What is GDAX?
Our GDAX review will identify areas that we considered important to understand for the potential digital currency traders that are looking for the best cryptocurrency exchanges 2021 with whom to trade.
GDAX is one of the most popular cryptocurrency exchanges available to users throughout the world. It is owned and operated by Coinbase but provides a much different experience for users. Where Coinbase charges fees for all transactions made, GDAX does not. So, in theory, you’ll be able to make many trades without any additional expenses.
The major difference between the two cryptocurrency exchanges lies in the audience that each exchange platform is targeted towards. Where Coinbase is marketed towards novice users and provides an exchange platform that is simple and easy to use, the GDAX exchange is aimed at the more experienced digital currency trader and possesses a more complex look.
Is GDAX safe?
It is crucial when identifying a potential cryptocurrency exchange to understand if the site provides a safe and secure service. So, is GDAX safe?
GDAX is considered one of the safest exchanges available to crypto traders. History has shown that it has never been hacked and is insured by the Federal Deposit Insurance Corporation (FDIC) meaning that any customer balance up to $250,000 USD is protected from theft and fraud.
The regulation of GDAX
Our GDAX review found that this cryptocurrency exchange is bound by the same regulations that affect Coinbase. This means that GDAX complies with the following laws and regulatory agencies:
- Registered as a Money Services Business with the Financial Crimes Enforcement Network (FinCEN).
- Complies with the Bank Secrecy Act and the USA Patriot Act.
- Complies with money transmission laws and regulations in most American states.
GDAX has a determined focus on ensuring the financial security of client funds. This is achieved by making sure that Coinbase’s operational funds are separated from those belonging to their members. Client funds are segregated and kept secure in highly reliable, tier 1 banks.
Furthermore, personal client data is only used for the verification of identity, to enable transactions and to improve the GDAX product. The company does not sell any customer data to third parties. In addition, 98% of all funds provided by users are stored offline and away from the prying hands of potential hackers.
GDAX provides their clients with the capability of strengthening their account by providing 2-factor authentication on all personal accounts. This process involves an initial step of creating a unique username and password and an additional step of verification via SMS messaging or phone call.
So, is GDAX safe? Overall GDAX is a very secure cryptocurrency exchange. This is illustrated in the activation of 2-factor authentication, strong regulation and the absence of any hacking incidents since its inception.
There are four types of digital currency that are available to clients at GDAX. The four cryptocurrencies available are:
- Bitcoin Cash
GDAX trading is open to users in the following regions:
- The United States
The supported European countries are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom.
Within the USA, GDAX does not provide support to members of the following states: Wyoming and Hawaii.
The GDAX purchase process
Our GDAX review will now provide readers with an overview of the process that needs to be followed to purchase digital currency with this company. To use GDAX trading, all you’ll need is to have a Coinbase account. You can then instantly transfer funds that have been deposited into your Coinbase account to GDAX at no charge.
Having completed initial registration, a verification email is sent to the address you have provided. If you cannot locate the email in your inbox, then make sure to check the junk folder. Having verified your account, you’ll be prompted to provide additional information such as a localized phone number for 2-factor authentication which will allow you to perform transactions.
Select an appropriate payment method and connect your bank account or debit/credit card to enable you to purchase and sell digital currency. Prior to the selection of a payment method, personal identification is required. There are three modes of identification that are permitted, these are:
- Driver’s License
- Photo Identification
Once the setup of your account is complete you can then head over to GDAX and start trading by linking your Coinbase account to the GDAX exchange.
Without a doubt, the major benefit of the GDAX trading exchange is the limited transactional fees required to make a trade. There is a small .1% to .25% fee for taker trades but no fees at all for maker trades. This compares ridiculously well to Coinbase where the transactions exceed 4% for credit/debit card transactions.
Our review reports that there is no GDAX deposit fee of Bitcoin, Ethereum, Litecoin and Bitcoin Cash. In terms of withdrawals, GDAX allows up to $10,000 to be withdrawn per day from a personalized account and up to $50,000 to be withdrawn from an institutional account. Additionally, withdrawal limits can be even higher where requests have been placed and approval has been granted.
Our GDAX review found that there is a thorough FAQ section on the main website that answers most of the common questions asked by users. Within the support sections of the website, there is also a submit request button that provides the user the opportunity to contact customer support in relation to any issue that they may be needing help answering.
Furthermore, the GDAX trading site provides phone support services to their clientele Monday through Friday from 6 am to 6 pm. However, be aware that they do not return calls. If you get disconnected, you’ll have to call them back.
- Great for more experienced traders
- No GDAX deposit fee for digital currency
- Strong FAQ section and customer support
- The GDAX trading exchange can be hard to navigate for novice traders
- Limited selection of digital coins
Our GDAX review is pleased to report that for the experienced trader looking for a cryptocurrency exchange with low transaction fees and high liquidity, then this is the site for you. With strength in security and solid customer support, there is little reason not to consider GDAX as your cryptocurrency exchange of choice. While not ideal for the beginner trader and possessing a limited selection of coins, the positives of this exchange easily outweigh the negatives. Experienced digital currency traders will find it hard to locate a better exchange with lower transaction fees than GDAX.