Cryptocurrency exchanges allow you easily convert one cryptocurrency into another crypto, but why is this useful? Perhaps you currently hold Bitcoin, but you need a small amount of ETH to pay for a gas fee on a decentralized website. Or, maybe you have earned some Basic Attention Token with the Brave browser but want to purchase some office supplies from a website that accepts Bitcoin. Exchanging crypto allows you to convert the crypto that you currently have to the crypto that you need for your specific purposes. Unfortunately, this can sometimes be difficult. This beginner's tutorial will show you how to exchange cryptocurrency using Coinbase Pro.
There are many different exchanges where you can swap one cryptocurrency for another, but Coinbase Pro has several advantages especially for new users.
- Ease of Use - When you create a normal Coinbase account, you automatically get a Coinbase Pro account as well. You simply have to log in to Pro with the same credentials that you use on your normal Coinbase account. This means that you only have to complete one process of KYC verification, and you can move funds between your Coinbase and Coinbase Pro account almost instantly with zero fees.
- Large Variety of Coins - Coinbase Pro has 39 trading pairs available for US customers and supports both crypto/fiat trading and crypto/crypto trading. Some other exchanges do not support fiat/crypto trading, and beginner users like me will find that the inclusion of fiat trading pairs and the ability to deposit from a bank makes Coinbase Pro a much more accessible "on and off-ramp" to the crypto world.
Coinbase Pro is one of the easiest exchanges for beginners like me to get started with, but this convenience does come with a price.
- Based on my experience, Coinbase Pro charges higher fees than other popular exchanges. For any trade below $10,000, Coinbase Pro’s trading fees are .5%. Kraken’s fees depend on a few different factors, but Kraken’s max trading fee of .26% is almost half of what you would pay on Coinbase Pro. Binance.us fees are considerably lower and range from .012% - .075% depending on the size of the order.
Although it does have higher fees than some of the other exchanges, Coinbase Pro does support a wide range of cryptocurrencies. Especially for users who already have a “normal” Coinbase account, the onboarding process with Coinbase Pro is exceptionally simple. People who are already familiar with and trust Coinbase might find that Coinbase Pro is a great way to "get their feet wet" and start crypto trading without having to complete additional KYC verification with another company. In the future, I will branch out and try other exchanges that have lower fees, but I certainly think that Coinbase Pro is a great tool to have in your crypto trading toolbox.