JoshIf you are at all familiar with the cryptocurrency trading market, chances are you have heard about exchanges such as Coinbase, Binance, and Kraken. These exchanges are popular around the world and are widely available in the US.
Another crypto platform, Gemini, is challenging these larger and/or more established exchanges. Is Gemini right for you?
Every crypto trade has different requirements and preferences. so what works for some may not work for others. The best way to figure out which platform is the best fit is to gather as much information as possible about the most reasonable options and make an educated decision.
To help you learn more about Gemini, we have compiled some information about the history of the platform and created a short guide to some of the pluses and minuses of the exchange. Here is what you should know about using Gemini for cryptocurrency trading.
You may be familiar with the Gemini founders The names Brian Armstrong, Jesse Powell, and Changpeng Zhao (the founders and CEOs of the crypto exchanges mentioned above) might not be familiar to those who are not deeply ensconced in the cryptocurrency world, but you don’t have to be a major crypto-head to know the founders of Gemini. All you have to do is watch the Oscar-winning movie, The Social Network.
This is because the co-founders of Gemini are none other than Cameron and Tyler Winklevoss. These two Harvard-educated, Olympic-rowing twins-who (may or may not have) come up with the original idea for Facebook-launched the company in 2015.
In 2016, Gemini became the first licensed Ethereum exchange in the US and has been adding major coins, features, licenses, and partnerships ever since. In 2020, the company announced what could be a very important partnership with Samsung to integrate Gemini wallets into their mobile devices.
Gemini has some advantages over the bigger exchanges
When looking at what Gemini has to offer, it makes sense to compare it to the most popular exchanges available today. Coinbase boasts more than 57 million verified users and is the first publicly-traded crypto exchange.
According to Cove Markets, there are several key differences between Coinbase and Gemini. Here are some of the ways that Gemini outdoes its more successful competition.
Interest
One of the best parts of the Gemini exchange is that they allow you to earn interest on the crypto you store in your account. This is a relatively new feature in the crypto world and Gemini is a leader in this area. For customers in the US, Gemini Earn allows you to earn passive income on more than two dozen crypto assets, a great feature for traders and investors.
Some coins that are part of Gemini Earn offer up to a 7.4% yearly return rate. This makes Gemini a great investment tool instead of just a trading tool. Investors who are used to more traditional trading and investing will see this as a great feature.
Partnerships
Gemini is a forward-looking company that sees its path to growth as partnering with other companies, technologies, and platforms. Gemini offers a great third-party (application programming interface (API) so it is easy to incorporate Gemini wallets and the exchange into other platforms.
In addition to the Samsung partnership, Gemini is working with more than 30,000 retail outfits to allow Gemini customers to pay with the crypto housed in their wallets through Gemini Pay. This company is taking the next step from crypto as just a trading and investment asset to an actual, usable currency.
Security
This isn’t to say that Coinbase is not secure; it is one of the most secure platforms available. However, Gemini’s security measures are comparable to those of Coinbase and in some cases are even better. Both are at the top of the industry in this area.
Most crypto platforms have reported issues with social engineering attacks and Gemini is no exception. From a technical perspective, though, Gemini recognizes how important security is to the long-term success of both the company and crypto in general and has made investments in security that demonstrate this.
Fees
When comparing the standard Coinbase to the standard Gemini platform, the fees are very similar. Depending on what and how you trade, either platform could come out on top. When you look at the upgraded platforms, Coinbase Pro and Gemini ActiveTrader, the fee structure with Gemini ActiveTrader is much simpler and lower across the board.
Some drawbacks to Gemini
Coinbase is incredibly popular for a reason. Although there are some drawbacks, it is a very solid crypto exchange platform that works for many traders. Here are a few ways that Gemini doesn’t quite stack up to its competition.
Availability
Gemini is available in fewer locales than Coinbase. It offers fewer coins and pairs to trade. Gemini is available in all 50 US states, while Coinbase is not. Gemini is available in about 50 countries, while Coinbase operates in more than 100.
When it comes to the number of coins and crypto-to-crypto trading pairs, Gemini can’t yet compete with the big players here, either. Looking at how they stack up to Coinbase, Gemini offers around 26 cryptocurrencies and 42 trading pairs which are both about half of what Coinbase offers.
Trading volume
Since Gemini is available in fewer places and offers fewer coins and pairs than Coinbase, it stands to reason that there is less trading volume on Gemini. While Coinbase is among the highest volume trading exchanges in the US, Gemini is 16th in this category.
The good news for Gemini in the two deficient areas above, is that the platform is actively working to add areas of operation and tradable assets. Although Gemini trails other exchanges now, that may not always be the case.
Conclusion
Coinbase is king right now because it is an incredibly active, easy to use, secure, and varied crypto exchange. Although Gemini has some definite advantages, it isn’t yet quite on Coinbase’s level. However, good signs indicate that the company is continuing to grow, so for some traders now and maybe more in the future, Gemini is a good alternative.