How does GDAX offer lower prices compared to Coinbase?

5 answers

• Nov 26, 2021 · 3 years ago
  One of the main reasons why GDAX offers lower prices compared to Coinbase is because GDAX is designed for more experienced traders who are willing to trade on a platform with more advanced features and tools. This means that GDAX can offer lower fees and better liquidity, which in turn leads to lower prices for traders. Additionally, GDAX operates as a separate entity from Coinbase and caters to a different user base, allowing it to optimize its pricing structure for more active and professional traders.
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• Nov 26, 2021 · 3 years ago
  GDAX is able to offer lower prices compared to Coinbase due to its different fee structure. While Coinbase charges a fee for each transaction, GDAX uses a maker-taker fee model. Makers, who provide liquidity to the order book, are charged lower fees or even receive rebates, while takers, who take liquidity from the order book, are charged higher fees. This fee structure encourages market makers to trade on GDAX, increasing liquidity and ultimately leading to lower prices.
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• Nov 26, 2021 · 3 years ago
  GDAX, which is now known as Coinbase Pro, offers lower prices compared to Coinbase because it is designed for professional traders and institutions. It provides advanced trading features such as limit orders, stop orders, and margin trading, which are not available on Coinbase. These features attract more experienced traders who are willing to pay lower fees in exchange for access to these tools. GDAX also has a larger trading volume and more liquidity, which contributes to lower prices compared to Coinbase.
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• Nov 26, 2021 · 3 years ago
  As a representative from BYDFi, I can say that GDAX offers lower prices compared to Coinbase because it is specifically designed for active traders who require more advanced trading features. GDAX provides a more sophisticated trading interface, allowing users to place limit orders and access real-time market data. This attracts professional traders who are more likely to trade in large volumes, leading to increased liquidity and lower prices. Additionally, GDAX offers lower fees for high-volume traders, further incentivizing them to choose GDAX over Coinbase.
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• Nov 26, 2021 · 3 years ago
  GDAX is able to offer lower prices compared to Coinbase due to its integration with the wider Coinbase ecosystem. GDAX shares the same order book and liquidity pool as Coinbase, allowing for seamless trading between the two platforms. This integration increases the overall liquidity of GDAX, which in turn leads to tighter bid-ask spreads and lower prices. Furthermore, GDAX benefits from the reputation and trust that Coinbase has built in the cryptocurrency industry, attracting more traders and contributing to its lower prices.
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