GDAX Review
Is This Exchange The Way To Go?

crypto technology

If you're looking to start investing in cryptocurrency, it can be easy to get overwhelmed when finding a trading platform through online reviews, and hard to know if a particular marketplace is worth your time.

Like any investment, there are risks involved in buying and selling crypto, which opens up a lot of questions:

  • Which sites are trustworthy?
  • How secure is cryptocurrency and how safe are my investments?
  • Which ones have the lowest fees?

While we can't choose an exchange site for you, we can help you with some of the research. In this review, we'll share what we found when we analyzed at GDAX (Global Digital Asset Exchange) - an exchange site with a good reputation among experienced crypto traders.

Headquartered in San Francisco, GDAX was founded in 2012 and offers individuals and institutions the opportunity to trade crypto coins on a regulated, US-based system.It is a product of another popular altcoin trading site, Coinbase, and can work in conjunction with Coinbase, if the trader chooses to use it that way.

The company believes that an open financial system, such as the one created by cryptocurrencies, can generate efficiency, economic freedom, equality, and innovation.

They plan on turning this dream into a reality by becoming the most trusted, most accessible marketplace in the sector.

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​In this review we'll take a closer look at how to buy, sell and trade on this exchange (as well as how to transfer your cryptos from coinbase) - but first let's take a look at what coins you can trade on this digital platform.

What is GDAX used for?

GDAX is a cryptocurrency exchange site that operates similarly to a stock exchange. It allows users to buy, sell, and trade four altcoins:

  • Bitcoin (BTC), Bitcoin Cash (BCH)
  • Ethereum (ETH)
  • Litecoin (LTC)

It also supports three fiat currencies: the US Dollar, the Euro, and the British Pound.

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​As we review this exchange site we'll demonstrate how it offers users ten trading pairs and three types of orders. The pairs are available to view in a drop-down menu on the trading dashboard, and after you've selected your pair, you can choose the order type.

The interface can seem a little intimidating, especially to beginners, but it gives users a real-time view of the exchange. Even though the dash looks intimidating, selecting your trading pair, order type, and submitting your order couldn't be easier.

​Users can deposit and withdraw funds to and from their GDAX account via ACH transfer, wire transfer, and cryptocurrency deposits. While it's not recommended to hold assets in digital exchanges for long periods of time, this site does have security measures in place to protect the wealth of its customers.

All US dollars held in your GDAX account are FDIC insured (funds belonging to non-US customers are kept in custodial bank accounts). The site only stores 2% of its digital assets online and fully insures all of it.

The remaining 98% are held in cold storage in safe deposit boxes around the world in the form of encrypted USB drives and paper backups. As you'll see further on in this review, they take security very seriously and work to ensure the safety of your investments.

Using Real User Reviews to Check if GDAX is Safe and Legit?

GDAX is one of the most popular, trusted cryptocurrency exchanges out there. But is it right for you? That depends on your experience in the crypto market and your investment needs. Doing your homework and reading real user reviews is a great place to start.

Here in this review we'll discuss the pros and cons of this particular trading platform, but as always, you should look at different marketplaces and consider all of your investment needs before making your final choice. Only you can decide what's right for you!

Let's review the advantages and disadvantages of this trading platform. Here are what investors like most about GDAX, and also what they don?t like:

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Advantages

  • High security.
    Securing your assets is the #1 priority at GDAX. While most digital funds are held offline in safe deposit boxes around the world, the 2% of crypto that GDAX holds online is fully insured. If there is a security breach and your funds held online are lost, you will be fully reimbursed.
  • Fully compatible with Coinbase.
    The ability to use these services in conjunction with each other is a plus because Coinbase is one of the most popular crypto markets in the world. Using the markets together is easy, and since this exchange doesn't offer users a wallet, it?s convenient to be able to move altcoins from GDAX to your Coinbase wallet instantly.
  • A trusted marketplace.
    Due to its connection to Coinbase, its security measures, and the fact that it has been in operation for over five years, GDAX is one of the most trusted exchange sites right now.
  • Easy to use.
    The trading dashboard, where you?ll perform almost all of your transactions on the platform, is intimidating at first. The price chart, order book, trade history, and order form are all displayed on the same ever-moving screen.

    Once you're familiar with the data being displayed, it's actually quite simple to use. It's easy to navigate, choose your trading pair, and buy or sell crypto.

Disadvantages

bitcoin believer
  • Strictly a trading site.
    As you'll see in many reviews, ince GDAX is only for buying, selling, and trading, you'll need a separate crypto wallet to spend your alt coins. If you already have a wallet that you like, you may just be looking for a trading site. In that case, this platform might be a good option for you.
  • Supports a relatively limited number of currencies.
    While GDAX supports the most popular cryptocurrencies, it's still a small fraction of the number of altcoins out there. If you're looking to trade lesser-known crypto, you will probably want to look at other exchange sites. In addition, it only supports three fiat currencies, a possible drawback for users in places other than the US and Europe.
  • Limited ways to fund your account.
    Many exchange sites allow you to fund your account with your bank account, credit cards, or even PayPal. This marketplace site only supports bank transfers and crypto transfers. Bank/ACH transfers can take 3-5 days to clear, making you wait to start trading.
  • Deposit limits can vary.
    The amount that you can deposit into your account isn't straightforward. It depends on the age of your account and your buying history. Most crypto markets have a limit that applies to all accounts so keep this in mind when choosing an exchange site.

