These two are undeniably some of the best-known exchanges in the world of cryptocurrency.
For many newcomers, these two exchanges are often the first port of call.
They offer easy options in crypto investments.
However, a lot of beginners are confused about GDAX and Coinbase.
Both the exchanges have some distinct advantages.
Depending on the kind of returns you need, you can make an informed choice.
The world of cryptocurrency has different types of investors.
Each different exchange caters to different kinds of traders and investors.
Perhaps we can make the task easier for you with this GDAX vs Coinbase comparison.
We compare various parameters of the two exchanges.
But first of all, it is important to know about the founders of both companies.
That will give you important insight into the fundamentals of the company.
In many ways, the operational module of the company is dependent on that.
GDAX & Coinbase Have the Same Parent
Though GDAX and Coinbase are separate entities, they have the same parent.
Coinbase was created in 2012 by Blockchain champion Brian Armstrong.
This was a result of his keen interest to create an easy to use Bitcoin platform.
Soon Coinbase was selling Bitcoin worth $1 million a month.
It gained extreme popularity within a short time.
If you wanted a position in cryptocurrency, this often became the easiest alternative.
But Armstrong did not stop there.
In 2016, the Coinbase parent came up with a new offering.
A new platform came into being.
It was specially created for professionals with expertise in cryptocurrency.
This platform came up with some specific features.
It was especially for experts and professionals.
This was a clear move away from the company’s earlier offering.
While Coinbase has a decidedly retail base, GDAX was for experts.
The hardcore traders can look at GDAX for additional advantage.
The term GDAX stands for Global Digital Asset Exchange.
It created a window of opportunity for Ethereum access too.
More or less, both these new age exchanges set to change the dynamics of Bitcoin trade.
But the point is when you compare both, how do they stand?
1. The Coinbase Review
A comparison of GDAX vs Coinbase is possible only with a detailed understanding of both.
Let us look at Coinbase first.
It is older of the two exchanges.
In terms of popularity, this is talked about more often.
Perhaps in terms of absolute usage, it is also used more often.
The fundamental aim of Coinbase is simplifying the user experience.
Whether you consider buying, selling or even storing cryptocurrencies, coinbase undeniably offers a superior experience to its users.
Most importantly, there is no distinction between new and experienced users.
In fact, this exchange went on to open up the cryptocurrency to the entire world.
With the ease of use and friendly operational module, it is an instant hot.
You can even use your credit card to fund these transactions.
This is in addition to the cryptocurrency deposits and bank transfers that most enable.
What makes the deal even sweeter is the withdrawal facilities.
Well, here is an exchange that allows you to use PayPal as well.
Coinbase has gradually won investor trust the world over.
Today it is considered way more than a mere Bitcoin exchange.
It is also an important and buzzing Bitcoin wallet solution.
Additionally, it provides merchant facilities too.
The business terms are extremely lucrative, and it opened up access dramatically.
Needless to mention that it has also strengthened the Exchange’s position.
In the world of Bitcoin trade, it has overhauled the overall approach.
It will not be wrong to say it introduced a humane element to cryptocurrency.
It is sensitive to consumer needs and offered an appropriate solution.
2. GDAX Review
So Coinbase is doing fairly well, so why do you need a second exchange?
You can be questioning the parent team’s decision is creating a new exchange.
You can even argue that there is no need for an additional Exchange.
But a little study will highlight that the GDAX is a well thought out concept.
Coinbase is all about creating user appeal.
But the GDAX is minus all that charm, meant for very serious players.
It is primarily meant for cryptocurrency users who mean serious business.
The idea is to provide a meaningful platform to experience Bitcoin users.
It is for hardcore professionals who actively trade in digital assets.
Needless to mention that GDAX does not have any frills attached.
No wallet service, no merchant services either.
It is created purely for sophisticated market players.
Though the same team conceptualized both the exchanges, they are poles apart.
While Coinbase is created to woo new users, this one is only for those who choose it.
Therefore, in many ways, both these exchanges deliver value to the target user base.
But you must remember that the user base for GDAX is very different.
The parent team understood the necessity for a well-focused opportunity.
