Cryptocurrencies can be traded on many platforms. A platform that works for some traders may not work for others. If you are looking for a platform that is easy to use, secure, and popular wit crypto traders, Coinbase is one of your best options.
If you decide Coinbase is the company you want to use for your trading needs, you will also need to decide between its two trading platforms: standard Coinbase or Coinbase Pro.
Coinbase Pro is a great platform that offers many features and benefits not found on the standard version of the platform. Before you start using Coinbase Pro, though, you should take time to get to know the platform. Here are five Coinbase Pro tips you should know.
1. Take advantage of lower trading fees
One of the biggest reasons traders choose Coinbase Pro over Coinbase is the fee structure the upgraded version offers. Cove Markets notes that when it comes to Coinbase vs Coinbase Pro, Coinbase Pro has the edge when it comes to trading fees.
The standard Coinbase platform charges traders a 0.5% standard fee and then additional fees for other aspects of trading on top of that. These additional fees vary based on what you trade, where you are trading from, and how you pay for the trades. When you add the fees up, you may be baying 3% or more on trades.
Coinbase Pro charges a flat fee of 0.5% for all trades up to $10,000 a month. That is for both market makers and market takers. If you are a high-volume trader, this is when you will see the difference. After you hit the $10,000 threshold, the fees start dropping.
Coinbase Pro offers a tiered system where the more you trade, the lower your fees will be. They also offer fees that drop quicker for market makers than market takers. Market takers can see their fees go down to as low as 0.04%. For market makers, these fees go down to 0 when you hit a certain level.
2. Learn how to read candlestick charts
Another benefit of Coinbase Pro is the access to information. The charts and data that Coinbase Pro gives you are far superior to what you get on the company’s standard version. In order to make the most of this data, you need to know how to read and interpret candlestick charts.
Each point on these types of charts has a thick part in the middle and a skinny stick coming out of either end. The thick part is known as the real body and represents where a coin opened and closed during a set period of time.
The sticks on either end represent the high and low prices during that period of time. The stick on the top extends to the highest price and the stick on the low end goes down to the lowest price.
Reading these charts will give you a better idea of what is truly happening in a market. It will also allow you to recognize trends. Once you spot a pattern in a market, you will be able to buy or sell at just the right time in order to maximize your profit.
3. Upgrading from a standard Coinbase account is relatively easy
Coinbase and Coinbase Pro are owned by the same company. This makes it fairly easy to upgrade your service. If you have a Coinbase account, all you need to do is go to the Pro website, click on “sign up”, and then sign in with your standard Coinbase credentials.
After that, the sites will be able to migrate your data from standard to Coinbase Pro. The one task you may have to do is provide more information to verify your identity. Even if you have been trading on Coinbase for a while, Coinbase Pro has a higher identity verification threshold so you will need to get through that before starting with the Pro version.
When you are verified, you can link a bank account to Coinbase Pro or, you can simply transfer over the crypto you currently have in your Coinbase account and get started trading right away. It is a pretty smooth process overall when you’re ready to take that next step.
4. Coinbase Pro gives you many more trading options
Both Coinbase and Coinbase Pro give traders access to basically the same number of cryptocurrencies but what you can do with them greatly varies. On the Coinbase site, you can buy and sell, send and receive, and exchange crypto.
On Coinbase Pro you can do this and more. Additional trading features that come with Pro include the ability to deposit or withdraw in crypto. You can also make more advanced trading moves such as making stop orders, time in force orders, and limit orders.
These advanced options allow traders to get more sophisticated with their trades. It also lets you make more profit in different ways than with Coinbase. This is great for experienced, skilled investors. Just be warned, with more ways to profit come more ways to lose money, too. Make sure you understand how these features work before you jump in or you could lose it all.
5. Pick your coins wisely
One of the nice things about Coinbase Pro is the number of choices you get on how to trade. You can trade USD, GBP, or EUR for the most popular coins in crypto but you can also branch out beyond that if you’d like to do so.
You can use your crypto to buy other cryptos in Coinbase Pro. Bitcoin (BTC) to Ethereum (ETH) is a popular trading pair on the platform. You can also use these cryptocurrencies to buy other popular coins such as Filecoin (FIL), Stellar (XLM), or Litecoin (LTC). The options and combinations give you room for many choices for trading on the platform so you can expect to trade how you like to trade and in ways you think you will be most successful.
If you are thinking about upgrading or even starting with Coinbase Pro, keep these five tips in mind. If you think these sound like things you can do, Coinbase Pro should be a good experience and, hopefully, make your trading more successful.