If you are looking for a platform you can use to trade cryptocurrency, you may have heard about Coinbase and Gemini. Which one should you choose? Take a look at our detailed comparison below.
At a Glance
Both Gemini and Coinbase are great for beginners who are new to the cryptocurrency world. Coinbase has more features than Gemini and it can handle more types of cryptocurrency than Gemini. The fees for both platforms can be substantial, but they are higher on Gemini than on Coinbase.
Ultimately, one platform is not necessarily better than the other. It is important to take a closer look at the individual features of Gemini and Coinbase. That way, you have the information you need to make a decision about which platform is best for you and your trading style. The right platform for one person might not be the right platform for you.
Take a look at some of the nuances regarding Gemini and Coinbase below. Then, figure out what platform is best for your needs.
A Comparison: Coinbase and Gemini
Some of the most important points you should keep in mind regarding Gemini and Coinbase include:
An Overview of Coinbase
Coinbase is a user-friendly platform. It has been specifically designed for beginners, but there are a lot of experienced cryptocurrency traders who also use it. When you want to withdraw money from your account, you do so using PayPal. Furthermore, Coinbase also provides you with an opportunity to earn crypto.
In general, the commission is 0.50 percent per trade, but it is significantly higher if you want to use a credit card. It supports more than 120 cryptocurrencies, and it uses two-step verification to keep your confidential information safe. Your digital wallet is encrypted and it provides you with access to cold storage features. You can buy, sell, exchange, receive, send, and withdraw cryptocurrency. The maximum transfer limit for Coinbase is $25,000 daily through ACH transfers.
Overall, Coinbase is one of the oldest and most popular cryptocurrency platforms available. During the past few years, it has expanded the wide variety of features that already offers, and there are more features that will probably be rolled out in the next few years.
Pros and Cons of Coinbase
It can also be helpful to take a closer look at the pros and cons of Coinbase. Some of the biggest benefits of this platform include:
- It is available to cryptocurrency investors and traders in more than 100 countries all over the world.
- All of your cash balances are FDIC-insured up to a limit of $250,000.
- The user interface has been specifically designed for beginners. Therefore, even if you are new to the world of cryptocurrency, you should be able to figure out the platform relatively quickly.
- It gives you access to more than 120 different types of cryptocurrency, allowing you to customize your portfolio and diversify it to meet your expectations.
There are a few drawbacks to using Coinbase as well. Some of them include:
- The fee structure is very complex. There are lots of different commissions that you might incur on your trades, depending on the type of transaction you execute and the size of the transaction itself. It can be a challenge to figure out which fee is being applied to which transaction.
- It doesn’t have a lot of customer service options available. If you are looking for someone who can help you with your account, it may take a while to get someone to assist you.
- The charting features on the mobile application are very clunky. It can make it very difficult for you to chart the performance of your portfolio over time.
You should think about this platform’s benefits and drawbacks carefully before deciding if it is right for you. Depending on your trading style, you may be able to overcome them.
An Overview of Gemini
Gemini is another platform that has been specifically designed for beginners. On the other hand, there are plenty of people who get used to the platform and decide to continue using it even as their portfolios grow.
The interface is very easy to figure out. You have access to multiple buying and selling options, and you can earn interest on the cryptocurrency you have stored through Gemini.
There is a fixed fee for all trades under $200. For every trade over $200, you incur a commission of 1.49 percent. If you decide to use a credit card or debit card to purchase your cryptocurrency, you will incur a commission of 3.49 percent.
Gemini gives you access to more than 63 types of cryptocurrency. Your account is secured using two-step verification, and your account is FDIC-insured up to $250,000. Your cryptocurrency wallet is secured using the latest security features, and you have access to cold storage options. You can use the platform to buy, sell, withdraw, and deposit cryptocurrency.
There are limits on your transaction amounts. You cannot transfer more than $5,000 per day or $30,000 per month for deposits. You cannot withdraw any more than $100,000 per day using ACH transfers. If you are using a debit card, you are limited to $1,000 in purchases per day.
Pros and Cons of Gemini
It is also helpful to take a closer look at the pros and cons of Gemini. Some of the biggest benefits include:
- The application interface is intuitive and very easy to use. It has been specifically designed for beginners, which means it is extremely straightforward to transfer and execute trades.
- If you store cryptocurrency through Gemini, you can earn interest.
- You have the ability to purchase insurance for the Gemini wallet.
- You can swap different types of cryptocurrency back and forth.
- You have access to a wide variety of customer service options if you need help with your account.
On the other hand, there are a few drawbacks you should keep in mind as well. They include:
- Gemini is not available in as many countries, and the platform is accessible in only 61 countries.
- You have access to approximately 63 types of cryptocurrency. There are not as many trading pairs supported on Gemini.
- You will incur high fees if you trade on this platform, particularly if you use a credit card or a debit card.
There are lots of people who enjoy using Gemini. You should think about the benefits and drawbacks of this platform before you decide if it is right for your trading style.
Taking a Closer Look at the Features: Coinbase vs Gemini
It can also be helpful to take a look at some specific features to learn more about the differences between the two platforms. Some of the most important features include:
Coinbase vs Gemini: The Currencies
First, it is important to take a look at the currencies supported by the two platforms. You need to think about the fiat currencies supported by the two platforms because that is what you will be using to purchase cryptocurrency. In this category, Gemini is the winner. Gemini supports more types of fiat currency, including the US dollar, the Australian dollar, the Canadian dollar, the Euro, the British pound, and the Hong Kong dollar. On the other hand, Gemini supports three types of fiat currency. They include the US dollar, the British pound, and the euro.
