The world of cryptocurrency today is fast expanding and is constantly extending its reach into more facets of our everyday lives. Consequently, recent years have seen a dramatic increase in users on online cryptocurrency wallets and exchange platforms.
One of the most popular online crypto services today is Coinbase, which is a platform where users can trade cryptocurrency and fiat currency between one another and also store their cryptocurrency.
As a Coinbase user, you may have already encountered ads and videos online telling you to upgrade your Coinbase account to Coinbase Pro. However, you may be wondering what the difference between these two is and whether or not you should make the switch. In this article, we will give you 5 reasons why you should upgrade to Coinbase Pro so that you can make as informed a decision as possible.
1. Lower Transaction Fees
The first reason why you should upgrade to Coinbase Pro is that it will save you money. While both Coinbase and Coinbase Pro are free services that require no subscription fee, there is one key difference that allows users of Coinbase Pro to save money.
You may already be experienced at performing cryptocurrency transactions on Coinbase. If so, you will be aware of the fact that as a third-party service provider, Coinbase takes a fee for every transaction you make on their platform.
Coinbase Pro has much lower transaction fees as compared to Coinbase. This is largely due to the main functional difference between the two platforms. While Coinbase is mainly a cryptocurrency wallet from where you can send and receive cryptocurrency, Coinbase Pro is a cryptocurrency exchange.
2. Crypto-to-Crypto Trading
Another reason why you should upgrade to Coinbase Pro has to do with the different services that the two platforms offer. As mentioned, Coinbase is primarily used as a crypto wallet from where you can send and receive crypto in exchange for fiat currency. On the other hand, Coinbase Pro is a cryptocurrency exchange where you can trade one cryptocurrency for another.
This means that using Coinbase Pro, you can buy Ethereum in exchange for Bitcoin or perform any number of crypto-to-crypto trades. Given the ever-increasing number of available cryptocurrencies today, this is a very important service as there is much greater competition between different cryptocurrencies than there was just two to three years ago.
The ability to trade between cryptocurrencies is very handy since the value of different cryptocurrencies is constantly changing. Hence, the best crypto to have in your wallet is always changing from day to day, and while you could benefit from having Bitcoin today, perhaps Ethereum will be more valuable for you next week.
3. Enhanced User-Experience
As discussed in the above point, Coinbase and Coinbase Pro provide two very different services. Due to this, they also provide their users with different interfaces. On the dashboard of your Coinbase Pro account, you will be greeted with a ton of information about cryptocurrency valuation and exchange rates, including a live price feed and price charting that updates every minute.
If you become adept at interpreting the candle-stick charts and all the numbers that Coinbase Pro includes on its user interface, you will even be able to make predictions about which cryptocurrency would be best to invest in tomorrow or next week. Further, using this information, you can stay up-to-date on the financial happenings in the crypto world, thereby improving your chances of making the right trades and the most valuable investments.
You should keep in mind, however, that while Coinbase is designed for beginners, Coinbase Pro is for more experienced and knowledgeable crypto traders. This is why before upgrading to Coinbase Pro, you should learn how to interpret candle-stick charts and understand the inner workings of exchange rates.
4. Multiple Trade Options
Coinbase Pro offers many unique features as part of its trading services that are not offered by Coinbase. Again, since Coinbase Pro is designed for those who have surpassed the beginner level of crypto trading, these features are only really useful for experienced traders.
One trade option that Coinbase Pro offers is known as a Stop Order. These allow users to set a selling price for themselves so that they can limit their losses in a particular trade. Another option offered by Coinbase Pro is a Limit Order, which allows users to set a buying price.
Usually, limit orders are placed when users predict that the value of a particular cryptocurrency is about to drop. If the value does, in fact, drop, they will be able to buy that crypto at a lower price as other users start selling to anyone with a below-market-price offer.
5. API Keys
An API key stands for Application Programming Interface Key. This is a string of unique characters that can be used to authenticate a secure and verifiable connection between two different platforms. Using an API key, one can securely transmit important data between different applications.
Coinbase offers its users API keys so that they securely allow third-party applications, like a crypto wallet, to integrate with their Coinbase account. This greatly improves the user experience as all of the user’s crypto-related platforms can securely transmit information between one another.
Further, an API key acts as an added layer of security that protects a user’s information and assets.
The Final Verdict
Coinbase and Coinbase Pro are owned by the same company and provide many of the same features. However, it seems that Coinbase Pro is a way for intermediate and experienced crypto traders to take their crypto game to the next level.
Coinbase is certainly perfect for beginners in the crypto world. Nevertheless, once you find yourself becoming more adept and knowledgeable about crypto trading, it might be time for you to make the switch and upgrade to Coinbase Pro.