Coinbase Pro Margin Trading – What It Is and Does It Have to Offer?

One particular name that is well-known in the cryptocurrency exchange platform is Coinbase. A new version of this trading tool has been introduced called the Coinbase Pro. The cryptocurrency exchange company also initially offered Coinbase Pro Margin trading facilities to its users. 

With this initiative, new opportunities are being opened for the people who are interested in trading.

The world of cryptocurrency is forever changing and presents a great set of opportunities for all those looking to invest or trade in the market. It is becoming more and more popular with each passing day, and one can even say that the currency of tomorrow or the future is cryptocurrency. 

With new coins introduced and the ease of trading, it is possible that it will replace physical money, and everybody will be using cryptocurrencies like Bitcoin and Golem.

What Is Coinbase Pro?

After its introduction in 2012, Coinbase Incorporated rose to popularity as the leader in the cryptocurrency platforms. 

Initially launched in 2015 by the name GDAX platform, Coinbase Pro got its new name after being rebranded in 2018. 

Once it got rebranded, it took the market by storm, and it has been expanding since then. 

The trading operations here are managed by Coinbase Incorporated, which allows professional and active traders to carry out exchanges through high-volume trading. 

Large masses of people use Coinbase Pro Margin for trading in a single second worldwide. With increasing digital coin traders, it is sure to be more popular.

The platform has been doing exceptionally well while catering to the trading needs of both professional and novice traders. 

Coinbase and Coinbase Pro vary on the basis of the type of features they provide and the type of traders they offer their services to. 

The company made sure that the needs of all types of traders were met. Thus, this difference in the coins proves beneficial on many levels.

Not long ago, the platform stopped offering Coinbase Pro margin to its traders and investors after it observed a change in the legal obligations put forth by the Commodity Futures Trading Commission (CFTC).

However, after a time, it can be said that it will be back on track, and people will start using it again as a primitive cryptocurrency that traders will love to have.

Features of Coinbase Pro

Being included among the leading platforms that allow the buying, selling, and trading of Bitcoin and other cryptocurrencies, Coinbase Pro offers a wide set of features. Some notable features include the following:

  • Access to several cryptocurrencies

In addition to Bitcoin, Coinbase Pro allows traders to buy, sell and exchange altcoins, including Ethereum, Litecoin, Bitcoin Cash, and numerous others. 

This trade allows it to be used on various other exchanges, and thus, the traders do not have to wait for a coin that can be replaced.

  • Coinbase prime accounts

Corporate professionals are given the opportunity to create their own Coinbase Pro margin account that caters to their specific needs as experienced traders in the industry. 

Once they make their account on the site, they can buy and sell these coins according to their wallet.

  • Prominent Features

Coinbase Pro offers reliability, enhanced security, easy accessibility, all the while observing strict regulatory procedures. 

With trading, security is the number one priority, and it cannot be compromised. That is why it is exceptionally fulfilled and proven to the traders.

  • Earning by learning

Coinbase Pro encourages its users to learn by setting the requirement that those who are able to fully complete a few Coinbase courses can get more than 150 USD worth of cryptocurrency. 

This learning goes a long way and can help in many other things.

Cons of Coinbase Pro

While there are many areas in which Coinbase Pro excels, it also has some room for improvement. 

These are the things that should be considered before jumping to pick a coin from a thousand coins present. Some of the drawbacks of this platform include the following:

  • Coinbase Pro might not be suitable for novice investors who have less experience on the trading floor while dealing with cryptocurrencies, as it can be complicated to move to a new platform that is slightly different from the others.
  • Customer support at Coinbase Pro can be made better to make trading easier for all. As the platform is complicated, it needs better customer support to solve issues that might occur in the platform.
  • The “Know Your Customer” procedures conducted at Coinbase might be too lengthy and time-consuming. They should make quick and effortless procedures for more users.

Trading Experience at Coinbase Pro

Those looking forward to carrying out their trade operations with a professional trade platform can use the Coinbase platform. 

The trading platform provides guides for those trying to purchase cryptocurrency or Bitcoin. 

The Coinbase Pro platform, until most recently, offered margin trading services that let investors trade on leverage. 

The exchange platform was specifically designed while keeping in mind the needs of professional traders who have to conduct bigger and various purchases.

Currencies Supported by Coinbase Pro

In order to make the platform work for trading, it should support different cryptocurrencies. Coinbase Pro currently supports all the cryptocurrencies from the following list:

● Bitcoin (BTC)

● Cosmos (ATOM)

● Stellar (XLM)

● Ethereum (ETH)

● USD coin (USDC)

And many other varieties of cryptocurrency.

Registration Process For Coinbase Pro Margin Trading

In order to get started with the exchange at this platform, users have to visit the website and click on the “Sign-Up” button to create their own account for Coinbase Pro Margin Trading. 

