Kraken vs Gemini: Cryptocurrency Exchange Comparison

Research shows that there are more than 8 active daily cryptocurrency users. Of course, if they wish to trade their digital assets, they need a reputable exchange, one that will provide them with fast transactions and give them the maximum level of security.

Considering the fact that the crypto expansion is ever-growing and they are showing no signs of slowing down, the number of exchanges has increased drastically in the recent period. That is the topic that we are going to focus on in this article. We’ll be taking a look at two cryptocurrency exchanges and compare them to determine which is the best.

Introducing the Exchanges

Kraken

Kraken is known as one of the first exchanges that hit the market. It was established in 2013 and remains a popular choice to this day. These days, Kraken is a full-on cryptocurrency exchange as it supports around 20 of these digital assets and allows you to complete crypto-to-crypto and fiat-to-crypto transactions.

The site’s interface does have a lot of features, but it is not too complex to master. There are quite a lot of colours that you pick, according to your personal preferences. If you are wondering whether the platform is safe, Kraken is a self-regulatory exchange that provides the following security features to its registered users: cold storage wallets, two-factor verification, PGP email encryption, master account lock, and so on.

What’s even more impressive, is the fact that the fees are pretty low. Deposit fees are not charged, and withdrawals made with USD wire transfers come at just a $5 fee. The liquidity is very high as the exchange allows you to trade in more than 140 countries with a total of six fiat currencies – the US dollar, Canadian dollars, British points, Euro, Swiss francs, and Japanese yen.

As for the supported cryptocurrencies, some of those that deserve a mention are Bitcoin, Ethereum, Ripple, Tezos, Litecoin, and Bitcoin Cash. If you wish to withdraw upwards of $5,000 in crypto every day, you will have to provide Kraken with an ID for verification.

Of course, not every exchange is perfect and considering the fact that we want to provide you with an honest and detailed view, we’ve listed the pros and cons of Kraken below.

Pros

  • Many supported cryptocurrencies
  • Fairly low trading fees
  • Effective in fending hackers off
  • Great market coverage

Cons

  • Kraken is not regulated
  • Does not have a mobile app

Gemini

On the other side, we have Gemini, a reputable exchange that is more focused on institutional-class exchanges. It has numerous advanced trading tools that are perfect for those that have experience in trading and want to be provided with as many details as possible.

This exchange was founded by Cameron and Tyler Winklevoss in 2015 and it is regulated in New York. In order to make itself more recognizable on the market, Gemini has created its crypto products, one of which is its own stablecoin – the Gemini Dollar (USDT). With the process of making cryptocurrencies safer than precious metals, the owners are looking to create a bridge between fiat currencies and cryptocurrencies and thus, help to increase the acceptance rate of these digital assets.

Speaking of the accepted cryptocurrencies at Gemini, you can buy Bitcoin, Ether, Dogecoin, Terra, Litecoin, Bitcoin Cash, and more. There are quite a lot of digital assets that are supported here.

Just like Kraken, Gemini is a reputable exchange that has some advantages, but it also comes with a few disadvantages.

Pros

  • Detailed interface with many trading tools
  • Impeccable security
  • Has its own stablecoin
  • Gemini credit card available

Cons

  • Not suitable for novices
  • Restricted in many markets

Kraken vs Gemini: The Face-Off

Now that we’ve introduced both of these exchanges, it’s time to square them off and see how well they do against each other. Let’s start with the number of accepted cryptocurrencies. In this area, both exchanges deserve praise as they feature tons of these digital assets. Gemini does include more cryptocurrencies, but the bad news is that you cannot trade with every single one. Instead, you are limited in just buying some, which makes the playground even.

Next, we’ll check the availability. This is where Kraken takes the lead due to the fact that Gemini is available in a handful of jurisdictions. On the flip side, traders from over 140 countries can use Kraken to trade their preferred crypto.

In terms of fees, Gemini is a bit better choice than Kraken and here’s why. The higher your trading volume is on the platform, the smaller the fees will become. Not only that, but the platform will not charge any fees for the first 30 monthly withdrawals.

Here’s how some of the trading fees at Gemini work. If you’ve traded less than $25,000 in a 30-day period, then the taker fee, the maker fee, and the auction fee will be 0.75%. Once you’ve reached a trading volume between $25,000 and $50,000, the trader fee is 0.50%, while the maker and auction fees are 0.25%.

The same goes for mobile trading, which has two types of fees – the convenience fee and the transaction fee. The higher the mobile order amount is, the lower the transaction fee will be.

Finally, when it comes to simplicity and ease of use, Kraken comes out on top as it is far simpler to use. However, this is no wonder due to the fact that Gemini has a greater focus on institutional trading and its target audience are experienced traders.

Standout Features

Each of these two exchanges has a few standout features that make them great. Let’s start with Gemini first. There are two massive standout features that are worth mentioning – its own stablecoin and its credit card.

The Gemini Dollar is backed by the US dollar at this exchange, meaning that it always maintains a stable value of $1. If you decide to use it on this platform, you won’t have to pay any fees and each transaction with it is extremely fast as it takes seconds to be completed. The Gemini Dollar is secure, reliable, and backed.

As for the Gemini credit card, you can achieve various rewards in Bitcoin, the credit card does not charge any fees on the platform and provides certain cashbacks – 3% on dining, 2% on groceries, and 1% on all other purchases. Finally, Gemini Earn is also worth a mention as it allows you to earn interest on your crypto.

On the other hand, we have Kraken, whose biggest standout feature is the high liquidity. The exchange allows you to complete crypto-to-crypto and fiat-to-crypto trades in over 140 countries in the world with six different fiat currencies. The platform is also known for being extra secure, even though it is unregulated.

The Customer Support team is also a standout feature at Kraken as it is very responsive and at your service at any time of the day. Taking care of your users and making sure that you are always there for them is of great importance and Kraken is definitely aware of that.

Conclusion

As you can see from the detailed comparison, it is hard to determine which exchange is better due to the fact that they are focused on different audiences and have different goals.

  • You should register at Kraken if:
  • You are a novice trader
  • Want to gain global market access
  • Want to trade in a secure manner
  • You should register at Gemini if:
  • You are an experienced trader
  • Want to be a regular trader
  • You are looking to receive cashbacks
Michael Hughes