There’s a number of different cryptocurrency exchanges. Each has pros and cons, especially when it comes to general security, usability, easy-of-access to beginners, and cryptocurrency offerings.
Gemini is one exchange that has not yet gained notoriety afforded to giants like Coinbase or Binance, but has a unique history, plenty of useful features, and tools for beginners and experienced traders alike.
Keep reading for a general overview of the Gemini Exchange, the platform’s pros and cons, and other important considerations traders should know.
The Gemini Exchange: Yet Another Project By The Winklevoss Twins
The Gemini Exchange, named in homage to the zodiac sign of its founders, Cameron and Tyler Winklevoss, was created in October 2015. The duo gained notoriety after filing a lawsuit against Mark Zuckerberg, claiming the Facebook CEO stole their idea for the social media platform.
The brothers invested $11 million in Bitcoin from the $65 million they collected in damages from the case. Bitcoin was just $120 when they made their investment back in April 2013.
Gemini gained attention in the cryptocurrency world starting in 2016, when New York Governor Andrew Cuomo said the exchange was America’s first and only fully-regulated ETH exchange in the United States. Since then, the exchange’s accrued a reputation for strict regulatory and financial compliance.
For example, Gemini is used by the CBOE as a peg for Bitcoin contract prices associated with their Bitcoin futures launch. It also became the first exchange in 2018 to offer a fully regulated trading environment for ZEC (Zcash).
So far, exchange access is available for people in nearly every U.S. state, Puerto Rico, Canada, Hong Kong, South Korea, Singapore, and the United Kingdom.
Gemini’s Intuitiveness: A Good Choice For Those New To Crypto
Gemini’s one of the easiest exchanges to use due to beautiful graphics and a simple aesthetic scheme.
Creating an account is as simple as clicking a few buttons, but prospective users will need to provide an email address, phone number, bank information, and a valid ID, since the exchange is compliant with New York trading laws.
It’s important to note a bank account is required for most trading on Gemini. It’s not possible to fund via a debit or credit card, or by transferring stablecoins. Of course, users who would just like to trade crypto-to-crypto can fund their Gemini account from a different wallet.
Gemini’s ease of use is enhanced by the offering of a mobile app for the exchange that contains the same features found in the desktop version. The exchange’s partnership with crypto payment processor Flexa also makes it simple for Gemini users to spend digital currency directly from their wallet on the platform.
In contrast to some other exchanges, Gemini’s built a reputation for strong customer service that answers questions with fast response times. This, combined with the exchange’s comprehensive knowledge base, is a great feature for those newer to cryptocurrency or to digital exchanges in general.
The Mechanics Of The Exchange: Coins, Fees, & Deposits
The Gemini Exchange supports a number of popular cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Zcash.
As noted above, accounts are able to be funded with fiat current through a bank transfer (U.S. customers only, or via wire transfer. International wires will be converted to USD through an intermediary before reaching a Gemini account, according to the exchange’s website.
Customers are also able to deposit funds via BTC, ETH, BCH, LTC, ZEC, BAT, LINK, DAI, or OXT.
Fees for transactions on Gemini are a bit more complicated than other exchanges. The platform charges a “Convenience Fee” that functions similar to a trading fee, (as a percentage of the bought/sold amount). Gemini’s current fee averages 0.50%.
Users also have to pay a transaction fee in addition to the Convenience Fee for smaller transactions. Orders above $200 trigger a 1.49% fee of the order value, while orders below prompt a fee of $0.99 to $2.99. Gemini charges a fee of 0.001 BTC for Bitcoin withdrawals.
The Bottom Line On Gemini: Pros & Cons Of The Exchange
There’s a lot to like about the Gemini Exchange. US Dollar amounts are insured by the Federal Deposit Insurance Corporation and the exchange remains in compliance with banking standards in the United States.
This is a strong point for institutional investors but a drawback for those who are reluctant to share personal details with crypto exchanges upon making an account.
Gemini also features a well-designed interface and stores the vast majority of Bitcoin offline to mitigate loss. The exchange’s ease of use is a great selling point for crypto fans who might be newer to buying and selling, or for those who just want a simple trading experience.
Drawbacks of the exchange include a lack of funding options and coin availability compared to other exchanges. Gemini also has a reputation of going down during times of large volume, which can be a big issue for those looking to trade, or for those trying to log in during significant price dips to mitigate losses.
Gemini’s downtime issues are likely due to scaling issues and servers that have reached limits during peak trade times. This is an issue that has also plagued Coinbase.
Still, it’s a consideration for traders looking to capitalize on times of great volatility in cryptocurrency markets.
Who Is Gemini Right For?
Gemini is the perfect exchange for those who place a high emphasis on security. Traders, especially professional ones, can benefit from Gemini’s wide range of security features that underpin fiat and crypto accounts, especially as large amounts of money are being transacted.
Users who are looking to buy through one-off transactions would also benefit from using Gemini.