Blog Crypto Kraken vs Gemini: Which is the Best Crypto to Buy in 2022?

Kraken vs Gemini: Which is the Best Crypto to Buy in 2022?

date March 6, 2022 time 5 min read 764 views

When you’re looking for the best exchange to buy and sell crypto, there are plenty of factors to consider, and it can be overwhelming to go through everything yourself. Luckily for you, we’ve picked out the key facts and details so that you don’t have to. Then, it’s up to you to decide whether Kraken vs Gemini is the right choice.

There’s more to the world of cryptocurrency exchanges than just Binance and Coinbase. If you’ve done your research and settled on comparing Kraken vs Gemini, you probably have a lot running through your mind. How easy are they to use? How many different cryptos can you trade? And what about the kraken vs gemini fees? 

To help you weigh up these factors, we’ll run through exactly what Kraken vs Gemini have to offer, including their similarities and differences. That way, you’ll be able to choose the right platform for your needs and preferences.

Kraken vs Gemini: What to consider

Before we get into a deeper analysis, let’s briefly introduce both exchanges. 

Gemini was launched back in 2014, when it became the world’s first licensed ethereum exchange. Meanwhile, Kraken became open for trading in 2013. In the list of most-used cryptocurrency exchanges, Kraken stands at number four, with a 24-hour trading volume of over $800 million, and Gemini is number 12 with a trading volume of $102 million.

But don’t just base your decision based on what everyone else is using the most. To help you make an informed choice, we’ll run through:

  • Trading fees
  • Variety of cryptocurrencies you can trade
  • Security protocols
  • Any other interesting features

Let’s go!

Fees

Fees are at the forefront of most crypto investors’ minds. Significant charges can seriously eat into your profit margins—especially if you’re making frequent trades rather than holding your assets over the long term. However, it can be a minefield to figure out exactly what you’ll be paying and how Kraken vs Gemini fees compare. As with most crypto exchanges, they have complex fee structures that take a while to understand.

Weighing up the Kraken vs Gemini fees is a crucial factor for most crypto traders.
Weighing up the Kraken vs Gemini fees is a crucial factor for most crypto traders. (Source: Unsplash)

Kraken trading fees vary between 0.16% and 0.26% for simple trades between cryptocurrencies—and you may get fees as low as 0% if you sign up for Kraken Pro (depending on your trading volume). However, the exact amount you’ll pay varies depending on the payment method. For instance, if you use a debit card to buy and earn interest on crypto, there’s a 3.75% fee plus $0.25 (or €0.25). 

The trading fees on Gemini are a little higher: 0.5% plus the Gemini market price. This isn’t such a big deal for those who want to buy and hold, but it’s not ideal for the more active traders. Gemini also has some additional fees for using different payment methods (a 3.5% fee for using a debit card).

Variety of cryptocurrencies available 

There’s nothing more annoying than settling into a cryptocurrency exchange and being happy with it, only to find that you can’t buy your cryptocurrency of choice. When it comes to Gemini vs Kraken, there’s a clear winner.

Kraken hosts an impressive number of cryptocurrencies—more than 110, although this varies a little between countries. 

Gemini pales in comparison, but it still supports more than 50. That will cover you if you only plan to trade the most popular cryptocurrencies, but if you’re a lover of more niche altcoins then you might find the limitations frustrating. 

Security measures

When most people start crypto trading, they get so preoccupied with fees and cryptocurrencies that they neglect the importance of financial security.

When figuring out how Gemini vs Kraken stack up, don’t forget to consider their security protocols.
When figuring out how Gemini vs Kraken stack up, don’t forget to consider their security protocols. (Source: Unsplash)

A few key aspects to consider are:

  • The percentage of assets held in offline storage (a more secure choice than online storage)
  • History of being hacked
  • Transparency about security practices
  • Regulation

Kraken has a perfect track record, having never been hacked yet (and fingers crossed things remain that way). It’s also transparent about how it carries out its operations, and currently holds around 95% of its assets in offline storage. Plus, it’s regulated in the US.

However, this is the area where Gemini really takes the lead.

Gemini was initially created with a focus on security, so you’d expect it to shine here. It’s regulated by the New York State Department of Financial Services, has regular bank exams to ensure it’s complying with regulations, and was even the first crypto exchange to receive an ISO 27001 certification. The only drawback is that it isn’t quite as transparent about the proportion of its assets stored offline, but considering its close compliance this isn’t such a major issue.

Additional features

The factors outlined above are enough for many people to make their decision about which platform to use between kraken vs gemini, but if you have enough spare capacity left in your brain, it’s also worth considering whether an exchange has anything special to offer.

Both Gemini vs Kraken have mobile apps, educational resources for learning more about crypto trading, and live chat features to get prompt support from representatives.

Gemini also offers the chance to earn up to 7.4% APY interest on your crypto, which beats anything you’d get from the banks. It’s also worth mentioning how clean and simple its interface is, making it a great choice for beginners to turn $1,000 into $5,000 in a month.

As for Kraken, it has its own trading terminal called Cryptowatch, where you can track thousands of markets in real-time to enrich your trading experience. It also has advanced capabilities Gemini lacks, such as market orders, limit orders, and stop-limit orders. 

Gemini vs Kraken: The verdict

Based on its wide range of cryptocurrencies, low trading fees, and advanced trading capabilities, Kraken is the best choice for advanced traders who want to buy and sell crypto regularly and know exactly what they’re doing. 

Whichever route you decide to take, hopefully you now have the knowledge needed to walk it with confidence.
Whichever route you decide to take, hopefully you now have the knowledge needed to walk it with confidence. (Source: Unsplash)

However, beginners may struggle with a sophisticated exchange like Kraken, with features they probably won’t understand or make much use of. Gemini is much easier to use. Plus, it’s the winner on the security front, so anyone concerned about losing their crypto assets will find this a huge plus. 

In case this article has left you wondering if you should consider other crypto exchanges, we might be able to help. You can also check our breakdowns of Kraken vs Binance and Gemini vs Coinbase.

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