Coinbase, Coinbase Pro and Coinbase Prime — Explained
Numerous people across the globe have heard about Cryptocurrency and its usefulness, and many of this number have grown curious and are ready to explore the cryptocurrency world. One of the popular crypto exchange platforms to explore with is Coinbase. It is one of the most famous decentralized finance platforms with over a million users. It is known for its user-friendliness and easy-to-use interface.
These features made it popular among cryptocurrency users.
Coinbase is a Decentralized exchange platform (DeX), a marketplace for cryptocurrencies including both stable coins and NTFs which are yet to be launched.
It seems everyone is enthusiastic about the launch:
Although there are limitations to the supported coins on this DeX, it supports most of the well-known coins.
Are Coinbase, Coinbase Pro and Coinbase Prime The Same?
When you hear Coinbase, Coinbase Pro, and Coinbase Prime what crosses your mind? You will probably wonder if it is the same DeX platform or not.
In this article, we will analyze all three for their features, similarities and differences. After, you will hopefully have an in-depth understanding and will no longer confuse them as the same anymore.
Before we delve into the full discussion, you should know that Coinbase, Coinbase Pro and Coinbase Prime are all products of the Coinbase global entity. These platforms are designed to perform varying tasks.
What Is Coinbase?
For cryptocurrency newbies, Coinbase is the best place to start from. It provides you with a decentralized platform with a secured and understandable interface. With it, you can trade and save your cryptocurrencies like dogecoin, bitcoin, Ethereum, Litecoin, etc.
Coinbase was launched on June 20, 2012, in San Francisco, California by Brian Armstrong, the founder, and Emilie Choi, the COO. For the first half of 2021, Coinbase’s revenue surged to $4.03 billion compared to its 2020 cumulative which was $1.14 billion.
In addition, the company recorded a profit of $2.36 billion in the 1st Quarter of 2021 which is currently being affected by the surge in bitcoin price. At the moment it has 56 million users and 8.8 million monthly active users. Coinbase is also available in 100 countries in partnership with 115, 000 ecosystem partners.
As a newbie, it has all the features you need to maximally explore the cryptocurrency world safely. There are 90 coins on this DeX platform. Some of which are dogecoin, bitcoin, Aave, Litcoin, Ethereum, Solana, etc. Its users demand new additions regularly but it seems they won’t be getting any soon.
Here are some other reasons for considering Coinbase:
● It has a user-friendly interface that can make the buying and selling of cryptocurrencies easy.
● It has a secured network with a two-way verification process for extra security.
● It provides you with a free transfer of cryptocurrencies across wallets on the Coinbase platform.
● It provides you with all you need to launch your career in decentralized finance. E.g. a wallet, and exchange and merchant tools.
Cons of Coinbase
● It has high transaction fees. Coinbase has a transaction fee of 0.50% per trade and an additional 1.49% when you make a purchase via bank account or Coinbase Wallet purchases.
● It has less privacy. Coinbase can keep records of how users spend their cryptocurrency defeating the purpose of a DeFi system. It was due to this policy that they were able to release their users’ information to the IRS in the USA.
● It does not make coins readily available for users on demand. Many customers have made complaints about the unavailability of coins on demand.
● It also lacks advanced trading features which restrict it to newbies only.
You can visit the Coinbase platform to get started. The process of account creation is easy and straightforward.
What Is Coinbase Pro?
As you become experienced in the cryptocurrency world, either as an investor or a trader, you will realize you want more. You want to explore the other larger market pool and Coinbase will no longer satisfy your demands. It is at this point that Coinbase Pro sets in. It provides the traders with advanced features and substitutes its user-friendly interface for a complex one. Originally, it was founded as Global Digital Asset Exchange (GDAX) in 2006. After some time, it was renamed Coinbase Pro.
Why Coinbase Pro?
Compared to Coinbase, it has 108 coins on its DeX platform. Other reasons you can consider Coinbase pro is as follows:
● The Coinbase Pro platform has trading features such as limit and stop order, and also time in force.
● It allows its users to trade cryptocurrencies, deposit and withdraw into another exchange.
● It allows users to be able to integrate a third-party app by giving them access to their API keys.
● Its transaction fees are much better. It charges a 15% Maker fee and a 25% Taker fee. In addition, it charges 0%-0.50% purchase and trading fees, a $10 wire transfer deposit fee, and a $25 wire transfer withdrawal fee.
● Its traders can make use of credit or debit cards to make deposits or withdrawals.
Cons of Coinbase Pro
● It permits centralized exchange.
● Currently, the number of pairs remains low. It has 322 pairings which are low for its 108 coins.
● The user must have undergone personal verification before gaining access to the platform.
What is Coinbase prime?
Coinbase Prime is basically a set of trading tools for cryptocurrency enthusiasts to make headways in the crypto world. The platform is designed for institutions. Mostly, trading desk managers who are tasked with managing their company fund, assets or the net worth of some individuals.
Why Coinbase Prime?
Coinbase Prime provides solutions to every industry, investor, businessman, brokerage, banking industry, high net worth individuals, etc, looking to expand their assets or net worth by providing them with the following:
● It provides your digital crypto with security at cold storage locations which is maintained by Coinbase Custody.
● It provides investors, businessmen, etc, with access to a diversified liquidity pool that comprises Coinbase products like Coinbase and GDAX.
● It comes with OTC trading, algorithmic orders, margin finance, and an advanced market data product.
● It provides a feature where investors can buy and sell shares in the stock market.
Cons of Coinbase prime
● Its features are very favourable to investors, industries, financial institutions, brokerage, etc.
You can visit the Coinbase Prime platform to get started.
Based on your need, you can decide which is best for you: if it is Coinbase, Coinbase Pro or Coinbase Prime. All products of Coinbase from Coinbase Global Entity have high security and scalability.