It is always difficult for Newbies to start learning new things and if talking about decentralized Cryptocurrency exchanges than it is one of them hence this guide is to learn how to use GDEX to buy or sell cryptocurrencies.
Coinbase and Coinbase Pro (GDEX) both are owned under the same ownership and based in the USA.
If you will ask me what is GDEX? then Coinbase Pro is also known as GDEX or vice versa.
CoinBase exchange provides an easy interface for beginners to start their Cryptocurrency trading in a very interactive buy-sell platform.
On the other side, Coinbase asks you little higher transaction fees as compared to GDEX. If you are willing to avoid initial trading or transaction fees on GDEX then check our detail guide.
Coinbase exchange is limited to buy sell for only major cryptocurrencies like Bitcoin, Ethereum, BitcoinCash, and few altcoins.
But GDEX or Coinbase Pro is listed with more trading pairs as compared to CoinBase and you can trade with very minimum transaction fees.
This guide on how to use GDEX will be very beneficial to trade in cryptocurrency using GDEX, no matter you are a learner or an experienced trader in the cryptocurrency.
How To Use GDEX for CryptoCurrency Buy Sell
GDEX is a well-known exchange and works in parallel with the Coinbase exchange. If we compare GDEX vs Coinbase then Coinbase will fulfill the Buy-sell order instantly but there is no way to place the future order.
However, GDEX is like a traditional exchange, where you as a user can place future buy or sell orders and with lower trading fees.
We will follow every single step required to set up an account and how to use GDEX one by one.
How to Get Access to GDEX
GDEX is a decentralized exchange in the form of traditional exchange and to get access or register with GDEX you can follow two ways.
- If you are already registered with Coinbase then every user is default registered with GDEX, you won’t need to create a separate account with GDEX.
- If you are not holding a coinbase account then even you can create a separate account with GDEX for free.
To open an account with CoinBase click to Sign Up link and provide all necessary details but I would recommend having an account with CoinBase First, why? I will explain later.
Same as all others, Coinbase after sign in into account will also ask for the user identity verification, to do so follow the below steps.
- Upload an identity proof like Passport or any national identity.
- Capture a photo with your ID proof and submit that as verification.
The system will auto verify your identity and within 2-3 business days, you will get confirmation that your account is verified with CoinBase.
With a Verified account, you would also need to verify the Bank account from which you want to Deposit or Withdraw your USD/EUR like fiat currency funds.
Here are steps on how to add a bank account in GDEX?
- Link Account
- Select the Bank Account and provide all mandatory details.
Follow the instructions and Coinbase will ask you to verify the account by depositing 2$/2£ to a Coinbase generated account, once you finish that payment your account will be considered as verified.
The amount which you have deposited will be available in CoinBase local currency wallet for your future buy sell to use, so not to worry about the same.
If you are willing to open a separate account with GDEX than click to Sign Up and follow the same KYC Process.
In both cases, you would need to verify the account by banks and by providing the identity verification documents.
The verification process with both Coinbase and GDEX will be the same and will take the same time to verify the identity.
Well, I assume that you have verified the identity from Coinbase or GDEX (Coinbase Pro), now let focus on how to deposit funds.
How to Deposit Funds with GDEX (Coinbase Pro)
Deposit of funds could be of two types either CryptoCurrency or a fiat currency like USD/GBP etc.
How to deposit USD/GBP in GDEX?
Let imagine, you are a beginner and willing to use GDEX for CryptoCurrency buy and sell, in that case first you would need to deposit funds to GDEX in GBP (any local) Currency wallet.
- My Wallet
- Click to Deposit
- Currency dropdown chose British Pound.
I am based in the united kingdom hence the local currency available in my account is GBP, EUR, etc. Same this will vary with other countries.
Click to British Pound and a window will open which has two options listed.
Send To Bank Account – A bank account details with a reference code will be given, you have to send money from your registered bank account by providing this reference number.
Your funds will be available in GDEX within 1-3 business days and most of the time within an hour.
But what if your funds are available in Coinbase and willing to transfer it to Coinbase Pro?
CoinBase Account – As I said, both Coinbase and GDEX are linked to each other, so if you have an amount with Coinbase GBP/USD wallet, you can switch that to GDEX.
Go to the Coinbase account and your Coinbase available balance will be visible, hit to the max amount and the amount which not on hold with Coinbase will be eligible to transfer.
Funds on hold will be the amount that is not allowed by Coinbase to transfer out from their wallet.
