Coinbase vs. Gemini

Want to jump straight to the answer? Coinbase is better for new investors, and Gemini is better for traders looking to minimize fees.

Cryptocurrency is becoming an increasingly popular investment option, with platforms like Coinbase and Gemini becoming go-to choices for many investors. Both platforms offer unique features and benefits, making it important to understand the differences between the two before deciding where to invest your money.

When comparing cryptocurrency exchanges, you should consider what you value in an exchange. All investors should value an exchange's security –– both Gemini and Coinbase are industry leaders when it comes to security. Other factors you may want to consider are altcoin offerings, user interfaces and accessibility from both mobile and desktop applications.

To help you make an informed decision, let's delve into the comparison between Coinbase and Gemini to determine which one suits your investment goals best.

Gemini vs. Coinbase: At a Glance

Coinbase vs. Gemini: An Overview

Coinbase Overview

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 200 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.

Gemini Overview

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 cryptocurrencies. 

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 two of a shortlist of NYSDFS licensed exchanges. 

Coinbase vs. Gemini: Crypto Exchange Features

Cryptocurrency exchanges vary in their features and offerings. Understanding these differences is crucial when selecting an exchange to use.

Features on Coinbase

• Staking rewards: Users can earn rewards by staking certain cryptocurrencies. Staking involves holding a specific amount of a cryptocurrency in a digital wallet to support the network's operations.
• Coinbase wallet: A digital wallet for securely storing and transacting with cryptocurrencies. It offers control over private keys and supports dApps and DeFi protocols.
• Educational resources: Users are rewarded with cryptocurrency for completing educational tasks and accessing learning materials.
• Coinbase card: The Visa debit card enables the use of cryptocurrency for everyday transactions as regular fiat currency.
• Coinbase Pro: The trading platform offers detailed charts and lower fees, catering to experienced traders.

Features on Gemini

• Hot wallets: Gemini wallet provides a hot wallet feature for storing crypto with internet connectivity. These wallets are insured in case of hacking incidents. The majority of funds are also stored in cold storage for added security and to reduce the risk of hacks.
• ActiveTrader: This is a powerful tool designed for advanced users. It provides detailed charts and analysis for cryptocurrencies, along with various order types.
• Gemini Earn: Gemini provides users the opportunity to earn interest on various crypto positions. The platform offers interest on a range of coins, as well as stablecoins like Gemini Dollar (GUSD).

Coinbase vs. Gemini: Supported Cryptocurrencies

Coinbase and Gemini each support an extensive list of tokens including major cryptocurrencies and some 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 over 200 supported cryptocurrencies including Bitcoin. Gemini supports over 70 cryptos, including a few that Coinbase doesn’t. Both support major altcoins including Ethereum, Aave, Dai, Polygon, Chainlink and Uniswap.

Below are shortlists of popular altcoins on Coinbase or Gemini that are not listed on the other exchange. 

Altcoins on Coinbase

• Cardano (ADA)
• Ripple (XRP)
• Stellar (XLM)
• EOS (EOS)
• Dash (DASH)

Altcoins on Gemini

• Pax Gold (PAXG)
• Fantom (FTM)

Coinbase 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 exchange splits its fees depending on the size of the transaction — it charges a flat fee of $0.99 for orders below $10 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. 

Coinbase vs. Gemini: Security Features

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. 

Gemini vs. Coinbase: Mobile App

In terms of mobile app functionality, both Gemini and Coinbase offer apps for iOS and Android devices that allow users to trade cryptocurrencies on the go. Coinbase's mobile app is highly rated for its simplicity and user-friendly design. The app offers all the basic features you need to buy, sell, and manage your digital assets, as well as real-time price alerts and market updates.

Gemini's mobile app is also well-designed and offers a similar range of features as Coinbase. However, some users may find the app slightly more complex to navigate, especially when it comes to advanced trading options.

Gemini vs. Coinbase: Ease of Use

Gemini is known for its sleek and intuitive interface, making it easy for both beginners and experienced users to navigate the platform. The layout is clean and simple, with clear instructions on how to buy and sell cryptocurrencies. Setting up an account on Gemini is also relatively straightforward, with the option to link your bank account for easy deposits and withdrawals.

Coinbase is also known for its user-friendly interface and simplicity. The platform offers a variety of cryptocurrencies for trading and allows users to easily buy, sell and store their digital assets. The platform also provides additional features such as recurring buys and educational resources for users looking to learn more about cryptocurrencies.

Gemini vs. Coinbase: Customer Support

Gemini's support options, including the help center, virtual chatbot, and support tickets, are designed to provide users with the assistance they need to navigate the platform successfully. By utilizing these resources, users can troubleshoot issues, learn more about trading on the platform, and receive personalized help when needed. While phone support may not be available, Gemini's other support channels are in place to ensure a positive user experience for all traders on the platform.

Coinbase's customer support has received mixed reviews due to slow response times and nonhuman communication, despite offering various support channels like live chat, social media assistance, and a ticketing system. There is a need for improvement in providing direct, personalized support.

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 cryptocurrency exchange will probably be a great option, but slight details may make one better than the other for you.