Coinbase vs Coinbase Pro: What to Choose?

23 January 2024

Coinbase, the largest cryptocurrency exchange in America, has been making headlines recently due to the approval of spot Bitcoin ETFs in the U.S. by the Securities and Exchange Commission (SEC). The majority of ETF issuers will be relying on Coinbase for various services such as custodial, trading, and lending.

This speaks of Coinbase as a reliable and trustworthy platform for digital asset management trusted by the most prominent names not only in the crypto industry but also in the traditional financial sector.

However, many may not know that Coinbase has two different platforms to cater to different types of users – Coinbase and Coinbase Pro (Coinbase Advanced). But what sets these two platforms apart? Which one should you choose? In this article, we will compare Coinbase vs Coinbase Pro in terms of features, services offered and target users to help you decide.

Key Takeaways:

Coinbase and Advanced Trade (previously Coinbase Pro) significantly differ in fees and trading features.
Coinbase is recommended for beginners, while Advanced Trade is designed for experienced traders.
Coinbase offers a simple interface with straightforward buying and selling processes. At the same time, Advanced Trade provides advanced charting tools, real-time market data, margin trading and API support for automated trading strategies.
Fees on Coinbase are higher compared to Advanced Trade’s ones.

What is Coinbase?

Coinbase is a leading US-based cryptocurrency exchange founded in 2012. It is known for its user-friendly interface and is often recommended for beginners in the crypto space. It holds the BitLicense, which makes it one of the few crypto exchanges that can operate legally in New York.

Currently, it operates in over 100 countries and has a user base of 100+ million verified users as of 2023. Like other cryptocurrency exchanges, Coinbase provides services 24/7, creating round-the-clock trading opportunities.

One of the main features that sets Coinbase apart from other exchanges is its vast selection of over 8,940 assets to choose from, starting from popular cryptocurrencies such as Bitcoin and Ethereum to lesser-known but highly sought-after tokens like NMR and BLUR.

In addition to its exchange services, Coinbase also offers the Coinbase Wallet to help users securely store their private keys and easily manage their digital assets all in one place. Coinbase Commerce is another offer by the platform, allowing merchants to accept cryptocurrency as payment for goods and services.

To access Coinbase, users can either visit its website or download the Coinbase exchange app from the Apple App Store or Google Play Store.

To get started with Coinbase, users are required to complete an account setup by linking their bank account. This linked account enables them to deposit cash into their Coinbase account or withdraw their crypto as cash within a matter of minutes.

Key Features of Coinbase Simple Trade

User-Friendly Interface: Coinbase is designed to be easy to navigate, making it accessible for beginners. The platform offers a simple and intuitive way to buy, sell, and store cryptocurrencies.
Regulatory Compliance: Coinbase complies with various regulations, making it a safe and trusted exchange. It is registered with the Financial Crimes Enforcement Network (FinCEN) in the United States and follows Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Security Measures: Coinbase prioritizes the security of user funds. It stores 98% of customer assets in offline cold storage, protecting them from potential hacks or breaches. Additionally, Coinbase offers insurance coverage for digital assets held on the platform.
Wide Selection of Cryptocurrencies: Coinbase supports a broad range of cryptocurrencies. It regularly adds new coins to its platform to provide users with more options.
Mobile App: Coinbase offers a mobile app for iOS and Android devices, allowing users to manage their crypto portfolio on the go.

What is Coinbase Pro?

Coinbase Pro is the advanced trading platform launched by Coinbase in 2018. It was designed for experienced traders to conduct technical analysis and place trades through direct interaction with the Coinbase Exchange order book. The platform offers advanced charting tools, real-time market data, and a wide range of crypto trading pairs.

While Coinbase owns Coinbase Pro, the latter operates as a separate platform with its own features and functionalities. It is important to note that Coinbase Pro is being phased out and replaced by a new platform called Coinbase Advanced Trade.

