What is Gemini Crypto Exchange?

Gemini exchange is one of the most popular cryptocurrency exchanges available today. What sets it apart from other exchanges is that it boasts high regulatory compliance and strong security measures. Due to this many businesses, corporations, and asset managers prefer Gemini.

In terms of exchange volume, Gemini is often amongst the top 20 exchanges. With over 100 cryptocurrencies listed on the exchange, it has a rather limited selection of coins. Gemini is available in all 50 states of the US and over 60 countries. 

Users can trade via the Gemini website or get the mobile app. Gemini also offers other products like an advanced trading platform, a wallet, a card, and other products for businesses. For educating audiences about cryptocurrencies and other digital assets, Gemini has a dedicated “Cryptopedia”. 

Here are some quick highlights about Gemini:

• Gemini supports over 100 cryptocurrencies in more than 60 countries
• The exchange is well-known for regulatory compliance and strong security
• Its popular with corporations, businesses, and asset managers

Gemini: Company Overview

Gemini Trust Company, LLC, opened in 2014 with the aim of providing crypto investors with a secure, regulated platform. The trust company is headquartered in New York. Cameron Winklevoss and Tyler Winklevoss co-founded the exchange (the same twins who sued Facebook’s  Mark  Zuckerberg over ownership of the initial Facebook idea). 

The New York State Department of Financial Services (NYSDFS) regulates the trust company. In 2016, Gemini became the first-ever licensed Ethereum exchange. The exchange has always been a pioneer in terms of regulation and security measures. 

Recently, Gemini became the first cryptocurrency exchange to acquire the SOC 1 and SOC 2 certifications. SOC 1 examines the design and execution of financial operations and reporting controls. Meanwhile, SOC 2 examines the security and availability of confidentiality controls.

Does Gemini Have Its Own Token?

Gemini has its own native token called Gemini Dollar (GUSD). The stablecoin is backed by the US Dollar, so each GUSD represents $1. Users can redeem Gemini Dollars for US Dollars. Gemini Trust Company LLC holds all these funds in FDIC-insured bank accounts.

Gemini Dollar (GUSD) holders can:

• Use the stablecoin for trading and staking in DeFi
• Lend GUSD and earn interest through Gemini Earn
• Spend GUSD with Gemini Pay
• Earn about 8% interest on idle GUSD deposits

Gemini: Pros and Cons

Even though the exchange platform has high security standards and complies with regulatory bodies, it has its fair share of shortcomings. 

Gemini Advantages

Here’s where Gemini shines:

High Security Measures and Insurance

One of the focal selling points of Gemini is its regulation and high safety standards. The exchange has recently passed the SOC 1 and SOC 2 tests, which show its commitment to safety and security. The assets stored in the online hot wallet are also insured.

Earn with Gemini Earn

Very few crypto exchanges offer interest on idle crypto balances. With Gemini, users can earn up to 8% interest on their crypto and stablecoin balances. 

Available all over the US

Gemini is available in all 50 US states- a feat that very few crypto exchanges have achieved so far. Apart from this, Gemini is available in 61 countries outside the US. 

Rich educational resources

Gemini’s Cryptopedia is a useful source of information for all things crypto. Whether you want to learn about cryptocurrencies, NFTs, blockchains, or other digital assets, Cryptopedia can be quite insightful. 

Gemini Disadvantages

Here’s where Gemini dulls in comparison:

Limited Coins

Gemini has over a hundred cryptocurrencies available for buying, selling, and trading. The list includes most popular currencies and is a decent selection overall. However, some major coins like Cardano, Polkadot, XRP, and more are missing. 

Slightly higher fees

When compared to other crypto exchanges, Gemini’s charges are slightly pricey. For instance, for an order of $5, Gemini will charge you a $0.99 fee. Aside from this, the fee structure is also quite complex. 

Supported Cryptocurrencies on Gemini

As mentioned earlier, Gemini has a rather short list of supported cryptocurrencies. The exchange supports some of the major coins, stablecoins, and lesser-known cryptocurrencies as well.

Some of the coins available on Gemini are:

• Bitcoin
• Bitcoin Cash
• Ethereum
• Dogecoin
• Litecoin
• Uniswap
• Shiba Inu
• Solana
• Gemini Dollar
• Polygon

However, many big names are missing from the list. Notably, Cardano, Polkadot, and XRP are missing. 

Gemini Fees

Right off the bat - Gemini can be a little expensive and its fee structure is a bit complicated. It charges different fees for different fiat currencies.

