If you’ve been reading my posts, you’ll know that I recommend Coinbase for your digital wallet and the ability to buy and sell cryptocurrencies. Some people have asked me about the buy/sell spreads and the high fees.
In the interest of keeping this article simple and easy to understand, I won’t go too deep down the rabbit hole on this topic. What I would say, however, is GDAX is an advanced trading platform built by the folks at Coinbase. It allows you to basically bypass the middle man (Coinbase) and do the trading on your own.
In essence Coinbase is much like a broker assisted trade and therefore has higher fees attached to it (1.5%). GDAX ,on the other hand, allows you to do market, limit, and stop orders just as you would on a stock exchange.
According to the GDAX support site, “GDAX uses a maker-taker fee model. Orders that provide liquidity (“maker orders”) are charged different fees than orders that take liquidity (“taker orders”). The fee is assessed as a percentage of the quote currency.”
What that basically means is the fees vary. There are times when I pay next to nothing and there are times that I pay a little more. While it is tough to provide an exact number, I would venture to guess my fees average around .20%.
If you are wanting to make trades on a regular basis, you may want to consider linking your Coinbase account to the GDAX site. I really like the interface, charts, and ability to see spikes in volume. If you are wanting to buy and hold or make occasional trades, you will be just fine sticking with the Coinbase platform.
If you want to get more involved in trading, follow me on twitter for regular updates @investor_crypto.