Are you searching for a secure crypto exchange in the United States?
If so, you can’t avoid Coinbase and Gemini.
And, no, it’s not just because these exchanges have great marketing…although that certainly helps!
Truthfully, the main driver behind Coinbase and Gemini’s success is kind of boring:
Regulatory compliance.
From the start, Coinbase and Gemini have gone above and beyond to meet every possible crypto-related law.
This attention to detail makes Coinbase and Gemini two of the few exchanges available in every US state.
But beyond their high legal standards, Coinbase and Gemini share a commitment to security and convenience.
Even crypto beginners don’t have issues navigating these user-friendly exchanges.
While Coinbase and Gemini are very similar, they have a few features that may not suit every investor’s strategy.
Anyone thinking of signing up for Coinbase vs. Gemini can’t afford to miss this blog post.
Below, I’m going to run through the distinctions everyone should know when comparing Gemini vs. Coinbase.
Gemini vs. Coinbase — Which Exchange Is Better For Crypto Investors?
- Availability in USA
- Ease of Set-Up
- Security
- Ease of Use
- Access to Cryptocurrencies
- Customer Service
- Trading Fees
- Passive Income
Availability In The USA
A huge positive for Coinbase and Gemini is that they’re available throughout North America.
Wherever you are in the USA, you can create a Coinbase or Gemini account.
At first glance, this may not sound like a big deal.
After all, Coinbase and Gemini are both headquartered in the USA. Why wouldn’t they offer their services to US customers?
Answer: crypto regulations.
Some states still don’t like cryptocurrencies.
Plus, since crypto laws aren’t clear in every territory, it can be challenging for exchanges to operate “within the law.”
Even high-quality American exchanges like Kraken still can’t operate in every US state.
Coinbase and Gemini pride themselves on working with regulators every step of the way.
While this means you’ll have to provide more KYC, it also means Coinbase and Gemini could operate in all US states.
Internationally, it seems like Coinbase has more options versus Gemini.
Currently, Coinbase claims it offers services in over 100 countries.
Gemini, however, only operates in about 60-plus nations.
Since Coinbase has greater international offerings, I have to give this category to Brian Armstrong’s brand.
However, from an American standpoint, Coinbase and Gemini are equally accessible.
Winner: Coinbase
Ease Of Set-Up
Since Coinbase and Gemini are laser-focused on legality, you may expect a lengthy sign-up feature.
In truth, it’s super simple to apply for an account on Coinbase or Gemini.
The only “downside” is that you have to provide KYC details.
Privacy hawks may not like doling out this info, but it’s the only way Coinbase and Gemini could operate in so many territories.
If you don’t feel comfortable sharing a photo ID, phone number, and email, you may want to research decentralized alternatives like Uniswap.
However, those who sign-up for Gemini vs. Coinbase usually don’t complain about a tricky sign-up procedure.
As long as you provide the requested data, you should have a new account within a matter of minutes.
Just be sure to have an authenticator app like Authy on your phone before going through the sign-up procedure.
Authenticator apps generate random codes you must input whenever accessing a crypto exchange.
Trust me; you’re going to want this security feature.
Security
Speaking of security, you may be wondering how Coinbase and Gemini keep their crypto secure.
Two words: cold storage.
Coinbase claims to store at least 98 percent of its crypto assets in cold storage wallets.
Although Gemini doesn’t give a precise number on its website, it says that “most” of its crypto is in cold storage.
Also, whatever crypto is on Gemini’s hot wallet is insured.
Coinbase and Gemini have rigorous screening standards for all employees.
You can’t work for either of these exchanges without submitting multiple background checks.
Coinbase and Gemini also provide FDIC insurance on all USD stored on their exchanges.
Gemini’s hot wallet insurance includes each customer’s crypto, and Coinbase has an insurance policy on any crypto stolen via a cybersecurity breach.
However, Coinbase doesn’t provide insurance if someone gets into your account using your password.
It’s on you to protect your exchange account with a strong password and extra security features like 2FA.
On the downside, Coinbase was subject to a hack in 2021. Allegedly, 6,000 customers were affected by this attack.
By contrast, Gemini has yet to report a significant hack.
Still, you have to remember that Coinbase is a much larger exchange than Gemini.
Also, the Coinbase team claims they quickly fixed the issue with their SMS system and reimbursed affected customers.
I guess you could say Gemini has a “better” safety infrastructure just because it has yet to be hacked.
However, it’s clear that safety is a top priority for Coinbase and Gemini.