After having done this, the users will be required to enter their personal information, including their names and email addresses, and create strong passwords for protection.

Once users have completely filled the application form, they will receive a verification email on the email address that they added to the form.

Verification by clicking on the link in the email is an important and essential step for the registration process. 

After email verification, the users will enter their phone numbers to complete the SMS verification process.

Upon completion of account creation, the users can click on the Coinbase Pro login option that can be found in the upper right-hand corner of the screen. 

Once they have entered their username and password, the users will be logged into the platform through their newly created account at the Coinbase website for Coinbase Pro Margin trading.

What Is Margin Trading?

The company announced in February 2020 that it would be introducing an extension of its current features by giving its users the ability to do margin trading. 

Coinbase Pro Margin trading was a quick and easy way for investors to use the funds from a broker for making purchases of assets. 

It could also be regarded as a kind of loan that an individual investor takes from a broker for a purchase operation to be carried out successfully. 

It allows traders with fewer coins to do trading without any struggle.

This particular offering was introduced as a means to help investors multiply their gains, all the while accepting more risks. 

The margin trading feature was made available for retail investors in 23 US states, including Nebraska, North Carolina, Colorado, and others. With this calculated risk, traders could multiply their coins and increase them rapidly.

Being available on Coinbase Pro, the company aimed to allow educated investors to use the margin trading facilities to further their experience and ease in the trading world. 

Even though it was a little complicated to use, experienced traders could benefit from this offer and could expand their trading.

How Does Coinbase Pro Margin Trading Work?

Margin trading varies from broker to broker. Brokers only allow a specific percentage of Coinbase Pro margin trading while giving out their funds to traders. 

For instance, if a brokerage offers margin trading with a 60% requirement, then it means that this 60% will be paid by the investor while the remaining 40% will be supplied by the broker for a successful purchase. 

Once it was done, the investment could be used by the broker.

Consider yourself as a broker trying to purchase $10,000 of a certain asset while making use of Coinbase Pro margin trading. 

Using the margin requirements set above (60%: investor and 40%: broker), you as the investor will pay $6,000 while the remaining $4000 will be provided by the broker.

Coinbase Pro allowed both retail and institutional investors to avail of this service while using any pair of assets with USD as the base currency. 

Coinbase was confident that it had enough liquidity to support complex margin orders that were soon to be placed by its investors. 

However, this particular feature didn’t last long in the trading world. It was soon shut off, and it was not used by the traders.

Why Was Coinbase Pro Margin Stopped From Being Offered?

After having been introduced in the market for a few months, Coinbase Pro margin trading was disabled from continuing its operations. 

As announced on 24 November 2020, Coinbase stopped its service of offering margin trading abilities to those investors who had registered with it.

Those who had maintained margin positions when the news for the disabling of this margin trading service was announced were told that their positions would expire within the coming days and weeks. 

After all the positions for those previously using this service expired, the platform discontinued providing the margin trading service for good.

This was a necessary step for the platform due to the new regulations that had been imposed in the industry by the CFTC. 

As a result of this huge shift from its traditional stance, Coinbase no longer facilitated the purchase of any cryptocurrency while exploiting margin trading benefits for Coinbase Pro Margin trading. 

However, the platform still allows its traders to use Bitcoin as collateral while taking a loan.

Frequently Asked Questions (FAQs)

It is obvious that there are many questions that arise in the minds of the readers when it comes to Coinbase Pro Margin trading. 

Here are the questions that are recently and more frequently asked by the people who are interested:

Question 1: Does Coinbase Pro charge a monthly fee?

Answer: Coinbase Pro does not charge its users for the signing up process or for maintaining and carrying funds in their accounts. 

You can sign up with great ease and use its services for as long as you want without any fee.

Question 2: Can Coinbase Pro fall victim to hacking attempts?

Answer: Based on the reviews that have been shared by many Coinbase Pro users, this trading platform has not experienced any hacking attempts to date. 

The website takes several security measures to ensure that its user’s funds in their accounts and their private information remain safe. 

Thus, you will not have any trust issues with the platform and can use it hassle-free.

Question 3: Is Coinbase Pro trustworthy and reliable?

Answer: Coinbase Pro is known for being included among the leading digital currency platforms that aid in buying and selling varieties of cryptocurrencies. 

98% of the funds that users hold with the platform are kept and secured in offline cold storage where proper measures are taken to confirm their protection. 

The remaining 2% of the user’s balance serves as liquidity to the exchange markets.

Coinbase Pro margin trading was an effective and innovative feature introduced in the world of investors. 

It has met its decline, but there are a number of other features that are still supported by Coinbase Pro, which present opportunities for investors and traders. 

By registering with Coinbase Pro, users can gain access to the many facilities that the trading platform is exceptional at providing. 

The company will most probably keep up with its ability to recreate and innovate new methods for making trading easier for all.

 

Leave a Reply

Your email address will not be published.