GDAX.com – Scam or Not?
Global Digital Asset Exchange or short GDAX is a trading platform launched by the Coinbase in May of 2016. GDAX was created to accommodate not only Bitcoin trading but trading in alternative currencies as well. The exchange is owned by the Coinbase Inc, which is based in San Francisco, California.
GDAX operates all around the world, with a focus on the International market.
Verification on GDAX
GDAX requires two level identity verification. The verification is necessary, and users are not allowed to place deposits or trade before the verification process is completed.
The verification process is straightforward, and it’s a bit different depending on the country.
For US users:
- Photo of a state ID or driver’s license
Passports are not accepted, because they don’t indicate the state of residence.
- The residential address
- Social Security number (SSN)
For UK users:
- A photo of an ID card, driver’s license or Passport.
- Answer to a couple of identity questions
For other users (Singapore, Australia, Canada and European countries):
- A photo of an ID card, driver’s license or Passport.
- Another photo of a different ID document.
Users who are already registered on Coinbase don’t have to create an account from scratch and can log in with their Coinbase credentials.
There are no limits when it comes to trading or deposits. There is a limit of 50,000 US dollars per week for withdrawals, but it’s not affected by the verification.
Currently, the exchange supports these FIAT currencies:
When it comes to digital currencies, there are three matching currencies available:
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LTC)
Depending on the country, available trading pairs can vary:
- US – BTC/USD, ETH/USD, ETH/BTC, LTC/USD, LTC/BTC
- Canada – ETH/BTC, LTC/BTC
- Europe – BTC/EUR, ETH/BTC, LTC/BTC
- The United Kingdom – BTC/GBP, ETH/BTC, LTC/BTC
- Australia – ETH/BTC, LTC/BTC
- Singapore – ETH/BTC, LTC/BTC
There are some additional rules which can be seen here.
The exchange’s fee model is a bit different than others, and it’s based on the percentage of monthly volume.
At the moment of the writing, GDAX had a 30-day volume of 211,487 BTC.
For users which traded a percentage of that volume in the last 30 days the fee schedule looks like this:
> 0 percent (~0 BTC) – 0.25 percent fee
> 1 percent (~2,114 BTC) – 0.24 percent fee
> 2.5 percent (~5,287 BTC) – 0.22 percent fee
> 5 percent (~10,574 BTC) – 0.19 percent fee
> 10 percent (~21,148 BTC) – 0.15 percent fee
> 10 percent (~42,297 BTC) – 0.10 percent fee
This fee schedule is based on taker fees. Maker fees are 0 percent. There’s also a rebate of 0.01 percent for the takers at the end of each day.
There are no fees for making deposits and withdrawals from GDAX account. Only bank fees apply in the case of Wire transfers.
GDAX.com Trading Analysis
The exchange offers various order types, including many advanced order types. Basic orders are, of course, available – including market, limit or stop order. A market order is an order that’s executed immediately at the current market price.
When it comes to the limit orders, besides basic limit order there are several advanced types:
- Good ‘Til Cancelled (GTC) – this order is placed on the order book and remains there until canceled by the user.
- Immediate or Cancel (IOC) – this order is placed on the order book, and if it’s not immediately completed, it will be automatically canceled and removed from the order book.
- Fill or Kill (FOC) – this order is going to be completed only in the case that the entire amount can be matched. Partial matches are not completed with this type of limit order.
- Post Only – this is an option which makes sure that the order executes only as a maker order to avoid paying fees. If it encounters orders that result in taking liquidity rather than providing it, the order will automatically reject to execute them.
Stop orders allow users to prevent major losses that can come as a result of a price swing. There are Sell Stop and Buy Stop order.
The exchange doesn’t offer margin trading neither trading with futures or derivates.
Ease of Use
The interface looks great, and it’s very well adjusted to user needs. The trading is very simple, and the connection speed is good enough for real-time trading. Many features are just a click or two away, allowing users to easily use the interface. The trading platform doesn’t have apps for Android and iOS, but their website is responsive and looks good on mobile devices.
GDAX has a very extensive FAQ page and also offers ticket submission and email support. They usually answer within 48 hours. The support can be a bit “shallow” sometimes and only partially resolve the problem, which can result in waiting for another 48 hours to completely resolve the issue.
Since this is a new exchange, there are no complaints so far, but many users have complained about the Coinbase, the founding company of GDAX.
Security on GDAX exchange
GDAX is very well secured exchange. The company holds less than 2 percent of the customer funds in hot wallet, while the rest is secured in cold storage with encryptions and multisig keys.
There’s two-factor authentication, and PGP encryption is used in email communication.
Email and SMS alerts are available too.
The exchange is relatively new, so there are no posts about the hacks online.
GDAX Review Conclusion
GDAX is a new name for an old exchange.
- Good liquidity
- Competitive fees
- International market
- Owned by Coinbase which is known for lack of privacy
- Support could be way better
Overall, a fresh start for Coinbase which reputation suffered a lot in last year or two. Great exchange, especially for beginners.
Do you have good or bad experiences with this Bitcoin Exchange? Please share them!