Coinbase Pro: A General Overview

Coinbase Pro is one of the most trusted cryptocurrency order book exchanges today. With its widely global availability and strong insurance protections, Coinbase Pro stands as a solid choice for professional traders. We take a closer look at the history, advantages and disadvantages, and latest moves of Coinbase Pro.

History and Background

Founded in 2011 by former Airbnb engineer Brian Armstrong, Coinbase is based in San Francisco, California. Coinbase’s global digital asset exchange (GDAX) was launched in 2015, and on May 24, 2018, Coinbase announced that it will rebrand GDAX to Coinbase Pro.

The rebranded GDAX platform benefits from its clear association with the reputable Coinbase brokerage. The evolution of the trading platform introduced a new interface with additional features, such as staking and protocol voting, as well as easier deposit and withdrawal processes.

While Coinbase is one of the few exchange platforms to have never been successfully hacked (though sizable individual accounts have been burglarised), Coinbase Pro does hold a history of notable flash crashes.

On June 21, 2017, Coinbase Pro experienced a flash crash of Ethereum (ETH) during which ETH briefly crashed from $319 USD to as low as $0.10 USD. While many users voiced suspicions of illegal market manipulation by the platform, GDAX Vice President Adam White explained how a multimillion-dollar sell order of ETH to USD dropped ETH prices from $318 to $224 USD. This dramatic dip in ETH market price triggered a cascade of approximately 800 stop-loss orders — baked-in directives to sell an asset when it falls below a set price — that had ETH briefly fall to as low as $0.10 USD. Coinbase Pro declared these trades final, but traders were eventually refunded their losses with a total compensation of $9.47 million USD from company funds.

Similar flash crashes occurred on Coinbase Pro in December 2018 with ETH falling from approximately $100 to $13 USD, and in October 2019 with Bitcoin (BTC) falling from $9,260 to $9,055 USD.

Advantages and Disadvantages

Coinbase Pro boasts a high trading volume and offers an intuitive, world-class interface with real-time order books, trade history, charting tools, and a simple order process that allows immediate trading. Coinbase Pro users also have access to the platform’s Websocket feed, which allows traders access to real-time market data and develop highly secure trading bots due to the platform’s application programming interface (API).

One of the platform’s most valued aspects is its strong security measures and insurance protections. Coinbase Pro features two-factor authentication to protect users from phishing, as well as a white label feature that limits withdrawals to pre-approved cryptocurrency addresses. Coinbase Pro also runs regular IT security and financial audits, and keeps 98% of users’ funds offline in cold storage with encryptions and multisignature keys. Cryptocurrency funds are privately insured on Coinbase Pro, and users’ USD balances are FDIC insured up to $250,000 USD.

Coinbase Pro is widely accessible as the exchange is available in over 100 countries and in multiple languages, including English, Spanish, Portuguese, French, Italian, Dutch, and German.

Coinbase Pro deals with more established coins, including BTC, ETH, Litecoin (LTC), and XRP, and the platform’s slim token offerings may deter more adventurous traders. However, Coinbase Pro is one of the few digital currency exchanges that supports withdrawals and deposits in select fiat currencies, including USD, EUR, and GBP.

Coinbase Pro was once known for its low trading fees, until its recent trading fee hike for low volume traders in October 2019.

Coinbase Pro’s Latest Moves

In March 2019, Coinbase Pro adopted a new fee structure to charge a 0.15% maker fee and a 0.25% taker fee for all accounts trading under $100,000 USD. In October 2019, the exchange again adopted another new fee structure that caused its trading fees for low tier traders ($10,000 USD and below) to surge as high as 233% from 0.15% to 0.5%. Taker fees within the tier saw a 100% increase from 0.25% to 0.5%. In the same move, Coinbase Pro reduced trading fees for big traders as trades above $1 billion USD now enjoy a 25% discount from the previous fee of 0.05% to 0.04%.

In October 2019, Coinbase also announced that eligible U.S. customers will earn 1.25% annual percentage yield (APY) rewards on every USD Coin (USDC) held.

In December 2019, Coinbase announced that Orchid (OXT), a ERC-20 based token, is set to launch on Coinbase Pro and will be available for full trading everywhere except in the state of New York.

How Revain Can Help

As demonstrated by the flash crashes experienced by Coinbase Pro, as well as the exchange’s latest fee hikes, staying updated on the most reliable exchange can be a daunting task in the face of the crypto market’s volatility. While various overviews of Coinbase Pro generally rank this exchange well above others, reviews of the platform are often conflicting in regards to bank transfer charges and quality of customer service support.

To help traders understand which exchanges are right for their trading habits, feedback platform Revain utilises blockchain and AI technology to protect and filter for authentic reviews of cryptocurrencies and exchange platforms such as Coinbase Pro.

Our blockchain technology preserves reviews to promote transparency and accountability in a relatively unaccountable market. Reviews on Revain can’t be deleted or altered, providing both beginners and seasoned traders access to each company’s history. Our platform is powered by neural networks and machine learning to filter spam reviews, detect feedback floods, and identify any abuse of our reward model.

Once an authentic review from a legitimate user passes the manual and AI filtration systems, the user is rewarded in RVN token, an absolutely stable internal token. Revain also has R, a second native token listed on dozens of exchanges. Revain also allows other companies to award these tokens to helpful contributors. Revain’s unique reward model encourages authentic and thorough user feedback that contributes to the crypto community’s bank of knowledge when considering which exchange platform best services each trader’s needs.