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Coinbase Pro

Coinbase Pro is a crypto exchange run by Coinbase Global that caters to more professional traders. 

Users may also make use of industry-leading encryption measures to help secure their cryptocurrency investments.  It has cheaper costs than Coinbase and a wider range of assets to trade, including around 130 cryptocurrencies.

Novices may find it challenging to operate. Coinbase Pro, on the other hand, may be a good platform for active traders because of its wide assortment of digital currencies and advanced order types. 

What is GDAX? A Brief History

With the help of the cryptocurrency exchange GDAX, users may buy, sell, and trade a variety of virtual coins.  The GDAX, or Global Digital Asset Exchange, was introduced in 2016. The individuals who founded GDAX are employed by the same business as Coinbase, one of the biggest exchange brokers in the world today!

In essence, the platform acts as a middleman between buyers and sellers, and GDAX receives payment from these fees. The GDAX exchange, for instance, will match Jake and Jerry if John wants to purchase some Bitcoin and Jerry wants to sell it.

Read on Coinbase vs Coinbase Pro

Getting Started with Coinbase Pro

Coinbase is one of the most user-friendly cryptocurrency platforms out there. You can sign up in a few easy steps by visiting Coinbase Pro, clicking Get Started and following the steps. Note that all Coinbase Pro users will need to provide some form of identification, such as a state-issued photo ID, to buy and sell—including with the standard Coinbase account.

If you already have a Coinbase account, you can easily transfer from Coinbase to Coinbase Pro:

  1. Go to the Coinbase Pro page.
  2. Select Deposit under Wallet Balance.
  3. Select the currency type.
  4. Deposit from Coinbase to Pro.
  5. Select the Coinbase Account.
  6. Enter the amount to transfer.
  7. Select Deposit.

In addition to trading cryptocurrencies, Coinbase Pro users have access to important tax documents that they need to file taxes each year. With the IRS cracking down on tax evasion, it has never been more important to ensure that you’re accurately paying what you owe. These documents can be found in the Coinbase Tax Center.

Coinbase provides the information needed to help complete your taxes, but it doesn’t provide done-for-you taxes and only includes transactions within Coinbase. In order to ensure an accurate tax return, you’ll need crypto tax software like ZenLedger, which aggregates transactions across exchanges and auto-computes your capital gain or loss.

GDAX Coinbase Pro
ZenLedger’s Easy to Use Interface – Source: ZenLedger

‍ZenLedger even pre-fills popular tax forms to make it easy to ensure that everything is filled out correctly and/or integrates with TurboTax to autocomplete your crypto taxes. You can also find opportunities to harvest tax losses during the year in order to reduce your year-end tax liability—potentially saving thousands of dollars.‍

Get started with ZenLedger for free!

Coinbase Pro-Tax Reporting

Crypto is classified as a digital asset in the United States, and the IRS handles it similarly to equities, securities, and other financial assets. 

Your earnings from cryptocurrency are subjected to taxation, but not like other assets. The tax on crypto is based on how you received it (capital gain or income) and how long you held it (long-term and short-term).

Capital gain event: When you sell your bitcoin, you will experience capital gains or losses. This includes selling your bitcoin or swapping it for other cryptos on Coinbase Pro.

Income tax events: If you earn cryptocurrencies as a source of income, it is classified as personal income and is subject to taxation.

Will Coinbase Pro Provide me with Tax Documents?

Unfortunately, Coinbase Pro and other crypto find it hard to give you comprehensive tax data for a reason.

Most cryptocurrency investors utilize a variety of exchanges, wallets, and platforms to move their funds. Coinbase Pro, for example, can only see transactions that take place on their platform. Coinbase Pro won’t be able to monitor your cost basis and compute your total crypto tax burden if you purchase or sell your bitcoin on a separate platform.

Luckily, there is another option for investors to appropriately get their Coinbase Pro tax documents and submit their taxes. ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Coinbase Pro taxes with the help of ZenLedger.

Connecting Your Coinbase Pro To ZenLedger For Your Crypto Tax Documents

As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges. 

Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you’ll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.

To import your transactions from an exchange, simply navigate to the [Exchanges] tab of the [Imports] page. Select the exchange that you are looking to import, (Coinbase Pro, in this case) and instructions will be provided for that specific exchange!

Alternatives to Coinbase

Use the following checklist of U.S. crypto exchanges to explore some alternatives to Coinbase Pro.

  • Binance US is a world-class crypto exchange with support for hundreds of altcoins while maintaining some of the lowest fees in the industry.
  • Kraken is known for its top-notch security and high trading limits. Unfortunately, there are some limits for U.S.-based traders and investors.
  • Gemini was founded by the Winklevoss twins and is known for its regulatory compliance and exceptional customer support.
  • eToro is a popular platform for trading all kinds of securities, including cryptocurrencies. It also offers CopyPortfolios™ to easily build crypto portfolios.
  • FTX is a leading crypto derivatives platform that offers access to futures, options, volatility, spot, and leveraged tokens with up to 100x leverage.
  • Crypto.com is a popular platform for those seeking a lot of different capabilities, such as paying their bills with crypto or loaning cash.

The Bottom Line

Coinbase Pro has a great user interface and might be a good choice for busy traders. Over 130 cryptocurrencies are available for users to purchase, sell, and trade and the site offers fee savings for high-volume trading. Coinbase also has a high security and compliance record, so it’s worth considering if account security is an issue for you.

  • 130+ crypto supported
  • More trading possibilities
  • The fee structure is straightforward
  • High security
  • Easy-to-understand graphs

Coinbase Pro is a wonderful alternative if you want more complex investment choices. Although it is simple to use, the numerous options might be bewildering. On the Coinbase Pro platform, though, you’ll save a lot of money on fees and be able to do a lot more.

ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!

FAQs

1. Is GDAX a Coinbase?

GDAX was a cryptocurrency launched by Coinbase in 2015. It was one of the few exchanges where traders could trade Bitcoin directly for fiat currency. It is now known as Coinbase Pro.

2. What happened to GDAX?

In 2015, Coinbase raised $75 million from the NYSE and several major banks, expanded to support Ethereum, and launched the Coinbase Exchange—a U.S. bitcoin exchange for professional traders. Further down the road, the Coinbase Exchange was rebranded as the Global Digital Asset Exchange (GDAX) or Coinbase GDAX. In 2018, the company eventually rebranded Coinbase GDAX as Coinbase Pro.

3. Is GDAX same as Coinbase Pro?

In a way, yes. GDAX was launched by Coinbase with advanced functionalities such as price charts, ability to set market and limit orders, and an open order book. In 2018, GDAX was rebranded as Coinbase Pro.

4. Are Coinbase and Coinbase Pro the same?

Both Coinbase and Coinbase Pro were founded by Coinbase Global Inc,. They are both leading cryptocurrency exchanges where Coinbase works as a digital wallet powered brokerage and Coinbase Pro functions as a crypto buying and selling platform.