This article compares Binance vs Gemini, which are both cryptocurrency trading platforms, and their unique options.
At a Glance
When comparing Binance vs Gemini, each platform has different features to offer the user. Binance has low fees and provides traders the ability to watch the market and get some education about trading. Binance has over 500 currencies, and the maximum trading amount is based on each specific cryptocurrency. Not all transactions are available to U.S. residents.
Gemini has been in the industry for a long time, since about 2014. It functions in all 50 states. Their interface has two different levels based on the expertise of the trader. Gemini only has 30 cryptocurrency options which do not compare to the hundreds on Binance. Gemini has incredibly high regulatory standards and security.
The winner is not exactly clear between the two of them because it depends on where you live. If you live in the U.S., Gemini is the platform for you. Outside of the U.S., Binance may be the better way to go.
How the Best Choice Was Determined
When we reviewed these two platforms, it is essential to us that we determine which one is the best option and overall best choice for all traders. Therefore, we take the time to compare many of both platforms’ features. Therefore, we also ensure that we verify the validity of all the information we have before we use it for comparison of the platforms. In addition, we understand the differences between all of the various functionality options and features of the two platforms.
Part of the way we achieve this goal is to gather feedback from all types of users. This includes updated pricing and all service features. We believe in the value of feedback from the users and its importance in making decisions. We feel it is critical to ensure that no claims are false before we use them. We dig deep into the features to understand the options each platform provides.
We have outlined here that Binance and Gemini each have strengths, and it depends on the experience and location of the trader to determine which is the better platform.
Binance is best for a trader that has some knowledge of investing and experience with trading. The Binance platform has features geared towards advanced users, including placing market orders, stake crypto, and access to other transaction types. Unfortunately, not all of these transaction types are available to residents of the U.S.
Binance is the largest crypto exchange worldwide by volume. It provides traders access to over 500 currencies. Each cryptocurrency has its own maximum daily trading amount limit. In addition, the Binance mobile app is available on Android and iOS.
- Lower trading fees
- Advanced trading and tools
- Peer-to-peer trading option (with large transactions)
- Not as transparency with security measures
- There can be a long account verification process (for some)
Gemini has been one of the oldest and most reputable names in cryptocurrency. It has been in business since 2014. However, the exchange was not launched until 2015 and quickly became one of the top bitcoin and crypto exchanges in the U.S. This is based on many metrics, including their trade volume.
Gemini has a high amount of regulatory compliance. They are as a complaint as a platform can get when it comes to the crypto industry. Gemini functions in all 50 states. Gemini has a unique approach to its interface. Entry into the interface is based on the experience level of the trader. The higher their experience, the more robust the version of the application they can use.
- A trusted cryptocurrency exchange
- Fast deposits in the U.S.
- Highly regulated
- More expensive for smaller trades
- Not able to be linked to debit cards
Comparison of Features
Investors are interested in a trading platform that is easy for them to use and accessible wherever they go. Both Binance and Gemini have mobile applications. This makes them easy for beginners to use. These applications are not necessarily intended for those new to trading, but they do make the process easy for them. Each platform has a version that is ideal for every type of trader. Both Gemini and Binance allow traders to purchase bitcoin easily. Each one of these platforms has features targeted for more advanced traders. More advanced traders prefer to use a desktop computer to perform their trades. As a result, trading platforms on mobile devices are typically geared toward a more general trading audience.
As a trader, you want to understand the fees and subsequent fee structure charged by any platform. It is essential to your bottom line as a trader because fees are taken directly from the cash flow. Therefore, all traders want the platform fees to be as low as possible.
The Binance platform shines in the area of fees. Their low fees and low cost trading is what have allowed Binance to grow bigger and be more accessible than other crypto platforms. It uses a fee structure called the maker-taker structure. The result is that the fees on Binance are lower than most of the popular platforms.
Binance maker-taker fees can range from 0% to 0.10%. Traders can get a fee discount of 25% if they pay fees with Binance Coin (BNB). The more BNB that a trader holds, the lower their fees are going to be. When a trader begins to decrease as their monthly trading volume increases.
As for Gemini, the fees are at a higher rate, around 0.35%, on their platform for advanced trading. These tends to be high when compared to industry standards. This makes it more expensive to trade on Gemini as compared to Binance. However, Gemini traders are likely to pay these additional and higher costs. Traders understand that they are paying a higher fee to pay for the higher standards found on Gemini. This platform has greater security and regulatory compliance. The fees on both Binance and Gemini platforms increase when the trader has a more convenient purchasing method. Binance offers automatic dollar cost averaging for crypto purchases for a fee of 0.5%, which goes up from a typical 0.1%.
Gemini has incredibly high regulatory standards. They do not cut any corners throughout the process. Signing up for a Gemini account is simple. Once you are on the platform, you must provide some basic information and create a password for your account. For security, they will send you an activation code to the email you provide to them. After this process, you will need to provide additional personal information. You will need to provide documents with your address to complete the verification process. Gemini will accept your driver’s license and a utility bill.
