Kraken vs. Gemini: Which is better for your trading journey

Kraken vs Gemini

Why is the cryptocurrency market so vibrant? Why is the crypto market growing fast, and why are individuals increasingly buying and investing in all these digital coins? Here, we’re referring to the everyday trading of billions of coins!

Crypto fans have been around since the 1980s, but everything started in 2008 when Satoshi Nakamoto unveiled Bitcoin to the general world. He offered this digital coin as a ground-breaking way to buy, sell, and trade online using a decentralized system in a white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”

2009 saw the completion of the initial bitcoin transaction. The market began to see the emergence of new cryptocurrencies two years later.

The next step was establishing a platform for trading these coins or a cryptocurrency exchange. In the past few years, the number of software engineers interested in cryptocurrency has increased by at least twofold. The choice of which one would best suit a trader is difficult.

In this article, we’ll compare Kraken and Gemini, two of the most used cryptocurrency exchanges out there. We’ll go through their unique qualities, advantages, and disadvantages to help you decide if they’ll work for you.

Kraken vs. Gemini: History

Kraken

Top Recommended Platforms

MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.8

4.9/5

78% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$100

EXCL. OFFER

USER RATING

9.7

4.8/5

Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.6

4.5/5

CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Although Kraken was first introduced in July 2011, its trading platform operations didn’t start until the end of 2013. The company’s corporate offices are run by Payward, Inc. and are situated in San Francisco, California. Jesse Powell, the company’s founder and current CEO had prior cryptocurrency trading experience. 

He was the CEO of Lewt, Inc., a business in charge of creating the accounts and giving gamers of online video games access to in-game currency.

When hackers stole a sizable number of Bitcoins from Mt. Gox, the most well-known platform at the time, in 2011, its management contacted Powell to assist them in restoring Mt. Gox to health. It proves that the top exchange highly regarded Powell’s skill.

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It was a crucial lesson for Powell, who learned the value of strong security measures for a trustworthy digital platform. He understood that to build one on his own, he would need to win traders’ confidence. 

The business has maintained transparency from its inception and precautions to prevent hacking. Regarding the volume of trades from euros to bitcoins, Kraken is now the top exchange.

Gemini

Gemini is a great trading platform for bitcoin and other cryptocurrencies. It was  established in 2015 and has its main office in New York City. It is a platform that enables users to purchase, trade, hold, and sell digital currencies for fiat. The name “Gemini” derives from its creators, Cameron and Tyler Winklevoss, the renowned Winklevoss twins.

The brothers rose to prominence after suing Mark Zuckerberg over Facebook in 2008. They asserted that he plagiarized their concept for a social networking site that was to be called ConnectU. 

The Winklevoss twins received $65 million in compensation from the lawsuit settlement. They used this money in 2013 to invest $11 million in Bitcoin since they had always been interested in the cryptocurrency sector; today, that investment is worth well over $1 billion! 

Around this time, the brothers decided to try their hand at starting their exchange and take advantage of the benefits of the expanding cryptocurrency business.

They received the rewards of their investment since Gemini quickly gained the confidence of the cryptocurrency community. According to daily trading volumes, it is currently regarded as one of the safest trading platforms.

In 2016, Gemini became the first authorized Ether exchange. Based in the United States, the platform complies with all rules set forth by the (New York State Department of Financial Services concerning crucial issues, including consumer protection and anti-money laundering.

Kraken vs. Gemini: Supported Cryptocurrencies

Using one of these platforms is the ability to convert your cryptocurrency holdings for fiat money. The term “Fiat Gateways” refers to these kinds of systems. 

This information is helpful for new traders who haven’t yet stocked their wallets with any altcoin.

Bitcoin

We advise Bitcoin traders to utilize Gemini because the exchange only offers the most secure coins for trading, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Zcash. It is accessible in the US, UK, Canada, South Korea, Hong Kong, and Singapore and accepts USD payments.

Additional Cryptocurrencies

Kraken is the best option if you’re interested in trading other currencies. The number of trading pairs available to users currently exceeds 100, and it supports more than 20 different cryptocurrencies. Bitcoin, Bitcoin Cash, Ethereum, Monero, Dash, Dogecoin, Zcash, Augur, Stellar Lumens, Tether, e.t.c. You can exchange these coins in USD, CAD, and EUR. 

Also, note that the Japanese Yen (JPY) doesn’t support these due to banking laws.

Kraken Vs. Gemini: Security 

What are the security checks that contribute to Kraken and Gemini’s trustworthiness? What distinguishes their security level from others’?

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Kraken and Gemini have regulated trading platforms that adhere to the rules and legislation for secure online trading. They first separate consumer payments from corporate funds intended for operational needs to prevent confusion and infractions. Most of its funds are kept offline, in cold storage, and away from the internet. Only 2% of them are preserved online.

These remaining digital assets are protected on Gemini using Amazon Web Services (AWS) as a cloud service for online storage and access. Furthermore, the FDIC insures fiat deposits of up to $250,000. 

