Gemini Vs Coinbase: What to Choose and Where to Invest in 2022?

Gemini vs Coinbase, how do you choose the best cryptocurrency exchange platform for you?

Cryptocurrency trading is attracting new investors on a daily basis. In the drive to get higher and better returns, several platforms like Gemini and Coinbase are offering safer and advanced trading options for cryptocurrency exchange. Although both platforms offer similar features, there are a few unique features that distinguish the platforms from one another.

In this blog, we will clarify the major differences between Gemini and Coinbase on the basis of their features, accessibility, ease of use, and other attributes. We have also addressed some frequently asked questions on Gemini vs Coinbase and other questions related to the cryptocurrency exchange.

What are Gemini and Coinbase?

Gemini:

Launched in 2015, Gemini Trust Co., LLC is a privately-owned cryptocurrency exchange that allows users to buy, sell, trade and securely store several cryptocurrencies like Bitcoin, Ether and 40 other types. Gemini also has its own currency, the Gemini dollar, which is a stable coin tied to the US dollar, unlike most cryptocurrencies. Since its launch, Gemini has added a payment app and an interest-paying savings account, while a Gemini credit card is in the work. Along with existing conventional currencies and new-age cryptocurrencies, USD and Bitcoins are also traded on Gemini.

Coinbase:

Branded as Coinbase, Coinbase Global Inc is an American company that operates a cryptocurrency trading and investing platform that offers users the ability to buy, sell, and exchange over 100 tradable cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and others. Founded in 2012, Coinbase has become one of the largest cryptocurrency exchanges in the US by trading volume as of March 2021. Moreover, it is a large company with over 73 million users and $255 billion in assets on the platform.

Gemini Vs Coinbase: How to Choose?

Although both platforms are somewhat similar, there are certain differences that distinguish Gemini and Coinbase from each other. On one hand, Gemini provides features that support institutional investors, while, on the other hand, Coinbase lets users earn crypto while learning about trading. Both platforms are beginner-friendly, however, Coinbase has a slight edge since it is available in more countries and offers numerous currency types.

Basic Features:

Following are some basic differential features of Gemini and Coinbase:

Ease of Use:

Both platforms are great for people who have recently started with cryptocurrency investments and trading. Gemini and Coinbase also offer informational resources to their users that can be used in further investments and trading. However, the respective platforms are great for people who are at the following stage of their investment phase:

Supported Cryptocurrencies and Accessibility:

Both Gemini and Coinbase accept fiat currencies. While Gemini supports 7 types of coins (USD, AUD, CAD, EUR, GBP, SGD, and HKD), Coinbase supports only 3 types (USD, GBP, and EUR). Nevertheless, Coinbase offers a competitive advantage by offering numerous altcoins than Gemini does. For instance, an individual cannot purchase Dash, EOS, Cardano (ADA) and Ethereum Clasic (ETC) on Gemini.

However, both platforms support the following popular cryptocurrencies:

• Ethereum (ETH)
• Aave (AAVE)
• Litecoin (LTC)
• Dai (DAI)
• Bitcoin Cash (BCH)
• Chainlink (LINK)
• Uniswap (UNI)

Gemini and Coinbase are constantly adding new cryptocurrency options. In addition, Gemini traders are limited to 60+ countries, whereas Coinbase supports people residing in 100+ countries. The range of options for fiat currencies and international locations still puts both platforms in line with the best crypto exchanges. 

Security:

Gemini and Coinbase adhere to the highest possible safety measures as well as US regulations, which makes both platforms a great choice for investors.

• Both platforms are backed by J.P. Morgan.
• In 2021, the Coinbase stock was made available on the NASDAQ via a direct listing.
• All USD balances on Gemini and Coinbase are covered by the Federal Deposit Insurance Corporation (FDIC) insurance on balances up to $250,000 per individual.

Gemini and Coinbase offer the following security features to their users:

• Two-factor authentication (2FA) process via SMS
• Authy app on Gemini; Google Authenticator on Coinbase
• Coinbase keeps 98% of customer funds in cold storage—keeping it offline in safe deposit boxes or vaults.
• Gemini holds the majority of the crypto is held in an offline, air-gapped cold storage system.

When it comes to security between Gemini vs Coinbase, Gemini offers the following advantages to its users:

• Provides security options for institutional traders, such as defined user access role permissions for trading the cryptocurrency or accessing the account.

• Users can look at devices where their accounts are logged in and can set up address whitelisting involving a seven-day hold process, after which they can only use specific addresses for withdrawal.

• The Gemini Wallet is secured from security breaches or other fraudulent actions. Although Coinbase insures users’ funds too, the insurance does not cover unauthorized access to users’ personal accounts, only breaches of Coinbase and their systems.

Fee Structure:

When it comes to the fee structure, Gemini and Coinbase charge higher than other popular crypto exchange platforms. Currently, Coinbase has a maker-tester fee structure on both regular platforms and Coinbase Pro (previously only Coinbase Pro followed the structure). For most trades, users need to pay 0.50%. With increase in trade size, the fees decrease.

Gemini, however, has a complex fee structure—especially on smaller trades. Trades under $200 incur small flat fees in various amounts, whereas those above $200 incur a very steep 1.49% fee. However, users can get lower fees by using the Gemini ActiveTrader plan, which uses a maker-taker model with lower fees than Coinbase’s maker-taker fee schedule. If an individual pays consistently via wire transfer, they can save a significant amount on Gemini as it does not charge fees for wire transfer, whereas Coinbase does. Gemini API users may also have lower costs than web- or app-based users.

Gemini Vs Coinbase: What are the pros and cons?

Gemini and Coinbase offer several competitive advantages over one another that are best suited to the various preferences of users. To sum up the choice of Gemini vs Coinbase, you can refer to the list of pros and cons offered by the cryptocurrency exchange platforms:

Frequently Asked Questions (FAQS) on Gemini Vs Coinbase

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