In this article, we review Gemini vs Coinbase. Finding a reputable digital currency exchange is the first and most important challenge for people who have chosen the digital currency market to invest. With the development of the cryptocurrency market, the number of digital currency exchanges is also increasing.
Choosing an exchange is an integral step in buying and selling digital currency. There is no doubt that the exchange must also support the tokens you want to purchase. Coinbase and Gemini have extensive lists of supported cryptocurrencies, but some exchanges, such as Binance, have longer lists. In addition, two features that traders may want to trade in are learning resources and advanced trading tools such as technical analysis indicators. Each platform has its own resources to help beginners learn the basics of crypto and more. Gemini has a slight advantage in trading tools over Coinbase, yet both are good enough for simple technical analysis and research.
Gemini vs Coinbase: Overview
Coinbase was founded in 2012 with the ultimate goal of creating an open financial system where anyone can buy digital currencies anywhere. Initially, the platform only offered bitcoins, but since its launch, it has listed more than 65 digital currencies. Coinbase is actively accelerating the listing process and providing a variety of investment opportunities for his clients.
On June 24, 2021, the team launched a tool called Solidify to help list some new tokens even faster. While the platform lists more passwords than some exchanges, its biggest advantage over many other exchanges is its security. Coinbase has all the security alarms and whistles that top exchanges should have and more.
One of Coinbase’s weaknesses is that it does not support countries as much as Gemini. Its full service is available in Australia, Canada, Singapore, USA, UK and long list of European countries. It also allows more than 100 countries to switch between digital currencies, but residents of many of those currencies cannot deposit or trade with Fiat money on the platform. Coinbase plans to expand his services to more countries in the future.
Gemini is a popular cryptocurrency exchange founded by a twin pair of revolutionary investors, Tyler and Cameron Winklevoss. The Winklevoss twins have been part of the digital currency community since they bought 1% of the total Bitcoin supply, reportedly less than $10 per coin. Just a few years later in 2014, the twins founded Gemini and quickly became one of the safest platforms for trading digital currencies.
Gemini says it works with a safety mindset and has taken extensive security measures to prove it. It was one of the first cryptocurrencies to be licensed by the New York State Department of Financial Services (NYSDFS). New York has stricter regulations on digital currency services than most states, and Gemini and Coinbase are two of the shortlisted NYSDFS-licensed exchanges.
Coinbase vs Gemini: Fees
Coinbase and Gemini have complex cost structures with several distinct differences. Both exchanges do not charge any fees for depositing digital currencies and ACH instant bank transfers. If you want to secure your account with wired remittances, you may prefer Gemini. There is no charge, while Coinbase receives $10 for wire transfer deposits and $25 for output wires.
Gemini splits its costs depending on the size of the transaction – it charges a fixed fee for orders under $200 and 1.49% for large transactions. Coinbase has a slightly more complex fee structure that depends on the payment method and the region. In the United States, using a linked bank account or USD Coinbase wallet for a purchase costs 1.49%, while using a cash card or PayPal costs 3.99%. It has a handy guide that splits the costs for each area and the payment method at its help center.
Coinbase and Gemini each have another free platform dedicated to active or more experienced traders. These platforms use a build model that costs less than the original platforms. This model is designed in such a way that for transactions that take liquidity out of the market, it receives a higher fee than creating liquidity. For instance, if you open a transaction that fills up immediately, you are withdrawing liquidity from the market and you will be charged a slightly higher fee. These costs also decrease as the order size increases. The Gemini ActiveTrader costs a little less for trades less than $50,000, and the Coinbase Pro is cheaper. If you are looking to reduce your costs as much as possible, each of these build models can be a cheaper option depending on the size of your transactions.
Coinbase vs Gemini: Security
Both Coinbase and Gemini are as secure as possible for today’s large digital currency exchanges. The platforms store most of the user’s funds in the cold (offline) and fully insure a small percentage in hot bags (online for daily liquidity). Coinbase says it keeps 98 percent of the users’ cryptocurrencies it controls in geographically separate cold storage locations (warehouses, safes, etc.). Gemini has not stated what percentage of users’ cryptocurrencies are stored in the cold, yet insures all funds in hot wallets.
In addition, Your USD is safer on Coinbase and Gemini. The Federal Deposit Insurance Corporation (FDIC) insures USD on platforms up to $250,000 per user. Exchange offices have few vulnerabilities and most of them are insured in the event of a malicious attack. The main danger that affects all exchanges is login security, which is another priority of Gemini and Coinbase. For example, 2-factor authentication can (and should) be enabled on any platform, adding an extra layer of security to prevent malicious attackers from accessing user accounts.
Coinbase Custody (a platform built on Coinbase for storing funds) completed the System and Control Organization (SOC) 1 and 2 exams in 2019. Gemini was also one of the first digital currency exchanges to complete SOC 1 and 2 examinations. Company for key issues such as security, processing integrity, privacy and availability. These audits only reinforce the notion that companies are safe and working properly.
Gemini vs Coinbase: Access
Gemini and Coinbase are both available worldwide, and Gemini is currently available in far fewer countries than Coinbase.
Gemini is available in all 50 states, while Coinbase is available in all but Hawaii. Both companies comply with all US regulations for trading digital currencies. Each country has its own rules about digital currencies so be sure to review your local guidelines before buying or selling digital currency.
So Gemini or Coinbase?
Both of these exchanges are secure with subtle differences in fees and features. Your preference may depend on where you are (if one of them does not support your country), the digital currencies you want to trade, and how your trading strategy matches the fee structure of each exchange. Large traders who want to buy or sell digital currencies worth more than $50,000 may turn to Coinbase Pro for lower costs. On the other hand, traders in South Korea or the Philippines may want to choose Gemini since most Coinbase services are not available in their countries. Either way is probably a good option, however the small details may make one better for the other.
Which one is easier to use, Gemini or Coinbase?
The Gemini is based on ease of use, and its ultra-clean interface proves it. Gemini with a simple price list and the ability to buy, sell or exchange cryptocurrencies is easily one of the best user experiences for exchanging them.
To sign up for Gemini, simply create a free account using your email address and password. Once you have verified your email address, secure your account with 2-step authentication and connect your bank account or cash card. From there, you can start buying digital currency right away.
Similarly, Coinbase gives users an easy way to sign up, connect their financial accounts, and purchase cryptocurrencies in their app. You can sign up for Coinbase with an email address and password, and then verify your identity with a government photo ID by uploading an image to the app or website. Once verified, you can attach a bank account or credit card to start purchasing digital currency immediately.
In conclusion
It is nearly impossible for you to go wrong with Gemini or Coinbase as both are top exchanges for a reason, as trading platforms offer user-friendly cryptography with excellent security and no real weakness.
Of the two, Coinbase is a significant choice in terms of digital currencies. If you are planning to invest in a large number of different coins, Coinbase is probably the right exchange for you.
Assuming you use Gemini ActiveTrader and trade less than $50,000 a month in crypto, Gemini can save on transaction costs. There is not much difference in transaction fees between the two exchanges, but for long-term investments, even small amounts increase.
Meta: Gemini and Coinbase are digital currency exchange platforms designed to trade these currencies. Each of them has its own properties which predominate the other one.
