The world has awoken to the unbridled potentials of the cryptocurrency markets in 2017. Long gone are the days when the industry was viewed with a mix of ridicule, derision, and suspicion, where it was seen as solely a means where drug traders on the sinister dark web markets sell their less than kosher goods in an anonymous atmosphere. The Cryptocurrency industry has become a mainstream market that has grown deep into the mainstream psyche, where it is being traded the same way Forex and other financial assets are traded. In this piece, we will go over one of the most popular cryptocurrency trading platforms in the world in the form of GDAX.
What is GDAX?
GDAX which stands for Global Digital Assets Exchange is a US-based, fully registered and fully insured cryptocurrency trading platform that is ideal for full-time traders and is owned by the same parent company with Coinbase (another popular exchange). GDAX unlike its brother Coinbase is not built for new and low volume cryptocurrency buyers and sellers. It is more of a fully fledged trading platform with all the charts and trading tools to give big-time traders a perfect atmosphere to trade real-time.
GDAX offers the trader a number of choices when it comes to trading their cryptocurrency. Pairs such as Bitcoin/Ethereum, Ethereum/Litecoin, Litecoin/Bitcoin as well as those traded against fiat currencies are all readily available for the trader to buy and sell with. GDAX offers attractively low transaction fees coupled with an information-rich user interface which makes it a very popular choice for traders worldwide.
Fully-Tooled Trading Platform: One of the great things about GDAX is that it offers users a fully equipped trading platform with all the needed instruments for them to take full responsibility for their trading decisions. Being a highly volatile market, GDAX ensures it offers its cryptocurrency traders all the necessary vehicles to limit their losses and also automatically enter trades when the prices are attractive. Some of the various tools that it offers its users include:
- Automatic Limit Buys: This is a key feature of GDAX which allows its traders to automatically enter orders for their choice cryptocurrency asset when it falls to a certain limit in price. Limit buyers once set by the trader are autonomously executed as long as the trader has the necessary funds on their account and that they don’t cancel the order before it gets executed
- Automatic Stops: In a very volatile trading atmosphere, GDAX allows its users to limit any kind of loss they might suffer, by inserting a certain minimum price they don’t want their holdings to surpass. Once this price is reached, the system automatically sells off the given asset to hedge any further losses the investor might face.
- Leveraged Trading: Unlike most other exchanges, GDAX allows for margin trading where the trader can leverage up to 2 or 3 times their deposit to buy a certain crypto asset. The result is if the price should go upwards, the trader gets to reap in big, but should the opposite happen, the losses are also higher than on non-leveraged trades.
Secure Platform: GDAX along with its Coinbase sibling prides themselves on having some of the most secure trading platforms in the industry. GDAX sets it upon itself to go through constant IT security audits and improvements to make sure it stays ahead of the latest threats in cyber attacks. It also makes sure that as much as 98 percent of its total crypto assets are kept completely offline in vaults of its own.
Insurance: GDAX is among the only few cryptocurrency companies in the world that make sure their users’ funds are insured to give them a measure of protection in case of a major catastrophe. All funds and assets of GDAX are FDIC insured which means that every single user according to their volume of investment are entitled to a maximum of $250,000 payout in case of a major problem which sees the company lose their holdings. This gives them similar protection that traditional banks give their customers and is one of the reason they are among the most popular trading outfits out there
Low Transaction Fees: GDAX is well known for offering its traders attractive transaction fees with absolutely zero maker fees, and as low as 0.1% in taker fees.
Trading on GDAX
- As of the present, GDAX only supports users from the United States, the UK, Australia, Canada, and Singapore, as well as other EU countries. For a prospective trader, the following are the short steps to follow to begin trade on the platform:
- Navigate to the GDAX official site with your browser, and click on the “Create Account” button you find on the homepage.
- Sign up using your actual personal info, and make sure you remember everything you insert as you might need them later during your trades for either deposits or withdrawals.
- Confirm your sign up using the link sent to your mailbox.
- Log in to your dashboard on the site and upload your government-issued photo ID such as International Passport or Drivers license, on the verification page of your account.
- You will also need to do second-tier verification depending on the country you are trading from. For the US you need to insert your residential address and Social Security Number, while most other countries need to upload a second photo ID different from the first one they uploaded earlier.
- Once you upload and send, verification could take anything from a few hours to a couple of days, and once you are notified of the successful verification of your account, you can go ahead to make your first deposit and begin trading.
- Fully functional trading platform with all the needed tools.
- Low transaction fees
- Quick Withdrawal options.
- Fully insured
- Secure storage facilities with regular security checks
- Not friendly to first-time cryptocurrency users
- Not the fastest customer support services.
- Complaints from customers about transaction flow when there is peak activity on the market.