The surge in popularity of Bitcoin and other digital currencies has drawn many new investors to the crypto space. While platforms like Coinbase offer a straightforward way to buy and sell, frequent traders often look for more advanced tools and lower fees. This is where GDAX, now known as Coinbase Pro, comes into play.
GDAX was a professional trading exchange built by Coinbase, designed to facilitate the trading of cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) with significantly lower fees. Understanding how to use such a platform is a crucial step for anyone moving from casual investing to more active trading.
Why Consider an Advanced Exchange?
For beginners, standard platforms provide a simple interface to purchase crypto directly. However, this convenience comes at a cost in the form of higher transaction fees. If you are trading frequently, these fees can substantially cut into your profits or amplify losses.
An advanced exchange addresses this by offering a different fee structure, primarily catering to users who execute orders within a trading book rather than instant buys and sells. It provides a more nuanced view of the market through live order books, price charts, and detailed trade history.
Getting Started with the Exchange
How to Sign Up and Create an Account
The sign-up process is streamlined for existing Coinbase users. Since the platform leverages Coinbase's secure infrastructure, much of your verified information can be carried over.
- Navigate to the official exchange website.
- Select “Create Account”.
- Complete the registration form and verify your email address.
- Provide a phone number for two-factor authentication (2FA).
- Choose to create an ‘Individual’ or ‘Institutional’ account and provide the necessary details.
- You will have the option to link your bank account to fund your trading account with fiat currency (USD, GBP, EUR) or you can skip this and transfer crypto assets instead.
Existing Coinbase customers can often sign in directly using their credentials, though additional identity verification may be required to meet the platform's higher compliance standards.
Transferring Funds
A key feature is the seamless integration with its parent platform. You can easily transfer existing cryptocurrency holdings or fiat currency between accounts without fees.
- Depositing Funds: The ‘Deposit’ button allows you to move USD or digital currencies from your linked Coinbase account or connected bank account into your trading account.
- Withdrawing Funds: Similarly, the ‘Withdraw’ function lets you send funds back to your Coinbase wallet or out to your linked bank account.
Once deposited, your balances will be visible on the platform's interface, ready for trading.
Navigating the Trading Interface
The exchange interface provides the tools needed for informed trading decisions. It can be broken down into several key sections.
The Order Book
The order book is a real-time list of all outstanding buy and sell orders. It is typically divided into two sides:
- Bid Orders (Green): These are buy orders, representing the prices traders are willing to pay for an asset.
- Ask Orders (Red): These are sell orders, representing the prices at which traders are looking to sell.
The difference between the lowest ask price and the highest bid price is known as the spread. A narrow spread often indicates a high-liquidity market with significant trading volume, which is generally preferable for traders.
Price and Depth Charts
The charting section is central to technical analysis.
- Price Chart: This displays the historical price movement of a trading pair (e.g., BTC-USD). You can adjust the time intervals (1min, 1hr, 1day, etc.) to analyze different trends.
- Depth Chart: This visualizes the order book, showing the cumulative supply (sell orders) and demand (buy orders) at different price levels. It helps traders gauge market sentiment and potential support/resistance levels.
Order Management and Trade History
Below the charts, you’ll find tabs for Orders and Fills.
- Orders: This area shows your open orders and their status (e.g., pending, completed, canceled).
- Fills: Once an order is executed, it moves here, showing details like the executed price, amount, and time.
Finally, the Trade History section provides a live feed of all recent transactions on the exchange, offering transparency into current market activity.
👉 Explore more advanced trading strategies
Frequently Asked Questions
What is the main advantage of using this exchange over the standard Coinbase platform?
The primary advantage is the fee structure. The advanced exchange charges significantly lower fees, especially for those who provide liquidity by placing limit orders. It also offers more sophisticated trading tools like order books and advanced charting, which are essential for active traders.
Is it safe to transfer funds between Coinbase and this trading platform?
Yes, transfers between the two platforms are internal and happen instantly without any cost. Both platforms utilize the same secure storage infrastructure, making the process safe and efficient for moving both cryptocurrency and fiat currency.
What are the different types of orders I can place?
The platform supports several order types, including market orders (buy/sell immediately at the current price), limit orders (set a specific price to buy or sell), and stop orders (trigger a market order once a certain price is reached). Understanding these is key to effective trading.
Do I still need to pay fees on this advanced exchange?
While fees are greatly reduced, they are not entirely eliminated. The platform operates on a maker-taker fee model. Makers (those who add liquidity with limit orders) typically pay lower fees than takers (those who remove liquidity with market orders). In many cases, maker fees can be 0%.
How do I start trading after I transfer my funds?
After your funds appear in your account balance, select your desired trading pair (e.g., ETH-USD). Then, choose your order type, specify the amount you wish to buy or sell, and place the order. It will appear in your "Orders" tab until it is filled.
Are there any geographical restrictions for using this exchange?
Availability and supported features, such as which fiat currencies you can deposit, vary by country. It's important to check the official list of supported regions to see what services are available in your location.