It provides a professional and well-regulated exchange to users.
Coming on the heels of Coinbase, GDAX takes the user experience a notch higher.
In many ways, the idea was to tap all types of cryptocurrency users.
In this context, GDAX covers an equally important user base.
So now is the time to compare these exchanges individually.
We bring forth to you the pros, cons and unique elements of both these exchanges.
Ease of Use in GDAX vs Coinbase
In terms of ease of use, the Coinbase is a sure winner.
But the fact is that is also part of the game plan.
The Coinbase has been created especially for beginners.
It seeks to address newcomers who are unsure of the cryptocurrency environment.
The idea is to make it as accessible as possible.
So needless to mention, Coinbase is every beginner’s first approach road.
Coinbase is also a retail-specific exchange.
Attracting consumers is one of the cardinal concepts driving the design.
In comparison, GDAX is a far more refined offering.
It is typically for the veterans.
It is direct and on your face.
If you don’t know how to trade Bitcoin, you are in for a hard time with GDAX.
GDAX is not user-friendly at all.
It is categorically designed to service professional traders.
Moreover, Coinbase becomes a one-stop shop for most beginners in Bitcoin.
From Bitcoin trading to merchant services and even a wallet, Coinbase has it all.
So if you are looking for convenience, Coinbase is a sure winner.
Most importantly, GDAX can be rather intimidating to beginners.
For the uninitiated, GDAX can pose more problems than solution.
Further, Coinbases minimizes the need for vaults for storing cryptocurrency.
Their online wallets heighten the overall experience for beginners.
They don’t have to constantly worry about their money being stolen.
The Coinbase wallet makes the task relatively simple for you.
So GDAX vs Coinbase comparison highlights the latter is way more convenient to use.
It is equally effective for newcomers as well as professionals.
The GDAX, in comparison, is undeniably expert material.
Monetary Transactions in GDAX vs Coinbase
When you compare GDAX vs. Coinbase on this feature, Coinbase emerges a clear winner.
Bank transfers and cryptocurrency deposits are common to most exchanges.
The Coinbase, however, offers ways more than this.
You can pay via credit cards and withdraw using PayPal.
That means users get a definitive advantage.
Moreover, statistics indicate that credit card payments typically attract more spending.
This means Coinbase brings more business its way as well.
Additionally, these features make it way more attractive for beginners.
The GDAX in comparison is pretty conventional in this department.
It essentially relies on the bank transfers and cryptocurrency deposits.
However, the game changes completely when you discuss fees.
Suddenly you can see the logic and brilliance of the GDAX offering.
It is meant for serious and steady investors in cryptocurrency.
Well, that is best borne out in the way the fee structure is designed.
Compare GDAX vs Coinbase fees anywhere across the world.
You will be surprised to see how GDAX shines through in this case.
The GDAX trading fees are around 0.25% or even lesser in some cases.
When 30-day user volume increases to 20%, it slides to 0.1%.
However, in comparison, Coinbase charges start from 1.49% and goes up to 3.99%.
Essentially that makes it more expensive in comparison.
But clearly sets the focus and target customers for each product too.
On the one hand, you have Coinbase meant for beginners.
It has a relatively simple payment method.
On the other hand, you have GDAX; its trading rates are dirt cheap.
So it encourages professionals to undertake more trade.
The more you trade, the lesser you pay.
That is sure to encourage an awful lot of Bitcoin users to maximize trade.
Execution of Buy Orders in GDAX vs Coinbase
This is the defining moment when you compare GDAX vs Coinbase.
First and foremost, the high fees in Coinbase erode a significant amount of profit.
That said Coinbase also displays a high slippage rate.
If you compare, the overall market order is much higher than GDAX.
So traders using this exchange will be at a disadvantage.
This slippage rate can be often a major factor in determining the final profit.
Moreover, in some case, you see the final figure is rounded off.
This again eats into profit for most users.
Now let us look at GDAX trade execution.
One advantage is the login details are common for both exchanges.
The execution of the market order is smooth and fast.
The immediate execution ensures that customers get the best possible price.
That helps in keeping the profit percentage intact for users.
