Gemini Exchange 2023

Gemini launched in 2015 as a cryptocurrency trading platform appealing to both beginner investors and active traders, with several options for buying and selling cryptocurrencies.

It doesn’t have as much trading volume as competitors like Coinbase or Kraken — you may have only heard of Gemini because of its founders, Tyler and Cameron Winklevoss, who are famous for their legal battles with Mark Zuckerberg over the creation of Facebook. But the exchange offers over 40 cryptocurrencies, a learning hub to teach beginners all about crypto investing, and a suite of unique products which can add more value for seasoned investors.

Offerings like Gemini Earn, Gemini Pay, Gemini Wallet, and more can help investors tap into a more cohesive ecosystem than other exchanges may offer. Still, it’s important to remember that for retirement-minded investors, buying and holding (or HODLing) is the name of the game, and you don’t need any of these special features to do that.

Gemini At A Glance

• Over 40 cryptocurrencies available
• Trading fees include spread and fee per transaction
• No account minimum
• Minimum trade amount equal to the smallest amount of each crypto that can be traded
• Gemini Earn program allows you to earn interest on your holdings
• Available in all U.S. states
• Cryptopedia education hub
• Insurance plan and majority of assets held in offline cold storage
• Offers multiple products like Gemini ActiveTrader for frequent buyers and sellers, Gemini Pay to use your cryptocurrency at stores, and more

Gemini Fees

You’ll be charged both a convenience and a transaction fee every time you buy or sell crypto on Gemini. These fees are the same whether you buy on Gemini’s online site or through the mobile app. Both will be displayed together as your “quoted price” before you make your purchase final.

Convenience Fee

The convenience fee is about 0.5% of the Gemini market price for a given trade, though it can vary depending on the market. This fee is also charged in the crypto you buy. For example, if Bitcoin (BTC) is currently trading at $30,000 for 1 BTC, you’d actually pay $30,150 for 1 BTC including the fee.

Transaction Fee

On top of the convenience fee, you’ll be charged a transaction fee based on the amount you trade. For crypto conversions — such as trading Bitcoin for Litecoin — this fee is a standard 1.49%. For buying and selling crypto, the fee varies by the type of currency you use, and ranges from a flat fee for less expensive orders to a percentage of more costly transactions.

Gemini Security

Any money you have in cryptocurrency is not FDIC-insured, unlike money in a bank account. But Gemini secures users’ digital assets through multi-layered security measures, which are highlighted on its website.

Gemini says the “majority” of your cryptocurrency is held in an offline, cold storage system — the safest way to protect cryptocurrency from hackers. But a small portion is kept in an online hot wallet that is insured against theft from a security breach, hack, a fraudulent transfer, or employee theft.

The insurance policy doesn’t cover losses from unauthorized access to your account. Within Gemini, you’ll be able to create a list of approved addresses that restricts who can withdraw from your account (alongside other account security like two-factor authentication), but if someone steals your identity, or figures out your password, you may not be able to recover any funds lost.

Additional Features

Gemini Earn

Gemini Earn is a lending program where you lend your crypto to institutional borrowers to earn interest on your crypto — up to 7.4% APY, though the exact rate is variable and depends on the type of coins you put into the account.

The current Gemini Earn partner is Genesis, a digital asset trading firm. Gemini’s third-party borrowers are vetted periodically, and have an obligation to return funds according to the terms of the loan agreement. While the extra risk and complexity that comes with lending crypto probably doesn’t make sense for most beginning investors, it does offer another way to draw value from your crypto.

Funds in your Gemini Earn account are held with Gemini’s third-party partners, so they’re not covered under Gemini’s insurance policy. There are also various fees for your earnings depending on the different types of currency you hold.

You’ll be able to redeem and move your cryptocurrency back to your standard Gemini account at any time, plus the interest you’ve earned, with no transfer or withdrawal fees. Interest is paid daily, and you can view your combined trading balance and Earn balance plus interest anytime.

Gemini Wallet and Gemini Custody

Gemini offers two wallets: a cold storage system called Gemini Custody, and an insured hot wallet, Gemini Wallet. Gemini Custody, which moves your crypto off the network for secure holding by Gemini, charges a 0.4% fee each year. The hot wallet offers high-security storage and insurance from theft of digital assets.

You can also choose to keep your coins within your standard Gemini online account, which might be the easiest solution for beginners, especially if you’re only investing a small amount. However, if you keep your crypto in your online account and not a wallet, you will not hold the digital keys to your crypto. Many crypto enthusiasts will tell you that if you don’t hold the keys, you don’t actually hold the crypto.

ActiveTrader

ActiveTrader is Gemini’s more advanced trading service. It allows you to execute cryptocurrency trades in “microseconds” and offers special analytics like real-time market data. It also has a different and cheaper fee structure, but this service is not necessary for most beginners. As you learn more, though, switching to ActiveTrader in the future might be worthwhile.

Gemini Pay

Gemini Pay lets you spend your cryptocurrency at more than 30,000 retail locations — from Nordstrom to Bed Bath & Beyond — with no transaction fees. But we wouldn’t recommend using your cryptocurrency to buy things. Cryptocurrency is still very volatile compared to the U.S. dollar, and using it to actually buy things may result in unnecessary loss if your crypto rises in value in the near term.

Who Is Gemini Best For?

Gemini is a solid exchange choice for beginners and seasoned crypto enthusiasts alike, but it is geared more toward those with at least a baseline knowledge of cryptocurrency — and has many features suited for those looking to do more than simply buy and hold Bitcoin.

It wins points for top-tier security features and the ability to earn interest on your holdings with Gemini Earn. And with over 40 cryptocurrencies to choose from, Gemini can be a great place to start if you just want to dip a toe into the world of cryptocurrency investing. It offers a simple mobile and online experience for new investors, plus some educational tools to help you learn more.

But Gemini also offers a ton of options and tools for more advanced trading activity and crypto users, which might be overwhelming for total beginners. Many of the exchange’s additional fees come from doing things like trading and selling cryptos, which long-term HODLers don’t need to worry about.

If you plan on buying or trading crypto over time, these fees can get pretty pricey, but it may be worth it for all of Gemini’s tools and extra security measures.