Gemini Mobile Fees

Even within the mobile space, the fee structure differs from one currency to the other. You can check the schedule for AUD, HKD, EUR, and other currencies on Gemini’s mobile fee page.

The fee schedule is more or less the same for the web. However, it’s a good idea to have a look at it on Gemini’s Web Exchange fee schedule. 

Gemini Trading Fees

Deposit Methods on Gemini

To make a deposit into your Gemini account, the exchange offers multiple banking methods. Users can deposit using the following methods:

• ACH
• Wire transfer
• Debit card 
• Apple Pay
• Google Pay

Here’s what the deposit fee schedule looks like:

Gemini: Trading Services Offered

For advanced traders, Gemini has a pro platform called ActiveTrader. Just as the name suggests, the platform provides active traders with advanced charting, various order types, and other tools. However, deeper analysis, like the market depth, is missing from the interface. 

The UI is straightforward - you have a central panel that displays selected currencies and a price chart. Towards the right, the order book displays coins available to buy and sell. Meanwhile, you can place orders through the order form placed on the left. 

As far as trading options are concerned, Gemini has the following order types:

• Limit
• Market
• Immediate
• Fill or Kill

Gemini is popular for over-the-counter peer-to-peer trading via Gemini Clearing. Buyers and sellers can trade with this tool directly. For crypto-to-crypto trading, Gemini offers 21 pairs.

Other Products Offered by Gemini

Apart from ActiveTrader, Gemini offers multiple useful services for users and businesses.

• Gemini Wallet
• Gemini Pay
• Gemini Credit Card
• Gemini Clearing
• Gemini Custody

Gemini Security - Is Gemini Exchange Safe?

Security is Gemini's biggest selling point and so far, the exchange has a solid reputation for being safe. To begin with, it complies with the New York State Department of Financial Services (NYSDFS) regulations. 

The NYSDFS happens to be one of the strictest regulatory bodies. As a part of their regulations, Gemini Trust Company LLC has to meet high standards for cybersecurity, consumer protection, anti-money laundering, compliance, and capitalization. 

Gemini also files compliance reports with FinCEN (Financial Crimes Enforcement Network) regularly. Now, interestingly, Gemini is a trust company and doesn’t really need to file these reports with FinCEN.

Apart from this, Gemini recently passed the SOC 1 and SOC 2 tests, which is an assurance of financial and security controls. Further, the exchange has an ISO27001 seal, an international standard for information security management. 

So far, there has only been one security incident in Gemini’s history. In February 2022, IRA Financial experienced a security breach. The hackers stole around $36 million in Bitcoin and Ethereum. The amount was stolen from IRA’s customers that had an account on the Gemini exchange. 

However, Gemini claimed that the exchange wasn’t breached, and it had offered numerous security controls to IRA Financial Trust. A Gemini spokesperson further stated that even though the exchange provides services to IRA Financial, it doesn’t manage its security. 

How does Gemini ensure the safety of assets?

The exchange stores most of the funds offline in “air-gapped cold storage” systems. A small part of the funds is kept online for smooth withdrawals. Gemini has also insured this hot wallet. Interestingly, the exchange has not mentioned the exact percentage of offline and online funds.

To eliminate single-point failures and reduce the chances of the keys being compromised, Gemini has set up the Multisignature Digital Signature Scheme (Multisig). Further, these keys are distributed all across the planet and kept in controlled facilities.

Of course, these facilities cannot be accessed by a single person. Gaining access requires action by multiple employees. On a side note, Gemini's employees go through regular credit and background checks. 

So here’s the thing - all these security measures and regulations secure the exchange. Users still have to make things safe from their end to ensure maximum security.

How can Gemini users ensure safety?

The exchange offers multiple ways for users to safeguard their accounts and prevent compromises. 

• First and foremost, Gemini users can set up two-factor authentication for logging in and withdrawals. For this, users can opt for Google Authenticator.
• The exchange also supports WebAuthn through security keys like Yubikeys, Trezor, and other similar keys. 
• For further security, users can use Withdrawal Address Whitelisting. This can ban all withdrawal activities or limit withdrawals from Gemini to a few approved addresses.
• Login attempts on Gemini are also limited and users’ data is encrypted. 

Are there any alternatives to Gemini exchange?

Gemini often gets compared to Coinbase and Kraken, two of the biggest crypto exchanges out there. Here’s a quick comparison:

Gemini vs Kraken

Gemini vs Coinbase