Question for Eliot:
1. Given the significantly lower cost of purchasing BTC on GDAX (.25% or lower) vs. bank transfer at Coinbase (1.49%) with essentially no extra effort other than logging in with Coinbase credentials on the GDAX site and executing simple transfers, why wouldn’t this be a preferred method for even a newbie? Purchased coins could even be instantly transferred back to Coinbase if one chooses.
2. Is there any additional safety to holding BTC at Coinbase? If eligible for BCH in Jan., would BCH still accrue to my Coinbase holdings if I moved them to GDAX permanently to take advantage of the better pricing? Thanks!
Hope you don’t mind my answering for Eliot.
- Well, using the GDAX exchange is more intimidating for newbies. There are price charts, order types, an order book – way more information onscreen to process. For a newbie who has never used a trading platform before and is likely uncertain and perhaps even nervous about buying their first bitcoins, it’s just a lot easier for them to use the simple Coinbase interface. As you say, it’s more expensive that way but I guess simplicity has its cost. Nothing in Bitcoin is really simple so it takes a lot of work to make things easy and as foolproof as possible, I think Coinbase have done a good job there.
- Nope, we don’t recommend that people ever keep coins on exchanges if they can avoid it. If your Bitcoin were present in your Coinbase account around the 1st of August when the Bcash fork occurred, then they’ll be credited to you in early 2018 (unless Coinbase change their stated plans). So, no problem moving your funds to GDAX for active trading or to take advantage of the better pricing. If you don’t plan to trade regularly, then I’d say it’d be a lot safer to move your coins to a hardware wallet instead.