Gemini is a relatively simple cyptocurrency exchange. It offers a few instruments, but on the other hand accepts USD bank transfers as a method of payment. There is also a more specific type of trading – auctions, which we will get to later on in the review,
The company, security of funds
Gemini is a brand owned by t Gemini Trust Company, LLC. They are regulated by the New York State Department of Financial Services (NYSDFS), but not under its infamous BitLicense, but simply as a trust. This assures some consumer confidence, while avoiding the hassle with the unpopular piece of legislation. If you are not familiar with the case, the aforementioned New York regulators wanted to create a licensing system for crypto exchanges. The idea was to make the Big Apple a major cryptocurrency trading centre, just how it is in traditional finance. That being the case the project wasn’t appreciated by most of the companies in the field, as a lot of them didn’t apply for it. Those who argue this makes it basically useless are backed by the rate at which licensing was given to the companies who did apply. At the time of writing of this review, two years since the legislation came into effect, only three companies have been granted the license.
The name Gemin comes from the owners of the company, the Winkelvoss twins. While they may be most famous for suing Facebook creator Mark Zukerberg over their idea for a social networking site, they also have interest in the crypto-space. It is worth pointing out, the famous rowers were also involved in Bitinstant, a company which was involved in facilitating transfers for drug deals. The brothers claimed they were only passive investors and were not aware of the operations.
When it comes to security, Gemini hasn’t experienced any large-scale hacks yet. This is generally a good sign, although it does not guarantee anything for the future.
The user reviews on the company aren’t that many, which can be explained by the fact it doesn’t operate in the entire world.
That being the case most of the complaints are focused on slow account verification.
The most unique feature of Gemini are the auctions, which are held twice a day. The way they function is similar to the ones which occur at the opening and closing transactions on stock exchanges (not to be confused with “the highest bidder wins the item” auctions). This is where relatively big, in terms of volume, transactions are usually made. Traders can place buy or sell orders which are then matched at a single price. While of of this is happening, trading on Gemini still occurs. This creates an interesting dynamic, just like it does on the New York Stock Exchange – after seeing the pending orders for the auction (known as the “imbalance”) traders can speculate on them moving the market in the short term. For instance, if a relatively large buying imbalance is placed, most will expect the price to rally. That being said, this type of trading is very risky, as new orders may come to meet the imbalance, even in the last second. Furthermore the initial imbalance creator may have set a limit price for his order, above (in the case of buying) he does not want to participate. Trading on imbalances is tricky and while some traders used to enjoy doing so on the NYSE, they can all tell you stories about times when they lost a lot of money on a last second turnaround. This is definitely not recommended for beginners.
Trading instruments (cryptocurrencies)
The trading instruments available at Gemini are only Bitcoin and Ethereum. Both coins can be traded against the US dollar and against each other. Obviously, this is limiting, but clients who wish to pursue altcoins can always transfer their BTC or ETH to an external wallet or another exchange, like Bittrex.
Minimum initial deposit
Gemini does not mention any minimum initial deposit, unlike the majority of forex brokers, which we mostly cover. In that industry, it is quite common for a company to specify an amount, below which one can’t open a new trading account. The levels are fairly low now, with FXCM requiring $50, for instance.
Margin trading is not available at Gemini. More aggressive clients will not appreciate this fact, although there is enough volatility in cryptocurrencies already. The forex brokers who offer Bitcoin trading, provide leverage. As an example the FCA-regulated industry pioneers at IG have a 1:13.3 ratio (7.5% margin requirement) for Bitcoin trading.
Gemini offers relatively competitive fees. The maximum is in line the current industry standard of 0.25%, with discounts for bigger trading volume. On top of that, fees are lower for market “makers” (traders who passively place their orders in the book). The fees actually turn into rebates above a certain point in volume (only for “makers”). As a comparison, forex brokers usually condense all of their fees in the spread. This makes comparing the two types of services a bit tricky, although we have done so in this post.
The platform provided by Gemini is web-based and rather simplistic, with the order book being the main focus.
We must note this is an old screenshot, which wasn’t taken by us, due to the restrictions on accepting clients. That being said, the platform may have been improved in the meantime.
Methods of payment
Gemini accepts Bank Transfers as well as Bitcoin or Ethereum ones. Not a lot of exchanges accept bank transfers nowadays, with the major two ones being Coinbase and Bitstamp.
Gemini is a US-based crypto currency exchange. The company is registered as a trust, which should give investors a bit more confidence, when compared to a lot of other entities in the crypto-space. The people behind the company are the Winkelvoss twins, which you may be familiar with. Gemini offers little variety, in terms of the trading instruments, but accepts bank transfers. The company operates in a relatively small number of countries. The Auctions which they offer are a neat idea, but most traders will probably not feel the need to use them.
Gemini Review Conclusion
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