Cryptocurrency traders will be intimately familiar with the names Gemini and Coinbase. Earthweb reports that about 18,000 companies accept cryptocurrency as a payment option in place of fiat products, and that more than 300 million people worldwide use these digital currency alternatives in 2022.
This doesn’t mean that everyone approaching the crypto marketplace will understand the landscape of available wallet and trading platforms out there; Time reports that 55% of Bitcoin owners purchased their first crypto assets in the last year, for example. Novice investors are turning to the cryptocurrency space for a variety of reasons, but selecting a cryptocurrency trading platform to support ongoing interaction with the marketplace is crucial, just as it would be for any other investment efforts.
Two of the best options for traders are Gemini and Coinbase because they support a large volume of unique coins and are available to users in many different geographical locations. Weighing up the positive and negative aspects of each platform is a crucial step in making the right first move into cryptocurrencies. With these key features in mind, choosing the right one for your needs will set you on the right path.
Trading pairs and fees
Perhaps the first thing that a trader will look for when evaluating investment platforms is the fee structure. Fees are common across trading avenues, and understanding the inherent costs that come along with placing trades, holding assets, and transferring funds into and out of brokerage accounts is essential to making smart decisions throughout the investment experience.
The Motley Fool reports that Gemini (as of July 2022) provides trading services at a slightly lower rate than Coinbase (a maximum of 0.4% and 0.6%, respectively). The fee structures are very similar, and each platform uses alternative cost bases depending on whether you will be trading with the basic or advanced interface. At the core of investing (and earning a profit for your efforts) is the raw calculation of profit. Your margin will always be affected by the fees that are taken off the top, so understanding what those costs are and how they are assessed is critical. In this regard, Gemini comes out a nose ahead.
However, fee structure isn’t everything. While Coinbase might charge a slightly inflated fee to use the platform to perform cryptocurrency operations, the Coinbase trade deck supports more than twice as many cryptocurrency coins than Gemini. CryptoVantage notes that stablecoins have retained value better than the typical altcoin in the current bear marketplace, meaning there may be an opportunity for greater growth figures among some of the lesser-known or smaller crypto assets out there. If this resonates with you, Coinbase may be your only option for gaining access.
Supported countries and embedded features
In addition to hard facts and simple metrics such as fees and the volume of unique crypto assets a trader can hold and deal, there are other features to consider when selecting a cryptocurrency exchange.
Gemini boasts accessibility in more than 60 countries while Coinbase notes that its platform is available to users in more than 100. While academic thinking about fee structure and other fundamental features is important, if one platform isn’t supported in your part of the world, using it simply won’t be in the cards. Identifying whether you are able to make use of each of these platforms before engaging in an in depth discovery of the features built into the trading arena will save you a lot of time and potential heartache if you discover that your ideal match isn’t available for use. Fortunately for American traders, both Coinbase and Gemini are up and running in the United States.
When it comes to features, Investopedia reports that Gemini limits daily withdrawal to $5,000 while Coinbase allows for $25,000. However, Gemini incorporates staking options that can give users the ability to earn interest on their holdings and makes customer service a higher priority than Coinbase.
Both of these trading platforms support over 13 million active users (via BitDegree) and remain highly viable options for anyone entering the crypto world. Defining your own priorities can help you tip the scales in favor of one option or the other, however.