As part of its plan, Kraken regularly encrypts and upgrades its data, and blockchain experts perform regular security tests.

Both platforms support two-factor authentication, which requires you to enter your password and confirm your identity using a device before accessing your account. This ensures the security of your account.

With a “Master Key,” Kraken takes security one step ahead to give a second passcode to access restricted account actions. Another choice is to use Global Settings Lock, which locks your account for a predetermined time. This will prevent any unknown IP addresses from trying to access your account without authorization.

Kraken Vs. Gemini: Fees

Kraken charges fees based on the volume of trades made over 30 days and the traders’ status as buyers (makers) and sellers (takers). Fees for makers are marginally reduced.

For instance, if your trading volume does not exceed $50,000, the maker charge is 0.16% per trade compared to a taker fee of 0.26%. When $50,000 is traded for 30 days, the maker and taker costs reduce to 0.14% and 0.24%, respectively.

For deposits made with fiat money via wire transfers, Kraken charges the following amounts: an extra 5€ for international wire transfers done in EUR; then $5 for domestic wire transfers made in USD, and $10 for international SWIFT wire transactions. Withdrawals are subject to increased costs. For CAD deposits, Kraken only accepts debit and credit cards.

Gemini offers greater trading fees than Kraken despite not charging for deposits or the first 30 withdrawals you make each month. The same maker and taker fee structure is applied on a sliding scale, with low to huge volumes of Bitcoin or Ether being traded. 

As the trading volume rises, the maker and taker charge drops from 1% for light traders to 0.10% or 0.00%.

Kraken Vs. Gemini: Accessibility and Availability

If you’re sincere about your cryptocurrency trading, you won’t encounter any issues with either of these crypto exchanges. The only potential drawback is that the Gemini website looks gloomy. It has a lot of infographics and crypto jargon, which could be intimidating to newcomers.

Kraken’s website is more engaging because it features animated graphics and pictures you can interact with. New users can select on the dashboard to learn all they need to know before starting. There are additional options for investors looking to boost their investment and business.

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Due to conflicting legislation, the exchange is unavailable in Japan, Iran, Iraq, Afghanistan, Cuba, North Korea, and Tajikistan before registering an account. 

Following that, you’ll be prompted to select between a Simple and Advanced interface to confirm your account by email. The second one, which offers choices like margin trading, futures, and over-the-counter trading, may not appeal to novice traders but is what committed traders need.

Kraken Vs. Gemini: Customer Support

Most of the discussion with their tech support team regarding these exchanges is done via email. Both websites offer an “Assistance” button that directs you to a different support page that includes their FAQ section and a space for you to submit your request.

Customers of Gemini have reported receiving feedback on their support inquiries in a matter of hours rather than days. Kraken has additional buttons that make navigating its trading alternatives easier and a chatbox available around the clock for prompt assistance.

Kraken Vs. Gemini: Mobile App

Only Gemini has a mobile app and is free to download on Apple App Store and the Google Play Store. With the app, traders can no longer use their computers to conduct cryptocurrency trading; instead, they can monitor the price market and follow their orders while on the road.

Kraken Vs. Gemini: Benefits and Drawbacks

Kraken Benefits:

  • For the maker and taker, less expensive trading fees: 0.16 % and 0.26 %, respectively.
  • Supports several different digital currencies.
  • Accepts fiat withdrawals and deposits through SEPA and ACH for US customers (EU customers).
  • High standard of security.
  • A Global Settings Lock, a Master Key, and two-factor authentication.
  • Keeps client money in both hot and cold wallets.
  • Offers live chat 24/7.

Kraken Drawbacks:

  • Your fiat deposit takes 1-5 business days to arrive in your Kraken account.
  • There is no mobile app.

Gemini Benefits:

  • The NYSDFS regulates it.
  • Free deposits, minimal fees, and free withdrawals for the first 30 withdrawals per month.
  • Cold storage and two-factor authentication.
  • Very responsive (24-72 hours for a support ticket).
  • US-licensed exchange.
  • Mobile-friendly.

Gemini drawbacks

  • Supports a few cryptocurrencies.
  • Only accepts one fiat currency (USD).
  • Increased trading fees.
  • You can only purchase digital currencies through bank transfers.
  • The interface is not easy to use for beginners.

Final Thoughts

Kraken or Gemini, which is suitable?

You can undoubtedly get the best with Kraken. You gain access to more than 20 different currencies, the choice to trade using fiat, and all for incredibly low fees.

Kraken is a robust security exchange that provides a master key and a global lock. You may select your level of interaction with the platform, and the interface is slick and intricately developed.

Conversely, Gemini only accepts well-known cryptocurrencies and charges higher trading fees. With this platform, you get minimal trading volume, prioritizing a secure market over the volume of cryptocurrencies traded. Less criminal activity and funds are saved in cold wallets.

 

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