Here's What You Need to Know before using GDAX to invest

Before you decide which exchange site to use, there are a few things about GDAX that you should keep in mind when reading reviews.

The fees on this digital marketplace are comparable to, or even lower than, other leading trading sites. They use a system that is complex, but relatively standard for cryptocurrency markets.

You?ll pay a minimum fee of 0.25% on Bitcoin orders and a minimum of 0.30% on Ethereum orders and from there, your fees will depend on the currency you trade and the volume of those trades over a 30-day period.

The outstanding thing about their fee schedule is the 0% maker fee.

In layman's terms, if you place an order that is not immediately matched by an existing order, it gets placed on the order book. When another user places an order that matches yours, you're considered the maker and won't be charged any fees.

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​Their full fee schedule can be found online so you can get a feel for how much it will cost you to trade each cryptocurrency.

1. Can you transfer from Coinbase to Gdax and vice versa?

Yes! Since GDAX is a product of Coinbase, it's easy to move over to GDAX or even use the two services together.

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Transferring funds between your Coinbase and GDAX accounts is easy, free, and the transferred funds are available instantly.

It's important to note that there is a big difference between Coinbase and GDAX: Coinbase is not a trading site, while GDAX is. Users on Coinbase are able to buy altcoins directly from Coinbase and store them in their crypto wallet (available right on Coinbase).

As we've mentioned in this review, this is a trading site, usually favored by seasoned (or even professional) traders and does not offer users a wallet. To spend any currency in your account, you?ll need to transfer it to your bank account or a crypto wallet.

2. How does GDAX ID Verification Work?

In order to get started on GDAX, the site will need to verify your identity.

Customers in the US will need to supply a scan of a driver's license or state-issued ID.

Please note that this platform does not accept passports for identity verification.

For regulatory reasons, they need to verify your state of residence, which is not included on a passport. You?ll also need to supply your home address and social security number.

For UK users, the requirements are similar. You'll need to provide a scan of a government ID (passports are acceptable for UK customers) and you will be asked to answer some verification questions.

Users in Australia, Canada, Singapore, and European countries simply need to provide two forms of ID.

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If you have trouble with identity verification, know that the site is not able to manually bypass any requirements. If the issue lies with your identification, be sure to check your scanner or camera and make sure that the entire document is in the frame and it is not blurry. It's easiest to take the picture using the camera in the Coinbase app (free in the App Store or Google Play Store).

If you are having trouble with your address, make sure that you're typing it in exactly as it appears on official documents. For this platform to verify your identity, your information must match across all of your documents.

How to Sell, Buy and Trade on GDAX

buying and selling online

Getting started on the site is easy:

  • 1
    Click 'Create Account' on the homepage, fill out the form, and click 'Create an Account'
  • 2
    After registering, you'll receive an email with a verification link. When you click the link, you'll be taken to a page where you?ll be prompted to enter your phone number.
  • 3
    Once you've entered your phone number, you'll select your account type: individual or institutional.
  • 4
    Now it's time to provide your identity verification documents. These will vary depending on where you are located and the type of account you have chosen. Regardless, all users will need to submit a government-issued ID.
  • 5
    When your documents have been accepted, you'll link your bank account so you can fund your GDAX account with USD, GBP, or EUR. If you're also trading crypto, you'll link your alternative wallet now.

When you're ready to buy and sell, it can all be done from the exchange dashboard:

doing some crypto trading
  • 1
    In the upper lefthand corner, you'll see a drop-down menu that, when moused over, brings up all of the trading pairs. When you choose your trading pair, the area to the left will change to reflect your choice.
  • 2
    Choose your order type: market, limit, or stop.
  • 3
    Select 'buy' or 'sell'.
  • 4
    Input the amount you'd like to purchase or sell (pay close attention to the currency in which you are purchasing!)
  • 5
    Press 'Place Buy/Sell Order' to complete your transaction.
altcoins

To withdraw digital currency from your account and transfer it to a digital wallet or other exchange, you'll need the destination address from that service.

Once you have that, it's simple to move your altcoins:

  • 1
    Go to the trading dashboard and select a trading pair with the currency you wish to withdraw.
  • 2
    Press the ?Withdraw? button in the upper left corner.
  • 3
    Choose "BTC address", "ETH address", or "LTC address", depending on the currency you are withdrawing.
  • 4
    Enter the destination address and complete your transaction. The balance will be deducted from your GDAX account immediately, but it may take up to half an hour for your crypto wallet to show your new balance.

As you'll find in many reviews, the process for depositing and withdrawing USD and other fiat currencies is similar:

  • 1
    Navigate to your trading dashboard and select a trading pair with your fiat currency (USD, EUR, or GBP).
  • 2
    Choose 'deposit' or 'withdraw' and select 'bank account'. (If you have not added your bank account yet, you can do so from this screen but you will be taken to Coinbase to verify your bank account and may not be able to deposit or withdraw immediately.)
  • 3
    Once you've chosen your bank account, enter the amount you?d like to deposit or withdraw and complete your transaction.
tech savvy corporate guy

Its low fees, easy-to-use-interface, and tight security measures make this particular exchange platform a great option for seasoned crypto traders and Coinbase users that want to take the next step with their investing.