Kraken vs Gemini Crypto Exchange Comparison
Making Crypto Simple
Digital trading platforms are the most vital nodes in the blockchain economy for exchanging cryptocurrency. What’s more, crypto exchanges are the first thing anyone interested in crypto markets should consider before picking their trading strategy.
In this article, we’ll compare two of the most well-known markets, Kraken and Gemini, and provide answers to some of the most pressing concerns prospective customers may have about these two cryptocurrency exchanges.
- Military-grade security – keeps 98% of the user’s funds in offline cold storage;
- Suitable for both beginners and advanced traders;
- Low fees;
- Two distinct platforms – one with the basic trading features and Kraken Pro for the professional crypto investors;
- A rich knowledge base for all blockchain-related concepts;
- Excellent 24/7 customer support to its users via phone line and email;
- Yearly payouts of up to 23% for staking your assets, and the staking procedure is quick and easy.
- The Instant Buy feature is rather costly;
- This platform supports far fewer cryptocurrencies than its competitors in the industry.
- A highly regulated and secure crypto trading platform;
- FDIC insurance on all USD deposits;
- Up to 8.05% APY on your passive investments;
- Accepts both crypto and fiat currency deposits;
- Despite supporting many other fiat currencies, the US dollar is the only authorized currency for transactions on this exchange;
- The number of supported coins could be insufficient for the traders who like to be spoiled for choice;
- The trading expenses could be too much for the traders who deal with smaller sums.
Kraken vs Gemini – How It All Started
Kraken is a well-established cryptocurrency exchange that has provided easy access to cryptos since 2011.
Kraken’s robust security and expert customer support have attracted a steady stream of new customers. This San Francisco-based trading platform also enjoys a stellar reputation for its ease of use and reliability.
Jesse Powell, Kraken’s creator, saw the importance of cryptocurrency exchanges in the cryptocurrency sector almost immediately after observing Bitcoin’s prospects and the way in which digital currencies could impact the financial sector.
As a result, this Bitcoin and cryptocurrency exchange was founded two years after Bitcoin’s launch to provide crypto traders with an easy and safe gateway to the crypto market.
The Gemini Trust Company LLC (Gemini cryptocurrency exchange) is a trust business based in the state of New York. The Winklevoss twins, Tyler and Cameron, founded this platform in 2014 upon the principle of “security first” and the belief that it is better to seek clients’ approval than their forgiveness.
These two entrepreneurial brothers conceived this crypto initiative in the hope that it would push the boundaries of the expanding crypto trade arena after being influenced by NASA’s manned spacecraft program, dubbed Gemini.
Gemini’s foundation rests on four pillars: a user-friendly and secure product, robust platform security, proper licensing, and adherence to applicable crypto trading rules.
As a result, the exchange offers a highly safe and regulated trading environment suited for both beginners and experienced traders. There are many creative financial instruments to assist you in enhancing your portfolio, but there are also simple trading tools to let you swap your favourite coins quickly and easily.
Kraken vs Gemini: Detailed Crypto Exchange Comparison
Opening an Account
You need to open a trading account and deposit funds into it (CAD, USD, EUR, GBP, JPY, or CHF fiat currency) before you can begin trading on Kraken. Users must register with a valid email address, a unique username, and a solid password to use the site.
Moreover, there are five different verification levels, each directly influencing the amount of time that must pass before the exchange can activate your account. Kraken’s trading features and deposit/withdrawal limits are also classified in tiers and depend on the user’s verification status.
Depending on your type of account with Kraken (personal or business/ corporate account), you could be asked to fill out a long Know Your Customer (KYC) form.
Establishing an account on Gemini is a relatively quick process. During the registration, you’ll be required to fill out a form with your personal data and provide a valid phone number so that the exchange can authenticate your account through an SMS code.
As a part of the KYC user verification procedure, you’ll also be requested to submit some documents as proof, such as a bank statement holding your full name and resident address. After the exchange validates your account, just choose a funding method, make a deposit, and start strategizing your next move on the crypto market.
Kraken gives you the chance to effortlessly carry out your trading strategy on a safe platform, regardless of how much experience you have with trading.
