Gemini is a leading cryptocurrency exchange based in New York. It is currently one of the highest rated online exchange platforms, which can be attributed to its competitive fees, seamless trading experience, and strong adherence to regulations.
Table Of Contents
- 1 Gemini background
- 2 Gemini Platform Features
- 3 Possible drawbacks
- 4 How to start trading on Gemini
- 5 Trading on the platform
- 6 Funding on Gemini
- 7 Gemini fees
- 8 Conclusion
The Winklevoss twins, who are former Olympian Bitcoin billionaires, launched the exchange platform in 2015. The twins came into the limelight back in 2004 when they sued Mark Zuckerberg over Facebook and were ultimately awarded more than $65 million in an out-of-court settlement. In 2013, they invested $11 million in Bitcoin, which at that time was equivalent to over 1% of the total dollar value of Bitcoin, making them the largest holders of bitcoin portfolios.
Gemini boasts of being the world’s first cryptocurrency exchange that is fully regulated with compliance to the United States regulations in its design. This, however, makes the AML and KYC requirements of the platform stricter when compared to other platforms. To balance this out, the platform implements competitive features such as low fees.
In December 2017, Gemini was ranked one of the top ten exchanges by volume after it experienced a massive volume surge caused when CBOE Global Markets, the Chicago-based derivatives market, launched a Futures contracts for Bitcoin and calculated its prices based on the Gemini’s auction price for Bitcoin.
Gemini Platform Features
Gemini is one of the most secure exchange platforms in market, which is due to the high regulatory compliance that it maintains.
Many institutional investors are drawn to the exchange platform due to the FDIC insurance of all the US Dollars held by the platform which one of the benefits that Gemini acquires from its partnership with a New York State-chartered bank.
Currently, most exchanges do not allow direct crypto to USD trading which forces the traders to use the disputed cryptocurrency Tether to solve this problem. Although the number of trading pairs that Gemini offers is limited and it does not list any altcoin, the platform will allow traders to trade using real dollars.
Gemini offers daily auctions on different trading pairs. The auctions start at 4pm eastern time every day and features instant settlement and no counterparty risk because the auction trades are already settled from pre-found accounts and receive Gemini maker fee discounts.
Another competitive advantage of Gemini is its customer support, which is efficient and has faster response times compared to other exchanges. The platform also has blog and a comprehensive FAQ that contains key information that might assist users.
Despite the fact that Gemini is efficient, easy to use, and responsive, it does have some down sides such as the lack of complex trading orders and analysis feature that other exchange platforms have. The only orders supported on the platform include market orders, limit orders, immediate or cancel limit orders and make or cancel orders. It also has geographical restrictions for users outside the United States. The only international users that can access Gemini are those that reside in Singapore, Hong Kong, South Korea, Canada, the UK, and Puerto Rico.
How to start trading on Gemini
Create an account
On the official Gemini website, click on click “Register,” which will redirect you to a form that will require you to fill your name, email address, and password. Once the form is filled, you will receive a confirmation email containing a verification code.
This is a security measure put in place to prevent hacking of an account and in the event that an account is hacked, it will prevent attacker from accessing the capital within an account without having the user’s phone.
In this step, you will need to provide your phone number and submit the authentication code sent to that number.
Link bank account
You will be required to add a bank account that you will use on the platform.
The platform will then perform an ID verification that requires you to upload a government-issued photo ID such as a passport and a proof of address using supporting documents such as bank statements and utility bill scans.
Funding of the account
Once your identity is verified and the bank account is linked, you can fund your account and begin trading. An account can be funded directly if the linked account is US-based using bank transfer under the “Transfer Funds” button.
The Gemini wallet can also be funded using either Bitcoin or Ether by navigating to “BTC” in fund your transfer options where you will provide with a QR Code. The BTC will reflect in the wallet in an hour.
Trading on the platform
In order to start trading on Gemini, you need to fill the order panel. For example if you want to buy bitcoin, you begin by selecting the order type. It is recommended that new traders choose market orders, which are filled faster and less risky. You then proceed to complete the order by pressing the “Buy” button.
Once the order is filled, the amount of bitcoin purchased will be available in your Gemini BTC wallet.
Funding on Gemini
Funding on the platform is only accepted in US Dollar and can be made using ACH bank transfers and wires. Gemini does not accept credit card funding.
To begin the withdrawal process, select “Withdraw from Exchange” under “Transfer Funds.” Your will be provided with a form that will allow you to transfer funds to a desired bitcoin address. Once you confirm the withdrawal amount, you can transfer the bitcoin.
The maximum amount that an individual can deposit is $500 USD daily while institutions can deposit a maximum of $10,000 daily. The maximum withdrawal amount for individuals is $10,000 both daily and monthly while institutions can withdraw a maximum $100,000 both daily and monthly.
Funding a Gemini account using ACH and wire transfers or through either Bitcoin or Ether does not accrue any transaction fees despite the volume. Similarly, Gemini wire transfers or ACH transfers for withdrawals are free. Bitcoin and Ether withdrawals are also free up to 10 Bitcoin or Ethereum. Beyond that point, the transactions will cost $0.002 BTC and Ether at $0.001 ETH.
Gemini uses “dynamic maker-taker fee schedule” to calculate its exchange fees. This scale is beneficial to traders who trade large volumes of BTC or ETH, as they will benefit from fee-free liquidity-making trades or fees that are as low as 0.10% for liquidity-making trades. The trading volume of the user determines the fees during a 30-day period for each trading pair.
The fees for maker order and taker order will be different. Maker orders are defined as orders that add liquidity to an order booked once they are posted inside it and have a greater market risk, as they do not fill up immediately. Taker orders are those that deduct liquidity from a book as they fill up immediately therefore less risky.
While Gemini does not support a wide variety of altcoins or contain complex trading features seen in other platforms, it remains one of the strongest exchanges in the crypto market. Gemini might not be convenient for individuals who prefer anonymity, as the strict regulatory compliance means that a significant amount of personal information is required. However, the regulatory compliance might be beneficial to other traders, who want an exchange platform that is secure, insured and complies with regulations. Gemini is also a great foundation for individuals who are beginning to venture in crypto trading due to the lack of complex features or options.