Coinbase or Coinbase Pro? Which service you should use (2021)

January 08, 2021

You’ve heard about Coinbase and Coinbase Pro, which one should you use to buy your crypto?

TLDR: Coinbase Pro charges less fees so you should use Coinbase Pro to make crypto buys and sells

What is the difference between Coinbase and Coinbase Pro?

Coinbase and Coinbase Pro are two separate platforms operated by the same company(Coinbase). Coinbase is a platforms designed for retail investors, who are looking to buy crypto in the easiest way possible. Coinbase Pro is a platform geared towards more advanced traders.

What are the fees on Coinbase?

As per their website link:

Coinbase charges a spread of about one-half of one percent (0.50%) for cryptocurrency purchases and cryptocurrency sales. However, the actual spread may be higher or lower due to market fluctuations in the price of cryptocurrency on Coinbase Pro between the time we quote a price and the time when the order executes. We also charge a Coinbase Fee (in addition to the spread), which is the greater of (a) a flat fee or (b) a variable percentage fee determined by region, product feature, and payment type.

Basically this means that Coinbase adds about 0.5% of the order amount and an additional Coinbase fee to your order.

Here is an example of a $1000 BTC buy on Coinbase:

Buying on Coinbase

Notice the fee is $14.68.

What are the fees on Coinbase Pro

Coinbase Pro uses a maker-taker fee model. When you buy crypto, you are a taker, since you are “taking” crypto from the pool of crypto that is for sale. When you sell crypto, you are a maker, as you are “making” crypto available to be bought.

For most people, the fee will be 0.5%. If you transact higher amounts (> $10K USD), the fees will be less. You can find the full details on the fees here.

Here is an example of a $1000 BTC buy on Coinbase Pro:

Buying on Coinbase Pro

Notice the fee is $5, which is 0.5% of the the order amount, $1000. This is significantly less than the order for the same amount on Coinbase above.

Conclusion

You can purchase crypto with much lower fees on Coinbase Pro than on Coinbase.

If you haven’t signed up for Coinbase yet, you can sign up here

Extras

What are the fees from transferring crypto from Coinbase/Coinbase Pro to a hardware wallet?

You pay the crypto network transaction fee in this case. Each cryptocurrency (usually) has transaction fees whenever a transaction happens on the network. For example, if you were to send BTC from Coinbase to your wallet, this is done via a transaction on the Bitcoin network which requires a fee. This fee is what you’ll pay to Coinbase when you make the transfer.

You can find more details regarding this here


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