Are you a cryptocurrency newbie trying to decide which exchange to use? Or maybe you’ve had years of experience in cryptocurrency and are looking for an advanced crypto platform that fits your needs.
It may be difficult to choose between Coinbase and Gemini. These are two of the most reputable cryptocurrency exchanges to trade, buy and sell digital assets. They both have extensive educational content for people who are just dipping their toes into crypto trading. Coinbase and Gemini have different platforms for varied skill levels of crypto investors. More so, they have a similar fee structure and their sign-up bonus is $10 for new users.
Yet, Gemini crypto exchange is a unique platform in many ways. Gemini’s ActiveTrader is comparable to Coinbase Pro in features, but it is more expensive to trade on Coinbase Pro than on ActiveTrader. More so, Coinbase offers an incentive for newbie crypto investors to watch educational videos with Coinbase Earn, but Gemini’s Cryptopedia is solely for learning.
What is a Crypto Exchange?
A crypto exchange is a place for buyers and sellers of cryptocurrency to meet for their transactions. A crypto exchange or digital currency exchange platform allows an interested buyer to exchange crypto for crypto and crypto for fiat currency. Although crypto exchange platforms facilitate buying and selling of cryptocurrency just like a brokerage, they usually have other diverse features for crypto investors. Some crypto exchanges also allow crypto lending and borrowing, staking, and saving for varied fees. Cryptocurrency exchanges provide security for your funds, but you must fund your wallet before you can participate in a crypto exchange; especially on centralized exchanges.
What To Look For When Buying Crypto From an Exchange?
Before choosing a cryptocurrency exchange, do your research and find the platform that best fits your needs. Some of the features to look out for in an exchange include;
Coins and Tokens Supported
There are thousands of coins and tokens available today, but some reputable crypto exchanges only list a selected few. If you want to invest in major cryptocurrencies like Bitcoin and Ethereum, you need not be concerned about the coin offered by an exchange. However, if you have a more diversified investment in altcoins, choosing a platform with a wide array of coins and tokens is your best bet.
If you want to carry out transactions frequently, it might be better to choose a crypto exchange with the lowest fees. Maker, taker, and conversion fee are some of the charges you will pay on a crypto exchange. Look out for hidden and undisclosed charges. While some crypto exchanges deduct a flat rate on transactions irrespective of the volume, others have flexible rates.
Security and Privacy
Funds kept in a crypto exchange are not FDIC insured. However, most digital currency exchanges keep investors’ virtual assets safe through other means like cold storage wallets. Since cold storage wallets are offline, they are difficult to hack. Furthermore, using a centralized exchange means providing KYC and keeping your private keys with a custodian. If you would rather hold your private keys in your control and stay anonymous, you should try a decentralized peer-to-peer exchange.
If you want to HODL your crypto assets for a long period, a crypto exchange with a low trading volume might be ideal for you. However, it is best to trade in an exchange with high trade volume to avoid slippage. In most cases, centralized crypto exchanges have more trade volume than decentralized exchanges. So, you can quickly convert your digital asset to fiat or other cryptocurrencies on a centralized exchange.
A secure crypto exchange with low fees, high trade volume and the coin you want to trade is not useful if it is not available in your region. While some reputable crypto exchange platforms are available to global investors, you cannot trade in others unless you are in some states. Before you open an account with a crypto exchange, ensure you can trade from your geographical location.
Bonuses and Rewards
Crypto exchanges offer varied promotions to investors to make extra cash. A crypto newbie can benefit from referral and sign-up bonuses, while advanced crypto investors can enjoy the rewards of crypto staking. Rewards on cryptocurrency exchange are always attached with terms and conditions of eligibility. Ensure you are qualified to benefit from the rewards before you jump ship.
What is the Sign-up Bonus on Gemini?
New users who join Gemini through a referral link enjoy $10 in BTC or $10 equivalent in their local currency in BTC when they trade $100 within the first 30 days of opening an account.
