Coinbase Pro Review: What You Need to be Aware of

Over the past handful of years, interest in virtual currencies has exploded in popularity. And it's little wonder why. As of May 2020, the crypto market cap reached a value of $265.55 billion.

By 2023, expect this number to jump by another $23.3 billion. Bitcoin alone makes up $6 billion of daily online transactions!

As for cryptocurrency users? You'll now find more than 40 million active participants. 

As you can see, there's significant money to be made in cryptos today. For this reason, the number of crypto platforms has exploded in recent years.

How do you know which one's right for you? Read our Coinbase Pro review, highlighting one of the most popular platforms.

What Is Coinbase Pro?

If you've ever heard of the GDAX, then you already have some familiarity with Coinbase Pro. Why? Because from 2015 to 2018, that was Coinbase Pro's original name.

Today, this cryptocurrency exchange offers services worldwide, including Canada, the United States, Spain, and Portugal. Currently, the platform has more than 40 pairs to exchange.

It's safe to say that Coinbase Pro is currently ranked as one of the most trusted crypto exchanges on the market. No wonder so many mid-level to advanced investors and traders rely on it.

In this article, we'll discuss some of the platform's most compelling features. These include factors such as robust insurance protections and global availability.

History of Coinbase Pro

Founded in 2011 by Brian Armstrong, a former Airbnb engineer, Coinbase is headquartered in San Francisco, California. In 2015, Coinbase launched its global digital exchange (GDAX). In May of 2018, Coinbase officially changed GDAX's personal branding to Coinbase Pro.

Benefiting from its association with Coinbase, a reputable brokerage, the rebranded GDAX platform rapidly expanded in popularity.

Coinbase Pro soon introduced a new interface with features such as protocol voting and staking. It also offered easier withdrawal and deposit processes. 

Coinbase and Coinbase Pro have never been hacked as platforms. But significantly sized accounts have gotten targeted over time. Coinbase Pro also has a history of noteworthy flash crashes. 

Coinbase Pro Flash Crashes

In June 2017, the platform saw a flash crash of Ethereum (ETH). During this event, Ethereum briefly declined from $319 USD to $0.10 USD at its lowest. 

This moment proved a sobering moment for investors, making them take a hard look at the platform's security. Some users felt outraged.

They accused the company of failing to set up proper controls. This flash crash proved a painful lesson for the platform but one from which it recovered. 

What caused this steep decline in pricing? Users felt suspicious that the decrease occurred as a result of illegal market manipulation by the platform.

But Coinbase Pro's Vice President Adam White argued that a multimillion-dollar sell order of Ethereum to USD brought prices down to $224. Unfortunately, this trend caused consumers to panic, resulting in 800 stop-loss orders. 

These stop-loss orders pushed Ethereum to drop even lower to $0.10 USD. Although Coinbase Pro listed these trades as final, the platform later refunded consumer losses. Total compensation totalled $9.47 million USD. 

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Other Incidents You Need to Know About

What have other flash crashes looked like? In December 2018, Ethereum fell from approximately $100 to $13 USD. What's more, in October 2019, Bitcoin dropped from $9,260 to $9,055 USD.

How do you avoid a similar situation? First of all, understand that Coinbase Pro has implemented many vital security measures as a result of these historical issues. Of course, you must stay aware of past incidents before investing in this platform.

We'll touch more on the issues later. But before we delve more deeply into issues such as security, let's take a look at the steps necessary to create an account. 

How to Get Started on Coinbase Pro

How do you get started on Coinbase Pro? First, create an account by visiting Coinbase Pro's official website. Once there, click on the top left "Sign Up" button.

Head to the registration page where you'll enter your username, your email address, and a password with a minimum of eight characters. After you've completed the form, look for a confirmation email, and follow the prompt to verify your address.

After you've confirmed your email address, you'll also need to enter your phone number so that you can verify it via SMS. Depending on your geographic location, you may be prompted to provide additional personal information. 

Are you already registered with Coinbase, the simplified version of Coinbase Pro's platform? Then, you're in luck. You can use your current login information to create a Coinbase Pro account and then link it to your Coinbase account. 

After you've created an account, click on the "login" option in the upper right-hand corner of your screen. Enter your password and username. You'll do this every time you log into the platform. 

Coinbase Pro: Features and Services

What do you need to know about the features and services that Coinbase Pro provides? Consider the following as you decide whether Coinbase Pro is right for you:

• Fees

• API

• Security

• Interface and use

• Referral program

Let's take a closer look at each of these areas so that you have a better understanding of what it's like to transact using Coinbase Pro. 

Fees 

Coinbase Pro charges fees based on makers and takers. What qualifies you as a maker? When you place an order that gets immediately matched by an existing order and put in the order book, you're the maker. 

But if you place an order that only gets partially matched, you must pay a taker fee on that portion. 

As a taker, you'll pay a commission, ranging from 0.04 to 0.5 percent. If you're a maker, you'll pay between 0 and 0.5 percent in fees. To know where you fall within these fee ranges, you'll also need to understand the company's pricing tiers. 