In contrast, Coinbase supports more types of cryptocurrency. Coinbase gives you access to more than 120 cryptocurrencies in more than 100 countries. In contrast, Gemini gives you access to about 63 types of cryptocurrency in about 60 countries. Therefore, if you are looking to diversify your portfolio as much as possible, Coinbase might be better. Keep in mind that both platforms are continuously adding different types of cryptocurrency, so you need to check their specific websites for the most recent updates.
Coinbase vs Gemini: The Security
Security is a critical factor when you are thinking about trading cryptocurrency. Those platforms follow the most stringent security measures to make sure your information is properly protected. Those platforms provide you with access to two-factor authentication using text messaging services. This means that you will need to use a text message code to access your account even after you enter the right username and password.
A unique feature about Gemini is that you can insure your Gemini wallet from fraudulent actions. Even though Coinbase also insures your funds, the insurance policy does not protect you against unauthorized use. It only protects you against unauthorized breaches of the Coinbase system. Therefore, the insurance policy is not as generous.
Furthermore, Gemini provides a wide variety of security options for institutional traders. For example, you get access to granular user role permissions, which makes it easier to specify who has access to what. You can also set up address whitelisting, meaning that only specific addresses can be used for withdrawal from your account.
Coinbase has access to some advanced security features as well, and they got an upgrade after the stock was listed for sale on NASDAQ in 2021. For example, 98 percent of its funds are stored in cold storage, meaning they are stored offline where they are not susceptible to being hacked.
Coinbase vs Gemini: The Fees
You should also take a closer look at the fees you need to pay on your transactions. The fee structure on Coinbase is a bit more complicated, so it is important to read carefully to figure out which method is best for your needs. A quick comparison of the fee structure includes:
- The fee on individual and account and wallet transfers is 1.49 percent on both platforms.
- The fee on debit and credit card trades is 3.49 percent on Gemini and 3.99 percent on Coinbase.
- Neither platform charges a fee to move money into or out of your account via ACH transfer.
- Wire transfers are free for Gemini, but Coinbase charges a $10 wire transfer deposit fee and a $25 withdrawal fee.
- If you convert crypto from one currency to another, Gemini charges a commission of 1.49 percent and Coinbase charges a fee of 0.50 percent.
- On trades, Gemini charges a fee of 1.49 percent for all trades over $200. On Coinbase, the fee for trades is 0.50 percent.
Of note, Gemini has a different fee structure on trades under $200. It can vary from $0.99 to $2.99. Think carefully about the fee structure before you decide which platform to use.
Coinbase vs Gemini: Ease of Use
Both platforms are very easy to use. Gemini has been specifically designed for beginners, so it is a bit easier to figure out than Coinbase. Furthermore, because Coinbase has more features available than Gemini, it is easier for a new user to get overwhelmed.
In addition, Gemini has a better customer service team than Coinbase. Users are able to chat with a customer service agent online, or they can reach someone via telephone 24 hours per day, 7 days per week. Gemini also monitors a wide variety of social media channels to make sure any common questions are quickly addressed by the platform.
It is easier for people to get answers to the questions they need, and there is a more robust FAQ section within each individual account. Furthermore, Gemini recently launched Cryptopedia, which is a helpful database with a wide variety of cryptocurrency trading articles to help people figure out exactly how to trade using the platform. Those platforms are easy to use, but Gemini is a bit easier.
Coinbase vs. Gemini: The Winner
Ultimately, Coinbase is a little bit better than Gemini. The platform has been around for a much longer amount of time, so its interface is a lot smoother than Gemini. Furthermore, Coinbase simply provides you with access to more options. You can do more with your cryptocurrency, it is available in more countries, and it gives you access to different types of cryptocurrency. Even though the fee structure is incredibly complicated, it is a bit lower than Gemini. The customer service might not be as great, but Coinbase also has much larger transaction limits. That means it is suitable for both beginners and experienced traders.
Gemini and Coinbase: Who Should Use What Platform?
If you are new to the world of cryptocurrency, you might be better off with Gemini. Gemini is a platform that has been specifically designed for beginners, so it is very easy for you to get started. It will walk you through the process, it will show you the different types of cryptocurrency available, and the customer service options are better on Gemini. Therefore, if you have issues with your account, you should have an easier time getting someone to help you. The customer service team is available at all times through multiple media outlets.
Once you become a more experienced trader, you may want to make the switch to Coinbase. While Coinbase is also suitable for beginners, there are a lot more features available. Therefore, it is easy to get overwhelmed. Furthermore, if you find that you need to execute larger transactions, then you will want to have access to a platform that makes it easier for you to do so. That is where Coinbase can come in handy.
Sign Up for Coinbase and Gemini Today To Start Trading
If you want to sign up for either of these platforms, you need to go to the website and create an account. Then, you will need to verify your account, link your bank account, and follow the security protocols to start trading.
If you want to create an account on Coinbase, you can do so here. If you want to create an account on Gemini, you can do so here. Make sure you think about the above features carefully before you decide which one is right for you! This could be a great way for you to diversify your portfolio.
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