Key Takeaways
- Gemini Exchange is a popular cryptocurrency platform known for its security, ease of use, and regulatory compliance.
- Gemini was established by Tyler and Cameron Winklevoss, who are known for their involvement in the early days of Facebook.
- Overall, it is a reputable crypto exchange that provides a secure and convenient platform for buying, selling, and storing digital assets.
In this review, we share all the details about Gemini, how this platform is filled with awesome products and services, and, of course, its fair share of troubles with the now-bankrupt crypto lender Genesis and the US Securities and Exchange Commission (SEC).
What Is Gemini?
Cameron and Tyler Winklevoss founded and launched Gemini Trust Co., LLC in 2014 as a privately-owned cryptocurrency exchange. This platform enables users to actively buy, sell, trade, and securely store over 80 cryptocurrencies.
Notably, Gemini Exchange offers distinct interfaces and fee structures for casual investors and hardcore traders, ensuring a tiered service. Moreover, it provides a mobile app and a payment app for convenient access, along with its unique currency, the Gemini dollar (GUSD), which stands out from other stablecoins operating tightly to the US dollar, which we will discuss later in the following sections.
Gemini Exchange Features
Gemini is known for its security, user-friendliness, and wide range of features. Let’s discuss each one thoroughly:
A Trading Platform For Beginners And Advanced Users
Gemini’s exchange is newbie-friendly, allowing users to buy and sell crypto instantly at the market rate. It even has a nice ‘automatic buy’ feature, which lets you schedule purchases every day, week, or however often you would like, making dollar cost averaging (DCA) much easier.
For the more experienced traders, Gemini offers an advanced trading platform called ActiveTrader®. This platform has all the features you do not see in the basic interface, such as candlestick charts and different order types.
Gemini Credit Card®
Crypto rewards credit cards are the newest incentive-style payment option to reward users with the ability to earn cryptocurrencies. These cards can be great for varying degrees of crypto enthusiasts!
The Gemini Credit Card® is available in all 50 US states and enables users to earn crypto rewards on their everyday spending with their no-annual-fee credit card. Issued by WebBank and on the Mastercard network, the card is one of the best crypto rewards cards to hit the markets.
Cardholders will earn rewards for purchasing when they use their card with a few exclusions. Users will earn 3% back on up to $6,000 spent annually on dining, 2% back on groceries, and 1% back on everything else. According to Gemini, it’s the only crypto rewards credit card with this feature!
Compared to similar cards with reward options, the Gemini Credit Card offers more currencies than users can earn. However, depending on your spending habits, other cards in the market may provide the same or better total value.
Some examples include the BlockFi Rewards Visa Signature Card, which offers a flat 1.5% back on everything ongoing, and the SoFi Credit Card, which offers a flat 2% back on everything if you redeem your rewards for crypto or other eligible options.
Also Read: Top 9 Crypto Credit & Debit Cards You Need To Know
Gemini Institutional
Gemini Institutional is a division of the Gemini crypto exchange that caters primarily to institutional investors, such as hedge funds, asset managers, and fund managers. The program offers a range of products and services designed to meet the unique needs of these large-scale investors, including institutional trading, custody, staking, eOTC, and separately managed or commingled accounts.
To sign up for a Gemini Institutional account, you can begin registering on Gemini’s website and select “Business” as the account type. After completing the onboarding questionnaire, a Compliance team member will contact you to guide you through the following steps.
Gemini Dollar™ (GUSD)
The Gemini dollar™ (GUSD) is a stablecoin designed to maintain a value relative to a traditional currency. In this case, GUSD is pegged to the US dollar, meaning it aims always to be worth exactly $1. GUSD can be used by Gemini platform users who want to participate in the crypto market without the volatility associated with other cryptocurrencies.
Gemini Trust Company issues the GUSD. To ensure its stability, the company holds US dollar reserves in a bank account corresponding to the number of GUSD tokens in circulation. This means that a dollar is held in reserve for every GUSD token in existence.
Security And Regulation
The Gemini Exchange is known for cooperating with regulators and offering many security certifications. Its key selling point is that it offers customers peace of mind, knowing that their funds are in safe hands.
Fees
The one thing we are not so excited about is Gemini’s fees, which are not that great. Traders on the exchange will have to pay a 0.50% convenience fee on every transaction, and that is on top of their transaction fees, which are a minimum of 1.49%.
Advanced traders on ActiveTrader® get a better deal, paying up to 0.40% on each trade. Also, Gemini’s enhanced security and safety come at the price of a relatively long and complicated KYC process.
Pros And Cons
Pros
- User-Friendly – Easy to navigate for both beginners and experienced traders.
- Strong Security – Prioritizes user protection with features like two-factor authentication.
- Diverse Offerings – Provides access to various cryptocurrencies, including NFTs and staking options.
Cons
- High Fees – Trading costs can be higher compared to competitors.
- Limited Staking Options – Not all cryptocurrencies are available for staking.
- Customer Support – There may be a need for sufficient support channels.
- Regulatory Concerns – Has faced legal issues in the past.
Gemini Earn
Gemini Earn was a high-yield savings program offered by Gemini. In exchange for interest payments, users could lend their crypto assets to Genesis Global Capital, a now-bankrupt lending firm. Gemini acted as an intermediary, taking a fee to facilitate the transaction.
This program was popular due to the attractive interest rates it offered. However, in November 2022, Genesis experienced financial difficulties and halted withdrawals from its lending program, which in turn caused Gemini to pause withdrawals from Gemini Earn. This left many users unable to access their funds.
The situation escalated as Genesis filed for bankruptcy, and Gemini faced legal challenges from its Earn users, who sought to recover their lost funds. The company eventually reached a settlement with Genesis and other creditors, which resulted in all Earn users receiving 100% of their digital assets back in kind.
Gemini Earn is no longer operational, and the company has since taken steps to recover the funds and returned all assets to Earn users.
Legal Troubles With The SEC
In 2023, the Gemini Exchange faced many obstacles, with a significant cash flow issue being one of the most pressing. The problem was further aggravated by the exchange’s disagreement with Genesis, which resulted in nearly $900 million in customer funds being locked up.
The situation has led to increased scrutiny from the SEC, which has filed a lawsuit against Gemini and Genesis for allegedly violating securities laws.
Tyler Winklevoss, one of Gemini’s co-founders and the company’s Chief Executive Officer, posted a message on Twitter at the time, expressing his disappointment in the case and stating that the business is looking forward to defending itself.
Final Thoughts
If you are considering using Gemini Exchange or any other crypto platform, make sure to do your own extensive research and understand the risks involved. While Gemini was not directly responsible for Genesis’s financial troubles, the previous incident highlights the risks of lending and earning interest on cryptocurrencies.
Nevertheless, Gemini is still a solid choice for investors who just want to buy and hold crypto and have a user-friendly experience. Moreover, its key strengths are its solid regulatory standing and emphasis on securing user assets.
The best crypto exchange really depends on individual needs and preferences. Therefore, it is wise to compare multiple platforms before making a decision.
