It’s a common occurrence among newbies to the cryptocurrency world. They set up their initial Coinbase account, are attracted by the simple layout, are not overwhelmed by the amount of cryptos on offer (just Bitcoin, Ethereum, and Litecoin at time of writing), and accordingly get comfortable with the platform as they build up their confidence in trading. All those other somewhat more complicated and visually assaulting tools like GDAX come later in the game.
Bear in mind, Coinbase is a fantastic operation. It is just the right kind of tool to give the common man the moxie required to dive into this market. Unfortunately, convenience comes at a higher than necessary fee.
Financial Carnage With Coinbase
The above screen capture was taken from the Coinbase support page. As you can see, you can really take a hit with fees by using the all too tempting convenience of the platform. For instance, if you wanted to purchase $1,000 worth of Bitcoin via a credit card, that would amount to nearly $40 just in fees alone. Surely there must be a better way.
Say Hello To GDAX
It might interest you to know that the GDAX exchange is actually owned by Coinbase. The key difference between the two platforms is that GDAX is geared towards institutional investors and more active traders. Since the sheer volume of capital moving in and out of GDAX is more substantial than Coinbase, the fees associated with its use are much more reasonable.
In the following photo capture, you can clearly see how much money you can save on this more advanced platform. GDAX only charges a 0.25% taker fee, while Coinbase will charge 1.49% at the minimum.
What Will GDAX Do For You?
The absolute highest fee you will ever be paying on GDAX is 0.25%, while nearly 1.50% is the smallest possible fee to pay on Coinbase. That is a massive amount of money you can save on this more advanced platform, in and of itself. So if you have been using Coinbase for quite some time to buy and sell Bitcoin, Ethereum, or Litecoin, please stop what you are doing as soon as possible.
Sign up for GDAX, which is owned by Coinbase, and move all of your trading activity to GDAX. Because you are going to be paying way less fees, and you will be saving yourself a considerable amount of money in the long run. A wise investor doubles as a thrifty investor.
This article was originally published at CryptoGeography. Permission to reprint this article elsewhere is granted, provided that all text and hyperlinks (including this footnote) remains intact.