Note– Every amount credited to the Coinbase wallet, will not be eligible to move out from Coinbase at least for 5 days.
If you are good with a deposit of fiat currency like GBP and USD then let discuss what if willing to deposit Cryptocurrency?
How to deposit Cryptocurrency in GDEX?
Considering the other cases, let say you are the holder of Cryptocurrency and willing to deposit your cryptocurrency to the GDEX, so you can trade with any other currencies.
I imagine you are the holder of Bitcoin, in that case, refer the same steps you have followed for fiat currency deposit.
- My Wallet
- Click to Deposit in the dropdown
- select Bitcoin (Or any other cryptocurrency which you want to deposit)
After selection, the same two windows displayed one with the Bitcoin deposit address and another is with the Coinbase account.
If you have Bitcoin outside in the Coinbase wallet than take the address of Bitcoin and transfer funds to that address.
If having Bitcoin with Coinbase, chose the second option and all Un hold funds you can transfer to GDEX.
I assume you got an idea of how to deposit funds to GDEX, now I will explain the reason why you should have an account with Coinbase instead of only GDEX.
GDEX Buy-Sell FEES
While talking about the fees associated with any exchange then there are a couple of things to cover such as trading fees, cryptocurrency and fiat deposit and withdrawal fees.
Let’s first focus on fiat and CryptoCurrency deposit fees.
From the reference of the Coinbase Pro support group, you can see in the below screenshot how much you cost for bank transfer or wire transfer in each currency.
In a few cases, you can see that you would have to pay additional transaction fees in case of the bank transfer and to avoid this you can take the help of Coinbase.
My Tip: Bank transfer to Coinbase will be free from any transaction fees and that amount you can switch to GDEX with no transaction fees.
It is an advantage to have a Coinbase account with GDEX to save your hard earn pocket money wasting in transaction fees.
Now if focusing on the trading fees, while you place buy or sell order with GDEX, the trader has to pay maker and Taker fees.
Below are the charges associated with Maker and Taker Fees of GDEX cryptoCurrency buy and sell order.
Maker Fees – Let say current sell or buy order placed for Bitcoin is 8000$/BTC and you have placed future buy order of 7900$/BTC. Which means your order will not immediately fill.
Here you are making the price of the market and that is why you will be charged with Maker fee whenever the market is ready to sell at your price.
Taker Price- If you place an order to fulfill your buy or sell order immediately, as a result, you will be charged with Taker Fees.
You are taking the market price and for that, you would need to pay some extra fees. Hence Taker fees are always higher than maker fees.
Now I assume that you are very well clear with half part of how to use GDEX especially for deposit and Withdrawal process and their associated fees.
To give you an idea of how to sell CryptoCurrency back to USD/GBP or any fiat currency, make sure to check the separate guide.
How to Use GDEX Exchange Dashboard (Overview )
GDEX is like a traditional exchange if you are know how to trade or buy-sell on any exchange. It will be close to similar, only the interface looks different and few others.
We will go through each one of them as an overview, so you will be aware of how to use GDEX and which one to use for which purpose.
First will focus on the Exchange market or Trading pairs, as the GDEX is allowing to trade only with limited cryptocurrencies, so go to Trade and click to select market.
From the above-market, as we have chosen GBP Market than only a few coins are listed such as BTC, ETH, LTC, BCH, ETC coin.
In a similar way, if you are the holder of Bitcoin than chose the BTC will display all list of available coins to trade with Bitcoin.
In our case, let say I want to buy Ethereum in exchange for GBP.So select to ETH-GBP, which will navigate to the ETH-GBP Exchange dashboard.
From the Above Screenshot, ETH-GBP explains that the current trading market is to buy sell Ethereum in exchange for GBP.
- Deposit and Withdrawal highlighted options are the same as we discussed earlier.
- Click to deposit, if you want to get the deposit of CryptoCurrency or Fiat to GDEX wallet.
- Withdrawal is for sending digital currency or fiat out from the GDEX wallet.
- Referring to the order book will display all current trading where Red order will be the sell orders that yet not fulfilled.
- Green orders are buy orders that yet waiting to be filled and GBP spread will show the actual difference in between the lowest sell order and highest buy order.
Price and Depth Chart
Moving to the middle which shows the price chart, that how over the period of time price movement has been reported.
You can set the price chart for minute, hourly or day movement and can convert the view for candlestick or line.
