Top cryptocurrency exchanges Kraken and Gemini have both increased in popularity in recent years. So, which one of the two is the most suitable for you as a trader?
In this comparison of Kraken vs. Gemini, we will describe each exchange, a quick rundown of the services and products they offer, a list of supported cryptocurrencies, a breakdown of their fees, and information on how secure they are to use.
Kraken vs. Gemini – Overview
With a user-friendly trading interface, Kraken links interested cryptocurrency buyers and sellers. Jesse Powell created the exchange in 2011, and it was formally launched in 2013. The business is headquartered in San Francisco. The exchange caters to people worldwide, supporting many fiat currencies that may be converted into digital assets like Bitcoin and Ethereum. Furthermore, accredited American investors have access to the cryptocurrency margin trading platform available on the exchange, which allows them to engage in leveraged trading.
Speaking about Gemini, Tyler and Cameron Winklevoss, better known as the “Winklevoss twins,” founded Gemini, a private New York trust firm, in 2014. The company offers a simple, attractive, and straightforward way to buy, trade, sell, and store digital assets. The exchange was recognized as the top cryptocurrency exchange in 2019 and upheld a high-security standard, earning it a strong reputation as a reliable supplier of digital assets.
Kraken vs. Gemini – Supported Currencies
Firstly, let’s find out what fiat currencies Kraken and Gemini support. Kraken accepts USD, EUR, CAD, GBP, CHF, and AUD. In comparison, Gemini supports USD, AUD, CAD, EUR, GBP, SGD, and HKD. However, please be aware that currency availability may vary depending on the country on both crypto exchanges.
In what concerns the cryptocurrencies supported, Kraken is one of the first cryptocurrency exchanges, with over 220 coins and tokens available, including popular cryptocurrencies like Bitcoin (BTC), Cardano (ADA), Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL), as well as several less-popular tokens. It also provides staking for several of these popular currencies, such as Cardano, Ethereum, and Solana.
Gemini offers its customers the opportunity to trade more than 100 cryptocurrencies, which may seem relatively limited compared to Kraken’s vast selection. However, for investors who prefer to focus on specific cryptocurrencies, this may not be a cause for concern. Nonetheless, verifying that the specific coins you are interested in are indeed available on the Gemini platform is advisable.
Although it allows you to exchange numerous popular currencies, it lacks a few key ones, the most prominent of which are BNB, Binance USD, and XRP, which are all among the top 15 most valued cryptocurrencies.
Kraken vs. Gemini – Fees
Kraken implements a range of fees depending on the type of transaction. Kraken’s fees will be rather hefty if you want to use a credit card for deposits. When utilizing your card to purchase, sell, or convert assets on Kraken, the fees involved encompass a visible fee and a spread, if applicable, incorporated into the price. Prior to executing orders, the spread is computed, and it may vary for comparable transactions. This variation is attributed to a blend of factors such as transaction size, asset type, payment method, and prevailing market conditions.
For instance, transaction fees can vary from 0% to 0.26%. Regarding credit card purchases, the fees are set at 3.75% plus €0.25. ACH purchases are subject to fees of 0.5% along with an additional 0.9% or 1.5%, depending on specific factors. In all, you might be looking at costs of up to 5%. This is at the upper end of practically any trade.
Nevertheless, if you upgrade to Kraken Pro, the prices become more affordable. Kraken has a maker/taker pricing structure that rewards bigger volume trades with lower fees. Maker fees range between 0.16% to 0.00% (meaning you don’t pay any maker fees if you reach a particular volume). Taker fees range between 0.26% to 0.10%.
Each of these exchanges offers significant advantages, but these advantages come at a cost. Fees with Gemini are fixed at a predetermined level dependent on the currency utilized and the order amount. Moreover, Gemini includes a convenience fee in the pricing as a markup of roughly 0.5% above the listed price. The transaction cost for a purchase in US dollars can range from $0.99 for orders of $10 or less to $2.99 for transactions of $50 to $200. Orders outside this range are subject to transaction fees of 1.49% of the order’s value.
Kraken vs. Gemini – Security
The majority of cryptocurrency traders are mainly concerned with security. It also tops the list of priorities for both Gemini and Kraken. So, before we go into the specifics, let’s just state that both of these exchanges are secure options.
Like many other cryptocurrency exchanges, Kraken offers conventional two-factor authentication (2FA). However, it also has several other cutting-edge security features, including a global settings time lock, SSL encryption, and customizable account timeouts. Furthermore, Kraken offers “safe-coin storage,” where 95% of assets are held in cold, regionally dispersed, offline storage.