Just remember that there’s always a higher risk of hacks on an exchange versus a private wallet.
Unless you’re an active trader, I urge you to transfer your crypto to either a hardware or software wallet.
Conveniently for Coinbase customers, there is a non-custodial Coinbase Wallet that has fantastic reviews.
Trust Wallet is another one of my favorite software wallets—especially if you love the Binance Smart Chain.
You can download Trust Wallet by following this link.
Sending your crypto into a high-quality wallet is the best way to keep it safe.
Winner: Gemini
Ease Of Use
Don’t let “crypto confusion” keep you from downloading Coinbase or Gemini.
Both of these exchanges make it easy for beginners to trade digital assets.
The user interface on Gemini and Coinbase is well-organized and easy to interact with.
Plus, both of these exchanges offer highly-rated mobile apps to trade and track your portfolio.
However, I think Coinbase has the edge in this category.
Why?
More use cases!
Coinbase’s non-custodial hot wallet can easily integrate with many DeFi protocols.
Plus, the Coinbase team recently unveiled a nifty browser extension you could use to store and trade your crypto.
As if that wasn’t enough, Coinbase is investing in a massive NFT marketplace.
So, if you love swapping digital collectibles, having a Coinbase account will give you access to many hot NFTs.
On top of all that, Coinbase gives users the option to buy crypto with their PayPal account. Just keep in mind you will pay more in trading fees to use this feature.
Given these convenient bonus features, I’ve got to award this category to Coinbase.
Winner: Coinbase
Access To Cryptocurrencies
As you delve deeper into cryptocurrency, you may run across a term called the “Coinbase effect.”
Basically, this refers to a sudden price jump once a token gets listed on Coinbase.
Since Coinbase has such a massive presence in North America, getting listed on this exchange affects a coin’s visibility.
The more people have access to a coin, the more likely it will pump.
By contrast, I haven’t heard anyone use the term “Gemini effect.”
That’s because Gemini tends to be more conservative in its coin selection.
Since Gemini strives to be uber compliant, it only admits the “cream of the crop.”
Coinbase seems more willing to take risks on more speculative alt coins like XRP, Doge and Telcoin.
While Coinbase doesn’t have as many coins as Binance or Crypto.com, it has way more than Gemini.
Currently, Coinbase has about 70 coins, while Gemini has about 30.
So, if you want a more comprehensive selection of cryptos, you’ll have a better shot finding it on Coinbase vs. Gemini.
Winner: Coinbase
Customer Service
Customer service is a weak point for most crypto exchanges.
If you’ve read my post comparing “Binance vs. KuCoin,” you know I have first-hand experience with this issue.
It’s not unheard of for customers to wait weeks to get a response from some crypto exchanges.
However, since Coinbase and Gemini pride themselves on safety, you may assume they have higher customer service standards.
Well, according to Trustpilot, that’s not the case.
Both Coinbase and Gemini have less than two stars for their customer service division.
Of course, you always have to take Internet reviews with a grain of salt.
However, these hundreds of reviews (or thousands in Coinbase’s case!) certainly aren’t a good look.
It’s no secret that Coinbase has struggled with customer service in recent years.
A recent CNBC poll found many customers can’t get in touch with Coinabase’s customer care division.
Currently, the “best” way to contact Coinbase is via email. Although Coinbase has an automated phone number, many people have reported issues with this new service.
Similar to Coinbase, Gemini accepts customer complaints via an online reporting system.
However, according to a recent post, Gemini claims to respond to all claims within 24 hours.
It seems like these companies want to reach out to customers, but their customer service isn’t super robust.
Hopefully, as both of these exchanges grow, they will invest more in their customer service options.
At this point, I can’t decide whether Coinbase vs. Gemini has a “better” customer service department.
Like trading fees, this is one negative feature both of these companies share.
If you’re particularly concerned about customer service, then you may have more luck with Kraken.
Unlike Coinbase or Gemini, Kraken has a 24/7 live chat feature. On top of that, you can call Kraken during standard business hours or send an email.
If you’re interested in signing up for Kraken, be sure to follow this link.
Winner: Draw
Trading Fees
If you despise paying trading fees, I’ve got some bad news for you.
Gemini and Coinbase have a reputation for being pricey.
On Coinbase, you’ll have to pay about 1.5 percent to buy crypto with your bank account or a Coinbase USD wallet.
With Gemini, you’ll also have to pay 1.5 percent on all transactions over $200. For amounts below that, you’ll pay a graded transaction fee that ranges from $0.99 for $10 to $2.99 for anything between $50 – $200.
