The idea below is to set up bothCoinbaseandGDAX, to fund your account in USD, and then use limit orders on GDAX to trade. After that, you can use a platform likeShapeshiftto change Bitcoin, Litecoin, or Ethereum into other altcoins like Ripple and Dash.
And that is it, GDAX was your exchange, Coinbase was like your home base, and the grand result is that instead of paying a 3% total fee or more for every buy/sell combo, you have now traded cryptocurrency paying no fees at all. Pretty sweet!
ADVICE: To get your feet wet, you may want to use only Coinbase. Then when you get to GDAX, you may want to try a few market buys. Once you start buying for real though, do yourself a favor, focus on GDAX and limit orders (using Coinbase, market buys, and stops only when necessary).
Considering we just potentially saved you some money, consider Sending some coins to one of our wallets below:
NOTE: This process should result in smaller fees or no fees. However, things like bank wires or living outside the U.S. can result in small fees (as can other things like buying/selling at market price). In cases where some fees will be paid using the below method, I would phrase it as: a way to trade currency with paying only a minimal amount of fees.
Deposit money into Coinbase or GDAX
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buy and sell your coins in GDAX. To avoid all fees you must only buy withlimit ordersand let the order sit on the books. In other words, you cant buy/sell too close to the current price (as that could trigger a fill or partial fill of the order immediately and result in a fee)
This isnt the only way to trade cryptocurrency without paying fees, but it may be the simplest and most user-friendly option (especially in WA and NY where choices of exchanges are limited due to state regulations).
go to your USD wallet, and hit withdraw to withdraw to your bank account
: Go to deposit, the button right next to withdraw, select the Coinbase account tab, change the source to your USD wallet, and hit withdraw funds. All withdrawals and deposits are instant and free (same is true for moving coins between accounts).
: There is no difference as far as I know between depositing into Coinbase or GDAX.
To trade cryptocurrency without paying any fees:
If it is that you deposited into Coinbase (and not GDAX), then transfer your funds from your Coinbase USD wallet to your GDAX account by clicking deposit in GDAX (on the top left under balance).
when you sign up at Coinbase and buy or sell $100 in Cryptocurrency
Now from Coinbase go to accounts,
(click that link for instructions and a link that will net us both $10 in Bitcoin).
. In simple terms, if your order sells too quick you paya taker fee.
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(do not withdraw coins from GDAX and sell them on Coinbase unless you want to pay the 1.4% fee; you must sell them on GDAX).
(use a bank wire and pay a small fee, but get access quickly and avoid limits, or make a deposit and wait about 4-8 days and pay no fee, but face a limit of somewhere around $200 $5,000).
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TIP: Market buys on GDAX cost about .3%, that is way better than 1.4%. Still, 0% is better. Unless you cant get a limit order to fill, there is almost never a good time to do a market buy / sell. Further, if you do a market buy / sell, make sure there are enough buy/sell orders on the books (as if the market is too thin, it can result inslippage).
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Once you have USD from your coin trading on GDAX,
NOTE: We didnt create the video below, but it pairs well with the page.
The page will focus on using Coinbase/GDAX to avoid fees, as this is a method [almost] everyone in the U.S. can use. Other exchanges allow you to trade without fees or with low fees as well. To do your own research Google fee schedule + the name of the exchange. For example, seeKrakens Fee Schedule
TIP: I do not mean to say that one should never use Coinbase. I do personally (and when I do, I have no problem paying the fees for the ease of use and risk they are taking regarding market volatility in doing my trade for me). First off, Coinbase has an app, and GDAX doesnt, that means one you can manage on the go, and the other you cant. With that said, I only do this when the situation calls for it (for example, if the price of BTC dips, I only have my phone on me, and my limit orders arent set to take advantage of the dip on GDAX). In other words, one could say that theoretically, the goal would be for 95% of your trading to be done on GDAX with limit orders, 2.5% on GDAX with market buys, and 2.5% on Coinbase. That 5% should be situations where sitting at a desktop and being methodical isnt an option.
Why does this matter?Most (if not all) user-friendly ways to buy cryptocurrency involve paying rather hefty fees. For example, if you have a Coinbase account, you probably have already realized that buying cryptocurrency via the basic interface means paying fees (at least1.4% per buy and 1.4% when you sell). That means you have to not only make money on cryptocurrency but have to make an extra 3%at leastto pay off Coinbase before you see a profit. That isnt ideal, so we tell you how to avoid that.
withdraw your USD from GDAX and put them in your USD wallet in Coinbase
: Youll need to at least attach your bank account (so you can withdraw and deposit money and verify yourself). Youll probably also want to upload your ID. Verifying your identity via an ID and bank account will expand your withdrawal limits and spending limits and such.
: GDAX is intimidating to get used to, but ultra simple to use. Just turn of margin trading, set limit orders, and double check numbers before you hit the place an order button. Seeour page on GDAXfor more.
How to Trade Cryptocurrency Without Paying Fees
We explain how to trade cryptocurrency without paying fees (i.e., how to go from USD to cryptocurrency and back again without paying fees).
: Go to withdraw, the button right next to deposit, select the Coinbase account tab, change the destination to your USD wallet, and hit withdraw funds).
(click that link for instructions, Coinbase and GDAX use the same login).
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