Coinbase Pro also allows you to place a buy or sell order, so you can simply wait for the market to reach that price as opposed to taking the price at the current market value.
“Later this year, we’ll begin sunsetting Coinbase Pro to migrate all advanced trading into one unified Coinbase account, bringing customers access to popular features like staking, Borrow, dapp wallet, and Coinbase Card from a single platform balance.”
Who Can Use Coinbase Pro?
Coinbase Pro is designed for individual traders. Depending on your location, you may have access to crypto/fiat trading pairs or be restricted to crypto/crypto trading pairs only. A full list of locations and trading pairs can be found here.
If you have already had a Coinbase account, you can use the same credentials on Coinbase Pro and you do not need to create separate accounts or logins.
Coinbase Pro vs Coinbase
Both Coinbase and Coinbase Pro offer the ability to buy and sell the likes of Bitcoin and Ethereum. However, traders who are looking for more advanced functionality are advised to use the Coinbase Pro exchange. With Coinbase, you are only able to buy at the market price where fees for the convenience are higher. Whereas Coinbase Pro allows you to define your own price and trading fees are generally lower.
Coinbase Pro Supported Cryptocurrencies
The cryptocurrency’s availability and fees will depend on your country and payment method. See the below list of all supported cryptocurrencies on the Coinbase Pro platform by region.
A list of all available supported cryptocurrencies for both Coinbase and Coinbase Pro can be found on their FAQ.
Coinbase Pro Order Types
With Coinbase Pro, you can create Market, Limit or Stop orders. A “Market” order completes immediately at the current market price. A “Limit” order allows you to define the price you would like to pay for your crypto. Then finally, you have something called a “Stop” order which triggers a buy or sell order when the price hits or dips to a certain value that you will define.
Depending on your trading volume, your order type may affect the trading fees that you will be paying.
Coinbase Pro Fees
Previously, one of the major reasons for using Coinbase Pro over Coinbase was using the Maker trade option. As a Maker of the market (which means placing an order that was not immediately matched by an existing order), you used to pay reduced commission fees. However, this has recently changed and now only really applies to people trading 50K+.
Coinbase Maker & Taker Fees
As a ‘Maker’ of the market, they state, you will pay a fee between 0.00% and 0.50%, depending on your trading volume. As a ‘Taker’ of the market (which means you place an order which is filled immediately), you will pay 0.04% and 0.50%.
However, for trading anything less than $50k, you will pay the same amount in commission fees whether you are a maker or a market taker.
Coinbase Withdrawal Fees
Withdrawal fees with Coinbase Pro will vary on the type of currency that you are withdrawing. Cryptocurrency withdrawals used to be free of charge and absorbed by Coinbase Pro. However, due to the hike in fees on the likes of the Ethereum blockchain, these are not passed on to their users. An estimate of the network fee will be displayed when withdrawing from the platform.
Withdrawal fees may also incur depending on your location or the type of bank transfer.
Is CoinbasePro Safe?
Coinbase is one of the most trusted cryptocurrency platforms for buying and selling crypto. Any digital assets held by Coinbase are secured through a combination of online servers and offline “cold” storage. The platform stores 98% of customer digital currency in cold storage, with the remainder serving as liquidity to the markets.
Coinbase, as well as 3rd party underwriters, provide insurance greater than the amount held by Coinbase. Their insurance is to protect customers from security breaches, hacks, employee theft, or fraudulent transfer. Any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro accounts are not covered. The account holder is responsible for using a strong password and maintaining control of all login details.
Digital currency, such as Bitcoin, Litecoin, and Ethereum, is not subject to Federal Deposit Insurance Corporation (“FDIC”). However, U.S. customer funds that are held as cash are insured by the FDIC with maximum coverage of $250,000 per customer.
Keeping any digital currencies on an exchange is not recommended as you do not have access to your private keys. Therefore you have less control over your funds. If you want to protect your assets, make sure your store them in offline “cold” storage, such as a Ledger or Trezor.
How to Trade on Coinbase Pro
If you’re interested in trading on Coinbase Pro and want to buy your first Bitcoin on the exchange, then use this step-by-step guide. Although the guide shows you purchase Bitcoin, you can use this process for any type of cryptocurrency purchase. The guide explains how to log in, create buy/sell orders, and withdraw from the exchange.
