Cryptocurrency

Can You be Short On Coinbase Pro

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 7 minute read

Coinbase Pro is an upgraded version of the original Coinbase trading platform that offers consumers a wider variety of cryptocurrencies to trade at significantly cheaper fees. Coinbase Pro is an upgraded trading platform with additional features such as sophisticated charting, live order books, and more order types.

Before Coinbase rebranded GDAX as Coinbase Pro and incorporated it into its worldwide platform in 2018, GDAX was a separate cryptocurrency exchange. Coinbase was established in 2012 by Brian Armstrong as a platform for the trading of bitcoin and other cryptocurrencies. 

Over the years, it has expanded to become one of the most prominent cryptocurrency trading platforms online, with over 70 million members and daily trading volume in the billions of dollars.

Key Characteristics of Coinbase Pro

Coinbase Pro is an upgraded version of the original Coinbase platform that caters to professional and frequent cryptocurrency traders by providing them with a number of useful tools and features. 

It supports a diverse range of cryptocurrencies, provides sophisticated trading tools, and allows for integration with external systems via an API. Some of the features of Coinbase Pro are described here:

Intelligent Trading Interface

Coinbase Pro’s powerful trading interface is recognizable to experienced cryptocurrency traders. Users have easy access to a list of cryptocurrency trading pairings (for example, USD/BTC), a live trade history, and live order books, all of which show the current state of the market for the specified cryptocurrency.

When using Coinbase Pro, you can see candlestick charts for each cryptocurrency, along with multiple timeline views and the option to choose between a price chart and a depth chart. The user can optionally overlay a 12-day or 26-day exponential moving average. 

Coinbase Pro’s charting features aren’t as robust as those of more sophisticated crypto exchanges like FTX or Kraken, but they can still be helpful for spotting trends.

Last but not least, market, limit, and stop-loss orders are all options on Coinbase Pro. Traders can use this to set orders that will only be fulfilled under specified circumstances.

To sum up, the Coinbase Pro trading interface exceeds the capabilities of the ordinary Coinbase platform but may fall short of the expectations of the most experienced cryptocurrency investors.

Low Trading Fees for Crypto

When it comes to trading cryptocurrencies, Coinbase has some of the highest costs in the business, while Coinbase Pro has substantially lower fees. The costs are broken down into different tiers, the bigger the trading volume, the lower the per-trade cost will be. 

Trading fees begin at 0.60% and drop to 0% for accounts trading over $500,000,000 monthly. In the Maker-Taker model used by Coinbase Pro, those that make market liquidity available pay lesser fees. 

A maker is a trader whose order is recorded in the order book rather than being instantly filled. As the name implies, a taker is a trader whose order is promptly met by an already existing order in the order book.

This is a summary of Coinbase’s professional fee structure.

30-Day USD VolumeTaker FeeMaker Fee
$0 to 10K0.60%0.40%
$10K to 50K0.40%0.25%
$50K to 100K0.25%0.15%
$100K to 1M0.20%0.1O%
$1M to 20M0.18%0.08%
$20M to 100M0.15%0.05%
$100M to 300M0.1O%0.02%
$300M to 500M0.08%0.00%
$500M+0.05%0.00%

Choice of Cryptocurrency

Coinbase Pro currently supports over 160 different cryptocurrencies, and even more, are being added on a regular basis. Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), Dogecoin (DOGE), and Terra (TER) can all be traded on this platform, among many others (LUNA). Gala Games (GALA) and Rarible are two examples of the kinds of niche cryptocurrencies that Coinbase Pro caters to (RARI).

When you use Coinbase Pro, you’ll be able to buy and sell cryptocurrencies against a variety of other fiat and digital currencies. There are more than 400 different currency pairings accessible for trading on the platform.

Although some exchanges may provide access to more cryptocurrencies, the Coinbase team thoughtfully chooses which cryptocurrencies to list, and they include the vast majority of the market’s top-rated cryptocurrencies in Coinbase Pro.

API Keys

Coinbase Pro users have the option of integrating various external programs, such as trading bots, into their trading workflow. Due to this connection, experienced traders can use the Coinbase Pro platform to conduct trades from within their own custom-built trading applications.

Through the Coinbase Pro menu, users can quickly and easily manage their API keys, generate fresh keys for their various apps, and control who has access to which features. Third-party monitoring programs that let users connect to numerous platforms and view their whole portfolio across each can also be integrated.

The Coinbase API keys provide a safe and reliable way to integrate third-party software with Coinbase Pro.

Wallet Pro Security

Coinbase Pro, like the basic Coinbase platform, provides industry-leading security safeguards to safeguard customer cash and data. Coinbase Pro has features such as two-factor verification with Google Authenticator, a whitelist of withdrawal addresses, and FDIC insurance on deposits of up to $250,000 per account.