Replacing Coinbase Pro with Coinbase Advanced

In 2022, Coinbase announced its plans to discontinue its Pro platform and substitute it with Advanced Trade. The new platform offers all the features of Coinbase Pro but with an upgraded interface and seamless user experience.

In the case of Coinbase Pro, users previously had to use the same account but switch to a different platform. This meant that if someone was trading on Coinbase and wanted to try out Coinbase Pro, they had to navigate to another website and transfer funds from the central platform to Pro. In contrast, Coinbase Advanced Trade offers crypto investors access to two different interfaces within a single platform, with all the necessary information stored in one place.

Advanced Trade represents a significant improvement over Coinbase Pro. Compared to the old Pro platform, the new one is equipped with even more advanced technical analysis tools, real-time order books powered by TradingView, and improved order flow for faster execution of trades.

According to Coinbase, new clients can no longer sign up for Coinbase Pro. Current Pro users can continue using the platform but are encouraged to switch to Coinbase Advanced. Still, the Pro version of the exchange is available as of the time of writing.

Key Features of Coinbase Pro / Advanced Trade

Advanced Trading Interface: The advanced version provides a more robust and customizable trading platform than basic Coinbase. It has advanced charting tools, real-time market data, and order types for traders to execute their strategies.
Lower Trading Fees: Coinbase Pro charges significantly lower trading fees compared to the simple version. The fee structure is based on a tiered system, where fees decrease as trading volume increases.
API Support: The advanced platform offers a rich API that allows users to integrate their trading strategies with third-party applications. This enables automated trading, advanced analytics, and portfolio management.
Margin Trading: Coinbase Pro allows users to trade on margin, providing the option to borrow funds and increase their buying power. Margin trading can amplify potential gains but also carries higher risk, so it’s suitable for experienced traders.

Coinbase vs Coinbase Pro: A Comparison

Now that we have explored the features of Coinbase and Coinbase Advanced, let’s compare them in various aspects to help you decide which exchange is suitable for you.

User Experience

Coinbase is designed to be user-friendly and accessible to beginners and has an intuitive interface that makes it easy to navigate and understand. Coinbase offers a simple buying and selling process with just one “Buy & Sell” button without special complex trading features. The platform provides educational resources to help users learn about cryptocurrency fundamentals.

On the other hand, Advanced Trade caters to experienced traders who are comfortable with a more sophisticated trading interface. It offers a wide range of trading tools and features, including advanced charting and order types. However, the platform may have a steeper learning curve.

Fees and Trading Costs

One of the significant differences between basic Coinbase and Advanced Trade is the fee structure. Coinbase charges higher fees than the Pro version, especially for simple buys and sells using credit or debit cards. The fees on Coinbase range from 1.49% to 3.99%, depending on the payment method used.

Coinbase Simple Trade charges a flat fee based on the transaction amount, while Advanced Trade’s fees vary depending on the 30-day trailing volume. For makers, the maximum fee is 0.4%, and for takers, it is 0.6%.

Moreover, unlike Coinbase Pro, Advanced Trade allows users to earn rewards of up to 6% APY on selected cryptocurrencies such as USDC and ETH.

Trading Features and Tools

Coinbase offers basic trading features such as market orders and limit orders. However, it does not provide advanced trading tools like stop orders or margin trading. Coinbase is suitable for users who want a hassle-free way to buy, sell, and store cryptocurrencies without getting into complex trading strategies.

Advanced Trade, on the other hand, offers a wide range of advanced trading features, such as a trading interface with advanced charting, technical analysis tools, and multiple order types. The platform also supports margin trading, allowing users to trade with borrowed funds. These features make Advanced Trade suitable for experienced traders who want more control and flexibility in executing their trading strategies.

Liquidity and Market Depth

Coinbase and Advanced Trade offer access to deep liquidity pools, ensuring users can execute trades efficiently. Both versions have access to over 240+ assets for trading, leading to more than 550+ unique trading pairs. All the popular cryptocurrencies, such as BTC, SOL, DOT or XRP, are supported. However, the availability of specific coins may vary depending on your location.

