Should You Use GDAX or Coinbase To Buy Cryptocurrencies?

If you have been delving into the world of cryptocurrencies recently, looking for an exchange that would allow you to purchase Bitcoin or another type of cryptocurrency, then you have most likely heard of both Coinbase and GDAX before. These two companies are often listed as top choices when it comes to reviewing cryptocurrency exchanges, with both offering a set of unique features that cater to a specific audience. Both GDAX and Coinbase are owned and operated by the same company, but each platform has been designed with someone else in mind – knowing the difference between the two platforms will help you decide which is best for your requirements. In this post, we’ll take a look at how these two exchanges compare to each other, and which is better for certain purposes.

Coinbase Or GDAX?

coinbasegdax bitcoin

When noticing Coinbase and GDAX as cryptocurrency exchanges, one particularly interesting factor may come to mind if you do some research into these platforms – they are both owned by one company. Coinbase was the first platform to be launched by the company, and provided multiple features. Later on, the company decided to split some of their features off into a new platform, which was named GDAX. This may be somewhat confusing for a person looking to register an account with an exchange, so let’s take a closer look at what each of these companies offers.

Overall, it should be noted that Coinbase is mainly devoted to those who are still relatively new to the cryptocurrency market. The platform is fairly simple and easy-to-use, and there is no need to learn about any of the advanced features of Bitcoin or trading in order to buy some cryptocurrencies from this company. GDAX, on the other hand, has been devoted to those individuals who are rather aiming to make larger transactions and, of course, to those who would like to trade multiple cryptocurrencies, as well as fiat currencies.

Here is a general overview of how these two platforms defer in features:

  • Coinbase is the solution that beginners should choose, since the platform has been developed to be easy-to-use. GDAX is a better option for experienced individuals who understand how forex exchange platforms work.
  • With GDAX, customers can only choose between depositing through a bank transfer or with a cryptocurrency transfer. Coinbase offers more deposit and withdrawal options. In addition to those offered by GDAX, Coinbase also allows account top-ups with a credit card and withdrawals through PayPal.
  • Both Coinbase and GDAX allow customers to trade with the most popular cryptocurrencies, including Bitcoin, LiteCoin and Ethereum. In addition to cryptocurrencies, GDAX also supports trading with some fiat currencies, including USD and EUR.
  • Both platforms take security very seriously and enforce several security protocols to ensure customer data is always safely stored on their servers.
  • Coinbase and GDAX both have excellent customer support services that offer a customer the ability to easily get in touch with a consultant who will be able to help them with their query.
  • The fees charged by Coinbase for transactions is higher than what GDAX charges. With GDAX, transaction fees are usually charged to a maximum of 0.25%. When using Coinbase, however, bank transfer fees are charged at 1.5% of the transaction’s value, and credit card transactions are charged at 4%.

Conclusion

Both Coinbase and GDAX are owned by the same company, yet both of these cryptocurrency exchange platforms have a different target audience in mind. While Coinbase is tailored toward the newcomer looking to buy some Bitcoin, GDAX rather targets the professional investor and trader looking to make more significant transactions of higher value. We have provided an overview of how these two platforms compare; thus offering you a better overview of which platform you need to opt for.

 

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About 

Kevin Lee is a former tech advisor who cut his teeth in Silicon Valley. He now spends his time sharing his passion for investing in diamonds and jewelry. You can reach Kevin for any comments by using the contact form on this site. Don't forget to sign up for his free "Investing 101 Guide" by clicking on the button at the top right of this website.