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Key Takeaways
- Coinbase is the best exchange overall and a fantastic choice for beginner investors.
- Gemini is a better choice for more experienced crypto investors.
- Many users lost money in the Gemini Earn scandal. However, it’s important to note that Gemini backs all customer assets 1-1 and strictly follows regulatory guidelines.
Today, Gemini and Coinbase are two of the leading cryptocurrency platforms. In this guide, we’ll walk through how the exchanges compare on key areas — such as features, fees, and usability!
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Gemini vs. Coinbase: Trust
Winner: Coinbase
In the wake of the Gemini Earn scandal, Coinbase is considered one of the most trusted cryptocurrency exchanges.
- Gemini: Known for its strong commitment to compliance and security, Gemini was long known as one of America’s most-trusted exchanges. However, Gemini’s reputation took a hit in the wake of the Gemini Earn scandal — where the company’s partner, Genesis, went bankrupt after making billions of dollars of loans to Three Arrows Capital.
- Coinbase: As one of the largest and most popular cryptocurrency exchanges globally, Coinbase has established a high level of trust among users. The exchange is known for its transparency and adherence to regulatory standards.
Gemini vs. Coinbase: Features
Winner: Tie
While Gemini offers more features for experienced investors, Coinbase may be a better choice for beginners.
- Gemini: Gemini offers features for more experienced investors. Features include advanced order types and derivative trading!
- Coinbase: Coinbase offers many beginner-friendly features. Users can make purchases with a Coinbase Card and earn cryptocurrency for free using Coinbase Learn.
Gemini vs. Coinbase: Ease of Use
Winner: Coinbase
Both platforms are designed with user-friendly interfaces, making them good choices for beginner crypto users. However, Coinbase is consistently rated as one of the easiest crypto exchanges to use!
Coinbase: Coinbase has an easy signup process, clean layouts, and plenty of educational materials to help new investors understand crypto!
Gemini: Gemini is an easy-to-use platform with educational materials for beginners. However, it is more geared towards experienced investors than Coinbase.
Gemini vs. Coinbase: Fees
Winner: Gemini
Gemini’s Active Trader fees are slightly lower than Coinbase Advanced’s fees, which means that Gemini is a better choice for price-conscious users. In addition, Gemini is more transparent about fees on its standard platform.
Gemini: Gemini has two options for trading — the standard platform (which has higher fees) and Active Trader (a free platform with lower fees). Gemini’s standard platform charges flat fees of $0.99-2.99 for trades up to $200. Trades above $200 have fees of 1.49%. Meanwhile Gemini’s Active Trader platform charges fees between 0.00-0.40%.
Coinbase: Currently, Coinbase is not transparent about fees on its standard website. The Coinbase website says that fees may vary based on factors like ‘payment method, order size, market conditions, jurisdictional location, and other costs’. Fees on Coinbase Advanced (a free platform with lower fees) range between 0.00 - 0.60%.
Gemini vs. Coinbase: Supported Currencies
Winner: Coinbase
Coinbase offers 200+ cryptocurrencies compared to Gemini’s 70+ cryptocurrencies. Coinbase is the best option for investors looking for a wide selection of crypto-assets.
- Gemini: Supports over 70 cryptocurrencies and seven fiat currencies, including USD, AUD, CAD, EUR, GBP, SGD, and HKD.
- Coinbase: Supports over 200 cryptocurrencies and three fiat currencies (USD, GBP, and EUR).
Gemini vs. Coinbase: Security
Winner: Tie
Both Gemini and Coinbase are considered highly-secure exchanges. Let’s walk through some of the techniques that Gemini and Coinbase use to keep your cryptocurrency safe.
Two-factor authentication: To log in to your exchange account, you’re required to go through two-factor authentication. In addition to your password, you’ll need a code sent through phone, email, or an authenticator app.
Security audits: Gemini and Coinbase’s security is regularly audited by independent third-parties.
Cold storage: Both exchanges hold the majority of customer assets in cold storage — keeping your cryptocurrency safe from potential hacks.
While Gemini customers did lose access to Gemini Earn funds, it’s important to note that this happened due to Gemini’s partner Genesis going bankrupt. Funds held in the Gemini exchange have remained secure.
Learn more about Coinbase offerings here.
Is Gemini Safe After FTX?
The Gemini Earn scandal has raised questions about Gemini's risk management, particularly in the wake of the FTX collapse.
It’s important to note that Gemini Earn rewards became inaccessible to users after Gemini’s partner, Genesis, was unable to redeem users’ cryptocurrency. It’s important to note that Gemini and Genesis are separate entities and that Gemini is not currently facing bankruptcy.
In a letter to users, Gemini’s founders — the Winklevoss twins — made it clear that the company had no direct exposure to FTX and that all customer assets were backed 1-1. Gemini also contributed $100 million to Earn users, as part of their ‘commitment to helping Earn users achieve a full recovery’.
In Conclusion
Gemini and Coinbase offer robust platforms for cryptocurrency trading, each with its own strengths and weaknesses. Your choice between the two should be based on your specific needs, whether it's the range of supported currencies, fee structure, ease of use, and/or the level of trust and security each platform offers.
Frequently asked questions
- Which one is better — Gemini or Coinbase?
While Coinbase is considered the best exchange for beginners, Gemini may be a better choice for experienced investors.
- Is my money safe in Gemini?
After the Gemini Earn scandal, Gemini’s founders assured users that all of Gemini’s customer assets are backed 1-1 by reserves.
- Is Coinbase safer than Gemini?
Both Coinbase and Gemini are considered safe platforms. However, Coinbase has not yet faced a major scandal like Gemini Earn.
- Does Coinbase use Gemini?
Coinbase and Gemini are competing cryptocurrency exchanges. Coinbase relies on its own order book to fulfill transactions.
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