GDAX Review: Is GDAX a Safe Way to Trade Cryptocurrency?
GDAX is one of the world’s most popular cryptocurrency exchanges, typically having the largest trade volume of any exchange for Bitcoin, Litecoin, and Ethereum fiat trading pairs. In this GDAX Review, we’ll answer all the most common questions asked about this exchange.
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- Owned and operated by the same company as Coinbase.
- GDAX account is linked to your Coinbase account.
- Originally launched in 2015 as the “Coinbase Exchange”, before being rebranded to GDAX.
- Based in San Francisco, California, USA.
- Deposit Methods: Bank Transfer, Bank Wire, Cryptocurrency, Coinbase Transfer
- Withdrawal Methods: Bank Transfer, Bank Wire, Cryptocurrency, Coinbase Transfer
- Available Cryptocurrencies: Bitcoin, Ethereum, Bitcoin Cash, Litecoin
- Above average customer support.
- Trading Fees: 0.3% or less
- Site: GDAX.com
The GDAX exchange is owned and operated by the most well trusted and popular cryptocurrency exchange in the world, Coinbase.
Coinbase was designed to make buying, selling, and storing cryptocurrency as easy as possible. Following the tremendous success of this platform, the company set out to make an exchange that catered to more serious investors. This led to the launch of the “Coinbase Exchange” in 2015, later rebranded to GDAX.
You can learn more about the differences between these options in our GDAX vs Coinbase comparison.
Coinbase has set the standard for industry practices, when it comes to managing customer funds, and they’ve brought these practices to GDAX.
- All customer funds are held separately from company funds and never used for operational purposes.
- 98% of customers’ cryptocurrency funds are stored in secure offline cold storage.
- The remaining online crypto funds are fully insured.
- United States residents’ USD balances are FDIC insured up to $250,000.
As is the case for all cryptocurrency exchanges, you’re on the hook for keeping your personal account safe. If your account is compromised due to poor security on your end, GDAX will not be responsible for lost funds.
The good news is, GDAX gives you access to the personal account security measures of Coinbase, including:
- 2-Factor Authentication (2FA) through SMS text, Google Authenticator, or Authy (We recommend Google Authenticator).
- Ability to store funds in the “Coinbase Vault”, which offers time delayed withdrawals and multiple signer options.
- Required verification for new devices.
We’ve reviewed all of the most popular cryptocurrency exchanges. Below we’ll show you how GDAX stacks up to the competition.
1) Most Well Trusted and Secure Exchange Company
While this was largely covered in the above section “Is GDAX Safe?”, the trustworthiness of GDAX is its biggest plus.
The company has been operating since 2012 and has received over $200 million in venture capital funding. In its 5+ years of operation, its fully gained the trust of both the cryptocurrency community and major investors.
Combine this with their industry leading security and you can feel very safe using GDAX to trade cryptocurrency.
2) Low Trading Fees
GDAX uses a maker-taker fee schedule, which can be seen in more detail here. The maximum trading fee you’ll pay is 0.3%. This is lower or very competitive with all other major exchanges.
3) Highly Liquid Markets
GDAX consistently has the most daily trade volume or very close to it for Bitcoin, Ethereum, and Litecoin to USD trade pairs. This eliminates any risk of slippage for the vast majority of investors.
1) Limited Payment Methods
Unlike Coinbase, you can’t use credit cards on GDAX. Only bank transfers and bank wires are accepted for depositing fiat currency,
On the plus side, if you create a GDAX account, you’ll also have a Coinbase account you can use to buy Bitcoin, Ethereum, Bitcoin Cash, and Litecoin with a credit or debit card.
2) Limited Number of Cryptocurrencies
While GDAX does list 4 of the 5 most popular cryptocurrencies, they offer less cryptocurrencies than many competitors.
Kraken, another fiat accepting exchange, offers trading for 15+ cryptocurrencies.
If you’re looking to trade Bitcoin, Ethereum, Litecoin, or Bitcoin Cash, then GDAX is a great low fee alternative to its parent exchange Coinbase. With that said, it doesn’t allow purchases with credit cards.
- Community Trust Grade
- User Experience
- Available Cryptocurrencies
- Deposit/Withdrawal Methods
- Customer Support