Pros of Gemini
Gemini is a centralized crypto exchange that can be used by both crypto newbies and advanced crypto traders. Launched in 2015, Gemini now has over 40 cryptocurrency lineups today. One of the most prominent features is Cryptopedia which has many updated lessons on everything cryptocurrency. You can make money on Gemini Earn by lending your crypto assets and earning interest, storing your crypto on Gemini wallet, and trading on Gemini ActiveTraders. Gemini Pay allows users to buy with any cryptocurrency or Gemini dollar and pay without an attached fee. Gemini dollar is the platform’s native token, a stablecoin that is pegged to the US dollar. Gemini’s strengths include the following;
- Educational resources for beginners.
- Effective security measures, including insured wallets.
- Multiple platforms to suit both beginners and advanced investors.
- Investors can earn interest as high as 7.40% APY on crypto balances
- Easy crypto payment with Gemini Pay
- Mobile app with a simple and easy interface
Cons of Gemini
- Gemini has fewer coins than Coinbase
- Although it offers flexible fees, trading on Gemini can be expensive
- Lower funding limit with cash
Pros and Cons of Gemini
|Easy to use educational resources.||Fewer coins are available on the platform, especially compared to Coinbase.|
|It has a Mobile app that is easy for beginners to use.||Gemini can be expensive for small trades.|
|Funds are secured and insured.|
|Multiple platforms to suit different skillsets.|
|Payment with crypto is made easy with Gemini Pay.|
|Opportunity to earn up to 7.40% APY on available balance with Gemini Earn.|
What is the Sign-up Bonus on Coinbase?
The Coinbase Referral Program offers new users $10 BTC when they sign up using a referral link. Not only that, after sign-up, a new user must fund their account and trade with at least $100 within the first 180 days to be eligible.
The Coinbase New User Incentive is a sign-up bonus where new users get $5 BTC after opening an account. But first, users must verify their identity with driver’s license photo or ID card. Alternatively, you can add a payment method and buy a coin on Coinbase.
Pros of Coinbase
Established in 2012 by Brian Armstrong, Coinbase has grown to become one of the largest cryptocurrency exchanges in the world today. Coinbase has over 100 digital assets for all levels of crypto investors. Coinbase, Coinbase Pro and Coinbase Prime are for crypto beginners, enthusiasts and institutional investors, respectively. Coinbase also offers free conversion where you can exchange one coin for the other for free without having to sell your asset. The platform makes learning cryptocurrency easy for newbie investors with Coinbase Earn, where they can watch crypto educational videos and earn digital assets. Coinbase has many strengths, namely;
- An incentivized cryptocurrency learning bank
- Simple user interface for crypto beginners
- Additional tools and experienced crypto traders, including Coinbase Custody and lower fees
- Coinbase Visa card to facilitate payment with global cryptocurrency
- A wide array of crypto coins and tokens
- Secured and insured fund.
Cons of Coinbase
- High trade fees unless you use Coinbase Pro
- Limited customer support compared to Gemini
|Learn and earn with Coinbase Earn||High fees|
|Easy and simple user interface||Fewer coins|
|Safe and secure exchange||Unimpressive customer support|
|Earn rewards for holding USDC|
Gemini vs Coinbase: What is the Best Crypto Exchange?
The two crypto exchange platforms have many common features. For instance, Coinbase Earn is comparable to Gemini’s Cryptopedia, Gemini’s ActiveTrader is similar to Coinbase Pro and Gemini Pay and Coinbase visa card serve the same purpose. The fees deducted by Gemini are similar to those of Coinbase, but Gemini is more open about its deductions than Coinbase. Furthermore, while Coinbase offers limited customer support, you can contact Gemini’s customer representative 24/7.
Coinbase offers more coins than Gemini, but the latter is equally robust. Security of users’ funds is paramount to the two exchanges, and they provide insurance for the protection of investors’ funds. However, Gemini is a highly regulated US company with 13.6 million active users. On the other hand, Coinbase has 13.3 million active users, according to bitdegree.
|Fee||0.50% per trade
1.49% for Bank purchase
3.99% for purchase with debit card
|Flat rate for $200 and below
1.49% for trades above $200
0.50% convenience fee
3.49% for purchase with debit card
|Coins supported||Over 100||Over 50|
|Bonus and rewards||$10 sign-up bonus
Earn and learn reward
|$10 sign-up bonus|
|Countries||103 countries||Over 60 countries|