GDAX (Coinbase) Cryptocurrency Exchange Comprehensive Guide 2018 (updated)in Cryptocurrency
I often hear the "Coinbase cryptocurrency exchange" words. That's a misconception. There is no such an exchange. There is an "online platform for buying, selling, transferring, and storing digital currency" which includes a Coinbase wallet and an exchange called GDAX.
Coinbase was launched in California in 2012 and since then sells cryptocurrency at market price. The users from 32 countries don't need to enter the crypto exchange and can buy crypto coins using their credit cards. However, if they need more trading instruments they can log in the GDAX crypto exchange with their Coinbase account and trade there.
- Coinbase platform
- GDAX cryptocurrency exchange
- GDAX interface
- GDAX account verification
- GDAX (Coinbase) security
- How to deposit and withdraw money
- GDAX fees
- Available cryptocurrencies
- GDAX supported countries
- GDAX customer support
- GDAX advantages and disadvantages
Coinbase has a simple interface which can understand even a child. At the moment Coinbase supports Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. To buy one of the cryptocurrencies click on the "Buy/Sell" button in the upper left corner of the dashboard and link your credit card or a bank account. The more information you provide the less the limit on buying and selling cryptocurrency will be. As an ID you can enter your driver license data as well.
The minimal currency purchase is 2 USD, 2 EUR — in a word, 2 points of your local currency. The fees vary from 1.49 percent to 3.99 percent depending on the country you are living in. The conversion fees are also depended on the geographical position.
The duration of the deposit or a purchase, again, depends on your location. The buying and selling are available for the following countries:
- Czech Republic
- San Marino
- Australia (buying)
- Canada (buying)
The safety of the account is provided by the HTTPS protocol and a two-factor authentication (including Google Authenticator). You can also track your IP and the device activity.
GDAX cryptocurrency exchange
- Complete the sign-up form, then click on the "Create an account" button
- Click on the verification link sent to your email address
- Provide your phone number
- Specify the type of the account — "Individual" or "Institutional" and provide your ID information or your institution information
- You can also link your bank account with the crypto exchange so you can do it now or skip the step
- If you already have a Coinbase account you can log in with its help adding the required information
GDAX has only an advanced interface which is not user-friendly. Let's divide it into 6 zones:
- Candlestick chart which also can be changed to the line chart
- Market depth area that shows the liquidity and the depth of a cryptocurrency
- Open orders — reflects your current unfinished orders
- Trade history — reflects the history of all the trades
- Orderbook — here you can take in order to buy (green) or sell (red) cryptocurrency
- Order form — here you can both buy and sell cryptocurrency. The form supports market orders which apply at the current market price. Limit orders, which apply when the given price is achieved.Stop orders — the order will be completed when the price of the currency reaches the specified price
- "Post order" means the only entire order can be executed. If a part of the order crosses the spread, an error will be displayed.
- "Allow taker" means the order will be completed regardless the spread at the taker fee rate.
Limit orders have an advanced section with the following parameters:
- Good Till Cancelled — the order will stay in the order book until you cancel it.
- Immediate or Cancel — if no one fills it immediately it will be canceled automatically
- Fill or Kill — if the entire amount will be matched, the order will be completed
GDAX account verification
All the users must verify the account in accordance with the requirements:
- US customers should provide state ID or a driver's license with the residential address and Social Security number
- UK customers — Driver's license, ID document or Passport
- Other countries — Passport, Driver's License or National ID card
For Institutional investors:
- IRS Letter with proof of EIN / other documentation for a non-US tax ID number
- Articles of Incorporation / Formation Documents
- Legal Business Name
- Doing Business As (DBA)
- Physical Business Address
- Business Phone Number
- Tax ID Number
- Business Website (optional)
- Business Description
- Business Category
- Purpose of Transaction Activity
Coinbase provides the following security measures to protect their customers' accounts and money:
- 98 percent of all the customer money is claimed to be stored offline with the help of the AES-256 encryption, and copies on FIPS-140 USB drives and paper
- Two-factor authentication (2FA)
- Website SSL encryption (HTTPS)
- Wallets with an AES-256 encryption system
To deposit or withdraw USD you can use the order form in the upper left corner of the dashboard.
As you see, the mechanism is easy — you just choose the amount, the wallet and click on the "Deposit/Withdraw Funds" button.
The same is with the digital currency depositing:
You should choose the wallet you are going to deposit, copy the address and send the crypto coins to this address using your cryptocurrency wallet.
To withdraw the cryptocurrency you should fill in the similar form but enter the address of the wallet where you are sending the crypto coins to.
GDAX uses maker-taker fee model. So, the maker fee is 0 percent while the taker fees are 0.1 — 0.3 percent depending on the 30 day USD equivalent volume of trade.
As to deposits and withdrawals:
|Automated Clearing House (ACH)||0||0|
|SEPA||0.15 EUR||0.15 EUR|
|USD Wire||10 USD||25 USD|
GDAX supported countries
GDAX is available in the US, UK, Canada, Australia, Singapore and the following European countries:
GDAX customer support
GDAX has a separate customer support page with F.A.Q. questions and instructions. Besides, you can reach them via email or the phone number +1 (888) 908-7930 which is available 24/7. GDAX has also a Twitter page where they consult regarding the Coinbase products.
However, there are a lot of complaints from people who didn't like the service, especially the helpline which makes them wait for hours:
GDAX advantages and disadvantages
- Merging with Coinbase
- Credit cards, bank accounts, wire support
- Low Fees
- 3 fiat currencies support
- Good for professional traders
- Cold storage for customers' funds
- Country restrictions
- Only 3 fiat currencies support
- Few altcoins support
- Complicated interface
- No mobile or desktop apps
- Regulated by the USA