Apart from the straightforward crypto swaps enabled through the Instant Buy widget, this seasoned cryptocurrency exchange offers its clients access to a wide range of advanced financial services through the Kraken Pro platform, such as margin trading, trading futures, over-the-counter trading, generating passive income by staking their coins, etc.
Regarding cryptocurrency custody, Gemini is the pioneer in the industry. There are also many other features, such as instant liquidity, withdrawals on the same day, and crypto loans with annual percentage yields, that set this exchange apart from its rivals.
Moreover, cryptocurrency investors have the opportunity to trade BTC and ETH for USD on Gemini by utilizing a variety of sophisticated order types, such as market buy/sell, buy/sell stop, buy/sell limit, good-till-day (GTD), and many others.
Despite the fact that Kraken started as a Bitcoin exchange, the platform today lists over 65 other digital tokens, including more than 70 different trading pairings for crypto-to-fiat, crypto-to-crypto, and fiat-to-fiat transactions.
Ethereum (ETH), Dogecoin (DOGE), Monero (XMR), Litecoin (LTC), Eos (EOS), Ripple (XRP), Bitcoin Cash (BCH), Tether (USDT), Dash (DASH), and Cardano (ADA) are only a few of the altcoins that can be found on the list.
The Gemini exchange employs the Ethereum blockchain to trade more than 50 digital assets, including Bitcoin (BTC) and Ether (ETH), as the exchange’s primary means of trade. One of the most notable aspects of this crypto brokerage is that it supports both fiat and digital currencies.
Even though the US dollar is the sole officially authorized fiat currency for trade on the site at the moment, a wide variety of other fiat currencies are accepted on Gemini.
Transferring money from your bank account to Kraken’s trading account using a unique reference number is the most popular funding method. Withdrawal limits are tied to the verification status of your account.
Namely, when you level up, your maximum deposit allowance increases proportionally. In the highest tier, there are no limits on the deposits or withdrawals you make through Kraken.
Additionally, Kraken takes payments made by wire transfers, debit card/credit card provided by Visa and Mastercard, cash deposits, ACH transfers, and third-party payment processors.
All of the supported cryptocurrencies and fiat currencies on this platform can be used by Gemini clients to buy and sell ETH and BTC. You can fund your account and withdraw funds from it using your debit/credit card (issued by Visa, American Express, or MasterCard), bank transfer, or ACH transfers.
Trading Fees and Limits
Kraken imposes a maker/taker fee scheme of charges for its financial services. Trading fees on this exchange range from 0% to 0.26% for each performed deal upon the basis of your 30-day trading volume.
This exchange’s pricing mechanism incentivizes traders to contribute more to the platform’s liquidity by rewarding them with lower transaction fees in proportion to the investor’s increasing trading volume.
In comparison, the costs of buying and selling cryptos on the Gemini exchange fall into three main categories: trading, transfer, and convenience fees.
The trading fees, also known as dynamic maker fee/taker fee, are charged whenever a trade is executed on the Gemini platform. Transfer fees are imposed whenever the coins are transferred to or from your Gemini account.
Finally, about 0.5% of the Gemini spot rate is added to each trade as a convenience fee. This cost, however, might go up or down depending on how the market is doing.
In addition, deposits and withdrawals from U.S. bank accounts and wire transfers are free on Gemini. If a user goes over their budgeted amount, the exchange will impose a deposit or withdrawal fee on the transaction.
How Safe are Kraken and Gemini?
Kraken uses state-of-the-art security protocols to safeguard its users and their investments. Also, Kraken stores nearly all user assets in cold storage wallets located in different parts of the world, thus providing an extra layer of security beyond the military-grade protections already underpinning the platform.
Two-factor authentication (2FA), SSL encryption of all communications and data transferred over the Internet, and real-time monitoring of all account actions are also integrated into the platform’s design.
When it comes to Gemini, we’re talking about a heavily regulated exchange whose work is overseen by the New York State Department of Financial Services (NYSDFS). This New York-based brokerage is the first crypto exchange to meet SOC1 and SOC2 standards for online data protection, confidentiality, and cyber-attack mitigation.
