HowTo Buy Crypto – Part 3: GDAX
GDAX is really the exchange platform for the U.S. based company Coinbase. The relationship is so close that the GDAX registration page is actually a Coinbase URL and registration page. In fact, they are the same company. See my previous post for specific information regarding Coinbase. With GDAX, direct deposits can be made via SEPA or ACH bank transfers, wire transfers, direct BTC transfers, or transfers from your Coinbase account, depending on your preferences and where you are located.
With a few exceptions, GDAX currently operates in the US, Europe, UK, Canada, Australia and Singapore. As well as offering USD and EUR trading for BTC, BCH, ETH and LTC, there is also a BTC/GBP trading pair.
Moving funds back and forth from Coinbase to GDAX is free, so preexisting Coinbase customers can move funds from their Coinbase accounts to GDAX without charge. The fee for direct SEPA deposits is €0.15, and ACH deposits are free (wire transfers have additional costs). Once you have Euros or USD in your account, given the GDAX “maker-taker fee model”, you can make your purchase paying absolutely nothing if you act as a “maker”, and a maximum of .25% if you are a “taker”.
GDAX is directly tied to Coinbase and as such users have the option to send funds to their Coinbase wallets, as mentioned above, free of charge, and this includes the use of the BTC “vault”. As mentioned in the FAQ regarding insured deposits, all online funds are insured, and US customers even have FDIC insurance.
Account creation requires full verification, but that’s not surprising given its full service nature.
For answers to specific questions, visit GDAX Support
Previous posts in this series:
HowTo Buy Crypto – Part 1: LiteBit
HowTo Buy Crypto – Part 2: Coinbase
Read the "The Dos and Don’ts" here if you're not aware of my rules.
I think Coinbase has actually done a great job managing GDAX and expanding it to the more "advanced" investor. GDAX now offers spread trading through its partnership with Trading Tech, along with futures trading. I've yet to dive too deeply into this but given the volatility we're seeing in both volume and prices, there's some huge opportunities in spread trading BTC and ETH, amongst others.
I wouldn't be surprised if we saw some above average spreads during this last month's sharp declines. Given that institutional investors haven't quite fully penetrated crypto yet, those spreads should be available for active investors.
Good point. Here's more on that for those who want to learn more:
https://www.coindesk.com/coinbases-gdax-links-trading-software-provider/
GDAX is a full-fledged cryptocurrency exchange, allowing users to trade cryptocurrencies Bitcoin, Ethereum, and Litecoin, as well as USD and EUR fiat currencies. The platform works similarly to traditional stock and forex platforms.Deposits and withdrawals can be made using bank transfers or using cryptocurrencies. You can also transfer funds between your GDAX and Coinbase accounts instantly. Security trust and community trust is also great on GDAX. Thanks for useful article.
GDAX is an excellent platform for professional trading, since traders who prefer to work with traditional directions of cryptology, this exchange is best suited. Trading instruments are represented by leading market tokens - Bitcoin, Ethereum and Litecoin. They are traded among themselves, as well as cross-currency - in relation to the dollar and euro. Accordingly, there are not so many trading pairs, but the number of traders and the total volume of the stock exchange that have it at the top of the lists guarantee high liquidity. Actualization based on world market data provides synchronous volatility, why it is more profitable to trade here with the right strategy than on many sites. In general, the exchange is quite decent. Trading opportunities here are broad, and the conditions are loyal. Thank you @cryptographic
Yes indeed. Very tight spreads, good volume (at the top of the list of crypto exchanges) and responsive price discovery are all big pluses and very good reasons why many professionals choose to operate on GDAX. The big drawback is the lack of Alts, but, again, for the institutional players who are more risk adverse, that's not an issue.
@cryptographic,
I never heard this before! I am using Bittrex, Poloniex (Sometimes) and Binance (Sometimes) as exchanges, but never heard about GDAX until I read this article! Then I checked their web site and found these few features. Specially they are same as Coinbase, that means we can trust their service than others.
Here what I found via GDAX web page:
Trusted and Secure
We undergo regular IT security and financial audits. In addition, 98% of customer digital assets are stored entirely offline.
We are Insured
All digital assets held in online storage are fully insured. All USD balances are covered by FDIC insurance, up to a maximum of $250,000 per customer.
Backed by Top Investors
Our investors include the New York Stock Exchange, Andreessen Horowitz, Union Square Ventures, and more.
0% Maker Fees
GDAX offers no fees on maker trades and offers volume-based discounts on all taker fees, going as low as 0.1%. See our fee structure here.
It seems like they are doing a professional business as Coinbase do! But again it's a problem to me to join them :/ Not supporting to world wide! Actually it's a very bad news for people who are out of US, EURO clusters!
Thanks for sharing this update and wish one day they allow us to use their services!
