Gemini Exchange Review

Gemini Trust Company, LLC or in short, Gemini, is a cryptocurrency exchange / digital asset exchange with headquarters in the United States in the City of New York (NYC or New York City). A review of Gemini exchange reveals that it was founded in 2014 by the Winklevoss twins (Winklevi or Winklevii) – twin brothers Cameron and Tyler Winklevoss who are well-known for their involvement in and support for Bitcoin.

Gemini is a regulated crypto-asset platform licensed by the New York State Department of Financial Services or in short, NYSDFS – a regulatory agency responsible for the regulation of financial products and services in the State of New York. Gemini became the first ether exchange (June 2016) and the first Zcash exchange (May 2018) to be licensed (or regulated for that matter).

Gemini found itself in the news in the spring of 2019 when it was reported that Facebook had spoken with Gemini about Facebook’s plans to implement their own currency -- the media couldn’t resist a story about a potential allyship between the Winkelvii and their known rival Zuckerberg. It remains to be seen whether cryptocurrency will heal this rift, or if the players in question will just build a new rivalry around competing currencies and exchanges. The Winkelvoss twins have been public about their desire to take cryptocurrency mainstream. Facebook could be seen as an ally in the fight for mass adoption, or a competitor to be the main driver behind mainstream acceptance of crypto.

A Gemini review shows that this licensed digital exchange has operations in the States, Canada, Hong Kong, Singapore, South Korea and the United Kingdom. The Gemini website seems to be only available in English, although it may be possible that it automatically switches to the primary language used in a specific geographic area (depending on the IP address used).

In addition, Gemini seems to cater to both individuals and institutions. They make use of a maker-taker fee model and offer trading via both their website and API. Gemini is also the issuer of the Gemini Dollar (GUSD) that is 1:1 pegged to the USD. GUSD is the first regulated stablecoin in the world.

Gemini serves the cryptosphere via about 12 active markets and the main currencies available for trading seems to be Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Zcash.

Gemini allows fiat-crypto trading alongside crypto-to-crypto trading. Accepted fiat currency is USD, and deposits can be made via bank transfers without a fee. Credit cards are not accepted as a valid method of payment for the time being. This renders the exchange an entry-level exchange, meaning it is very friendly towards new cryptocurrency exchanges. One of the most innovative aspects of Gemini is their “Sandbox” website, which acts as a practice account for those who are just starting out and want to know more about the industry and the exchange itself. Signing up to the Sandbox website requires two-factor authentication (2FA).

One of the biggest problems that users have faced when starting out on this exchange is the fact that the platform requires a lot of personal information for a user to be verified. Account verification is done in three steps, which include mobile phone verification, bank account verification followed by the submittal of personal documents such as ID and address. Comments online mention Gemini asking for social security numbers for verification, though this is not mentioned as an official step in the process. The Winklevoss twins have opted for this kind of a verification system in order to prevent any fraudulent activity as much as possible. Even though the exchange is one of the most secure ones out there, due to its advanced security techniques and transparency, those who do not feel comfortable in providing such information might be deterred from using this platform.

There are also complaints on certain online platforms by users who suspect the exchange of mishandling their funds. Such complaints arise from the fact that the exchange goes offline when there’s high traffic on the website. This might happen frequently as Gemini is one of the most popular exchanges out there. This has caused some users to report fraudulent activity, however, such complaints have not been proved to be true. The exchange still remains secure, transparent and trustworthy.

Update June 30, 2021:

Gemini Pros:

• Offers more than 33 cryptocurrencies to trade across all of the USA, including the state of New York. Many other exchanges are not available in NY due to the tough regulations imposed by the New York Department of Financial Services.
• Gemini has zero transaction fees for wire transfers and bank deposits from US bank accounts. As for deposits through debit card there’s a fee of 3.49% levied on the user which is still lower than its competitors such as Coinbase and Binance, who charge 3.99% and 4.5% respectively.
• The use of auction feature establishes the liquidity of the exchange where the users can have an ‘auction’ for selling a block of cryptocurrency at a maximum buy price or at a minimum sell price.
• Gemini supports 19 crypto-to-crypto pairs to trade. Although no exotic pairs are available, they do cover most of the well-established pairs, which works very well for their targeted demographic.
• Through the Gemini clearing portal, Gemini offers direct trading to users so they can buy and sell directly with each other. They do not have a minimum order size unlike Binance’s OTC service which has a minimum order size of $10,000.
• Gemini offers two platforms. Gemini basic for average users allows purchases up to the dollar invested, while Gemini’s ActiveTrader platform has more advanced features such as advanced charting, tracking multiple order types, and block trading.
• Gemini provides a one-of-a-kind wallet which is insured against any losses that occur due to security breach or a system hack, fraudulent transfer. or employee theft.

Gemini Cons:

Gemini is a very niche exchange which is highly tailored to the needs of its targeted customer group. Due to this characteristic, Gemini doesn’t have any major downsides as such. However, customers who wish to be discrete and not under the governance of a central authority would not be attracted to this exchange, as it goes against the prevailing desire for the movement to be unregulated. As Gemini caters to its niche user base aptly this isn’t a priority concern for them, and there are other exchanges designed to serve the needs of those looking for a lack of centralized authority.