This indicates that the assets are not all in one location. The platform also keeps its reserves fully stocked so that users can withdraw assets immediately when needed. Also, Kraken maintains its systems in safe enclosures with round-the-clock security, armed guards on duty, and video cameras. All confidential data is encrypted, and profiles are closely scrutinized. Many of these features distinguish Kraken in this market and are “next-level” in terms of cryptocurrency security.
Security is a primary concern for Gemini, too. Gemini also employs address whitelisting and 2FA to deter unwanted access further. Notably, Gemini protects fiat and digital money stored in users’ hot storage accounts. Gemini is dedicated to maintaining regulation over its service to reassure clients that their funds will be secure.
However, bear in mind that Gemini will not cover losses from illegal entry to a user account. Therefore, if another party compromises a user’s account, that user’s assets might not be qualified for reimbursement. This is why protecting your passwords and keeping your information private is crucial.
Kraken vs. Gemini – Wallets
Kraken has mentioned that it is a cryptocurrency exchange rather than a wallet service. Users can place funds in the corporate wallet for safeguarding while their funds are traded, bought, or staked. Nevertheless, the exchange does not provide users with a personal wallet.
When assets are deposited, they are routed to hot wallets and cold storage, as is standard procedure for cryptocurrency exchanges. Because withdrawals are handled by the hot wallet instead of the deposit address, Kraken’s sending address for withdrawals differs from the deposit address. Kraken recommends and supports the Ledger and Trezor hardware wallets.
Gemini has its own wallet, called Gemini Wallet, and encourages customers to utilize it to store their assets. This is the most convenient means of storing crypto on this site.
Gemini Wallet supports all of the cryptocurrencies provided by Gemini exchange and provides both cold and hot storage. Investors have hot wallet insurance in the case of a cyberattack since it is regulated by the New York State Department of Financial Services (NYSDFS). However, customers can use cold storage, which significantly reduces the likelihood of a breach occurring in the first place.
Kraken vs. Gemini – Deposits and Withdrawal Method
Gemini’s deposit alternatives are quite limited. Only bank transfers (ACH), debit cards, wire transfers, and cryptocurrencies are permitted.
In this respect, Kraken is more generous. Bank transfer (ACH), SWIFT, Fedwire, Wire transfer, Google Pay, Apple Pay, SEPA, Debit/Credit card (certain countries, such as the USA, are excluded), Bank transfer (OSKO), FPS/BACS, PayID, CHAPS, Cryptocurrency and SIC are just a few of the deposit options that Kraken supports.
Kraken vs. Gemini – Usability
The user experience for purchasing cryptocurrencies on Kraken is meant to resemble most cryptocurrency trading sites. Kraken is an advanced trading platform with various trading options ranging from market, limit, and stop-limit to time and entry or exit.
Nevertheless, for new users unfamiliar with these sorts of orders, this may appear puzzling at first. Trading on Kraken is simple but requires some practice. While Kraken is a superior exchange for expert cryptocurrency traders, it is not ideal for newbies since it might appear difficult to use.
Gemini, on the other hand, does not provide a trading platform for crypto-to-crypto exchanges. The exchange is intended to simplify the fiat on-ramp procedure for new investors. The entire website is simple to use, visually appealing, and quick to load.
Kraken vs. Gemini – Support
A broad customer service area on the website is typically the first point of contact for newbies looking for solutions to frequent concerns or troubleshooting difficulties. Gemini and Kraken both have comprehensive help pages that include thorough tutorials, FAQs, and a general information area for their customers.
Each exchange has a live chatbot for people to ask questions. However, it does not appear to be available 24/7 and instead refers to articles in the help section. There is an email address for both Gemini and Kraken that may be utilized for inquiries. However, because of overwhelming demand, users often encounter substantial delays in obtaining a response.
Kraken vs. Gemini – Winner
With Kraken, you can undoubtedly have the best of all worlds. You gain access to more than 220 different cryptocurrencies, the option to trade using fiat, and all for meager costs. In complement to the standard cold storage and 2FA, Kraken is a highly secure exchange that also provides a global lock and a master key. You may select your degree of interaction with the site, and the UI is slick and intricately developed.
On the contrary, Gemini only accepts a little bit over 100 cryptocurrencies and charges higher trading costs. You won’t go wrong with this platform if you anticipate the minimal trading volume and prioritize a secure market above the cryptocurrency trading volume. Moreover, you won’t ever need to worry about the exchange engaging in criminal activity because your account and assets will be kept safely in cold wallets.
This makes choosing between Kraken and Gemini more challenging since they provide many comparable services and are both generally good choices. Therefore, it is essential to consider your specific crypto trading needs before you decide.