- To assist a user in making an informed choice, this article will examine the key differences between Gemini and Coinbase in comparison articles for Crypto Investors.
- The decision between them ultimately comes down to their own requirements and tastes.
Two well-known names frequently come up for American crypto investors wishing to enter the realm of cryptocurrencies: Gemini and Coinbase. Both platforms have several advantages, including strong security features, instructional materials, and the chance to earn income on a user’s cryptocurrency holdings. However, picking one of them might be difficult. To assist them in making an informed choice, this article will examine the key differences between Gemini and Coinbase in this comparison article.
Fees: Gemini vs. Coinbase
Gemini outperforms Coinbase in terms of fees; however, the gap is not that large. The charge regimes on both exchanges are comparatively comparable. On Gemini and Coinbase, the costs associated with choosing their most cost-effective trading alternatives are 0.40% and 0.60%, respectively.
With tiered cost structures dependent on their 30-day trading volume, Gemini and Coinbase both provide sophisticated trading possibilities. They use a maker-taker fee system, where they pay the taker fee when their transaction is instantly filled and the maker fee when it isn’t. Depending on the order amount, both platforms levy a fixed fee ranging from $0.99 to $2.99 for minor trades (up to roughly $200). On Gemini, the percentage cost for larger trades is around 1.49%, while on Coinbase, the precise percentage fee is comparable.
Here are the fees each exchange would impose on a purchase of $1,000 in Bitcoin (BTC) to give the user an idea of how much each transaction would cost them:
| Crypto Exchange | Fee on $1,000 Bitcoin Purchase |
| Gemini | $14.90 |
| Gemini Active Trader | $4.00 |
| Coinbase (Simple Trade) | $14.68 |
| Coinbase (Advanced Trade) | $6.00 |
Gemini vs. Coinbase: Available Cryptos
Gemini and Coinbase both provide a sizable range of cryptocurrencies, but Coinbase has a larger assortment overall. Gemini provides access to more than 100 cryptocurrencies, whereas Coinbase supports over 200.
While prominent cryptocurrencies like Bitcoin and Ethereum (ETH) are available on both exchanges, Coinbase offers several significant alternatives that are not available on Gemini, such as Cardano (ADA) and Stellar (XLM). On the other hand, Gemini hosts a few less well-known cryptocurrencies, the majority of which are below the top 100. Fantom (FTM), a reasonably important cryptocurrency that is accessible on Gemini but not on Coinbase, stands out as an outlier.
Wallets: Gemini Vs. Coinbase
Hot wallets are offered by both exchanges; however, they vary significantly. A third party (Gemini) has custody of the money placed in the Gemini Wallet because it is a custodial wallet. Additionally, Gemini Wallet is only accessible to users of the exchange.
As a non-custodial wallet, Coinbase Wallet allows the user to maintain complete control over their money. This wallet is available to everyone, regardless of whether they have a Coinbase account, and is free to use. They do not need to be a Coinbase customer to use it.
Safety Of Gemini Vs. Coinbase
Gemini and Coinbase both place a high priority on security and have put cutting-edge safeguards in place to protect the funds of their users. They make use of extensive security features, strong account safeguards, and secure storage techniques.
The majority of customer cryptocurrency money is kept by both exchanges in cold storage, which is secure against hacking attempts and offline. Over 98% of deposits, according to Coinbase, are kept offline, increasing security. Both exchanges also provide pass-through FDIC insurance of up to $250,000 per customer for cash deposits kept in U.S. institutions, as well as insurance coverage to cover digital assets stored in hot wallets.
Both Gemini and Coinbase provide extra security protections on top of their storage options:
- Two-factor authentication is required to protect against illegal account access.
- Possibility of setting up allowed withdrawal addresses, guaranteeing that withdrawals are restricted to wallet addresses on a whitelist.
- Penetration testing, bug bounty programs, and regular security audits are used to find and fix possible security flaws.
Conclusion
It is evident from a comparison of Gemini and Coinbase that both platforms excel at providing straightforward crypto trading experiences with high levels of security. The decision between them ultimately comes down to the user’s own requirements and tastes.
Because of its wide variety of cryptocurrencies, Coinbase stands out as the top option for investors wishing to diversify their portfolios. However, Gemini can help them save money on trading commissions, especially if they utilize Gemini ActiveTrader. It is a desirable alternative for long-term bitcoin investors since even small cost discrepancies may add up over time.
In conclusion, Gemini and Coinbase are both respectable and trustworthy exchanges that provide crypto investors with a secure environment. The user’s decision should be based on things like their favorite cryptocurrency, investing plan, and fee tolerance.