Coinbase Pro protects nearly all of its customers’ cryptocurrency holdings by storing nearly all of them in offline cold storage vaults that are spread out throughout the globe and secured with multi-signature keys. For an additional layer of security, Coinbase Pro customers can purchase theft insurance for their cash while they are in these cold storage vaults.

AES-256-bit encryption is used to safeguard all user information in Coinbase Pro, which is on par with the security standards used by U.S. banks and governments. When compared to other cryptocurrency exchanges, Coinbase Pro’s security features are among the most robust.

The Benefits of Coinbase Pro

Coinbase Pro is a fantastic trading platform for serious investors who want a more robust trading experience with access to extensive charting features and a more familiar trading interface. Coinbase Pro remains a favorite among high-volume traders thanks to its convenient access to a broad range of cryptocurrencies and its dedication to safety. 

A few benefits of using Coinbase Pro are as follows:

  • Having Greater Trading Resources Available. You can place market, limit, and stop-loss orders, view overlay charts and live order books, and choose from a wide variety of trading pairings on Coinbase. Coinbase Pro users can take advantage of API integration with third-party trading tools to implement sophisticated market strategies.
  • This is the Crypto Picker. Now that more than 160 cryptocurrencies are available on Coinbase Pro, customers have a lot of options. Coinbase Pro gives its users access to the most well-known cryptocurrencies as well as the option to invest in lesser-known projects with a smaller market cap.
  • The Fees are Low for Those Who Trade Frequently. When compared to the ordinary Coinbase platform’s trading fee of 1.49 percent or more, Coinbase Pro’s 0 percent to 0.60 percent range is a significant cost saving for users. Lower rates are charged to those that generate greater quantities each month, with no fees at all for the most prolific users.

The Drawbacks of Coinbase Pro

Coinbase Pro is a good option for more advanced traders, but it isn’t the greatest professional cryptocurrency exchange. Coinbase Pro may not satisfy the needs of more experienced investors because it does not provide access to derivatives or margin trading and because its charting capabilities are limited. 

Some of the drawbacks of utilizing Coinbase Pro are listed below:

  • With Fewer Features Than Competing Advanced Cryptocurrency Markets. Candlestick charts, real-time order books, and a few chart overlays are all features accessible on Coinbase Pro, although these features are severely limited in comparison to those on other cryptocurrency exchanges. Most charting tools, additional order kinds, and trading tools can be accessed through the widely used platform Tradingview, which is directly integrated with many other platforms. In addition, users of Coinbase Pro cannot access crypto derivative products or trade on margin, unlike users of Kraken and FTX.
  • Not Easy Enough for Newbies. New crypto traders who aren’t accustomed to reading crypto charts or placing orders in crypto trading pairs may find Coinbase Pro to be a bit overwhelming. A lot of data is shown graphically in the charts and in the live order books, and the order form has more customization choices than the normal Coinbase site. Investors who are just getting started with cryptocurrencies should use the standard Coinbase interface.

What Coinbase Pro Can Offer

For traders who are more experienced and want access to a larger variety of crypto trading pairs and additional trading tools, Coinbase Pro is a fantastic choice. Users can link trading bots and third-party applications through the API, and it offers lower fees than the conventional Coinbase platform. New cryptocurrency investors could find it difficult to utilize Coinbase Pro because it is geared toward active traders.

Gemini is a user-friendly cryptocurrency platform that provides a secure way to search and buy cryptocurrency, for comparison. For access to extra trading tools and charts, users can either utilize the straightforward order form or try Gemini ActiveTrader. Gemini has a narrower variety of cryptocurrencies than most exchanges and levies higher fees for most transactions.

Gemini and Coinbase Pro side-by-side comparison:

Coinbase ProGemini
Fees0.00% to 0.60% 0.00% to 3.49%
Number of Cryptocurrencies160+60+
Trading FeaturesAdvanced charting, multiple order types, mobile trading, crypto trading pairs, API accessSimple order form, advanced trading platform, mobile trading, crypto wallet, crypto custodial services
Security FeaturesCold storage, two-factor authentication, FDIC insurance, crime insurance, AES-256 encryptionCold storage, two-factor authentication, FDIC insurance, crypto wallet insurance, user role management, whitelisting

Bottom Line

If you’re a skilled crypto trader looking for a robust platform with access to a large variety of cryptocurrencies and some powerful trading tools, go no further than Coinbase Pro. 

Coinbase Pro is a highly-liquid platform, boasting big trading volumes and extensive order books, making it suitable for making larger trades; but, it does not offer the finest charting tools or access to margin trading.

New cryptocurrency traders may find the trading interface on Coinbase Pro to be too daunting to use in the long run. You should stick to a more basic platform, like the official Coinbase app, if you are unfamiliar with crypto order books and candlestick charting.

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