Creating a Binance account is similar to the process for creating a Gemini account, as long as you live in the U.S. If you live outside of the United States, the process is a little more straightforward. All you need to provide is your email address and create a password to create an account. You do not have to go through any additional verification process before you are able to start trading on the Binance platform. You must deposit money into your account before you can trade cryptocurrencies. However, you are going to be limited to a withdrawal of only two bitcoins per day while you have an unverified account. It is in your best interest to go through the know your customer (KYC) process before you begin trading, even though you do not have to. This helps you avoid having your account or funds locked. If the platform is concerned about suspicious activity, they will make you go through the process.
No matter how you look at it, Gemini wins in this category. There is no platform more secure or compliant with regulations than Gemini. Gemini is regulated under the New York Banking law as a Limited Liability Trust Company. The founders of Gemini, the Winklevoss twins, are clear that they want the safest and most secure environment and want to work with regulators to ensure that happens. The Gemini crypto exchange platform has not fallen subject to hackers. They have not faced any type of security breach. Gemini also holds their digital assets in hot wallets for their customers to guarantee they are protected against various types of different attack methods, including theft by hackers. In addition, Gemini offers many enhanced security features, including two-factor authentication.
Binance, on the other hand, has not had a history of such stringent regulations. They do not have one location that they call home. This allows them to get around some regulations. They allow traders to invest on the platform without any know your customer (KYC) protection or anti-money laundering (AML) restrictions on their traders. More recently, Binance launched an exchange in the U.S. called Binance US. This version of their platform is more secure and abides by regulations and compliance. They also hired the former U.S. Acting Comptroller of Currency as the CEO of Binance US.
Binance has had some security problems over the years. Back in 2019, there was a security hack that ended up with theft of $40 million of trader’s money. This breach did result in both the Internal Revenue Service (IRS) and Justice Department investigating Binance for any illegal activity. However, none of their users lost money because Binance has a Secure Asset Fund for Users (SAFU). This is a method of insurance for their traders. Binance also has two-factor authentication.
When it comes to the number of currencies that are available on the crypto exchange platform, Binance wins in this department. It is almost impossible for other platforms to compete with Binance in the number of crypto assets available. If there is specific crypto that a trader is looking to trade, they should look at Binance first. Binance has hundreds of crypto available for trade. Gemini only offers about 30.
Gemini tries to be more limited in the crypto offered on their platform. They started as only a bitcoin exchange. It is common to find that platforms that follow the strictest regulations have less crypto available for trade. They do not want to take the chance of raising any red flags or taking on any crypto that is not legitimate.
Traders are able to find some of the more common crypto options on both platforms. These include, but are not limited to:
Each application has a fair amount of unique features that you may not be able to find in other trading platforms. Binance offers smart pool. This feature allows those that want to mine a way to earn rewards that are in proportion to how much they participate and work with others. Binance also offers a brave widget that allows traders to use the internet browser Brave to trade crypto. This helps to protect their data.
Gemini offers Gemini clearing, which allows their trader to settle crypto that is off exchange in a way that is safe and secure. They also have Gemini ActiveTrader, with provides a different platform for the more advanced trader. This version gives traders more advanced trading options.
Binance has a mobile application for its main site that is not accessible by U.S. residents. Binance provides a different platform, called Binance.US, for U.S. residents. Those that are new to this type of investing and trading may have a difficult time navigating both the web-based and mobile platforms. Eventually, users become used to the application, and it seems intuitive to them. Overall, the user interface is clean and user-friendly. However, traders are going to find that the Binance.US app has a few bugs. Some of these problems include difficulty logging into the app. In addition, the user interface for Binance.US is not as intuitive as the main site.
Gemini offers a mobile application that is available for Android and iOS. Traders seem to like both the mobile and desktop versions of the platform. There are no challenges or difficulties that traders find when using either ways to access the platform.
Binance vs Gemini: The Winner
In general, for the overall user that is located outside of the U.S., Binance is the better option. Gemini and Binance are geared to a specific type of trader but looking at the overall application, Binance is best for the trader outside of the U.S. Gemini is the best platform for a trader that is inside the U.S. Binance has way too many features, and positives to ignore for the overall user. It offers low fees, a high level of liquidity, incredibly high amount of crypto trading pairs, margin trading, and proprietary tokens. Binance also has some limited amount of KYC standards and requirements. It is the largest crypto exchange platform for a reason.
Best for the Experienced Trader
While both Gemini and Binance have a lot to offer traders of all skill levels, Binance is geared a little more towards an experienced trader. Understandably, new traders are cautious and concerned about the money they are trading and investing. Gemini offers a wide range of protection and strict protocols that help a beginning trader feel better and more comfortable. Binance does not have the most rigorous security, which may not be as concerning to a more advanced trader. Binance has some of the best rates you are going to find in the industry, not including any commission-free exchanges. They have a high amount of liquidity which ensures fewer price fluctuations related to trade prices. Binance also offers secure storage, staking, and mobile pay.
Now that you know all about Binance vs Gemini, there is no time like the present to get started. It is going to be much easier to create an account on Binance than you realize. So there should be nothing holding you back now.
If you go to the Binance homepage and click on register, you are one step closer to creating your account. First, you must provide your email address and create a secure password. Then, you can choose to use your mobile number in place of your email address. Binance will send you a verification email with a code that you must input to complete the verification process. After you complete these steps, you are able to finish setting up your Binance account.