Coinbase and GDAX: Guide to Saving on Transaction Fees
A Brief History
In 2012, Coinbase was started with the intention of making it easy for a non-technical person to start using Bitcoin. In 2015, Coinbase became the first licensed Bitcoin Exchange in the United States. At the end of the year, the exchange was rebranded as Global Digital Asset Exchange or GDAX.
If you are like most cryptocurrency holders or investors, you probably have a Coinbase account that allows you to transfer fiat for crypto. A Coinbase account makes it easy to buy, sell, and hold digital currency. Are you interested in purchasing Bitcoin? Setup an account on Coinbase and you can make a deposit into your account and then buy Bitcoin; or, you can purchase Bitcoin directly through your linked bank account.
Coinbase does need to make some money though, so they charge fees. There are virtual currency transfer fees, exchange rate fees, and conversion fees. The virtual currency transfer fees are the miner’s fees and other network transaction fees that Coinbase passes through to you. The exchange rate for buying or selling cryptocurrency through the Coinbase Conversion Service is calculated at the market rate on GDAX. The conversion fees are based on location, payment method, and other circumstances.
Coinbase and OCC
Although Coinbase makes it easy to buy, sell, and hold crypto, it’s very limited in the digital assets it allows. Coinbase only has wallets for the four following digital currencies: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). In order to teach some friends how to claim their OCC tokens, I needed to find a cost effective way for them to purchase their first ETH and then use that ETH to claim their tokens.
Originally, I wanted to purchase $1.00 of ETH to hold for gas fees. The transaction cost me $1.99; $1.00 for the value of ETH and $0.99 as the Coinbase transaction fee.
Well, with the gas fee to transfer that $1.00 of ETH to my Cipher Browser wallet to hold the OCC tokens, I lost another chunk of my Ethereum. After a little research, I discovered that you can transfer fiat and digital assets back and forth between Coinbase and GDAX with no transaction fees. And on top of that, GDAX allows you to make deposits and withdrawals of both crypto and fiat for free. Yes, for FREE!!!
Since GDAX and Coinbase are owned by the same entity, your Coinbase login works on GDAX as well. Once you are logged in on the GDAX exchange web site, on the left side of the screen, you can choose your product, and then buy, sell, deposit, or withdraw.
Since I highly recommend that you buy your crypto in Coinbase unless you are an advanced user, you only need to focus on the Deposit and Withdraw buttons. If you want to deposit your ETH from your Coinbase wallet to GDAX, you lcick Deposit, choose Coinbase Account, the source and the amount and then click Deposit Funds.
Your ETH will show immediately in GDAX. Then you’ll click the Withdraw button, choose ETH Address, and fill in the fields as necessary. Here’s where you need to enter the address of the Ethereum Wallet that can hold your OCC tokens.
Once the ETH has transferred, open your wallet and go to the DApp browser, enter https://originalcryptocoin.com/airdrop/ and follow the instructions to claim your 5,000,000 OCC tokens.
Quick Step Guide
Step 1: Set up an account on Coinbase
Step 2: Link your bank account and deposit money into Coinbase (note: depositing money into Coinbase does not incur any fees)
Step 3: Make a purchase of Ethereum in your Coinbase account
Step 4: Use your Coinbase account to sign in to GDAX
Step 5: In GDAX, transfer your ETH from Coinbase
Step 6: Transfer your ETH to your OCC friendly wallet
Step 7: Go to https://originalcryptocoin.com/airdrop/ and claim your coins
You are now the proud owner of 5,000,000 OCC tokens for a very small gas fee.Connect with us