The relative slippage rate is much lower.
This is also because the trading fees are much lower in case of GDAX.
You may find the entire operation confusing at the beginning.
But once you get used to trading on GDAX, you will enjoy the smooth experience.
However many times, users may run into trouble executing limit orders.
This can be for a variety of reasons.
Volatile pricing and high volumes too can be a trigger.
However, the GDAX experience is far superior in this case.
This is perhaps primarily because of the lower transaction and trading charges.
It allows investors to keep the maximum amount of profit intact.
They are able to confirm to trading basics without compromising their profit.
But hang on, does that make GDAX a better option than Coinbase?
Availability of Various AltCoins in GDAX vs Coinbase
This is an important consideration when you compare two exchanges.
But, in this case, there is hardly anything to compare.
Both GDAX and Coinbase offers the same currencies for trade.
For the Coinbase exchange, this is an okay offering.
However, this is often seen as a limiting factor for GDAX.
It is seen as a solution for sophisticated and seasoned traders.
So the offer of just three currencies means that traders have to limit their game.
They cannot experiment with currencies as much as they will want to.
You can argue that these three are amongst the most popular.
But the question is for how long.
The way the cryptocurrency sector is developing, it is a tough call.
The situation is quite fluid, and you never know how this can limit future growth.
GDAX perhaps can add on support for some other cryptocurrencies as well.
But at the moment users on both these exchanges have to suffice with just three options.
The only positive is so far the turnover has not been seriously affected by this.
But that said, it also introduces a certain degree of discipline in trading.
Both the exchanges offer stable and unhindered trading in the currency options they provide.
Security Element in GDAX vs Coinbase
In this regard, there is hardly anything to compare.
It is a clear tie between GDAX vs Coinbase on the security front.
Security of user interest and security of funds is high on their agenda.
Both the exchanges have incorporated several steps to ensure utmost safety.
Almost 98% of the funds handled by these exchanges are in offline cold storage.
The remaining 2% that is there online is secured by some of the best-known names globally.
As a result, investors never run the risk of losing their money completely.
They can store their money relatively safely and without worry.
In this case, the common parent is a big benefit for both Coinbase and GDAX.
The security policies are similar.
They are able to provide maximum security to their users.
This also helps them to maintain credibility in the investor community.
Users feel safe in undertaking transactions with these exchanges.
Moreover, there is a lesser chance of investors losing their wealth in one blow.
That also encourages investors to walk down the Bitcoin road more often.
The instances of theft in online storage often deterred candidates from investing in these.
But with a greater degree of safety introduced now, it is all changing.
Customer Support in GDAX vs Coinbase
Here again, the scores are tied for Coinbase and GDAX.
In many ways, customers enjoy the benefit of both exchanges having the same parent.
Both the exchanges have 24×7 customer support.
Online reviews are mixed in terms of response time.
But for an exchange with close to $1 million turnover, it is difficult to judge.
On an average, reviews indicate satisfactory and prompt service.
The quality of service also appears up to the mark.
In many cases, you even see the company stepping in with a comment.
So, that means both GDAX and Coinbase take the reviews seriously and act upon it.
The result is that the overall quality of customer support is fairly good.
So… Which One Is Better?
So the question is when you compare the two exchanges, which is better?
Well, that will be a difficult answer.
If you compare GDAX vs Coinbase, each one has some distinct advantages.
GDAX makes clear trading sense while Coinbase with its flurry of offers is lucrative.
The option is to combine the advantages in both for long-term gains.
GDAX does not have trading fees on limit orders and nominal fees on market order.
You can, therefore, buy cryptocurrency from GDAX.
Now the Coinbase wallet is the best way to safeguard these coins
Both Coinbase and GDAX have the same login, so you can sign-in just once.
You can then transfer the coins to a safety vault.
In this way, you maximize your payment and withdrawal options.
But at the same time reduce transaction fees.
Therefore both GDAX and Coinbase have specific advantages.
You have to compare both and see what addresses your investor interest most.
GDAX is keener on sophisticated traders while Coinbase targets beginners.
So if you ask me, it is a clear tie between GDAX and Coinbase.