Lesson 14 – Setting Up a GDAX Exchange Account & Wallet
This lesson was not originally a part of the course, however, I found it necessary to add it at this point. Here is why:
On December 9, 2017 – and given all of the movement within Bitcoin space and people wanting to buy Bitcoin – Coinbase has been inundated with people creating accounts so as to buy Bitcoin. So much so, the Coinbase website almost slowed to a halt.
Buying Bitcoin on Coinbase from your linked bank account or credit/debit card is not a problem. The problem I noted on December 9, 2017, is the transfer fees Coinbase is now charging to send Bitcoin to one of the many Exchanges such as Bittrex, Binance, BitConnect, etc were extremely high. This is not Coinbase’s fault. It is just the sheer volume of people wanting to create accounts to buy Bitcoin has been staggering so the transfer fees increased proportionately. The transfer fees might settle down at a later time. I do not know.
GDAX is an Exchange linked to Coinbase. It is almost a carbon-copy of Coinbase. On GDAX to you can link your bank account and/or credit/debit cards to buy Bitcoin, Ethereum, or Litecoin. Additionally, from within GDAX, you can transfer your Bitcoin to any of the other cryptocurrency Exchanges.
The best part is this: The transfer fees are much much lower than Coinbase.
If you already have a Coinbase account, you will automatically be linked to your Coinbase account within GDAX account.
Someone might ask at this time, “If Coinbase and GDAX are linked, why are Coinbase’s transfer fees so high?” Good question. I believe the reason is that many people do not know about GDAX. Coinbase is the MAIN Exchange most go to.
Within GDAX you have four wallets: Bitcoin, Ethereum, Litecoin, and USD. The more I use GDAX the more I prefer it over Coinbase for the following reasons:
- Cheaper transfer fees
- I can buy Bitcoin
- I can buy Ethereum
- I can buy Litecoin
- I can deposit funds into GDAX via my bank account
- I can deposit funds into GDAX via bank wire transfer
- I can transfer/deposit funds directly from my Coinbase USD wallet to my GDAX USD wallet
- I can transfer/deposit funds directly from my Coinbase BTC wallet to my GDAX BTC wallet
- I can withdraw funds from GDAX and send to my bank account
- I can withdraw funds from GDAX USD wallet and send directly to my Coinbase USD account
- I can withdraw funds from my GDAX BTC wallet and send to my Coinbase BTC account
Please watch the two videos below. The first video shows you how to set up your GDAX account. The second video walks you through the GDAX Dashboard and ties up some loose ends missed in the first video.
In this course, we will use GDAX instead of Coinbase to buy Bitcoin to:
- Hold it (Bitcoin) as an investment
- Transfer it (Bitcoin) to another cryptocurrency Exchange to buy some of the other Altcoins