In addition, the trading platform uses the two-factor authentication protocol, often known as 2FA. This type of authentication utilizes two passwords to safeguard users’ accounts and private information from being hacked or stolen in the event of a security breach.
Kraken stands out from the competition among cryptocurrency exchanges because of its superior customer service quality. Through a live chat available around the clock, the customer service representatives are always prepared to quickly resolve any issues you have with Kraken or with trading in general.
This exchange is also one of the few platforms that come equipped with a phone line, a feature that is rather unusual to find in a crypto exchange but quite helpful when trying to find a quick and detailed response to your problem.
The Kraken support staff is available to you even on national or religious holidays when very few individuals and institutions are operating. You can also get in touch with the customer support team by email, priority support tickets, or the texting app of your preference.
The Gemini support staff’s primary method of contacting customers is via email. In rare cases, however, a customer service team member could attempt to reach the client via phone. All questions or concerns about the service can be sent to the staff 24/7.
Filling out a web form and sending it to the company’s support staff is the simplest way to get in touch with them. Additionally, the support staff monitors their social media network accounts so you can communicate with them via Facebook, LinkedIn, Instagram, Reddit, Twitter, etc.
Kraken is a simple, secure, and convenient mobile app for buying and selling cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and more. Trading cryptocurrencies is made incredibly easy by the exchange’s mobile app regardless of your skillfulness.
This software allows you to swap between the available currencies, preset quantities to place orders with a single swipe over the UI, check your previous transactions, and many other capabilities to make trading easier while you are on the go.
The Gemini app, much like the platform, was developed with an emphasis on users’ privacy and safety. Through this iOS and Android-compatible app, you can effortlessly follow market movements, set to be notified of the new price changes, make repeated buys, develop a comprehensive cryptocurrency portfolio, and enhance your investing strategies.
Whether you’re a seasoned pro in the crypto market or just getting your toes wet in the crypto waters, Gemini provides you with everything you need to trade safely and successfully.
As part of the mobile service bundle, you can make instant cryptocurrency purchases and receive real-time updates on the worth of your holdings.
Kraken vs Gemini vs Other Exchanges
If you’re still undecided after learning all the details about Kraken and Gemini, here are two more options to consider:
Provided you’re looking for a platform that goes with many superlatives, Binance is the best crypto exchange for you. This Chinese crypto exchange is the most liquid, the largest platform in trading volume, and the most popular trading platform in the world.
Moreover, Binance supports the largest number of altcoins among its peers and provides some of the lowest trading fees in the industry, especially in comparison with the trading costs on Gemini.
Like anything else, though, Binance is not without its flaws. The lack of regulations is a big drawback of this exchange since it deprives traders of their legal liability should something go the wrong way security-wise.
In contrast, both Gemini and Kraken are heavily regulated platforms that provide robust security measures but also insurance on your crypto holdings.
Coinbase is the world’s second most popular cryptocurrency exchange, right after Binance. And if the Chinese trading platform is deemed altcoin heaven, then Coinbase must be a true beginner’s paradise.
The trading tools on this very user-friendly platform are so simplified that every novice in crypto trading can quickly feel like a coin master and effortlessly swap their favourite tokens with a single click.
On the downside, the trading fees on Coinbase are not precisely the lowest compared to Kraken and the other trading platforms. Similarly to Gemini, the Coinbase fee structure is a little puzzling, which shouldn’t be the case with a beginner-friendly platform.
The Kraken cryptocurrency exchange, based in San Francisco, California, is widely regarded as one of the safest and most reliable trading platforms. Kraken is also one of the largest exchanges by trading volume, which caters mainly to institutional traders by providing them with advanced trading instruments.
Kraken allows you to chart your route in the cryptocurrency market. The top-notch customer service, high-tech financial tools, cheap fees, various payment choices, and strict safety measures all contribute to the exchange’s smooth operation and popularity among crypto investors.
Gemini, on the other hand, makes the preferred trading venue for millions of crypto investors worldwide who place a high value on the privacy and security of their digital information.
In addition, this exchange provides investment services suitable for new and veteran market participants. Finally, the exchange’s developers’ commitment to continue implementing the industry-best security mechanisms ensures a safe trading environment for all Gemini users.