For example, you'll pay a taker fee of 0.5 percent for transactions up to $10,000 but only 0.04 percent for transactions of $1 billion or more. As for maker fees, you'll pay 0.50 percent for the lowest pricing tier and 0 percent for the highest pricing tier. 

Would you like a more in-depth look at fee breakdowns for the platform? Check out Coinbase Pro's fee structure. 

API

What are some of the other perks associated with Coinbase Pro? For starters, you can work with the exchange using third-party applications.

How? The API permits you to align the reception of information about orders, history of operations of the site, prices, withdrawals, and more.

Security

One of the top questions that people have about Coinbase Pro deals with its security features. How are the funds deposited in accounts protected? The platform relies on the following safeguards:

• Two-step verification

• SSL encryption

• Cold storage of 98 percent funds

• Insured funds for up to $250,000 per user

These security features will provide you with added peace of mind. After all, it's ultimately up to you to protect the funds you place in a crypto wallet.

In the case of Coinbase Pro, users must create their own secure passwords. They must store them offline, and they must activate the second authentication factor to enjoy the highest levels of security. 

Interface and Use

When you create an account and gain access to Coinbase Pro's interface, you'll find various functionalities. These can be divided into the following spaces:

• Wallet balance

• Order form

• Order book

• Price chart

• Open orders

• Trade history

Here's what you need to know about Coinbase Pro's interface and how you can use each of these options. 

Wallet Balance  

What's the first thing you need to pay attention to? The wallet balance. This is where you'll see your current crypto balance.

Order Form 

As for the order form, it's where you'll choose to buy or sell, depending on your intended objective. On the order form, you'll introduce your intended operation. 

When looking at the order form, notice that it's divided into three options. These include the market option where you transact (buy and sell) at the market price.

Use this when you'd like the market price adjusted to your needs. It permits you to purchase and sell your assets as rapidly as possible. 

You'll also find the limit option, which permits you to decide the value of your purchase or sale order. Here, you can also cancel an order. The limit option remains one of the most popular choices for novices on the site. 

You'll also see the stop option in the order form area, which permits you to place a stop to avoid losses. This option is used by mid-level to high-level investors. 

Order Book 

The interface contains an order book option. You'll notice that sales orders appear in red at the top and purchase orders get displayed in green right below the sales orders.

You'll see the lowest sales order and highest purchase order in the central area, both of which prove vitally important when buying and selling.

Price Chart 

In the price chart section, you'll find various data points. For example, there's a graph depicting the evolution of prices when it comes to selected pairs. You'll also notice both purchase orders and sales orders located below the volume. 

Open Orders 

When you have an open order, you can keep tabs on it in this section of the interface. What happens if you want to cancel an order? It's as simple as clicking on the "X" located to the right of the screen. 

Trade History 

Last but not least, you'll want to pay attention to the trade history section of the interface. This location is where you'll find your history of purchase orders. Red orders are sales, and green orders are purchases. 

This section of the platform is a handy place to keep track of all of your transactions at a glance. 

What Does a Coinbase Pro Purchase Look Like?

At this point, you may be wondering what purchasing through Coinbase looks like. Imagine you wish to buy Bitcoin using US dollar. To begin, you must trade in the BTC/USD pair. Select this pair in the area above the wallet balance section. 

After you've selected this pair, you'll need to analyze Bitcoin sale and purchase orders, searching for the price most in line with your needs. Next, you'll add your desired price to the limit price section and the amount you'd like to pay in the amount section. 

Then, you'll execute the order by using the place buy order. If the buy order isn't made at the market price, it will remain in the open orders section until executed. 

Coinbase Pro: Pros and Cons

Now you have a better concept of how Coinbase Pro works and which features compel customers to use it. Next, we'll delve more deeply into some of the platform's pros and cons.  

Pros

What are the advantages of using Coinbase Pro as your platform? The pros include:

• Provides great security

• Low commissions

• Has a simple and intuitive interface

• Commissions by referrals

• Good customer service

Coinbase Pro offers a high trading volume and has a world-class, intuitive interface. It has real-time order books, charting tools, trade history, and a simple order process that permits immediate trading. 

When you use this platform, you also gain access to Coinbase Pro's Websocket feed. This feed permits investors to access market data in real-time. The platform's application programming interface (API) also includes the development of highly secure trading bots. 

What's more, the site keeps 98 percent of consumers' funds offline in cold storage. This cold storage includes multi-signature keys and encryptions. Funds are privately insured, and users' USD balances have FDIC insurance up to $250,000 USD. 

Cons

What are the disadvantages of Coinbase Pro? They include:

• A centralized exchange

• The number of pairs currently remains low

• Must have a personal verification to operate

As previously mentioned, Coinbase Pro deals with established coins such as Bitcoin, Ethereum, XRP, and Litecoin. That said, adventurous traders may not feel excited by the platform's limited token offerings. 

But Coinbase Pro remains one of the only digital exchanges that facilitates deposits and withdrawals in fiat currencies such as GBP, EUR, and USD. 