Security and Regulation

Both Coinbase and Advanced Trade prioritize the security of user funds. They employ robust security measures, including storing the majority of customer assets in offline cold storage and two-factor authentication. This safeguards user funds from potential hacks or breaches. Additionally, both exchanges comply with regulatory requirements, including KYC and AML procedures.

Coinbase offers insurance coverage for digital assets held on its platform, providing users an extra layer of protection. It is also registered with the Financial Crimes Enforcement Network (FinCEN) in the United States. Advanced Trade shares the same security practices as Coinbase, ensuring the safety of user funds.

Customer Support

Coinbase provides customer support via email and phone, ensuring prompt responses. Users have reported satisfactory resolution times, with the support team typically addressing tickets within 24-48 hours. The dedicated support team will help regardless of whether you use Coinbase or Advanced Trade.

Let’s wrap up our comparison with a summary of the pros and cons of both platforms:

Pros and Cons of Using Coinbase

Pros:

User-friendly interface, suitable for beginners
High level of security and regulatory compliance
Wide range of supported crypto assets
Ease of buying and selling with fiat currency
Educational resources for learning about cryptocurrencies

Cons:

Higher fees compared to Advanced Platform
Limited trading features and tools

Pros and Cons of Using Advanced Trade

Pros:

Lower trading fees compared to Coinbase
Advanced trading tools and charting capabilities
Wide range of supported cryptocurrencies
Robust API for integration with third-party applications
Strong security measures to protect user funds

Cons:

A steeper learning curve, not as user-friendly for beginners
Higher minimum deposit requirements for certain features

Coinbase Pro vs Coinbase: Which One Is Better for You?

If you are an experienced day trader with high trading volumes, Coinbase Advanced may be your better choice. Its advanced interface and trading options make it the perfect platform for executing complex or multiple trades.

However, if you are a beginner or a long-term investor who needs a user-friendly platform with simpler trade orders, then a basic version of Coinbase is the way to go. This option is perfect for those still learning the ropes of crypto investing.

If neither of these options fully meets your requirements, there are other Coinbase alternatives available that may better suit your needs. Check out our list of the best cryptocurrency exchanges for 2024 to find the perfect platform for your trading preferences.

FAQs

How do I move from Coinbase Pro to Advanced Trade?

To move your funds from Coinbase Pro to Advanced Trade on Coinbase.com, please follow these steps:

1. Cancel all open orders before initiating the transfer. This will ensure that the respective funds are included in the transfer.

2. Sign in to your Coinbase Pro account.

3. Click on “Transfer Funds” from the banner at the top of the page. Alternatively, you can access your portfolios and select “Withdraw” to initiate the transfer.

4. Choose “All Portfolios” to transfer all of your funds to Coinbase.com.

5. Your 30-day trailing volume on Coinbase Pro will also be transferred to Advanced Trade on Coinbase.com at the time of the transfer.

6. Once the transfer is complete, your funds will be available for immediate trading.

Is Coinbase Advanced the same as Coinbase Pro?

In 2022, Coinbase announced that it would be phasing out its Pro platform and replacing it with Advanced Trade. The new platform offers all the features of Coinbase Pro but with an upgraded interface and seamless user experience. Also, Advanced Trade gives users additional features, such as earning rewards in the form of up to 6% APY on select cryptocurrencies like USDC and ETH.

Is Coinbase cheaper than Binance?

Binance fees are generally lower than Coinbase’s rates. For example, the biggest crypto exchange in the world charges no fee for crypto conversions, while Coinbase has a 1% minimum fee on all cryptocurrency transactions that include conversion. Regarding trading fees, Binance offers a range of 0%-0.6%, while Coinbase’s primary platform has variable ones (Advanced Trade also charges 0%-0.60%).

Additionally, Binance users can lower their fees by purchasing BNB tokens and using them to pay for fees, which offers a 25% discount. High-volume traders on Binance also have the opportunity to receive VIP discounts.