WHICH PLATFORM SHOULD YOU CHOOSE BETWEEN COINBASE & GEMINI ?
We know that choosing the best cryptocurrency exchange has become difficult in recent years, just because there are so many options to choose from. Top exchanges provide the most important features, including a high level of security to protect user funds. At the end of the day, the right crypto exchange for you will be based on your investment needs.
Coinbase and Gemini are the most popular cryptocurrency exchanges based in the United States. Both platforms feature crypto trading, are available in over 50 countries, and place a high priority on trading security.
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Which Crypto Platform Should I Use Between These Two ?
These two platforms allow users to buy, sell, and trade cryptocurrencies. If you’re a new trader and are interested in buying crypto, like Bitcoin, Ethereum and Dogecoin there are plenty of options available. However, Coinbase and Gemini are the most recommended options and for good reasons.
This “Coinbase vs Gemini” comparison will help you learn the differences between the two options, so you can decide which platform is best for you.
Need a quick answer? For new investors, Coinbase is better, and for traders looking to minimize fees, Gemini is better.
Coinbase Overview:
Founded in 2012, Coinbase was created by Brian Armstrong and Fred Ehrsam with the goal of building an open financial system in which digital currencies could be purchased by anyone around the world.They have become the most popular centralized exchange in the U.S.
The platform initially supported only Bitcoin, but now offers more than 65 cryptocurrencies. Coinbase is constantly adding more coins to their list, offering its customers multiple investment opportunities.
Gemini Overview:
The Gemini crypto exchange was founded by Tyler and Cameron Winklevoss, two revolutionary investors. Their involvement with the cryptocurrency community dates back to when they purchased 1% of the Bitcoin supply (at that time), reportedly for less than $10 per coin. Only a few years later in 2014, the twins founded Gemini, and it quickly became known as one of the safest exchange platforms to trade cryptos.
The intuitive app and ability to buy crypto with a credit card have made it easier than ever for new investors to get started.
Quick Comparison:
The main difference between the platforms is their customer service. While Coinbase offers email and chat support (via social media), they do not currently offer live phone support (as of April 2021). On the other hand, Gemini offers 24/7 phone and chat support for its customers, giving them peace of mind that they can contact someone directly in case of an account issue.
Unlike Coinbase, Gemini is an actual exchange that lets you actively trade with other users. Furthermore, Gemini allows users to buy crypto with fiat only through bank account deposits, while Coinbase allows users to use debit/credit cards or PayPal.
Coinbase support over 65 cryptocurrencies.
Gemini support 51 cryptocurrencies.
We’ve reviewed both platforms based on their supported currencies, security, fees, features, and more so you can decide on the best option.
Coinbase VS Gemini: Ease of use
Gemini’s super clean interface makes it easy to use. The simple price list and the ability to buy, sell, or exchange crypto make Gemini one of the best platforms for exchanging crypto.
Gemini lets you register for a free account by using your email address and password. After you verify your email address, secure your account with two-factor authentication and connect your bank account or debit card. Then, you can start buying crypto right away.
Similarly, Coinbase makes it easy to sign up, connect your financial accounts, and instantly buy crypto directly from the app. With Coinbase, you can sign up with an email address and password, and then upload a picture of your government-issued ID to verify your identity directly on the app or website. Once verified, you can immediately begin buying crypto using a credit card or bank account.
Note: Coinbase and Gemini both comply with KYC (know your customer) and anti-money laundering regulations in the United States. This may require you to provide proof of identity and proof of address.
Coinbase VS Gemini: Security Features
Coinbase and Gemini both offer highly secure places for users to purchase, sell, and store their crypto assets, making them two of the most trusted platforms. Here are some security options available for each platform:
LET’S REVIEW SOME COINBASE SECURITY FEATURES !
Built-in wallet: Coinbase stores your cryptocurrency in a digital wallet. You can further protect your assets with password protection, biometric access controls, and an encrypted 12-word recovery phrase typically found in similar digital wallets.
Two-factor authentication: Coinbase provides two-factor authentication (2FA) by SMS or using the Google Authenticator app. You can also use this security feature for logging in to your account as well as for your trades.
Cold storage and crypto vaults: Coinbase stores 98% of cryptocurrency balances in offline cold storage, which keeps your assets safe from hackers. This is one of the few exchanges that uses such secure offline storage.
Coinbase also uses a cryptocurrency vault to protect your digital assets, which requires approval by multiple users before withdrawing. Furthermore, these vaults are time-locked, which means any withdrawal request will be canceled if all approvals are not received within 24 hours.
FDIC insurance (up to $250K): Coinbase offers FDIC insurance for USD (U.S. dollar) deposits. The insurance covers USD deposits of up to $250,000, but not cryptocurrency deposits.
LET’S REVIEW SOME GEMINI SECURITY FEATURES !
“Hot Wallet” insurance: Gemini provides insurance coverage for digital assets held in the Gemini Wallet (“hot wallet”), and reimburses users in the event of a security breach, fraud, or employee theft. It gives customers peace of mind knowing their digital assets are safe with Gemini, even those that are actively traded.
Whitelisting approved addresses: Gemini allows you to restrict access to addresses that can withdraw your cryptocurrency. New addresses undergo a seven-day approval hold in order to ensure they are vetted and approved before being approved for transfer.
