As the world’s largest cryptocurrency exchange, Coinbase is often the first port of call for many when they want to buy Bitcoin and other digital assets. But what about when institutional investors want to get involved? In this article, we take a look at Coinbase institutional and how it works.
What is Coinbase institutional?
Coinbase institutional is a platform designed for large-scale investors such as hedge funds, family offices, and venture capitalists. It offers a suite of products that are not available on the regular Coinbase exchange, such as OTC trading, block trading, and reporting tools.
Coinbase institutional also has its own dedicated account management team to provide support for high-volume traders.
How does Coinbase institutional work?
Coinbase institutional works in a similar way to the regular Coinbase exchange, but with some key differences. For one, it offers a much wider range of digital assets to trade, including all of the major cryptocurrencies as well as many altcoins.
It also has different trading limits. While the regular Coinbase exchange has a daily limit of $10,000 per user, there is no limit on how much can be traded on Coinbase institutional.
This makes it ideal for large-scale investors who want to move large sums of money in and out of the cryptocurrency market.
One key difference is that Coinbase institutional does not offer margin trading like the regular exchange does. This means that traders cannot take out loans against their positions, which can be both a good and a bad thing depending on market conditions.
Another difference is that all trades on Coinbase institutional are charged a flat fee of 0.1%, while trades on the regular exchange are subject to variable fees depending on the payment method used and whether the trade is maker or taker.