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What is Coinbase Pro
Coinbase Pro is a cryptocurrency trading platform operated by Coinbase. It is designed for professional traders and institutional investors who need advanced trading features and lower trading fees.
It provides advanced order types, such as limit orders, stop orders, and market orders, as well as real-time market data, charts, and trading indicators.
Coinbase Pro uses a maker-taker fee model, which means that makers (traders who provide liquidity to the order book) receive a rebate while takers (traders who take liquidity from the order book) pay a fee. This fee model encourages liquidity and can result in lower trading costs for traders.
The history of Coinbase Pro
Coinbase Pro was launched in 2015 by Coinbase, a San Francisco-based cryptocurrency exchange founded in 2012 by Brian Armstrong and Fred Ehrsam and was previously known as GDAX.
In May 2018, GDAX was rebranded as Coinbase Pro, and its user interface was redesigned to make it more user-friendly and intuitive. The rebranding coincided with Coinbase’s acquisition of Paradex, a decentralized exchange protocol, which allowed Coinbase to expand its trading offerings and improve its liquidity.
Since its launch, Coinbase Pro has become one of the most popular cryptocurrency exchanges for professional traders and institutional investors, with a user base that spans the globe. The platform has also been at the forefront of industry developments, such as the integration of the Lightning Network and the adoption of Ethereum’s ERC-20 standard.
Today, Coinbase Pro is one of the leading cryptocurrency trading platforms.
How Coinbase Pro works
Coinbase Pro uses a complex algorithm to match buy and sell orders on its platform. The algorithm takes into account various factors, such as order price, order size, available liquidity, and market conditions, to ensure that orders are matched as quickly and efficiently as possible.
When a trader places a buy or sell order on Coinbase Pro, the order is added to the platform’s order book, which contains a list of all buy and sell orders currently open on the platform. The order book is organized by price, with the highest buy orders and lowest sell orders listed at the top of the book.
The algorithm then matches buy and sell orders based on the price and size of the orders. For example, if a buy order is placed at a higher price than the current sell orders, the order will not be filled until a matching sell order is placed at the desired price or the market price increases to the desired level.
Coinbase Pro’s algorithm also takes into account the order type, such as limit orders, stop orders, and market orders. Limit orders allow traders to specify the price they are willing to buy or sell a cryptocurrency, while stop orders are triggered when the price reaches a certain level. Market orders are executed at the best available price on the market.
Overall, Coinbase Pro’s algorithm is designed to provide fast and efficient order matching while ensuring that traders receive the best possible prices and liquidity. The platform’s advanced trading features and low fees make it a popular choice for professional traders and institutional investors.
Does Coinbase Pro charge a fee
Yes, Coinbase Pro charges a fee for trading on its platform.
The current fee structure on Coinbase Pro is as follows:
- 0-0.50% fee for maker trades
- 0.50% fee for taker trades
The fee structure is designed to incentivize traders to add liquidity to the order book, which helps to improve market liquidity and reduce trading costs for all traders on the platform.
It’s worth noting that Coinbase Pro also offers discounted fees for high-volume traders. The discount is applied based on the trader’s trading volume over the previous 30 days, with higher trading volumes resulting in lower fees.
How to use Coinbase Pro
Here is a step-by-step guide:
Step 1: Create an Account
Go to the platform’s website and click on the “Sign Up” button. Fill in the required information, such as your name, email address, and password, and click on “Create Account.”
Step 2: Verify Your Identity
To use Coinbase Pro, you’ll need to verify your identity. Follow the on-screen instructions to provide your personal information, such as your date of birth, address, and government-issued ID.
Step 3: Deposit Funds
Once your account is verified, you can deposit funds into your Coinbase Pro account.
Step 4: Navigate the Platform
Once you have funds in your account, you can start trading on Coinbase Pro.
Step 5: Trade
To place a trade, select the trading pair you want to trade on, such as BTC/USD.
Step 6: Review and Confirm Your Order
Before submitting your order, review the details and make sure everything is correct. Once you’re ready, click on the “Confirm” button to submit your order.
Step 7: Monitor Your Trade
After you’ve placed your trade, you can monitor it on the platform’s trading page. You can see your open orders, order history, and your portfolio balances.
Step 8: Withdraw Your Funds
When you’re ready to withdraw your funds, click on the “Withdraw” button and follow the on-screen instructions to complete the withdrawal process.
Overall, Coinbase Pro is a user-friendly platform that makes it easy to buy and sell cryptocurrencies.