Cheers~
Key Information
Site Type: Cryptocurrency Exchange
Beginner Friendly: No
Mobile App: No
Company Location: San Francisco, CA, USA
Company Launch: 2012
Fiat Deposit Methods: Bank Transfer
Fiat Withdrawal Methods: Bank Transfer
Available Cryptocurrencies: Bitcoin, Ethereum, Litecoin
Community Trust: Great
Security: Great
Fees: Very Low
Customer Support: Good
https://coincentral.com/gdax-review/
few information of the 'Global Digital Asset Exchange (GDAX)' categorized as above. valuable article @cryptographic
@resteemia
Thanks for that great resource and summary analysis. The only thing I would argue is that I don't think it's that unfriendly to beginners - no more so than Bittrex or Poloniex, or any other exchange, or stock brokerage for that matter, at the time of trading, that is. Of course, for those who want to sit down with their local bank and simply buy XYZ stock without knowing or understanding the underlying dynamics, yes it is "beginner unfriendly", if we can say that, but that brings us full circle back to where the simplified Coinbase service comes in and leaves us with a complete overview of what that company is doing. Not a bad business at all as it looks like they've got all the bases covered.
i think i agree what you said. i also questioned it before add to the comment. @cryptographic
@resteemia
After I buy crypto on Coinbase, I usually send it straight to GDAX
That works. 😋
Thank you so much sir
I can see that you have got really less spam comments (by now) so I can say that your strategy seems to work. If you wouldn't have shared flags by now, you would have a lot more work to do with your comments section.
Regarding Coinbase and GDAX, as in your last post, they seem really promising. I haven't used by now any platform to buy crypto with fiat, actually today it was the first time for me to buy crypto with actual money and I have to say that I can't wait to do it again! I have used a local exchange and it was pretty fast and easy to get started (full verification required of course).
I think that If I were based in any of those countries I would have used by now Coinbase, but I am still a newbie with them :)
What's the name of your local exchange? Do they have a website and do they work with people outside your country?
They are named coinflux, here is their website. I don't know for sure if they are working with people outside the country, but I guess so, since they provide an English version of their site :D
Thanks for sharing that. It looks like a legitimate upstart doing their best to do a good job, which isn't exactly easy in this sector - another example of just how fast crypto is going mainstream all over the world.
Can you send money to your flux account and buy later when you have more control over your buy price, or is it an automatic buy when your money arrives?
I haven't used it that much, but from what I've heard from my team mates at office who have bought more, I think you can add money to your wallet on their site and when you think it is a good time to buy, convert them to whatever cryptocurrency you want.
But by default and the easiest way that I have tried is to convert directly to the crypto I wanted (Ethereum) when the transfer got completed. Their support was great, at least at the hour I was talking to them, they got a pretty short reply time in the chat and are very much willing to help their customers. It is true that this is a startup, but by now, my overall experience was great.
Indeed this is a sign that cryptocurrencies are getting more popular each day, that's why we have seen a lot of companies growing on this new field of activity in not so popular countries, and this makes me think that it is just a matter of time until they will become mainstream.
I appreciate that transferring from coin-base to GDAX is free, and from what I understand, is low fee based, but I guess I don't understand why they are..or more specifically, how. Why would coin-base have higher costs for buying and transferring than GDAX? Why doesn't Coin-base deal with the alt coins directly? IT seems odd to me for the separation.
Coinbase is meant to serve a more retail type of customer who doesn't know much about trading and is really only interested in making a long term investment with the highest level of security and guarantees possible with the least amount of hassle. If you're that kind of customer, the fees really aren't that onerous.
On the other hand, GDAX is aimed at the more sophisticated short and intermediate term traders who probably keep a nice proportionate longer term stash in their Coinbase wallets as well.
Ok, I gotcha. Thank you.
GDAX is a great service...basically eliminates the fees associated with trading there.
I recall that when I first joined Coinbase, I used the regular site which did have high commissions. Fortunately, I came across a video that showed me how to use GDAX and that was the same thing. From that point on, I only traded at a market maker on there.
Anyone who is reading this post, if you are Coinbase, you need to do all your trades through GDAX. There is no reason to give Coinbase the fees they charge on regular transactions. As @cryptographic mentioned, there is very little learning curve and most of your operation is done through Coinbase (funding your account, moving tokens around, etc...). The only thing GDAX is used for is to trade. Fund the Coinbase account, move the funds over to GDAX (all on the same interface), and make your trades.
Also, never enter a market trade, that will kick off the commissions. Instead, enter a stop where you will have to enter in your buy or sell price.
Yes, for just about anyone but your very long term investor who doesn't want to complicate their lives with the "details" of trading, that's very sound advice. BTW, you meant to say limit order instead of stop, right?
Yeah not thinking...LOL.
Thanks for the correction.
For future readers. 😉