Want to jump straight to the answer of Coinbase vs. Gemini? Coinbase is better for investors looking for lots of supported altcoins, and Gemini is better for smaller traders trying to minimize fees.
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Picking the best cryptocurrency exchange has become much more difficult in recent years because there are just too many to choose from. Most top exchanges have all the most important features including impressive security measures to keep user funds safe, and features may seem too similar to pick the best one. A decade ago it was easy, mostly because there were only a few good choices.
Some of those options seemed much better than they really were. For example, a crypto exchange called Mt. Gox, which handled 70% of all Bitcoin transactions worldwide in 2013 and the beginning of 2014, was compromised. Many investors thought it was their best option until the hack in February 2014. 740,000 Bitcoin from Mt. Gox customers, and another 100,000 from the company itself, were stolen. The 840,000 Bitcoin that was taken is worth about than $27 billion today. Security should be a major consideration when choosing an exchange to avoid losing your portfolio to massive hacks.
What is a Cryptocurrency Exchange?
Cryptocurrency exchanges allow users to trade cryptos with fiat currency or other digital assets. The major cryptocurrency exchanges today fall into two main categories — centralized and decentralized. Gemini and Coinbase are both centralized exchanges in which the company acts as a trusted 3rd party, processing trades and securing user funds. Decentralized exchanges (DEXes) facilitate peer-to-peer swaps without intermediaries and allow users to ensure full control over their assets. Each type has advantages and disadvantages, although centralized exchanges are often easier to use and are usually the better choice for beginners.
Cryptocurrency exchanges provide similar services as stock exchanges with digital assets instead of stocks and ETFs. However, cryptocurrency markets aren’t tied down by the same regulation as stock exchanges. The lower standard of regulation has positive and negative effects. For example, you need to research the security and trustworthiness of exchanges and other projects because regulators can’t do it for you. One advantage is that some frustrating regulatory policies like pattern day trading restrictions don’t apply to cryptocurrencies.
Important Cryptocurrency Exchange Features
Consider the various features of crypto exchanges when choosing the right platform for you. First, you need to check whether the exchange supports your country. The next consideration beyond simple access should be security. An exchange may have more supported coins or trading tools, but if it has meager security that fails to keep your money safe, it’s likely not worth using. Coinbase and Gemini commit to meticulous security, and neither platform at large has ever been hacked.
Of course, the exchange will also need to support the tokens that you want to buy. Coinbase and Gemini have extensive lists of supported cryptos, but some exchanges like Binance have even longer lists. Additionally, 2 features that traders might want on their exchange are learning resources and advanced trading tools like technical analysis indicators. Each platform has its own resources to help beginners learn crypto basics and more. Gemini has a slight edge on trading tools over Coinbase, but both have enough to do simple technical analysis and research.
What is Coinbase?
Coinbase was founded in 2012 with the ultimate goal of creating an open financial system in which anyone anywhere can purchase digital currencies. Originally the platform only offered Bitcoin, but it has listed more than 65 cryptocurrencies since its launch. Coinbase is actively speeding up the listing process, providing its customers with diverse investment opportunities.
On June 24, 2021, the team launched a tool called Solidify to help list certain new tokens even faster. While the platform has listed more cryptos than some exchanges, its largest advantage over many other exchanges is its security. Coinbase has all the security bells and whistles that top exchanges should have and more.
One downside of Coinbase is that it doesn’t support as many countries as Gemini. Its full services are available in Australia, Canada, Singapore, the United States, the United Kingdom and a long list of European countries. It also allows more than 100 countries to convert between cryptocurrencies, but residents of many of these can’t deposit or trade with fiat money on the platform. Coinbase plans on expanding its services to more countries in the future.
What is Gemini?
Gemini is a popular crypto exchange founded by a pair of revolutionary investor twins, Tyler and Cameron Winklevoss. The Winklevoss twins have been a part of the cryptocurrency community since they bought up 1% of the entire supply of Bitcoin (at the time), reportedly for less than $10 per coin. Only a few years later in 2014, the twins founded Gemini, and it quickly became known as one of the safest platforms to trade cryptos.
Gemini says it operates with a safety-first mentality and has implemented extensive security measures to prove it. It was one of the first crypto exchanges to be licensed by the New York State Department of Financial Services (NYSDFS). New York has stricter regulations than most states on cryptocurrency services, and Gemini and Coinbase are 2 of a shortlist of NYSDFS licensed exchanges.
