Binance VS GDAX: Which one is better?
In order to easily trade different cryptocurrencies, you need to enroll in an exchange platform. There are various exchanges present that are used by cryptocurrency traders depending on their wants and needs. Some of the major exchanges are, Coinbase, Binance, GDAX, Bitstamp, CEX.IO Cryptopia, Poloneix, Bittrex, Bitfinex, Kraken, etc. All these have different features and they have their share of advantages and disadvantages.
In this article, we look at two top exchanges, GDAX and Binance and how they differ in the way they run.
GDAX( Global Digital Assets Exchange)
This exchange platform is owned by Coinbase but tit varies in several features such as the inability to buy cryptocurrency by use of credit cards, also it has lower transaction fees unlike Coinbase. It is designed for the regular traders.
On the other hand, Binance exchange platform is a cryptocurrency exchange that is known for its quickness and the low transaction fee of 0.10%. As much as it is listed in Hong Kong and servers listed in Korea, the china’s exchange ban made it to shift their IPs from Hong Kong to the British Virgin Islands and several other locations to enhance the user experience and eliminate the fear of shutdown by China as it took a ban on exchanges.
Binance has a good track record of its low fees and the variety of coin trading pairs.
Part 1. GDAX VS Binance Key Features: What’s the difference?
|Payment methods||Bank transfer, Cryptocurrency||Cryptocurrencies|
|Currencies supported||Bitcoin, Ethereum, Litecoin||Currencies supported Bitcoin, Ethereum, Litecoin BTC, ETH, LTC, BCC, OMG, IOTA, ICN, MCO, SALT, KNC, CTRm, SNLS, FUN, BOX, XVG, ZRX, BQX.|
|Fees||0% to 0.25%||0.10% flat fee|
|Reviews||GDAX Review||Binance Review|
Part 2. Binance VS GDAX Trading: Which one is better?
There are only three acceptable currencies, i.e. Ethereum, Litecoin and Bitcoin. These three can either be exchanged with each other or with USD. There is no minimum deposit information.
Gdax has a web based trading platform that is just like the one at the Coinbase. On the left, as seen in the screenshot below, we have the order book. The bid and ask tabs are located at the top of the trading page. This design provides an easy-to-understand graphical representation especially for the beginners.
GDAX leverage has a ratio of 1:3 which may sound quite insignificant compared to the forex brokers’ 1:500. But this is explained by the fact that prices in Forex can barely move more than 2%.
Gdax have very low fees and for people, who place passive orders, they do not pay any fees but for the aggressive ones, they pay fees starting from 0.25% going down for the bigger traders.
Binance do not accept any fiat currency but there are ways that you can use to add money in your Binance account. It requires you to trade by use of cryptocurrencies. However, they have a wider variety of coins unlike GDAX. Binance do not have any information regarding the minimum deposit.
Binance trading platform is also web based with two layouts. That is the basic and the pro version. The order book is also placed on the left but the currencies are arranged vertically. It makes the trading to be quite easy.
There are no margin trading on Binance.
The fees charged at Binance are simple to understand and very competitive. There is a flat fee of 0.10% on all trades and there is a choice of using BNB tokens to pay for these fees.
When selecting on the best platform in basis of the trading conditions, it solely depends on your wants and needs, the coins you want to trade and if you are a passive or aggressive trader. Both GDAX and Binance tutorials are easy to understand.
Part 3. GDAX VS Binance trust: Which one is more reliable?
As mentioned earlier, it is owned by Coinbase with a target to the frequent traders thus offering lower transaction fees. Its reviews are just like those of Coinbase but there have been complains among traders that GDAX could be offering marginal trading.
Concern; There are fears and speculations that the company could be manipulating the coin prices with an aim of wiping out the long-term traders.
The funds are secure with GDAX because all its users are insured and in case of a hack, they are guaranteed of a refund of up to $250,000
Its creation is funded from ICO of BNB tokens. These tokens can be used as a way of paying trading fees or even traded on their exchange. Binance, just like GDAX have not had any hacking experience apart from the recent rumors that made them to halt the withdrawals.
Binance is one of the most preferred exchange platforms according to coinmarketcap.com and its security is top notch although, as noted by Forbes, there were recently hacking rumors that made them to halt all withdrawals so as to investigate the unauthorized market sells.
Considering the security of your funds, both platforms would be alright to trade in. GDAX has a solid security like that of Coinbase and the users feel that they are in a secure platform while binance’s measure to tackle security issues are top-of-range.
Binance VS GDAX Conclusion
GDAX is designed for the active traders, who would like to eliminate the fees incurred when trading on Coinbase. The rates, 0% to 0.25% are very competitive and so far, there are no major hacks that have been reported. It is ideal for anybody as it accepts bank transfer of cash. The trading platform interface is also easy to use.
Binance on the hand was created by former CTO of OKCoin and it is open for everyone across the globe. One con about Binance is that they do not accept fiat currency but you can fund your account. Also, you can transfer coins from Coinbase where credit cards and bank transfers are accepted. However there are many coins, compared to GDAX that are available for trading on this platform.