As of 2020, more than 300 cryptocurrency exchanges are available online. Keeping track of which crypto exchange works better than the rest is difficult. To find the best crypto exchange for buying Bitcoin, investors assess each exchange’s financial services in the crypto space. From spot trading and derivatives trading to binary options and prediction betting, only a few crypto exchanges have emerged as the most reliable decentralized exchanges (DEX) for Bitcoin. Coinbase and Coinbase Pro are positioned at the top of this list, helping newcomers as well as professional traders with their user-friendly platforms, robust regulatory compliance, flexible investment options, and advanced security. Read full article to know more about Coinbase services along with fees and more.
Coinbase & Coinbase Pro – Explained
Coinbase is an easy-to-use and well-regulated cryptocurrency exchange. It is a popular DEX platform for buying, selling, and trading Bitcoin and other cryptocurrencies. It is also used for storing crypto money as a cryptocurrency wallet. Coinbase has over 13 million active users, contributing to nearly $150 billion in crypto trades so far. It has a simple user interface and provides basic information with its DEX features. The platform can be used to buy or sell Bitcoin as per the market prices and chargeable fees.
Coinbase Pro is an advanced cryptocurrency exchange designed for crypto professionals and institutional investors. Coinbase Pro offers a wide range of crypto investment information. It can be downright overwhelming for new investors; however, access to ample information improves their chances of successful returns. The platform has several functionalities and charges affordably. Coinbase Pro is currently available in only 42 countries as it is restricted in several regions due to local regulatory non-compliance.
Coinbase, as a corporation, owns Coinbase Pro. Both the exchanges are owned by Coinbase CEO Brian Armstrong. These platforms do not charge investors for signing up. The process of creating user accounts is free in Coinbase and Coinbase Pro. These platforms are primarily used to buy Bitcoin. Besides Bitcoin, both exchanges are used to sell digital currencies in the exchange of fiat currencies.
Coinbase Pro and Coinbase support a wide range of cryptocurrencies. Each provides basic information on every crypto asset. These platforms offer insurance of up to $250,000 coins under the Federal Deposit Insurance Corporation (FDIC) of the United States. Collectively, these crypto exchanges aim to gain global leadership in cryptocurrency adoption.
Main Difference – Coinbase vs. Coinbase Pro
The main difference between Coinbase and Coinbase Pro is that the former is more of a brokerage. Coinbase works more like a brokerage for crypto transactions. It also runs its crypto wallet. Coinbase Pro, on the other hand, is a pure crypto exchange platform. One can buy or sell Bitcoin from Coinbase by using fiat currencies. With Coinbase Pro, the exchange happens between investors, who buy and sell Bitcoin from each other.
Buying Bitcoin on Coinbase Pro over Coinbase?
To buy Bitcoin from Coinbase Pro, there are zero fees involved in the transfers from Coinbase. The migration from Coinbase to Coinbase Pro is instantaneous. Coinbase Pro offers the Deposits options via the mobile app. It is more convenient to manage investment portfolios on Coinbase Pro. The main advantage of buying from Coinbase Pro is its pricing. Coinbase Pro is significantly cheaper than Coinbase. All trades executed on Coinbase Pro are viewed in a unified dashboard. Every Bitcoin purchased on the platform is stored offline with reputable custodians. The order entry interfaces of Coinbase Pro are less attractive, but the platform offers customizable inputs to buy Bitcoin, unlike Coinbase.
While buying Bitcoin, the biggest deciding factor is the security and the transactional fees. In terms of security, Coinbase and Coinbase Pro offer advanced blockchain protection. When it comes down to fees, Coinbase Pro takes the lead by being cheaper than Coinbase. Getting a better deal from Bitcoin trading is quite practical on Coinbase Pro. Most traders, and even newcomers, prefer Coinbase Pro for buying Bitcoin. They consider avoiding high fees as an investment advantage. For traders, Coinbase Pro is one of the most comfortable decentralized cryptocurrency exchanges in the world. Soon, Coinbase Pro is expected to enable managing multiple exchange accounts for the best liquidity.