If you are in the crypto field, then you must have definitely heard about Coinbase and GDAX. Both these exchanges are considered as the top exchanges to buy Bitcoin.
Rewind 5 years back to 2012, Brain Armstrong, the founder of Coinbase was a techy person and was inclined to Blockchain technology.
Brian Armstrong decided to host a Bitcoin meet-up in San Francisco in order to buy a beer with Bitcoin. Brain stated, “It was not as easy as it should have been”, but he was ultimately able to purchase one beer for one bitcoin, which was about $6.50 at the time. That beer is worth more than $15000 though ;).
Nonetheless, Brain decided to create a platform where non-technical people can easily buy and sell Bitcoin. In less than a year, Coinbase was selling $1M worth Bitcoin per month.
Soon, Coinbase became a go-to website for buying and selling bitcoins.
In 2016, Coinbase announced the birth of a new platform known as GDAX, especially for professional traders.
So, If you were thinking that both the companies are different, then let me clarify that both the products are owned by the same company.
One Company, two Products
Coinbase and GDAX, both the products are owned by Coinbase but both have a different use case.
For better understanding:
Coinbase is a platform for consumers to easily buy, sell, and store cryptocurrency like BTC, ETH, and LTC.
GDAX is an exchange for professional traders to buy/sell cryptocurrencies.
Coinbase has a simple and easy to understand UI which is great for those who just want to buy some crypto as long-term investments.
It allows buying crypto only with the bank transfer and credit cards. However, you can use PayPal along with bank transfer for withdrawing funds.
GDAX is a trading exchange which is great for professional traders. Here you can buy/sell crypto at the rate you set, if the order matches.
Unlike Coinbase, GDAX is not at all easy for beginners.
GDAX has various features like:
- Market Orders
- Limit Orders
- Stop Orders
- Margin Orders
GDAX allows buying crypto with fiat currency as well as cryptocurrencies.
Coinbase VS GDAX: Which is a Better?
Now, let’s compare both the platform on a few common parameters.
|Ease for Beginners|
|Deposit Mode||Bank Transfer, Credit Card, Crypto||Bank Transfer, Cryptocurrency|
|Withdraw||Bank Transfer, Crypto||Bank Transfer, PayPal, Cryptocurrency
|Cryptocurrenies||BTC, ETH, and LTC||BTC, ETH, and LTC|
|Reviews||Coinbase Review||GDAX Review|
Ease for Beginners
As per the company, the sole purpose of Coinbase is to provide easy access for buying cryptocurrencies. And without any surprise, I can tell that Coinbase is really very easy for beginners.
Coinbase has a very easy to use UI which makes it very convenient for newbies to buy/sell Bitcoin.
On the other hand, GDAX has a very tacky UI which is not at all beginner friendly. For a newbie, GDAX would look like the cockpit of a Boeing.
We can add funds to our Coinbase as well as GDAX account through bank transfers and card.
However, Coinbase has an additional withdrawal method i.e. PayPal. So, Here again, Coinbase takes a leap ahead GDAX.
Talking about the Fees, GDAX charges a very low trading fee, hence it is far ahead Coinbase.
Here is Coinbase Fee schedule:
|Countries||Payment Mode||Fees*||Time Taken|
|USA||Bank Transfer||1.49%||5-7 days|
|USA||Credit / Debit Card||3.99%||instant|
|Europe||SEPA Transfer||1.49%||1-3 days|
|Europe||Credit / Debit Card||3.99%||instant|
|Australia||Credit / Debit Card||instant||instant|
|Canada||Credit / Debit Card||3.99%||instant|
|UK||Credit / Debit Card||3.99%||instant|
GDAX Fee schedule:
You can know more about GDAX fee in their official article.
Talking about the security, both GDAX and Coinbase pay huge attention towards the security of the funds.
98% of the funds are stored in the various offline cold storages and rest 2% funds are covered by insurance. Since, both the platforms are owned by the single entity, the safety on each platform is quite high.
The only thing that I do not like about both of these exchanges, especially GDAX is that they have only 3 cryptocurrencies.
Both GDAX and Coinbase support:
Since GDAX is meant for professional traders, they should have added support for other major cryptocurrencies as well.
So which is a better platform?
Actually, Both the platform has a different use case. One is good for crypto beginners while the other suits the sophisticated traders.
If you are willing to buy Bitcoin, Ethereum, and Litecoin, then Coinbase is the platform for you. However, if you are willing to make money buy regularly buying/selling cryptocurrencies, then you must go for GDAX.
Moreover, both the sites are safe and trustworthy thus you do not need to worry about their genuinity. One good thing is that you can use your Coinbase account for trading on GDAX.
So, If you haven’t bought BTC yet, then jump on the bandwagon right now and Buy BTC from Coinbase.
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