Gdax vs Poloniex - Let's Explore the Differences

Gdax vs Poloniex, both of them are the most well-known cryptocurrency exchanges worldwide; nevertheless, they do have their differences as they are made for different clients. They do have very different reputations as well in the industry, and in this article, we will cover different aspects of each exchange in comparison to the other. There are very important details that one needs to look at before deciding on an exchange to use. Hence a good detailed comparison is very helpful; continue reading to find out more.

Outline of the Two Exchanges

Gdax Exchange

Gdax is a cryptocurrency exchange that provides users with a platform to easily trade fiat currencies such as EUR, USD, GBP, and more for top cryptocurrencies such as Ethereum, Bitcoin, Bitcoin Cash, and Litecoin. GDAX, which stands for Global Digital Asset Exchange, was launched in 2016 and is owned by one of the largest exchange brokers in the world; Coinbase. The Coinbase team (founders) were aiming to provide their users with a more progressive platform to trade on. The motive behind it was the fact that Coinbase permits users only to buy and sell cryptocurrencies, whereas, with GDAX, you are allowed to trade them in real-time with the assistance of a variety of trading tools.

gdax vs poloniex

Where is GDAX Located?

GDAX is based in San Francisco, and one of the disadvantages it has with this is that it is not available worldwide. The exchange only operates in the USA, Canada, Australia, Singapore, Europe, and the UK.

Poloniex Exchange

Poloniex is a well-known cryptocurrency exchange founded in 2014. The exchange is said to have been one of the few cryptocurrency organizations that set the standards for current modern centralized crypto exchanges. A lot of the features that make up Poloniex have become Neurotic over the years. Poloniex provides a diverse selection of cryptocurrencies for its users to trade; however, no Fiat can be used on the platform.

Poloniex Location

Poloniex is based in San Francisco, California. One sad thing about this is that it is not available worldwide, but it caters mostly to cryptocurrency traders that are based in the United States.

That being said, only the USA, UK, and European citizens are allowed to trade all the cryptocurrencies that are available on the GDAX network. However, Singapore, Canada, and Australia citizens can only trade Ethereum and Litecoin.

gdax vs poloniex

Is GDAX Coinbase Pro?

To clear up the confusion on GDAX and coinbase a little further, GDAX announced in May 2018 that it wanted to rebrand to Coinbase Pro. GDAX, as Coinbase Pro, was to keep all the benefits the same but add some features that would make the exchange better.

So, in a nutshell, GDAX is now Coinbase Pro, if you try to go to GDAX, you will immediately be redirected to the Coinbase Pro website.

SAFETY FIRST

When looking for an exchange to trade on, safety is always the first and most important aspect for a lot of traders seeing as it involves money. Therefore, comparing to exchanges, you cannot forget to compare the safety measures taken by each of the exchanges.

Let’s start with GDAX;

GDAX users are required to identify themselves in order to be permitted to start trading; therefore, any acts of fraud can be traced back to the individual.

Moreover, with the responsibility of large sums of money, GDAX ensures the safety of its users’ funds by keeping 98% of all those funds in cold storage. This means that the funds are always stored offline, which makes it impossible for online hackers to get to them.

Therefore, 2% of the funds remain online so that the exchange can carry out customer orders.

GDAX has gone the extra mile and developed something called the ‘vault.’ This feature allows users to store their funds and can only be released 48 hrs after a withdrawal request. Therefore, assuming you are hacked, you have 48 hours to cancel your transaction.

Another security feature that GDAX has is the FDIC agreement which ensures that in Coinbase is hacked, or goes out of business, users’ funds would not be affected up to $250,000. Users also have an option to use 2-factor Authentication.

Overall, GDAX complies fully with United States regulations, such as The USA Patriot Act and The Bank Secrecy Act.

What about Poloniex? Is It Safe?

Safety is a bit of an issue when it comes to Poloniex; this is one of the reasons that the exchange has fallen behind in comparison to many of its competitors. Having had complaints by users of missing funds, withdrawals indicating ‘pending’ for as long as a week or months and frozen accounts, the site has a tinted reputation in terms of safety. However, the company requires users to present data that is verifiable such as SSN (social security number) ever since they became compliant with Tax related rules. In this case, if there are any illegal activities going on like illegal gambling, money laundry, etc. Poloniex can cooperate with ongoing investigations.

poloniex vs gdax

Payment Methods and Fees

GDAX allows its users to make payments using bank wires and bank transfers, and ass they sign up, they are automatically signed up to Coinbase as well, which allows them to use their debit cards as well.

With Poloniex, on the other hand, only cryptocurrencies are accepted for deposits and withdrawals. Therefore, in order to trade on Poloniex, users have to convert their fiat currency into crypto through an exchange that supports fiat and then makes their deposit.

When it comes to trading fees both GDAX vs Poloniex use the maker-taker fee schedule which is based on the user’s 30-day trade volume; the difference is that GDAX’s maximum and minimum fees are 0.3% and 0.1% respectively and Poloniex has a lower offer of maximum 0.25% and a minimum of 0.05%.  

Currencies Supported

GDAX only offers three Fiat currencies, which include the Euro, US Dollar, and the British Pound. In terms of cryptocurrencies, the exchange also offers just a select few, namely Litecoin, Bitcoin Cash, Ethereum, and Bitcoin.

Poloniex, on the other hand, has a leg up on this one. The exchange supports more than 65 exceptional cryptocurrencies. However, they have not been any more additions of coins to the exchange lately.

Features and Interface

The GDAX interface is a crisp and clean design that is easy to use. Its user-friendly nature makes it easy for traders to deposit and withdraw with ease as well as view order history and more. GDAX is designed to give serious traders a more robust trading experience.

The Poloniex interface is quite bland and simply functional. The appearance of the interface is rather busy and difficult to navigate. The colour palette used is quite dull and not inspiring whatsoever.

How to Transfer USD to Poloniex

Seeing as Poloniex is a crypto-only exchange, you cannot directly transfer USD to poloniex. However, one can go through a separate exchange that accepts USD and convert it to crypto and then come over to poloniex and make a deposit.

Withdrawing USD, on the other hand, you may need to use the connected bank accounts. This scenario functions via the tokenized version of the USD, which is USD Coin(USDC); this is a stable coin that is pegged to the US Dollar.

gdax vs poloniex

Customer Support

GDAX has a reputation for being the best in the business when it comes to customer support. The GDAX, customer service team, is available by telephone between 8 am and 5 pm from Monday to Friday (Pacific time). Outside of these hours, you can contact the team anytime any day via email. Another way to contact them is through their social media channels. The customer support team has a good reputation for being very quick to respond, which is great.

Poloniex is not so reputable in this area. The only way you can contact the Poloniex customer support team is via an email ticket system. This system often takes long to give replies, which can be frustrating for customers. Even the FAQ section only covers the basic questions and is not very detailed; therefore, it is not as efficient.

Conclusion

Poloniex vs GDAX are two very different exchanges that cater to different demographics. GDAX works for traders who want to convert fiat into four of the top cryptos; it is for those who intend to use bank transfers or bank wire. Gdax is designed to be more appropriate for experts than beginners. On the other hand, Poloniex is for those focused on the only cryptocurrency as it is a crypto-only exchange. Nevertheless, With the comparison, we have just made, I believe it is much easier now for you to determine which exchange is best for you and which one you best steer clear of.

Good luck!

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