Gdax Review 2018: Is Gdax safe? | Beginner’s Guide

GDAX – Global Digital Asset Exchange – is one of the most popular sites for trading in cryptocurrencies.

It’s owned by San Francisco based Coinbase, which is a more popular venue for purchasing cryptocurrencies. However, GDAX is far more advanced and meant for those interested in serious trading and cryptocurrency investment.

One of the reasons that GDAX is highly trustworthy is because it’s backed by some major industry investors such as New York Stock Exchange, Union Square Ventures, and Andreessen Horowitz, amongst many others.

In this article, I’ll give you a detailed overview of GDAX so that you can make an informed decision about whether to use it as your cryptocurrency trading platform.

gdax review

PART 1: Is GDAX Safe?

GDAX is a completely trustworthy and safe avenue for your cryptocurrency investment and trading. There are several reasons for this trustworthiness.

First, as mentioned earlier, it’s backed by major world-renowned investors such as New York Stock Exchange and Union Square Ventures.

Second, neither GDAX nor its parent company Coinbase has yet come under any major hacking attack. The only event that’s slightly worrisome is the “flash crash” in Ethereum prices. The coin had been trading at $317, when a single “fat finger” event by a large trader led to a spike to a value of 10 cents.

Third, GDAX has a largely positive set of reviews from users. It’s almost as unanimous as Coinbase.

Finally, one of the best aspects of GDAX is that all their customers are FDIC insured. This means that, in the event of a loss, the customers are entitled to remunerations of up to $250,000.

PART 2: Trading Information

Who Needs It?

GDAX is the ideal avenue for serious investors who engage in regular trading of cryptocurrencies, both buying and selling. Most exchange avenues, such as Coinbase, have a large transaction fee for buying or selling. As such, if you use those avenues for frequent trading, you incur a lot of losses.

So if you’re trading in cryptocurrencies, rather than simply holding them, then GDAX is the perfect cryptocurrency exchange avenue for you due to low transaction fees.

Cryptocurrencies Supported

The major cryptocurrencies supported by GDAX are Bitcoin, Ethereum, and Litecoin.

Currencies Supported

You can purchase cryptocurrencies using most of the major fiat currencies. However, for trading purposes, GDAX supports USD and EUR, and GBP is accepted when trading with Bitcoin.

Countries Supported

GDAX is available for global trading exchange and is functional in most countries across the globe. However, due to the supported currencies, it’s most user-friendly for the US, Europe, and the UK. You can check out a full list of countries supported here.

Fees

Trading fees in GDAX are some of the lowest amongst all competing exchanges. You can deposit funds either through the bank account directly or you can deposit them into a GDAX hot wallet.

The “maker” fee is 0%, and the “taker” fee (active trading) ranges between 0.1% to 0.25%. For a detailed overview of the fees, you can check out the GDAX Fee Structure.

Payment Methods Accepted

The Payment Method differs for different regions and countries. As such, you can see a complete list of payment options for different countries in the Support page.

Limits

The smallest order for trading on GDAX is 0.01 BTC, ETH, or LTC.

In terms of withdrawal, an individual can withdraw as much as $10,000/day, and an institution can withdraw up to $50,000/day. However, you can also go to your GDAX Settings and increase the limits.

PART 3: How to use GDAX to buy Cryptocurrencies?

Now that you understand all the basics of GDAX, you can read on to find out how to use GDAX to trade in cryptocurrencies.

How to Create a GDAX Account?

  1. Go to the GDAX website.
  2. Click on ‘Create Account’. create account
  3. Fill in the details, including your email address. You’ll receive a verification link in your email. signin
  4. Verify the email address.
  5. Provide a phone number.
  6. You’ll have to either create an ‘Individual’ or an ‘Institutional’ account, and provide the relevant information.
  7. You can link your bank account to fund your account with either USD, GBP, or EUR currencies. Alternatively, you can also fund your account with Bitcoin and Ethereum cryptocurrencies.

Trading in Cryptocurrencies using GDAX Bitcoin Exchange

Once you’ve created an account with GDAX, you’ll need to deposit some funds to your account. You can either access the funds directly from your Coinbase account, or deposit them from a linked bank account, or through a wire transfer from the bank. gdax btcoin exchange

Of course, this is just the very first step you of trading in cryptocurrencies. To gain a deeper and more rounded understanding of how to use GDAX, you can watch the following YouTube video:

PART 4: GDAX Compared (and other Alternatives)

The biggest difference between GDAX and other competing exchanges is how advanced it is. Like Coinbase, it’s meant for both buying and selling of cryptocurrencies. However, it has the most negligible transaction fees as opposed to all other exchanges, which makes it ideal for active trading.

However, if your purpose is to only buy cryptocurrencies, then GDAX isn’t ideal because of how complex it can be. In that case, you can go for something simpler like Coinmama.

You can compare the different exchanges using the table given below.

ExchangeReviewsFeesSecuritySupportPurchase
Coinbase
Coinbase
Coinbase Review3.75%GreatEmail+ Coinbase “Community”Buy
Binance
Binance
Binance Review0.1%GreatEmailBuy
LocalBitcoins
LocalBitcoins
LocalBitcoins Review1.0%GoodQuick responses to online support ticketsBuy
Paxful
Paxful
Paxful Review0% from buyer, 1% from sellerGoodForum,live chat and email.Buy
bitpanda
BitPanda
BitPanda Review1.0% to 4.0%GoodEmailBuy
CEX.IO
CEX.IO
CEX.IO Review0.5% to 2.0%GreatEmailBuy
Coinmama
Coinmama
Coinmama Review6.0%GoodEmailBuy
bitbond
Bitbond
Bitbond Review1.0% to 2.5%GoodEmailBuy

PART 5: Conclusion — Is Gdax a Good Choice?

Everything taken into consideration, GDAX is one of the best exchanges in the market as it offers the same kind of functionality and security as the popular Coinbase. However, it does so at a fraction of the transaction fee. It’s the ideal option for serious traders.

However, if you’re just a beginner, then GDAX is a complex avenue to jump into. In that case, you should start with Coinbase, get a hang of the cryptocurrency world, and then transition into using GDAX.

8 Total Score
Great

Great choice for serious investors and traders who want to deal with the primary cryptocurrencies at a negligible transaction fee. However, they don’t have a wide range of cryptocurrencies.

Security
8
Ease of Use
7
Support
8
Compatibility
6
Price
9
PROS
  • Low transaction fee.
  • Sophisticated user interface.
CONS
  • Only three cryptocurrencies supported.
User Rating: 5 (1 votes)