Coinbase is a digital currency exchange platform that has its headquarters in San Francisco. It exchanges, buy/sells and transfers Bitcoin, Bitcoin cash, Ethereum, Litecoin and other cryptocurrencies in over 32 countries of the world.
(Image Source : https://www.coinbase.com/)
For users who are specifically into the trading and transfer of digital assets on the Coinbase exchange, the transaction fee will definitely be of concern to them as it will eat up most of their profit. But there is a way to avoid that, it is with the help of the Global Digital Asset Exchange (GDAX). It was designed for those who were specifically into trading large sums of money.
You might wonder what are the various differences between Coinbase and GDAX?
Gdax improves the security and private information infrastructure of Coinbase. The difference is that Gdax has a higher identity verification requirements compared to Coinbase.
Gdax audience vs. Coinbase audience
Gdax was designed to serve sophisticated and professional customers while Coinbase was designed to meet the needs of newcomers in the cryptocurrency world. How do we know this? Gdax makes use of two candle charts which makes it more difficult for new users to effectively carry out transactions. It is estimated that it takes over 30 minutes for a newcomer to learn to use the platform. Gdax has two charts; price chart and depth chart.
The price systems of these two exchanges are different. Also, Gdax is used to carry out transactions of higher value.
Gdax fees vs. Coinbase fees
There are no fees for buying, selling and transfers on the Gdax network. For users who buy and sell on the market, there is a 0.25% charge on all transactions carried out. Coinbase, on the other hand, has a higher transfer fee. Coinbase charges about 1.49% for exchanges and transfers that are made directly from the bank. It also charges 3.99% of all transactions that are carried out using credit/debit cards.
It is advised that if you decide to trade about $50, to help you learn about how cryptocurrencies work, it is better to use Coinbase. If you decide to trade as a professional with up to $1,000, Gdax is advised for you. Gdax charges a mere 0.25% on all transactions compared to 1.9% and 3.99% charged by Coinbase for direct bank transfer and credit/debit card transactions respectively. This significant difference in price sets these two platforms developed by the same team apart.
Coinbase offers large withdrawal limits, and it is easy to use. Most importantly it supports the use of credit/debit cards and bank transfers to carry out a transaction on the network. Gdax, on the other hand, takes a longer time to navigate through. This is particularly because it was designed for people who have been into the crypto world for a long time.
One reason why most people choose Gdax when it comes to trading is that it does not have a trading limit. This sets it apart and it is why most people who want to trade above $1000 prefer to use the exchange.