Coinbase Fees vs. Gemini Fees
Coinbase and Gemini have complex fee structures with a few distinct differences. Both exchanges charge nothing for cryptocurrency deposits and instant ACH bank transfers. If you plan on funding your account with wire transfers, you may prefer Gemini. It doesn’t charge a fee whereas Coinbase charges $10 for wire transfer deposits and $25 for outgoing wires.
Gemini splits its fees depending on the size of the transaction — it charges a flat fee for orders below $200 and 1.49% for larger transactions. Coinbase has a slightly more complicated fee structure that depends on payment method and region. In the United States, using a linked bank account or Coinbase’s USD wallet to make a purchase incurs a 1.49% fee while using a debit card or PayPal costs 3.99%. It has a useful guide that breaks down fees for each region and payment method on its help center.
Coinbase and Gemini each have another free platform dedicated to more active or experienced traders — Coinbase Pro and Gemini ActiveTrader. These platforms use a maker-taker model that charges lower fees than the main platforms. The model is designed to charge more fees on trades that take liquidity off the market than make liquidity. For example, if you open a trade that is filled immediately then you are taking liquidity off the market and are charged a slightly higher fee. These fees also decrease as the size of the order increases. Gemini ActiveTrader charges slightly less for trades smaller than $50,000, and above $50,000 Coinbase Pro is cheaper. If you are looking to lower your fees as much as possible, either of these maker-taker models could be the cheaper option depending on the size of your trades.
Security Features on Coinbase vs. Gemini
Coinbase and Gemini are both about as secure as possible for large cryptocurrency exchanges today. The platforms store most user funds in cold storage (offline) and completely insure the small percentage in hot wallets (kept online for day-to-day liquidity). Coinbase says it keeps 98% of the users’ cryptocurrencies it controls in geographically separated cold storage locations (in vaults, safe deposit boxes etc.). Gemini hasn’t announced what percent of user cryptos are stored in cold storage, but it insures all funds in hot wallets.
Your USD is also safe on Coinbase and Gemini. The Federal Deposit Insurance Corporation (FDIC) insures USD on the platforms up to $250,000 per user. The exchanges have few vulnerabilities, and most of those are insured in case of a malicious attack. The main danger that affects all exchanges is login security, which is another priority for Gemini and Coinbase. For example, 2-factor authentication can (and should) be enabled on each platform, adding an extra layer of security that keeps malicious attackers from accessing user accounts.
Coinbase Custody (the platform built on top of Coinbase to custody funds) completed System and Organization Control (SOC) 1 and 2 examinations in 2019. Gemini was also one of the first cryptocurrency exchanges to complete SOC examinations 1 and 2. These exams audit a company for key issues like security, processing integrity, privacy and availability. These audits only further enforce the notion that the companies are secure and running properly.
Altcoins on Coinbase vs. Gemini
Coinbase and Gemini each support an extensive list of altcoins. The platforms are careful with what cryptos are listed to make sure that customers don’t lose their money to scam coins. However, that doesn’t mean you can’t lose money trading there.
Coinbase has a significant edge with 71 supported cryptocurrencies including Bitcoin. Gemini still has 45 cryptos listed and supports a few that Coinbase doesn’t. Both support major altcoins including Ethereum, Aave, Dai, Polygon, Chainlink and Uniswap. Below are shortlists of popular altcoins not listed on the other exchange.
Altcoins on Coinbase
- Cardano (ADA)
- Ripple (XRP)
- Solana (SOL)
- Stellar (XLM)
- EOS (EOS)
- Dash (DASH)
Altcoins on Gemini
- Gemini Dollar (GUSD)
- Pax Gold (PAXG)
- The Sandbox (SAND)
- Fantom (FTM)
So, Coinbase or Gemini?
Coinbase and Gemini are secure exchanges with slightly different fees and features. Your preference may depend on where you are (in case one doesn’t support your country), which cryptocurrencies you want to trade and how your trading strategy will fit into the fee structures of each exchange. Large traders who plan on buying or selling cryptos worth more than $50,000 might lean towards Coinbase Pro for the lower fees. On the other hand, traders in South Korea or the Philippines would likely want to choose Gemini because most of Coinbase’s services aren’t available in their countries. Either exchange will probably be a great option, but slight details may make one better than the other for you.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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