When it comes to buying or selling cryptocurrencies, or even engaging in active trading, there are way too many options to choose from.
However, Coinbase and Gemini are two of the most popular platforms when it comes to cryptocurrency trading. As such, I’ve written this article to compare the two platforms and see which one is better and why.
PART 1: Gemini VS Coinbase Key Features: What’s the Difference?
If you go through the table given below, you’ll find that Gemini and Coinbase differ in several key factors. The thing that pops out most is that Coinbase offers trading in one more cryptocurrency than Gemini, and that the transaction fees in Gemini is a lot lower than in Coinbase.
This major difference arises from the fact that the two platforms are meant to be used differently. Coinbase is a beginner-friendly platform that can be used to easily and efficiently buy bitcoins using fiat currency in a number of different payment methods.
Gemini, in comparison, is meant for active trading by serious traders. As such, it offers a far lower transaction fee, but it’s also not ideal for purchasing cryptocurrencies with fiat currency because it only allows bank transfers as a payment method, which is quite slow. However, due to the fact that it doesn’t support a wide range of cryptocurrencies, it also falls short of other similar platforms such as Kraken.
In our roundup article of the 20 best cryptocurrency exchange platforms, Coinbase ranked in #1 whereas Gemini ranked in #14.
In the table below, you can compare the various specifications and features of both Gemini and Coinbase.
|Reviews||Gemini Review||Coinbase Review|
|Exchange Type||Cryptocurrency Exchange||Easy Cryptocurrency Buying/Selling|
|Fees||0% to 0.25%||1.49% to 3.99%|
|Cryptocurrencies Supported||Bitcoin, Ethereum||Bitcoin, Ethereum, Litecoin|
|Payment Methods||Bank Transfer only||Bank Transfer, Credit Cards, Cryptocurrency|
|Ease of Use||Good||Great|
|Limits||$500/day||Up to $50,000/week|
|Check Website||Gemini Website||Coinbase Website|
PART 2: Gemini VS Coinbase Trading: Which one is better?
Coinbase supports Bitcoin, Ethereum, and Litecoin, whereas Gemini only supports Bitcoin and Ethereum.
Coinbase supports USD, GBP, and EUR and it accepts payment through credit cards or bank transfer. Gemini only supports USD and supports payment only through bank transfers.
Gemini operates in 46 of the U.S. states. Besides them, it also operates in Canada, Hong Kong, Singapore, South Korea and the U.K.Coinbase works in a wider range of countries, operating in 32 countries across the globe, including all the EU nations. As such, Coinbase has a wider geographical range.
Gemini has a dynamic fee schedule according to which you’ll only be charged a 0 to 0.25% transaction fee. As opposed to that, Coinbase has a higher fee of 1.49% to 3.99%.
The buying limits in Coinbase can vary and fluctuate depending on various factors but it can go up to $50,000/ week. However, in Gemini, the limits are set to $500/ day.
PART 3: Gemini VS Coinbase Trust: Which one is more reliable?
Both Gemini and Coinbase are U.S. companies and they strictly comply to all U.S. laws and regulations in terms of safe practices. However, Coinbase has a lot more public support as it was established in 2012 whereas Gemini is relatively new, having come up recently in 2015. Coinbase has also received investments from reputable organizations such as the Bank of Tokyo, the New York Stock Exchange, and Blockchain Capital.
In the statistic chart below, you can see that Gemini has consistently been more popular than Coinbase in recent months. However, just recently, Coinbase experienced a sudden spike in interest, though they’ve again stabilized to their original levels.
In terms of security, both Coinbase and Gemini provide top notch service. They segregate the funds between users and company funds so that there’s no misallocation of your funds. They also follow the bet practices to ensure safety of funds, such as storing most of it in cold offline wallets.
Coinbase, additionally, also offers FDIC insurance to all of its users. As such, if they do get hacked and there’s losses experienced, all users will receive compensation of up to $250,000.
Coinbase handles customer support through online eMail tickets. They’re quite prompt and respond within 24 to 48 hours. Even scouring through online forums reveals that most people are quite satisfied with their response times. Gemini is also equally adept at answering and they have a similar response time as well.
PART 4: Gemini VS Coinbase Conclusion
As you can probably tell by now, both Coinbase and Gemini are equally reliable and trustworthy. However, if I had to favor one of the platforms over the other, I would go with Coinbase. That’s because Coinbase offers a higher number of cryptocurrencies, accepts more payment methods, currencies, and has a much wider geographical range than Gemini.
However, if you’re put off by the high transaction fees in Coinbase, you can go ahead and try Gemini for active trading.
Whatever you decide to use, do comment down below and let us know about your experience with it.