If you’ve been on social media at all recently, you are bound to have come across people talking about crypto trading and the usage of the best cryptocurrencies exchanges– a.k.a. Gemini and Coinbase.
With that being said, there is a lot of misinformation out there about the best types of platforms to use, and how to get started with investing or trading.
There are now some platforms that offer free stocks, but make sure you do your research before being lured in.
In this article we are going to look at 2 popular exchanges – Coinbase vs. Gemini – so that you can see which is your best crypto platform and which has the lower fees.
They are similar platforms, but there are some differences that we will take a look at.
Let’s get started on Gemini vs. Coinbase:
The Quick Skinny: Coinbase Vs. Gemini Rundown
Gemini fees – 0.25% of the trade amount for market takers, and zero percent for market makers.
Coinbase fees – 1% for both market takers and market makers on your account.
The typical purchase process on Gemini takes five business days to complete. The waiting period is due to the ACH bank transfer for both the buying and selling transactions.
Coinbase Pro has limits for a taker which are: $25,000 per transaction and 200,0000 per day.
Maximum Trading Per Day
The Gemini maximum is $15,000 per day for an individual.
If the investor wants to purchase more than $15,000 daily then they need to submit documentation to upgrade their verification level – which would lead to higher limits.
Coinbase fees also vary depending on whether you are a market taker or maker. It charges 0.25% fees for market takers and zero percent (0%) for market makers.
Both Gemini and Coinbase do not charge for wire transfer withdrawals. However, there is a specific limit on how much money one can withdraw in a 24-hour period. On Gemini, the limit is $500, whereas on Coinbase it is $50,000.
On the other hand, transfers to legacy banks require both exchanges to use third-party services. This incurs an additional cost of about $60 and takes 5-10 business days to complete.
When it comes to security both exchanges have a lot in common on the level of security. In fact, they are almost identical. They both hold 98% of customers’ crypto funds offline for additional security, and they both use BitGo as their hot wallet solution.
Yet, there is one major difference between them: Coinbase insurance policy covers $250,000 per user whereas Gemini insurance policy only covers $250,000 of the crypto assets.
Gemini Key Components
Trading fees are 0.25% of your trade, as well as zero percent for market makers. While Gemini exchange has similar policies to most exchanges, some platforms do charge higher trading rates such as varying levels based on volume and security skills (Kraken).
Typical transactions entail a five-day waiting period due to the ACH bank transfer for both the buying and selling transactions.
Transactions that are subject to identity verification, such as those over $500,000 or high-frequency trading, enable transactions in less than five days.
Gemini accepts U.S. dollars, Bitcoin, and Ethereum.
Gemini Interest Earnings
Gemini Interest is a feature that enables users to earn up to 5% interest on Bitcoin, Ethereum, or Zcash.
The principle is simple: you lock up your eligible currency for at least one week and receive your initial deposit back plus interest once the time period has passed.
Gemini is a cryptocurrency exchange that enables you to easily pay your employees with Bitcoin, Ethereum, or Zcash.
As a company owner, this provides the added advantage of being able to save on payroll fees and avoid bank account freezes while allowing you and your staff access to fast transactions via blockchain technology.
Gemini holds 98% of customers’ crypto funds offline for additional security. Gemini uses BitGo as their hot wallet solution, which is secured by a multi-signature system and delivers a highly secure way to transact with high volumes on the Bitcoin or Ethereum network.
Gemini is a very simple to use cryptocurrency exchange, supporting all the major cryptos and fiat currencies.
The Gemini interface is clean and intuitive yet sophisticated, with a good offering of charting tools and candlestick charts.
Gemini is well-known for its security. They are certified Level 1 PCI DSS by Visa and offer offline storage (cold storage) of their digital assets.
Gemini Pros vs. Cons
– Great for frequent traders due to low flat fee of 0.25% and high volume trading
– All currencies accepted + crypto pairs
– Trusted & stable exchange
– Mobile app available, albeit only with market info.
– Moderately expensive fees, ranging from as low as 0.10% to as much as 0.75%
– Trading pairs limited to currencies paired with BTC, ETH or USDT
– Low volume compared to other exchanges
Gemini fees for market makers are actually higher than for market takers as a 0.30% taker fee is charged on the trades in addition to the 0.25% flat fee for market makers.
While the Gemini platform might be good for frequent traders, it is not very suitable for long-term holders as their transaction fees almost always exceed the interest earnings from their Bitcoin, Ethereum, or Zcash holdings.
Coinbase Key Components
Coinbase charges 1% fees to both market takers and makers. Therefore, trading on this platform is less than ideal for frequent traders.
Their initial $100 sign-up fee might seem annoying to some, but it’s imperative to note its importance in the overall safety of your funds.
Coinbase supports a host of cryptocurrencies like Bitcoin, Ethereum, Litecoin, and more.
Education Opportunities: Videos & News
Coinbase provides an in-depth FAQ section as well as various educational materials.
All customers are invited to take advantage of these guides which not only explain the basics of cryptocurrencies but also tell you how to buy, sell and trade based on your needs.
Coinbase Network: Proof of Stake
Coinbase will eventually allow its users to participate in a new consensus mechanism called PoS (Proof of Stake).
