Recent changes to the Coinbase platform make this post outdated. You can check a more recent post here!
Coinbase is one of the largest exchanges where you can buy Cryptocurrencies with different FIAT currencies. For this reason, I am going to take a closer look at how you should trade or buy your Bitcoin on this platform. Coinbase actually offers two products. Coinbase and Coinbase Pro. Most of the time people just refer to it as just Coinbase which can be the cause of confusion. Keep in mind that Coinbase Pro is a free tool as well, despite what the name ‘Coinbase Pro’ can make you believe. Let’s take a look at why you should buy Bitcoin on Coinbase Pro instead of Coinbase. If you want to make recurring buy orders on Coinbase Pro as well, you can check out this previous post!
Just looking at the dashboards of both platforms it is quickly clear why people are still buying on Coinbase instead of Coinbase Pro. The Coinbase dashboard is very simplistic and looks easy to use, while Coinbase Pro looks a lot more intimidating. Sometimes, companies offer an easy option while charging you more for it. This is exactly the case here. Coinbase is not very transparent about the Coinbase Pro platform which can make it easy for people to think that it is a more advanced traders option.
Once you want to go ahead and buy Bitcoin (or any other cryptocurrency for that matter) you will see that the steps on the two platforms are basically equal.
If you would buy directly on Coinbase they would first mark up the price by 0,50%. In this case, the actual price was around €9427 on Coinbase Pro while Coinbase would show €9474. After that, they would charge €1.99 on a €50 purchase. You would end up with 0.0050674 BTC.
As you can see the buying process is almost the same (for market orders). You just have to fill in the amount you want to buy after selecting the correct currency. The difference is that Coinbase Pro will only charge you a total amount of €0.25 (or 0.5%). You would end up with 0.00528790 BTC.
As you can see, the difference is quite substantial. Fees matter a lot and on top of that Coinbase will charge you a marked up price. This is why you should buy Bitcoin on Coinbase Pro instead of Coinbase. Even if you are still pretty new to Bitcoin or cryptocurrencies, you will be much better off trading or buying on the Coinbase Pro platform. Keep in mind that this also applies if you want to sell your Bitcoin!