This 1.5 percent fee may not seem like much, but it’s way higher than other big-name exchanges.
For instance, Binance.US has a flat fee of 0.1 percent. Plus, you could save 25 percent on all Binance.US transactions if you use BNB tokens.
So, yeah, both Coinbase and Gemini score low points in the fee department.
However, there is a simple way you could reduce your fee burden on Gemini and Coinbase:
Go pro!
Gemini and Coinbase offer advanced trading platforms that have significantly lower fees.
Also, these trading fees are on a graded scale. So, the more you spend on crypto, the lower the total cost will be.
On Coinbase Pro, you’ll only have to pay 0.5 percent in taker and maker fees for transactions under $10,000.
Folks who use Gemini Advanced Trader get a slightly better deal with 0.35 percent taker fees and 0.25 maker fees.
However, as you start trading higher volumes, Coinbase Pro has a more attractive fee structure.
While the fees are better on these trading platforms, there’s a higher learning curve involved in navigating them.
Also, Coinbase and Gemini don’t have as attractive fees compared with other trading platforms.
For example, Kraken Pro offers maker fees of 0.16 percent and taker fees of 0.26 percent for trades up to $50,000.
FTX blows everyone out of the water with maker fees of 0.02 percent and taker fees of 0.07 percent for transactions below $2 million.
Yes, FTX is that cheap.
So, while Coinbase and Gemini are super reliable and beginner-friendly, they both stink in the fee department.
If you use the pro trading platforms, Gemini is slightly better for low-volume transactions.
So, I guess I have to give this one to Gemini.
That being said, Coinbase and Gemini aren’t the ideal exchanges for people who do a lot of high-volume trading.
Winner: Gemini
Passive Income
Even if you plan to “hold” your crypto, it’s nice to earn a little interest while you’re waiting.
Luckily for investors, Gemini and Coinbase have many ways to earn rewards on their platforms.
Gemini now offers an “Earn” feature where you could deposit cryptos like Bitcoin and Ether and get interest deposited into your account.
Gemini’s model works by partnering with the third-party borrower Genesis.
Similarly, Coinbase allows users to stake select crypto assets through its platform. A few popular coins now available for Coinbase staking include Ethereum, Algorand, and Tezos.
Plus, Coinbase even has a neat feature where you could learn about small altcoins and earn a piece of each project’s native currency.
Hey, free crypto is free crypto!
Since Coinbase offers this unique “Learn to Earn” program, I’m giving this category to Coinbase.
Winner: Coinbase
Pros & Cons Of Gemini vs. Coinbase
Gemini Pros
- Industry-leading compliance and security standards.
- Insurance on USD and any crypto in Gemini’s hot wallet.
- Beginner-friendly screen design.
- “Earn” feature available for big-cap cryptocurrencies and stablecoins.
Gemini Cons
- Limited access to alt coins.
- Not as widely available outside the USA.
- High trading fees.
Coinbase Pros
- Largest crypto exchange in North America.
- FDIC insurance on USD.
- Available in over 100 countries.
- Wider selection of cryptocurrencies versus Gemini.
- Simple user interface with PayPal integration.
Coinbase Cons
- Has a history with hacks.
- Customer service has poor ratings.
- High trading fees.
Gemini vs. Coinbase — What’s The Better Crypto Exchange?
Gemini and Coinbase are more similar than they’re different.
These exchanges are US-based, take a security-first approach to crypto, and have exceptional compliance standards.
Plus, Coinbase and Gemini are so easy for new crypto investors to use.
However, I feel like Coinbase is the better choice for most people.
In a way, Coinbase is Gemini with more features.
With a Coinbase account, you’ll enjoy the same high-quality security on Gemini, but you’ll have more options.
For instance, Coinbase users can connect their PayPal directly to their Coinbase account.
Coinbase also gives you access to more cryptocurrencies.
Plus, Coinbase has a fun “Learn to Earn” section, a convenient browser extension, and an upcoming NFT marketplace.
Sure, Coinbase doesn’t have the best fees or customer service, but it has proven to be a solid choice since 2013.
While I tend to use Coinbase for crypto trading, that doesn’t mean Gemini is a “bad” choice.
I just feel like Coinbase offers users the same “Gemini standard” with way more bonus features.
If you’d like to get started with a Coinbase account, be sure to follow this link.
Want to learn how I make money using crypto? Check out my favorite node project here.