Coinbase Pro Login
With Coinbase Pro, your credentials are automatically transferred across from Coinbase. Therefore you do not need to create a new account or have a separate log in. Plus, all of your security/2 factor authentication settings are also transferred across.
Deposit Funds to Coinbase Pro
To get started with Coinbase Pro, the first thing you need to do is deposit funds into your account. Your account can be funded with digital assets or fiat currency. Some deposits do incur fees; please refer to Coinbase Pro Fees for more information.
Go to ‘Portfolios‘ and select “Deposit“.
Choose your Currency Type.
If you choose to fund from a bank account, it’s important to include the reference number stated on your transfer. This is so that Coinbase can map your bank account and Coinbase Pro account together.
Transfer from Coinbase to Coinbase Pro
If you want to transfer funds from Coinbase to Coinbase Pro, select the Coinbase Account option.
Enter the amount you’d like to deposit or click Max to deposit all available funds.
Funds transferred from Coinbase to Coinbase Pro are fast and free and will take roughly 10 seconds to process.
How to Buy on Coinbase Pro
The below steps will explain how to buy Bitcoin. However, the same process will apply to purchasing other cryptocurrencies.
Select the market to Buy in, i.e. BTC to GBP if purchasing in GBP and Click “Buy.“
If you wish to purchase Bitcoin immediately at the current market value, select the ‘Market‘ tab select the amount, and submit your buy order.
If you wish to purchase Bitcoin at a price you define and wait for someone to match your order, select the ‘Limit’ tab. With a limit order, enter the amount of Bitcoin you would like to purchase (in BTC)
Then, enter the price you would like to Buy at in the Limit field.
You can then view the associated Fees at the bottom of the screen
Click “Place Buy Order“
Your buy order will then appear under Open orders. If the market changes or you simply want to cancel an open order, you can do so by clicking on the X icon beside it.
Once filled, your order will then appear in the ‘Fills‘.
How to Sell on Coinbase Pro
The below steps will explain how to buy Bitcoin. However, the same process will apply to purchasing other cryptocurrencies and fiat currencies.
Select the market, i.e. BTC to GBP & Click “Sell.“
If you wish to sell your Bitcoin immediately at the current market value, select the ‘Market’.
If you wish to sell your Bitcoin at a price you define and wait for someone to match your order, select the ‘Limit‘ tab.
Enter the amount of Bitcoin you would like to sell (in Bitcoin).
Define a price you would like to sell in the ‘Limit‘ field.
Any associated fees and the total will be shown at the bottom of the screen. Click “Place Sell Order“
Once someone has bought at the price you have defined, the order will show in ‘Fills’. You can cancel your order at any time before it has been filled by clicking on the X beside the open order.
Withdraw from Coinbase Pro
You can withdraw digital assets of fiat currency from Coinbase Pro to an external wallet or bank account. Alternatively, funds can be withdrawn to a Coinbase Account or certain bank accounts for free. Withdrawing from Coinbase can incur fees; please see the Coinbase Pro Fees for more information.
Go to ‘Portfolios‘ & click ‘Withdraw.‘
Select the currency type you would like to withdraw. Select ‘Bank account‘ or ‘Coinbase Account.’
Enter the amount you would like to withdraw or click on Max. Click “Withdraw GBP“
Your funds will then withdraw to your allocated account for free.
If this is all too advanced and you haven’t even bought your first digital currency, check out our Coinbase review Tutorial. I go through the process of how you can get started and how to buy and sell Bitcoin. Coinbase allows you to buy crypto with a credit/debit card or via bank transfer. You can now even withdraw to PayPal (in the UK) free of charge!
Here are some of our articles you may also find helpful;
- How to Download Coinbase Transaction History?
- How to Delete a Coinbase Account?
- Coinbase Earn Quiz Answers?
- Coinbase Staking: How to Stake & Earn Rewards on Coinbase?
*After you make a crypto purchase, BTC will be added to your portfolio. Limited time offer. Offer available to new users only. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using the different contact information. Coinbase may update the conditions for eligibility at any time.
“Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.”