GDAX: the Сoinbase buddy
Last Updated: 31 July 2018

The coinbase corporation was founded in 2011 by Brian Armstrong and Fred Ehrsam. In 2012 coinbase opened its doors for business by listing bitcoin for trading. Prior to coinbase, Brian was a software engineer for AirBNB. This is a GDAX review, however before we jump ahead, it’s important to understand its past.

GDAX was founded in 2016, it is in fact a sister company of Coinbase.

GDAX aka Global Digital Asset Exchange. Coinbase is a US regulated cryptocurrency exchange with some of the most highest global rating. Nevertheless, will GDAX continue to deliver the same expectations? Let’s find out…

GDAX

After its official launch in 2016, the user feedback was quite different from what everyone had expected. The three Coinbase founders had a mutual goal in mind: to build a trading platform dedicated to seasonal and advanced traders.

The customer support is limited to US, UK, CA, Singapore, Europe as well as Australia. Unlike residents of the other parts of the world, US, UK and some of the European customers are presented with an option to trade local pair currencies. GDAX accepts three fiat currencies like USD, Euro, as well as English pound.

Unlike its sister company, GDAX offers much lower transactions and trading fees. The fees range from 0.1% and all the way up to 0.25%. THus, the credit card deposit fees are anywhere from 1.5% - 4%.

The Coinbase success has made it super easy for GDAX to get a warm welcome from the traders who were looking for further flexibility. GDAX offer greater diversity in terms of coin variety. Aside from Bitcoin, GDAX offers Ethereum Litecoin, and Bitcoin Cash.

SOME ADVANTAGES OF GDAX

  • A super easy transfer of coin between GDAX and Coinbase.
  • Since 2012, Coinbase known to be the platform for trading Bitcoin. Since the inception of GDAX, Coinbase users were presented with an option to trade Bitcoin Cash, Ethereum, Bitcoin as well as Litecoin.
  • GDAX permits marginal trading.
  • The popular cryptocurrency exchange offers some of the lowest fees in the industry. It gracefully charges trade fees anywhere from 0.1% to 0.25%. Just like the Polonium, it goes by the taker, maker model. Nevertheless, the maker side takes no fee. Basically, anyone who is looking to ‘buy’ a coin, will not need be paying any fees, which is great! However, the taker (seller) has does pay a minimal fee according to the schedule. The fees got a tendency to vary, from one currency to another. The fees are based upon the traded volume. Those who trade larger sums, will end up paying a smaller fee.
  • GDAX permits its users to make deposit in three currencies - USD, Pound Sterling and Euro. Customers are welcome to make deposits via credit/debit cards, ACH or even wire transfer.
  • GDAX is a long time supporter of Bitcoin hard-fork. As result of the previous fork, Bitcoin Cash was listed.
  • GDAX offers several security safety features like 2FA (two factor authentication).
  • GDAX has no history of its security being bridged or compromised.
  • GDAX does have a history of financial audits.
  • A 98% of coin is being stored in cold-storage (offline wallets), therefore, even if the platform’s security gets compromised, the company won’t lose much of its coin.

SOME DISADVANTAGES OF GDAX

I have mentioned some of the most important benefits of trading on GDAX, now let’s take a look at the downside of being a GDAX user.

  • GDAX isn’t going to welcome traders from across the entire globe. It is known to have its doors open to traders who reside in 6 countries like Singapore, US, Canada, Australia, Europe and UK.
  • Only USD, Pound Sterling and Euro deposits currently are allowed. The Australian, Canadian and the Singapore residents are permitted to trade cryptocurrencies, unless a fiat deposit is made in Pound Sterling, USD, Euro.
  • The GDAX’s interface isn’t very beginner friendly.
  • GDAX’s network experienced many network maintenance issues throughout the 2017. During the bitcoin price peak in December 2017, GDAX as well as Coinbase crashed because of high traffic spike.
  • Mobile app isn’t available in the app store, however there is an API support for 3rd party developers
Region Trading Pairs
USA BTC/USD
ETH/USD
ETH/BTC
LTC/USD
LTC/USD
Canada ETH/BTC
LTC/BTC
Europe BTC/EUR
ETH/EUR
ETH/ETC
LTC/EUR
LTC/BTC
United Kingdom BTC/GBP
BTC/EUR
ETH/BTC
ETH/EUR
LTC/BTC
LTC/EUR
Australia ETH/BTC
LTC/BTC
Singapore ETH/BTC
LTC/BTC

REGULATIONS

GDAX complies with US, Canadian and the European regulations. For residents of Europe, US and UK, Ethereum, Bitcoin, Bitcoin Cash and Litecoin is available for trading, however Canadian, Australian and Singaporean residents are not as blessed. Folks from these regions are allowed to make deposits only in USD, EUR and GPB currencies.

MARKET POSITIONING

From the marketing and global popularity perspective, GDAX still has a long way to climb. GDAX managed to attract some 54 million in January of 2018 opposed to Coinbase’s 359 million.

The most traffic is coming from the US (59.14%), UK (7.34%), Germany (2.56%), Spain (2.25%) and France (2%).

By comparing GDAX with Kraken.com, GDAX can show a relatively better performance in terms of views. However, Kraken almost never pushes beyond 50 million views.

GDAX - THE REGISTRATION PROCESS

The registration process for the existing Coinbase users on GDAX is made relatively simple. Though, the new user registration process is not any different in comparison with any other crypto exchange. The verification process is as straightforward as it gets. Simply, add two forms of identification along with a selfie. Once your identity has been reviewed, adding funds from bank account becomes a walk in the park. You may also choose to bypass the verification process, in that case the fiat deposits would not be available.

You can make unlimited deposits into your GDAX account, by transferring funds from Coinbase. Though, the limit is placed on the daily withdrawal amount. The individual maximum daily withdrawal amount is set to be $10,000 and $50,000 if your account belongs to an institution.

SUPPORTED CRYPTOCURRENCIES

GDAX makes it easy for residents of USA, UK and Europe to trade Litecoin, Bitcoin, Bitcoin Cash and even Ethereum. Folks residing in Australia, Singapore and Canada are not so lucky, they can only trade Ethereum and Litecoin.

FEE STRUCTURE OF GDAX

GDAX offers a very attractive fee schedule. The makers are not obligated to pay any fees, while the takers give away as little as 0.1% to 0.5%. The GDAX’s fee structure may vary between the trading pairs. When trading BTC/USD, the fee would vary in comparison to ETH/EUR.

BTC/USD Pair
ETH/EUR Pair

GDAX’S CUSTOMER SUPPORT

GDAX offers a very active 24/7 customer support. My opinion is based on user reviews left for GDAX on various cryptocurrency forums including bitcointalk.com. The overall impression on attentiveness of the support team exceeds expectations. Many users had some very good things to say about the exchange. GDAX also has a FAQ section, providing answers to most common questions.