Coinbase is one of the most popular exchanges that can be used to facilitate cryptocurrency trading. With an increasing interest in cryptocurrencies and blockchain technology, it’s no surprise that many people want to know the best Bitcoin trading platform available. Coinbase is one of the best.
What Is Coinbase?
Coinbase is an exchange that was launched in 2012 in San Francisco. It has served more than 12 million customers who have exchanged over $40bn in digital currency in thirty-two countries.
As at 2013, the exchange was the highest funded startup for Bitcoin and the largest cryptocurrency platform in the world.
How It Works
Other cryptocurrency trading platforms require that traders trade on the market, but Coinbase allows traders to trade at a price determined by the market value of the cryptocurrency at the time of the trade. This enables faster purchases on Coinbase when compared to other exchanges. The exchange is one of the few in the world that accept credit cards.
Like with many other exchanges getting started requires signing up and longing in. The fees on the platform fall within the ranges of 1.49%-3.99%. It typically depends on the payment method you choose. If you use a credit card, your fees may be higher than that of a person who makes a regular deposit. However, the fees are lower than many exchanges of this level.
Users will are allowed to buy Ethereum, Litecoin and Bitcoin on the platform. The exchange is making plans to add more cryptocurrencies in the future. Hard forks like Bitcoin Cash are also supported on the platform.
Coinbase depends on the GDAX exchange, and this type of trading is suitable mainly for professional traders. Regarding risks, Coinbase has proven itself one of the safest, if not the best Bitcoin trading platform. It complies with the State and Federal laws in the United States. The fund storage method is transparent as well.
DigiByte [DGB] soars by 9.7% as online movement for Coinbase addition gains momentum
The cryptocurrency market was punctuated by several altcoin surges this week, with Tezos and Ontology leading the charge. The latest entrant to ride the bull wave was DigiByte, the 35th ranked cryptocurrency on CoinMarketCap. It climbed up the charts to become the biggest gainer in the top 50.
At press time, DigiByte [DGB] was trading at $0.015, and was rising by 9.72%. The cryptocurrency held a total market cap of $169.073 million with a 24-hour trade volume of $3.091 million. A majority of the trade volume was split between BiteBTC and Bittrex, two popular cryptocurrency exchanges. BiteBTC recorded DigiByte transactions worth $1.156 million, while Bittrex recorded $315,308 worth of DGB trade.
The 24-hour chart showed the cryptocurrency’s value shooting up, before settling into sideways movement. DGB’s value surged from $0.0126 to $0.0144, in under an hour. It was speculated by many online that the addition of DigiByte on Magnum Wallet, and its latest release, the Magnum Notifier Bot, was what sparked the DigiByte surge. The bot is a free-to-use Telegram bot which notifies the user when the connected wallet participates in any transactions. The bot also gives DGB holders all transaction related information.
DigiByte was also helped by its community starting a new online campaign requesting Coinbase CEO Brian Armstrong to add DGB to its fold. Frederik Bf67, a Twitter user, and a DigiByte fan tweeted:“Hello Brian, i would love to see @coinbase adding @DigiByteCoin to it’s platform. You know #DGB has been around for a long time and has proven itself over time to be a highly secure and fast blockchain with exellent use cases suported by thousands of people on every continent.”
Another DigiByte fan, Mark Brown replied on the same thread saying,“Tell that to @barrysilbert , he’s the one to talk to brother
@brian_armstrong and @AsiffHirji can do so much. It’s out of their hands.
I’ve even helped pass along a petition and nothing. I’ve gotten over 10k signatures to have #dgb added to #coinbase and nothing.”
Coinbase Pro Has Good and Bad News Regarding Fees for Traders
Coinbase Pro is changing its fee structure later this week, with bottom tier traders seeing a hike and higher value clients paying less.
The San Francisco-based cryptocurrency exchange announced the news in a blog post on Friday, saying that, starting March 22, market makers and takers who fall under the pricing tier of up to $100,000 will be subject to total fees of 0.40 percent, as compared to up to 0.30 percent (taker only) currently.
The $100,000 to $1 million tier will stay with the current total fee of 0.30 percent, but that will be shared between makers and takers, while currently takers pay the full fee. The $10 million to $50 million bracket also sees the 0.20 percent total fee unchanged, but split between makers and takers.
For other tiers, though, there are fee reductions in store. Above $100 million and above $1 billion, total fees are being reduced by 50 percent, while tiers in between are benefiting from cuts of 20-30 percent (see image below). All tiers now see makers taking some of the fee burden.
The new fee structure is designed to “increase liquidity by reducing the delta between maker and taker fees,” Coinbase said.
Economist and trader Alex Kruger set out the changes in a tweet with the following comprehensive table:
Coinbase further announced that its Pro service, and the institution-focused Prime platform, will no longer support stop orders.
“All stop orders must now be submitted as limit orders and include a limit price. All currently open stop market orders will be canceled on Friday, March 22 @ 6:00 pm PDT,” the exchange added.
Both limit and stop orders are orders to buy or sell an asset when its price moves past a specified level. However, stop orders cannot be seen by the market until the trade has occurred.
Both Pro and Prime will also introduce a 10 percent market “protection point” for all market orders, according to the blog post, meaning that market orders that move the price in excess of 10 percent will “stop executing and return a partial fill.”
“Protection points help prevent large orders from causing more than 10% slippage,” the exchange said
Coinbase Pro Announces Change in Market Structure
San Fransico based cryptocurrency exchange Coinbase has announced a new market structure for its trading platform Coinbase Pro.
Coinbase Pro to Change Things
Revealed in a recent blog post, the changes are designed to help increase liquidity, enhance smoother price movements, and ensure price discovery.
According to the blog post, this new change in structure will include a new fee structure, reportedly designed to increase liquidity, updated order maximums, new order increment sizes, the turning off of stop market orders and added market order protection points.
Also, Coinbase Pro and Coinbase Prime will no longer take stop market orders. As a result of this, all stop orders will henceforth be submitted as limit orders and include a limit price.
Also, the newly introduced market protection point for both Coinbase Prime and Coinbase Pro users will be a total of 10 percent for all market orders.
It was further explained that market orders that move the price more than 10 per cent will stop executing and return a partial fill.
Importantly, the blog post from the exchange issues a warning that the platforms will be offline on March 22 from 6:00 p.m. to 6:30 p.m. PDT. During this period, the platform will not be accessible.
Change Met With Negativity
Just as expected this change in policy has been met with great, scepticism and negativity from the crypto community on social media.
For example, Economist and trader Alex Krüger complained on Twitter about it.
He stated that:“Coinbase Pro raising fees for smaller clients by 33% while lowering fees for larger clients.” Krüger continued that “in a rational world, most Coinbase users would now move to Binance.”
Krüger went further to question the exchange decision to disable stop market orders, claiming that stop-limit orders sometimes fail to execute because of slippage, suggesting using far off limits on limit orders as a workaround.
On a more positive note, Krüger, however, admitted that these changes will surely lead to an increase in liquidity and trading activity.