In times when the cryptocurrency market is more volatile than ever, there are a few online exchanges which manage to keep their user base satisfied. Nowadays a renowned exchange can lose its position very quickly. Just remember the ugly cases of BitGrail and Coincheck.
In times when the cryptocurrency market is more volatile than ever, there are a few online exchanges which manage to keep their user base satisfied. Nowadays a renowned exchange can lose its position very quickly. Just remember the ugly cases of BitGrail and Coincheck. Even the top market, Coinbase, infuriated its customers more recently.
But hey, the times are hard not just because hacker’s attacks happen on a daily basis but because the prices more often dip than skyrocket and on the top of that, governments are scrutinizing measures over ICOs and cryptos in general. Luckily, one of the most prominent exchanges, Gemini, is operating and full force.
A quick overview
The Winklevoss twins, Tyler and Cameron launched their private exchange in 2015 and since then Gemini is competing with the likes of Coinbase and Kraken. It supports customers in USA, Canada, Asia and Europe.
You cannot trade everything on Gemini however, only bitcoin and Ethereum are available in exchange for fiat currencies. Users can purchase, sell and store the top two cryptocurrencies within the platform. The name of the platform means “twins” in Latin and well, we get that. The Winklevoss brothers state that they created Gemini to ease the adoption of virtual currencies in our hi-tech world. The idea is to enable people to operate with both fiat and cryptos until digital money is publicly used.
The brothers themselves are often hailed as one of the first crypto billionaires and it’s no surprise, after all, they are exploiting the niche quite well. The Winklevoss are keeping it simple buy not allowing short and margin trade. Instead, standard market orders along with limit orders are available, so traders can easily execute trades corresponding to their needs. Maybe the only drawback of Gemini is that it does not support card, cash, check or Paypal purchases. So the only way to buy some tokens is via wire transfer or to import coins from an already existing cryptocurrency wallet.
Unlike its rivals Coinbase and Kraken, Gemini offers Custodian Service, meaning it is licensed to hold digital assets on behalf of the customer. In other words, you can store large sums in an environment close to capital reserve and banking compliance standards. Furthermore, Gemini is regulated by the New York State Department of Financial Services, which guarantees that the exchange maintains the highest cybersecurity measures required by the authorities.
Willing to protect customers’ assets the best way possible, Gemini has established a partnership with New York State-chartered bank, which is in charge of keeping their funds. Large institutional crypto hedge funds can opt for offline storage of their funds. Such clients have the opportunity to benefit from Gemini’s Cold Storage System.
What has happened so far?
The start of the platform was given in January 2015 and it went live in October in the USA. Canadian customers began trading ETH/BTC pairs in June 2016, just as UK residents.
Gemini offered daily bitcoin auction for the first time in September 2016. In July 2017, Ether daily auction went online.
October and November 2016 marked Gemini entrance in Japan, South Korea, Singapore and Hong Kong, thus taking advantage of the cryptocurrency craze in Asia.
In December 2017 the platform partnered with CBEO and the result was the issuing of the first cash-settled bitcoin futures contract in history. The prices were derived from the daily auction price for bitcoin.
If Gemini wants to keep its head above the water it has to maintain its trustworthiness among customers. Second, while hard forks and volatility often make exchanges stumble the maintenance of the system is of crucial importance.
The network should be able to support the growing customer’s demand and liquidity, meaning temporary dark hours like the ones from previous years should not occur in the future.