GDAX, originally a subset of the wide-reaching Coinbase family, served as a dedicated cryptocurrency exchange for professional traders. Offering advanced tools that went beyond the basic buy-and-sell capabilities of the Coinbase wallet, GDAX was tailored to users needing to track price movements meticulously and set complex order types.
Launched in 2015 under the moniker of Coinbase Exchange, the platform was rebranded as Global Digital Asset Exchange (GDAX) before another rebranding phase ushered in Coinbase Pro and ultimately, Coinbase Advanced Trade in 2022. Starting with a limited suite of major cryptocurrencies, Coinbase Advanced Trade now supports the trading of hundreds of diverse virtual assets.
Key Takeaways
- GDAX was launched by Coinbase in 2015 and is now known as Coinbase Advanced Trade.
- It garnered popularity as a trusted platform for U.S. traders to directly trade bitcoin for fiat currencies.
- GDAX/Advanced Trade caters specifically to active traders with sophisticated market tracking and order-setting tools.
- Prices on GDAX/Advanced Trade are typically more favorable compared to buying directly through the Coinbase wallet.
- By 2016, GDAX began incorporating new assets, now showcasing thousands of digital assets under the Coinbase Advanced Trade platform.
History of GDAX
In 2015, Coinbase, a stalwart in the U.S. bitcoin industry, recognized the need to diversify its offerings. The Coinbase wallet provided a straightforward avenue for purchasing bitcoin but lacked the comprehensive functionality professional traders sought. Furthermore, wide bid/ask spreads on the Coinbase wallet resulted in less favorable trading prices compared to market rates.
To bridge this gap, Coinbase established two distinct trading environments. Casual users continued with the user-friendly Coinbase wallet, while a new exchange — initially dubbed Coinbase Exchange — catered to active traders with sophisticated features like price charts and limit orders. Rebranding efforts subsequently transformed Coinbase Exchange into GDAX, then Coinbase Pro, and finally, Coinbase Advanced Trade.
GDAX Tradable Asset Expansion
From 2016 onward, GDAX began enabling trades in assets not available on the standard Coinbase wallet. Litecoin and Ether were initially introduced as part of this expansion. Now, Coinbase Advanced Trade lists hundreds of different assets, marking a significant expansion from its humble beginnings.
GDAX provided advanced functionality to its traders, featuring price charts, an open order book, and the facility to set both market and limit orders. These capabilities empowered traders to conduct technical analysis and discern market trends, offering a depth of utility aimed at experienced users.
GDAX (Coinbase Advanced Trade) vs. Coinbase
Designed for those trading frequently, Coinbase Advanced Trade delivers lower prices, a result of higher trading volumes fostering more revenue for the platform. In contrast, the Coinbase wallet charges a wide spread, leading to purchase prices that fall short of market values.
Coinbase Advanced Trade operates on a maker-taker fee model, with a fee of up to 0.5% for each buyer or seller. This structure stands in contrast to the simpler Coinbase wallet interface, where users are presented with a singular buy and sell price. However, assets can be seamlessly transferred between the wallet and the exchange, enabling users to benefit from more competitive prices offered on the Advanced Trade platform.
Common Questions About Coinbase Advanced Trade
Is Coinbase Pro Being Phased Out?
Coinbase Pro was rebranded to Coinbase Advanced Trade in 2022, yet continues to offer the same services under its new name.
Does Coinbase One Apply to Advanced Trading?
Coinbase One, the exchange’s subscription service, does not include benefits related to Advanced Trade.
Can I Trade Futures on Coinbase?
Crypto futures contracts trading is available to customers on the Coinbase Advanced Trade platform.
The Bottom Line
Coinbase has established itself as a premier cryptocurrency exchange on a global scale. Originating as GDAX, the platform has continually evolved, adopting the moniker Coinbase Advanced Trade in 2022. This transformation reflects its commitment to advancing and meeting the complex needs of modern traders.
Related Terms: Bitcoin, Coinbase Pro, Ethereum, Cryptocurrency Trading, Maker-Taker Fees.
References
- Coinbase. “GDAX Is Now Coinbase Pro”.
- Coinbase. “Hello Advanced Trade, Goodbye Coinbase Pro”.
- Coinbase. “Explore the Cryptoeconomy”.
- Bitcoin.com. “Coinbase to Add Litecoin, Ether Under New GDAX Brand”.
- Coinbase. “What Are the Fees on Coinbase Pro?”
- Coinbase. “Join Coinbase One for Zero Trading Fees”.
- Coinbase. “U.S. Traders Can Now Trade Regulated Leveraged Crypto Futures Through Coinbase Financial Markets”.
