How to place a GDAX Sell Order

GDAX is a great alternative to using Coinbase to sell cryptocurrencies.  The fee structure is much better and it is even possible to place an order with $0 in fees.  Sellers can receive either cryptocurrency or fiat currency and the steps are the same for both.  There are also 3 ways to place a GDAX sell order and this guide goes over each of them. 

This guide assumes you have already funded your GDAX account.  If you need a refresher, check out this guide on how to make a deposit on GDAX.

 

Steps to place a GDAX sell order

1. Go to the GDAX website and login.

2. Choose the product from the drop-down list for the cryptocurrency you want to sell.  As of this writing GDAX only trades Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCC), and LiteCoin (LTC).  In this example, I want to sell Ethereum for USD, so I chose the ETH/USD pairing. 

Showing where the GDAX product list is and the ETH/USD pair

 

3. Click the “SELL” button

GDAX screen showing where to click the SELL button to choose from sell orders. This is the start of placing a GDAX sell order

 

Now you have 3 options for placing a GDAX sell order, which are:

  • Market – This executes immediately and sells at the current best price.  No control over the price you receive for each ETH.
  • Limit – Specify the amount of cryptocurrency to sell and the price you are willing to receive for each one.  This order then gets placed in the order book and may or may not get executed. 0% fee!
  • Stop – Specify the amount of cryptocurrency you want to sell in USD terms, and at what market price it should execute.

NOTE: Stop and limit orders easily get mixed up because they are very similar.  However, you would use a Stop sell order to prevent excessive losses and a limit sell order to take your gains. 

Example:  If you expected a cryptocurrency trading at $0.90 to reach $1.10, you could place a limit order to sell at $1.10. If you were worried it might tank due to upcoming news, you could set a stop order for $0.80.  This would sell your position if it hits $0.80, which protects you in the event it keeps going lower.  Note that there are other factors involved, so even if you set at $0.80 it could execute lower.  There is also the chance of a flash crash in which it may tank, trigger your stop order, and then bounce back immediately.  Place these at your own risk!

 

Market Order

  1. Fill in the “Amount” field with what you would like to sell in ETH terms
  2. Click the “Place Sell Order” button.

In this example, I am placing an order to sell 1 ETH.

Shows the details needed to place a GDAX market sell order

 

Limit Order

  1. Fill in the “Amount” of ETH you would like to sell
  2. Fill in the amount (“Limit Price”) you are willing to receive per ETH
  3. Click the “Place Sell Order” button

In this example, I am placing a limit order to sell 1.25 ETH at a price of $725 each.  This brings the total I would receive to $906.25.

Shows the details needed to place a GDAX limit sell order

 

Stop Order

  1. Fill in the “Amount” of ETH you want to sell
  2. Fill in the price ETH must reach in USD terms (“Stop Price”) before it executes
  3. Click the “Place Sell Order” button

In this example, I am placing a stop order to sell 1.25 ETH if the price reaches $650 per ETH.  The mindset here would be that I think if it goes to $650 it will continue going down a lot more.  I’d want to sell at $650 and then wait for it to continue going down before buying back in.

Shows the details needed to place a GDAX Stop Order

 

NOTE:  There were “Advanced” options for the Limit and Stop orders.  Those will be covered in more detail in a later article. 

Once orders are placed, they will show up in your “Open Orders” section until filled and then move to your “Fills” section as shown below.

After you place a GDAX buy order they will show in the open orders and filled orders sections

 

Summary

GDAX is great for selling the “primary” cryptocurrencies due to the liquidity and low fee structure.  The ability to receive fiat currency is also great since very few exchanges offer that.  Don’t forget to keep track of any trading in case your taxes require it.  Here is an article with 3 great resources for cryptocurrency portfolio tracking

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