Gemini: Everything to Know

By  Beluga Research July 23, 2023

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Summary

  • Gemini is a cryptocurrency exchange that offers users a platform to securely buy, sell and store crypto assets
  • Gemini supports 100+ cryptocurrencies including bitcoin, ether and Litecoin
  • Gemini dollar (GUSD) is the platform's stablecoin
  • The platform is regulated by the New York State Department of Financial Services (NYSDFS) and places a strong emphasis on security

Overview

Gemini is a cryptocurrency exchange that allows users to buy, sell and store digital assets. Launched in 2015 with a mission to "unlock the next era of financial, creative and personal freedom," Gemini aims to connect traditional finance and the emerging world of digital assets.

A Brief History

Cameron and Tyler Winklevoss – identical twins who garnered fame as a result of their legal battle with Mark Zuckerberg over the ownership of Facebook– recognized the potential of crypto early on and saw a need for a secure and reliable exchange platform. They decided to build one themselves and launched Gemini in 2015.

Getting Started

To begin using Gemini, users must create an account by using their email and creating a password. From there they'll need to verify their identity by providing personal identification information and uploading identification documents such as a passport or driver's license.

Once verified, users can deposit crypto, fiat funds or some combination of both into their Gemini account. Fiat currency deposits can be made via bank transfer, while cryptocurrencies can be transferred from external wallets. Gemini supports a range of cryptocurrencies, including bitcoin (BTC), ether (ETH), litecoin (LTC) and many others.

Users can begin trading on the platform as soon as funds are available in their account. The exchange offers various trading pairs, which allows users to buy and sell cryptocurrencies using different fiat currencies or other cryptocurrencies. The trading interface is intuitive and provides real-time market data, order books and charts to help users make informed trading decisions.

Unique Aspects

Gemini stands out from other cryptocurrency exchanges due to its emphasis on security and regulatory compliance. The exchange has implemented robust security measures to protect user funds and personal information. Gemini holds the majority of its customers' digital assets in offline cold storage, meaning it is not connected to the internet and is therefore less susceptible to hacking attempts. Additionally Gemini is a licensed and regulated exchange, adhering to strict compliance standards set by regulatory authorities. This commitment to security and compliance has helped build trust among users and institutions alike.

Another unique feature of Gemini is its Gemini Dollar (GUSD) stablecoin. Stablecoins are cryptocurrencies that are designed to maintain a stable value, often pegged to a fiat currency like the US dollar. The Gemini Dollar is fully backed by US dollars held in a bank account and can be redeemed at any time. This stablecoin offers users a convenient way to store value and mitigate price volatility associated with cryptocurrencies.

Advantages

  • Security. Gemini emphasizes security and puts measures in place to protect users' funds and personal information. One of the most noteworthy security measures is Gemini's decision to store the majority of its customers' digital assets in offline, cold storage wallets. Because these wallets are not directly connected to the internet, there is little to no risk of hacking and unauthorized access. Also of note is the fact that Gemini is regulated by the New York State Department of Financial Services (NYSDFS), which imposes strict security standards.
  • Trustworthy Reputation. Gemini has built a solid reputation in the cryptocurrency industry. It is one of the few exchanges that has obtained a "BitLicense," a regulatory approval issued by the NYSDFS. This license ensures that Gemini operates in compliance with relevant laws and regulations, which adds an extra layer of trust for users.
  • User-Friendly Interface. Gemini provides an intuitive interface and clean design, making it accessible to users with varying levels of experience.
  • Wide Range of Supported Cryptocurrencies. Gemini supports 100+ cryptocurrencies, including bitcoin (BTC), ether (ETH) and litecoin (LTC). This allows crypto traders to diversify their portfolios and take advantage of various investment opportunities.
  • Gemini ActiveTrader. Gemini offers a feature called "ActiveTrader," which is designed for more experienced traders. It provides advanced charting tools, real-time market data and advanced order types. This feature caters to the needs of professional traders who require more sophisticated trading capabilities.

Disadvantages

  • Limited Availability. One of the downsides of Gemini is its limited availability in certain countries. At present, Gemini is primarily focused on serving customers in the United States. While Gemini has expanded its services to some international markets, access is still restricted compared to other global exchanges. This can be a drawback for users residing outside of the supported regions.
  • Limited Cryptocurrency Options. Although Gemini supports a decent range of cryptocurrencies, it is not as extensive as some other exchanges. Users may find that certain niche cryptocurrencies are not available on the platform. This limitation can be a disadvantage for those seeking to trade a wider variety of digital assets.
  • Higher Fees for Small Trades. Gemini's fee structure may not be the most cost-effective option for users making small trades. The exchange charges a percentage-based fee, which means that smaller trades can result in higher fees in comparison to fixed fee structures. This can be a drawback for users who frequently engage in smaller trades or have a limited investment budget.
  • Limited Payment Options. Gemini has relatively limited payment options compared to other exchanges. Currently, users can deposit funds through bank transfers or cryptocurrencies. While this may be sufficient for some users, those who prefer alternative payment methods such as credit cards or e-wallets may find the options to be limited.