This will involve validating transactions on the network using your own assets rather than mining them. Mining requires expensive and powerful hardware, whereas PoS does not.
Coinbase also provides its customers with a crypto wallet, where they can store their traded currencies both online and offline. This prevents the risk of theft or hacks as only you have access to your private key.
Coinbase allows customers to instantly deposit funds into their accounts via PayPal. This is a great option for those who don’t want or can’t use debit/credit cards to purchase cryptocurrencies.
Coinbase is one of the most well-known cryptocurrency exchanges, which supports buying/selling of Bitcoin as well as Ethereum and Litecoin.
It also allows trading between these cryptos with fiat currencies like U.S. Dollars or Euros. We like the user interface on Coinbase.
As Coinbase is a very reputable name in the crypto space, they have to adhere to rigorous KYC (Know Your Customer) and AML (Anti-Money Laundering) standards. Therefore, security is of utmost importance on this platform and there are several safety measures in place.
1.) An email address is required for all transactions.
2.) All passwords need to be strong and are encrypted with several layers of security.
3.) There is a two-factor authentication process that you can set up on your account through the Google Authenticator app. This adds an extra layer of security when logging in, withdrawing, or sending cryptos from your Coinbase wallet.
4.) For Bitcoin and Ethereum wallet storage, Coinbase stores 98% of these currencies offline to prevent theft.
5.) For extra security, you can also set up a “Vault” account which requires several approvals and authorizations before your funds can be accessed for trading purposes.
Log-in method: There are multiple ways to authenticate yourself on the Coinbase platform, including the use of an offline OTP (one-time-password) generator.
Coinbase Pros vs. Cons
-Advanced trading options & low fees
-There are several advanced trading options on the Coinbase platform and a plethora of cryptocurrencies to choose from. Their fees are also considerably lower than other cryptocurrency exchanges like Gemini, Bitfinex, or Binance.
-Support for fiat currency transactions
-Not suited for frequent traders: You cannot trade without maker-taker fees on Coinbase, which makes it less than ideal for people who are constantly trading.
-Missing altcoins: Instead of focusing on other cryptocurrencies like Ethereum or Litecoin, Coinbase currently only supports Bitcoin, Bitcoin Cash, and Litecoin.
-Customer support issues: Users have complained about the long-lasting time it takes to get a response from customer support.
-Withdrawal & deposit issues
The withdrawal and deposit process on Coinbase has also been criticized by users for being slow, expensive, and unreliable in certain cases. Some customers have even experienced their accounts being locked or frozen without warning.
Which Is Better For Me?
Finally, the nitty-gritty- Gemini vs. Coinbase!
Coinbase has strong points in the areas of security, accessibility, and support. But because it mainly supports Bitcoin trading, you’re better off using other exchanges like Gemini for buying altcoins or Binance for frequent trading.
If you plan on depositing funds via PayPal, Coinbase is definitely a platform worth considering. But if you’re an advanced trader or you’re looking to purchase a variety of cryptocurrencies, Gemini is your best bet.
The fees on both platforms are considerably lower than more established exchanges like Bitfinex, Binance, and Kraken. This makes them suitable for getting started in the world of crypto trading without having to pay a high entry fee.
Coinbase is a great pick for beginner crypto traders looking for an easy-to-use platform with lots of security measures in place.
Gemini, on the other hand, has more advanced trading features and allows people to buy digital assets beyond Bitcoin and Ethereum.
Other Investment Platforms
Now Gemini vs. Coinbase isn’t the only platform debate out there.
There are so many platforms to consider for investing, though not all of them offer crypto assets.
Multiple platforms enable users to trade cryptos without having to pay any fees. One of these is the Robinhood app, which allows people living in the US and a few other countries to buy, sell or store Bitcoin and Ethereum for free.
M1 Finance is another fee-free exchange platform that allows for crypto trading, market watching, and real-time investment tracking.
It’s a good option if you’re looking to have more control over your portfolio instead of letting an algorithm make the decisions for you.
They offer relatively low fees and provide various portfolio options depending on how risky or stable you want your investments to be.
Frequently Asked Questions
Are Gemini and Coinbases banks or brokers?
How do crypto-exchange platforms work compared to brokerage companies?
Cryptocurrency exchange platforms work in a similar way to regular online stock brokerages. They allow you to deposit funds, trade on markets, and withdraw the money when you’re ready.
However, unlike traditional exchanges, crypto-exchange platforms do not allow depositors to lend money or margin trade.
How do I pick a platform that’s right for me?
To decide which platform is best for you, you first need to figure out what your goals are. If your priority is getting access to a great variety of cryptocurrencies beyond Bitcoin and Ethereum, Binance should be one of your top choices for you to compare with Coinbase.
But if you’re looking for a convenient way to buy Bitcoin with PayPal or credit/debit cards, Coinbase is definitely the most user-friendly option.
We like Coinbase because they’re better for beginners, has more currency capabilities, and is available in more countries.
Both platforms offer value, and you could always try out both to see which one fits better for you.
If you’ve tried either platform, leave a comment below. We’d love to hear your thoughts and experiences!