Two-factor authentication: Gemini offers two-factor authentication (2FA) via SMS or the Authy app.
User role management: Gemini lets you manage user roles in your account, which can be used to restrict access to specific users and their trading permissions. It is a great option for institutional investors that have a team that manages their crypto investments.
Device management: Gemini allows you to review all devices that have accessed your account, and to block any you do not recognize. You can even end current sessions from any device currently logged into your Gemini account.
Coinbase VS Gemini: Unique Features
Coinbase and Gemini are both exchanges that allow users to purchase, sell, and exchange cryptocurrencies easily. Many of the features on both platforms are similar, with just a few differences:
LET”S SEE WHAT’S UNIQUE ABOUT COINBASE !
Free education (+ free crypto): Coinbase offers short, informative videos made for new crypto investors. All users who complete the cryptocurrency projects presented in these videos will receive free cryptocurrency as a bonus. (Watch videos then answer a few questions on them)
Newsfeed: Coinbase curates cryptocurrency articles and presents them in its newsfeed, so users can stay up-to-date on trends, developments, and breaking news about cryptocurrency.
Price alerts: Coinbase users can create a watchlist of cryptocurrencies and receive alerts when prices change. Updates appear automatically in the Coinbase app as well as via push notifications on a user’s phone.
LET”S SEE WHAT’S UNIQUE ABOUT GEMINI !
Earning interest on your crypto: Gemini launched its Gemini Earn program in which you can earn interest on nearly all of their cryptocurrencies. In March 2021, APY’s reached 7.40% (depending on the currency type). This is not common for regular platforms, since most exchanges require you to stake your crypto (lock it away) to earn interest or rewards.
Buy with crypto: Gemini launched the Gemini Pay program, which allows you to make retail purchases using cryptocurrency. A total of over 30,000 retailers are participating, and you can use Bitcoin, Gemini dollar (GUSD), Ether, Litecoin, Zash, or Bitcoin Cash. This feature is available In the Gemini App, you can select your retailer, choose the crypto to spend, and start shopping!
Institutional investor service: Gemini is targeting large institutional investors interested in investing in crypto. They provide fund managers with services to create crypto-based funds, as well as to act as a custodian to help corporate clients and wealth management firms diversify their crypto portfolios.
API keys: Gemini makes its API keys publicly available, allowing third-party apps to integrate with the service.
Coinbase VS Gemini: Crypto Fees.
Despite their similarities, Coinbase and Gemini have unique fee structures. Both exchanges do not charge you for cryptocurrency deposits or ACH bank transfers. You might prefer Gemini if you plan on funding your account with wire transfers. It does not charge a fee, unlike Coinbase, which charges $10 for wire transfer deposits and $25 for outgoing wires.
The average flat fee for both platforms is 0.50% per transaction. Additional fees are also charged based on the account used for the transaction.
Gemini is your best option if you’re trying to save as much money as possible on fees.
The following table outlines how Gemini and Coinbase charge fees based on account type:
| ACCOUNT TYPE | COINBASE FEES | GEMINI FEES |
|---|---|---|
| U.S Bank Account | 1.49% | 1.49% |
| Wallet | 1.49% | 1.49% |
| Debit/Credit Card Buy | 3.99% | 3.49% |
| Instant Card Withdrawal | Up to 1.5% of transaction, and a minimum fee of $0.55 | N/A |
| ACH Transfer | Free | Free |
| Wire Transfer | $10-($25 Outgoing) | Free |
Since both platforms charge more than most exchanges per transaction, Gemini and Coinbase are the best exchanges for beginners and long term investors who value security.
Gemini does have a very attractive offer for wire transfer clients, offering $0 fees for both deposit and withdrawal transactions.
Coinbase VS Gemini: Global Access
Coinbase and Gemini are available worldwide, but Gemini is currently available in fewer countries than Coinbase.
Currently, Gemini is available in over 50 countries, while Coinbase now operates in over 100. Both platforms are available in all 50 states in the US, and both comply with all US regulations regarding crypto trading.
Note: Each country and region has its own regulations around cryptocurrency. Be sure to review your local guidelines before buying, selling or trading crypto.
SO WHICH PLATFORM SHOULD I CHOOSE ?
Gemini and Coinbase share several similarities. Both offer a wide range of top-tier cryptocurrencies and prioritize security as one of their top priorities.
The Gemini platform is a popular choice for investors seeking the most secure platform to store and buy digital assets. They are also highly transparent as the New York Department of Financial Services (NYDFS) audits them on a regular basis. Their strict compliance with U.S. regulations makes them one of the safest places to buy crypto, especially for institutional investors.
The Coinbase mobile app is accessible to everyone and its friendly design makes it one of the simplest crypto platforms for beginners. With just a few click now can buy and sell cryptos, and the exchange offers some of the most secure storage of your digital assets we’ve seen so far.
PLEASE REMEMBER !
No matter what platform you choose, the most important thing to remember when investing in cryptocurrencies is that they are highly speculative, so do not invest more than you can afford to lose.
If you don’t like either platform, there is plenty of other options for traders. You can check this article to learn a little bit about the 14 best crypto exchanges that we found and tested in the market.