What's another con you must understand? Once upon a time, the platform offered extremely low trading fees. But that has since changed. 

The Latest News From Coinbase Pro

Even before increasing fees, Coinbase Pro adopted a new fee structure. This new structure included a 0.25 percent taker fee and a 0.15 percent maker fee. These fees apply to all accounts traded under $100,000 USD.

Then, in October of the same year, they raised fees as previously mentioned. This updated fee structure saw trading fees based on specific trader tiers.

For $10,000 USD and below, prices went from 0.15 percent to 0.5 percent, marking a 233 percent increase. As for taker fees within this tier? They jumped from 0.25 percent to 0.5 percent, a 100 percent increase.

At the same time, Coinbase Pro dropped trading fees for big traders. How much did these fees go down?

For $1 billion USD, investors saw a 25 percent discount. That meant fees fell from 0.05 percent to 0.04 percent. 

Besides these updates, Coinbase also announced an opportunity for eligible customers in the US to earn 1.25 percent annual percentage yield (APY) rewards on assets held. 

What else has been on the recent horizon for Coinbase Pro? The platform announced that an ERC-20 based token, Orchid (OXT), would debut. It's available for full trading everywhere except from New York State.  

Coinbase's Worldwide Availability

What's another fantastic advantage? Coinbase Pro is available to consumers in more than 100 nations, including:

• Austria

• Belgium

• Denmark

• Finland

• France

• Germany

• Greece

• Ireland

• Netherlands

• Norway

• Poland

• Spain

• Sweden

• Switzerland

• United States

With its global expansion, you'll also be pleased to find out the platform is available in multiple languages. These languages include English, Portuguese, French, Spanish, Italian, German, and Dutch. 

Coinbase Pro Payment Methods

Before you begin transacting on Coinbase Pro, you'll need to make a SEPA transfer or bank transfer. After taking this step towards verifying your bank account, SEPA transfers will usually clear within 24 hours. 

As for ACH bank transfers? They typically require between three to five business days. These transfers are also free. 

What about same-day transfer services? You may avail yourself of these services if you're a Coinbase Pro customer and have USD-denominated order books. On the same day you initiate a transfer, you'll receive your deposit as long as you complete it before 2 pm.

Same-day wire transfers cost $10 USD, and you'll also be on the hook for whatever your banking institute charges for wire transfers. 

Are there any perks if you're already a Coinbase account holder? Yes, you can transfer funds from your Coinbase to your Coinbase Pro account free of charge. These transfers also prove instant.

Coinbase Pro: High Reviews and Rankings

The Coinbase Platform generally ranks high on reviews across the industry. But you must understand that the platform does come with some detractors. 

Chief among these are people mentioning the historic rash of flash crash incidents. For these reasons, the company had to raise its fees, a step that has turned some customers off. 

What does this mean for you as a crypto enthusiast? For starters, you must stay updated on the most current happenings in the crypto world. But this can be a daunting task because of the inherent volatility of the crypto market. 

Fortunately, Coinbase Pro has gone to great lengths to ensure its customer's crypto assets are secure. For these reasons, we recommend it for those in search of a safe exchange with high liquidity and volume. 

Coinbase vs. Coinbase Pro

Think of Coinbase as an excellent platform for newbies and individuals with little experience trading in cryptos. It boasts an intuitive and straightforward platform that'll get you well on your way to investor confidence.

And when it comes to the competition? Coinbase definitely holds its own. For example, check out this comparison of BlockFi vs. Coinbase. 

You'll also want to explore this comprehensive review of Coinbase vs. Binance. Doing this research will help you make the optimal decision about a crypto platform that suits your current financial needs. 

Want to do more research? Find out about the differences between Coinbase and Coinbase Pro. You can also spend some time comparing Coinbase vs. Coinbase Pro fees 2020. 

Once you've garnered some experience with this platform, however, you may start to feel dissatisfied. After all, Coinbase is simple, but that also means it lacks many of the capabilities investors and traders want from their crypto platforms.

Coinbase Pro Review: The Takeaway

What's one of the most valued aspects of Coinbase Pro? It boasts robust security measures and advanced insurance protections. These security measures include two-factor authentication to safeguard users against phishing. 

It also has a white label feature limiting the withdrawals to pre-approved crypto addresses. Coinbase Pro offers extra peace of mind with financial audits and regular IT security.

Coinbase Pro also makes the transition from Coinbase a cinch. Once you do, you'll quickly realize why it's such a trusted and popular platform. Although fees have gone up in recent years, they still fall within an affordable and reasonable range. 

Get More Information About Cryptos

Whether you're new to the crypto world, or you've been around the block a few times, you'll find something to love, whether you stick with Coinbase's simplicity or deep dive into all of the bells and whistles of Coinbase Pro. 

Now that you've finished reading this Coinbase Pro review, are you ready to find out more about blockchain and the crypto market? We've got you covered.

Here's what you need to know about some of the most prominent platforms in the crypto universe, from DeFi to CeFi.