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The complete guide to Coinbase's new exchange, GDAX and how it will disrupt traditional trading

 Coinbase is a cryptocurrency exchange based in San Francisco, California. They provide the conversion of bitcoin, bitcoin cash, ethereum, and litecoin to currencies in around 32 countries, as well as bitcoin transactions and storage in over 190 countries worldwide.

Cryptocurrency exchange

Cryptoassets such as bitcoin, ethereum, and litecoin are generally obtained through one of two methods: mining or trading.

Mining has substantial entry barriers. Participating in a mining pool or operating mining "rigs" may be costly and time-consuming. Fiat-cryptoasset exchanges and brokerages, such as Coinbase, Kraken, and Bitstamp, have established themselves as the key on-ramps to this asset class for the more inexperienced customer. These enable customers to exchange fiat currency (for example, USD or GBP) for cryptoassets (e.g. BTC, ETH, LTC).

  • The product being exchanged is the "trading pair" (or "currency pair"). The product in the above screenshot is ETH, while the "quote currency" is USD. This indicates that traders are buying and selling the dollar-priced cryptoasset ethereum.
  • The order book displays all bids and offers at any one time. A "bid" is the price at which a buyer will purchase something, while a "ask" is the price at which a seller will sell something. The order book also displays the total number of asks and bids (supply and demand) at a particular price, known as the "market size."
  • Another technique to examine the order book is the "depth chart," which displays cumulative bid and ask orders across a range of values. The depth chart, when combined with volume — or the total amount exchanged during a specific time period — is an excellent way to gauge "liquidity." The ease with which an asset may be converted into cash is referred to as liquidity. For example, if ethereum experienced a large sell-off, there may not be enough buyers, or "liquidity," for sellers to sell to.
  • Finally, the "mid-market price" is the price that falls between the best "ask" and best "bid" prices. It is also known as the current bid and ask price average. The "price" of an asset (as stated on Yahoo Finance or Bloomberg, for example) is a direct result of market bids and asks, which indicate supply and demand.

What is Coinbase?

Coinbase was launched in July 2011 by Brian Armstrong, a former Airbnb developer, and was initially backed by Y Combinator. Coinbase provided facilities to purchase, sell, and store bitcoin when co-founder Fred Ehrsam, a former Goldman Sachs trader, joined the business in 2012.

Coinbase now works in over 100 countries, and its 21 products are classified into three core areas of business:
  • Individuals can use Coinbase, Wallet, and USD Coin.
  • Prime, Commerce, and Exchange are commercial terms.
  • Cloud, Connect, and WalletLink are available to developers.

What is GDAX?

GDAX was the previous name for Coinbase's cryptocurrency exchange, which is a popular broker for bitcoin and other digital assets. Unlike the Coinbase wallet's in-app purchases, GDAX was designed for experienced traders, with capabilities to track price changes and place complicated buy and sell orders.

The exchange was founded in 2015 as Coinbase Exchange and then rebranded as GDAX, which stands for Global Digital Asset Exchange. GDAX was renamed Coinbase Pro in 2018 but retained its previous capabilities.

Although GDAX initially supported only a few major cryptocurrencies, Coinbase Pro today supports trading in hundreds of other virtual assets.

What are the Benefits of Using GDAX?

Let's take a look at the pros of GDAX:
  • Accepts deposits and withdrawals from bank account
  • Low deposit and withdrawal fees
  • Funds can be transferred from Coinbase
  • Very low trading fees
  • Fast account opening process
  • Excellent safety
  • good customer support
  • Clean and easy to use platform

How to Transfer Money from your Coinbase Account to Your GDAX Account?

Your Coinbase and Coinbase Pro accounts are linked, but they have distinct wallets. Transferring funds from Coinbase to Coinbase Pro is free.

Deposits to Coinbase may be made using the Pro mobile app by visiting the Portfolios tab and pressing Deposit in the upper right-hand corner.

Follow these procedures to transfer funds from your Coinbase wallet to your Pro wallet:

Navigate to the Coinbase Pro trading platform:

  1. Select Deposit from the Wallet Balance menu (a pop up window will appear).
  2. Choose the currency type (e.g., BTC, ETC) for which you want to add money to Pro from Coinbase.
  3. Choose Coinbase Account.
  4. Enter the amount you want to add to Pro from Coinbase. Please keep in mind that you will only be able to deposit monies that are "Available to deposit."
  5. At the bottom of the window, click Deposit.

Follow these procedures to transfer funds from your Pro wallet to your Coinbase wallet:

Navigate to the Coinbase Pro trading platform.

  1. Under Wallet Balance, click Withdraw (a pop up window will appear).
  2. Choose the currency type (e.g., BTC, ETC) that you want to withdraw from Pro to Coinbase.
  3. Choose Coinbase Account.
  4. Enter the amount you want to withdraw from Pro to Coinbase.
  5. At the bottom of the window, click Withdraw.
  6. Transfers between Pro and Coinbase do not count towards your Pro cashout limit. Requests for an increase on your Pro cashout limit may be made through your limits page.

What Makes Coinbase the Best Place to Buy Crypto?

One of the most frustrating elements of utilizing GDAX is the extremely restricted amount of coins accessible to purchase, sell, and exchange. Actually, as of July 2018, the exchange only supported four coins.

Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), all of which are supported by Coinbase. According to the Coinbase and GDAX teams, the exchanges intend to support additional currencies in the near future.

Dan Romero, Coinbase's general manager, has stated that introducing new cryptocurrencies is a key priority, but they are taking their time owing to US rules. What we do know is that Ethereum Classic (ETC) will shortly become the fifth token supported by GDAX, which is scheduled in the second part of 2018!

Cryptocurrency ventures want their coin to be listed on Coinbase and GDAX since the platforms have over 13 million consumers and make it simple to utilize real-world money.

For example, the Ripple (XRP) team has been attempting for a long time to have their token listed on Coinbase and GDAX, even offering to lend the platforms $100 million in XRP! When speculations spread that the acquisition would be completed, the value of XRP skyrocketed! However, after it was announced that Ripple would not be included, its value plummeted!

In actuality, if you are searching for an exchange that supports a wide range of cryptocurrencies, GDAX may not be for you. Other exchanges, like as Binance, feature hundreds of different currencies, with more being added on a regular basis.

Just to let you know, you can also trade the four supported cryptocurrencies against fiat currencies like the US dollar and the Euro, which is a fantastic feature!

Overall, there are many advantages as well as subtle disadvantages that await you on this new frontier in trading. Try it today and find out what you're missing out on!