Below the price chart, you can see the Depth chart which will help you to know how many Ethereum are currently listed for buy or sell for the set GBP price.
It will vary for different trading pairs, you can choose different trading pairs as the above screenshot is for ETH-GBP.
Trade history will show the number of orders filling for every buys and sell orders placed on the exchange.
Well, now I consider that you are almost completed 75% on how to use GDEX, this time is to learn how to place buy or sell order.
How to Buy-Sell on GDEX or Coinbase Pro?
To perform buy or sell the process will be similar to other exchanges but the way order fulfill might be different from GDEX.
In GDEX three types of order can be fulfilled, things are explained below.
From the below screenshot, no matter you place the buy order or sell order, the functioning of the market order will remain the same.
It will ask you to put the total amount you want to spend in GBP to buy Ethereum or any trading pair (ETH-GBP).
To remind you, a market order will fulfill your purchase order or sell order immediately means taker fee will apply.
While you put the amount of 100 GBP, the exchange will auto calculate the quantity of coin you will get with the latest exchange trading seller price.
The calculated amount will be instantly credited to your Ethereum(ETH) or bought a cryptocurrency wallet in GDEX.
LIMIT order is for the trader or the buyer who is willing to buy or sell any coin for futuristic price and in such cases, he will be charged with maker fees.
It has two edit boxes to provide entry, where one is Limit Price which will ask you to put the price of the coin to which you want to place the Buy/Sell order.
Let say currently Ethereum is selling around 100GBP/ETH and you want to buy this for 90GBP/ETH.
That means you can set Limit price to 90 GBP and if in your GBP wallet you have 180 GBP than GDEX auto-calculates Amount as 2 ETH.
Means you have placed future order to buy if anyone will place a sell order of 90 GBP/ETH only then your order will get fulfilled else will stay in open order for waiting to be filled.
If your order filled instantly than you will be charged taker fees else will be charged with Maker Fees.
My Tip: Click to Advanced option and make sure you have selected Post Only, will ensure you will be charged with the Maker fee only.
STOP-LIMIT is suited for the daily trader, who really wants to buy or sell cryptocurrency when the market hits a specific target.
Let say, if someone has done prediction that if ETH will touch 100 GBP/ETH than it may cross 110 GBP/ETH or if it touches 90GBP/ETH may result from more fall.
So to execute buy or sell order at a specific point, you can use STOP-LIMIT Order.
Stop Price – Stop price will be the price you can set based on the prediction that when that price hits that order for buy-sell executes.
Limit Price – Limit price is the amount you want to pay for buying a single coin, which could be futuristic based on your stop price.
Amount– This will auto calculate for a set price with available balance, how many ETH you can buy or sell. You can also set your own amount so the deduction will happen accordingly.
Means, if STOP price hits than the order will execute to buy Amount of coins with the rate of Limit price provided by the user.
In such cases, you could be charged with Maker or taker fees.
- If you put stop and limit price same means order fulfill immediately and you will be charged with Taker Fees.
- If Stop and Limit price having difference and your order will stay in open order will be charged with maker Fees.
Using all the above three methods you can trade on GDEX for Buy sell or cryptoCurrencies.
From the above guide, you already got an idea of how it works and everything was easy and simple but it has a drawback for the daily trader.
While comparing the maker or taker fees, every time you have to pay 0.15% or 0.25% as trading or transaction fees.
Which cost a lot, if you are consistently trader of cryptocurrencies and to avoid all these charges the very best exchange is Binance.
Binance charges only 0.01% trading fees for each buy or sell order and using Binance coin (BNB) you can even minimize this to 0.005%.
Here is a detailed review of what is Binance and how to use Binance for best trading experience and low trading fees, do not miss.
My Review on HOw to Use GDEX
GDEX is owned by Coinbase and it is obvious to use as a beginner because most of the time crypto investors start with CoinBase.
Coinbase to provide more trading experience and listing of altcoins have started Coinbase Pro or GDEX which is an easy step to start learning.
But I recommend to user Coinbase and GDEX for only one purpose, if you are converting from fiat to Cryptocurrency as it cost you minimum transaction fees.
Then you can trade on Binance due to low trading fees, I hope you got a good idea on how to use GDEX and how it works in detail.
- How Do I Start AliExpress DropShipping Business: Exclusive Master Guide - September 21, 2020
- HostGator Hosting Review (2020): Is it Good for WordPress Website? - September 15, 2020
- How to Promote Website on Google For Free: 5 Effective Ways - September 3, 2020