Blog Crypto Gemini vs Coinbase: Where Should You Manage Your Crypto?

Gemini vs Coinbase: Where Should You Manage Your Crypto?

date November 13, 2021 time 5 min read 1308 views

If you’ve done even the slightest bit of research into cryptocurrency exchanges, you’ve probably hit the dilemma of weighing up Gemini vs Coinbase at some point. As is always the case with these kinds of questions, there’s not a definitive answer about which exchange is “best”—it comes to your preferences and the right option for you. Fortunately, we’re here to help you make the call!

One of the most important decisions you’ll have to make about crypto investment (after deciding which cryptocurrencies to invest in) is where to buy, store, and manage your holdings. Regardless of where you eventually decide to store your crypto, you’ll need to buy them on exchanges first. So, you might be wondering how Gemini vs Coinbase compare.

Overall, Coinbase is principally a platform for individuals to trade on, while Gemini is a better fit for institutional investors. But to shed some more light on how they differ, we’ll go through the features of both, along with some important differences to look out for.

Introducing Coinbase

First of all, let’s turn our attention to Coinbase, the second biggest cryptocurrency exchange on the web in terms of trading volumes (with around $6.5 billion traded each day). 

Before we can compare Coinbase vs Gemini in detail, let’s look at what Coinbase has to offer.
Before we can compare Coinbase vs Gemini in detail, let’s look at what Coinbase has to offer. (Source: Coinbase)

The platform was established back in 2012 with a primary focus on bitcoin, but it’s come a long way since then. The exchange now supports more than 100 different cryptocurrencies, and it even became publicly traded in April 2021, meaning you could buy Coinbase shares right now if you wanted. 

Coinbase’s focus has always been on providing an accessible platform for beginners to start investing in cryptocurrencies without encountering too many obstacles. It also sticks to the core crypto mission of being decentralized by operating as a remote-first company without a headquarters or office. 

As well as its impressive crypto offering, one of Coinbase’s standout features is that it allows users to earn small amounts of cryptocurrencies on the platform by working through short lessons and quizzes about new cryptocurrencies via Coinbase Earn. This is a fun way to give out some free crypto while giving smaller crypto projects a marketing opportunity.

Introducing Gemini

We’re almost up to our comprehensive comparison, but first, let’s take a deeper look at Gemini. [source: screenshot] https://www.gemini.com/ 

We’re almost up to our comprehensive comparison, but first, let’s take a deeper look at Gemini.
We’re almost up to our comprehensive comparison, but first, let’s take a deeper look at Gemini. (Source: Gemini)

Coinbase has had its moment in the spotlight; now, it’s time to give Gemini its opportunity to shine. Gemini is significantly lower down on the list of the biggest exchanges in terms of trading volume, ranking eleventh in the world. Around $250,000 is traded in a 24-hour period—a fraction of the activity on Coinbase.

But that doesn’t mean you should give it a miss—Gemini offers something a little different. The exchange launched in 2014 (later than Coinbase), but it made up for lost time by becoming the first licensed ether exchange in the world. It went on to have two further firsts: the world’s first licensed Zcash exchange and the first exchange to offer bitcoin futures contracts. Not bad.

The platform now supports more than 50 different cryptocurrencies to help you decide which best coins to invest in beyond Gemini vs Coinbase. But although it can be used by (ambitious) beginners, it’s a better fit for advanced traders or institutional investors. For instance, it boasts an ActiveTrader platform with advanced features like charting and various trading pairs. It also offers more extensive security measures than Coinbase—it follows Know Your Customer (KYC) and anti-money laundering (AML) regulations very carefully. 

If you feel like this leaves you none the wiser about the Coinbase vs Gemini battle, don’t worry—we’ll get there shortly. 

Comparing Gemini vs Coinbase

Deciding between Coinbase vs Gemini is a personal decision, but there are a few common threads everyone should consider.
Deciding between Coinbase vs Gemini is a personal decision, but there are a few common threads everyone should consider. (Source: Pixabay)

Now that we’ve introduced each exchange, we can give them a fair comparison. As we’ve said already, Coinbase is generally the better choice for individuals, while Gemini is better for institutional investors. But let’s break this down in a little more detail.

Fees

A top concern of many traders is fees, so it makes sense to start here. Gemini has a slightly different fee structure for each way to trade, but it charges transaction fees of 1.49% on web orders over $200, with lower fees for the ActiveTrader platform. Coinbase fees are similar, with a 0.5% fee per trade plus a 1.49% fee for transferring to and from your bank account. However, you can lower these charges using Coinbase Pro.

Features

Now, never mind the fees—what can you actually do on both platforms? Both exchanges offer ways to earn a yield on your crypto, with Gemini Earn offering up to 8.05% APY and Coinbase offering staking rewards of up to 5% APR (in addition to its Coinbase Earn program).

But how are they different? Coinbase’s strong points are its curated feed for crypto news and educational resources to teach new investors more about cryptocurrencies. It also offers automatic alerts when prices of specific cryptocurrencies (selected by the user) change.

As for Gemini, it has its own Gemini Pay initiative, which allows you to use your holdings on the exchange to buy items from shops participating in the scheme. It also has a special service to aid fund managers with curating their portfolios.

Customer service

As you’d expect for a platform aimed at institutional investors, Gemini wins on the customer service front, offering 24/7 customer service over the phone and through online chat. In contrast, Coinbase only offers support through emails and social media messages, so there’s no guarantee that you’ll get a prompt response if you encounter an issue.

At this point, it’s also worth making it clear there are plenty of Gemini vs Coinbase alternatives out there—they might be leading providers, but they’re not the only two crypto exchanges on the internet. Also, whichever exchange you decide is the right fit for you, it’s wise to move your money over to a dedicated multiple cryptocurrency wallet to keep it safe. Or why not make your money work a little harder?

MyConstant supports more than 50 different cryptocurrencies to help you decide which best coins to invest in beyond Gemini vs Coinbase.

Invest through MyConstant

Now, we can compare Gemini vs Coinbase in detail and figure out where you should manage your crypto. Once you’ve purchased your cryptocurrencies of choice, you can put them to good use by investing them through platforms like MyConstant. We offer a wide range of products, and even better, we have a proud record of no investor losing their initial investment to date.

If you own some cryptos and haven’t planned to buy more yet, you can invest your idle coins and earn interest on crypto up to 7% APR compounded and paid out every second through our Crypto-Lend feature.

You can deposit your crypto in our crypto loan (where you’ll earn up to 4% for stablecoins), or take your crypto even further by lending it out. You can choose the term (1,3, or 6 months) and keep all of the interest.

Benefits include:

  • Up to 7% APR on fixed-term investments
  • No fees for USD investments
  • Anytime withdrawals
  • Minimum investment just $10
  • No maximum investment limit

Sound interesting? Sign up for a free account today and start investing.

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George Schooling

George Schooling

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