Gemini is a growing trading platform. Currently, several cryptocurrencies can be exchanged there.
Gemini alludes to the astrological sign Gemini as well as to NASA’s space program. That said, Gemini is first and foremost a trading platform where you can exchange more than 60 cryptocurrencies. Coinbase’s current main competitor has its own currency: the Gemini dollar. In this file, we will take an overview of the platform, its products, its advantages and disadvantages.
What is Gemini?
In 2015Twins Winklevoss, Cameron and Tyler decided to launch a cryptocurrency exchange platform. This is how Gemini Trust Co. or more simply Gemini. was born. It is a private platform where one can exchange, buy, sell or store cryptographic currencies while ensuring their security. Indeed, the most used cryptos such as Bitcoin or Ethereum can be exchanged there in complete safety.
A wide range of services are available to users, whether for seasoned traders or just casual investors. In addition, the fee structure is quite distinct, depending on the service offered. A mobile application and a payment application are also available to customers. However, they must use the platform’s own currency: the Gemini dollar. The latter being a stablecoin in that it is pegged to the US dollar.
It should be noted, however, that users can go directly to the market via its website. In this way, cryptocurrency exchanges, but also thesaving, can be done through the website. It is also necessary to underline the main arguments in favor of Gemini which revolve around the liquidity and the security transactions.
Gemini, a hybrid platform?
Gemini is an English word meaning Gemini, the astrological sign that represents twins. Based on this concept, the name can be derived from the fact that its founders were twins. But in reality, it is rather the space program of the company, Gemini Space Station, which is the origin.
The platform integrates both cryptocurrencies and conventional currencies, the US dollar in this case. Therefore, it can be considered as a hybrid platforme. Indeed, you can exchange US dollars for bitcoins on Gemini. As for exchanges, the majority of currency combinations include the dollar, BTC or ETH, knowing that Gemini has a twenty combinations of currency pairs.
A growing platform
Wishing to compete with the biggest cryptocurrency platforms such as Coinbase and Kraken, Gemini bosses want to dot the “i”. The Winklevoss twins point out that the New York State Department of Financial Services or NYDFS has approved the platform and imposes its regulations on it. Other financial services supervisory authorities also provide regulatory support. For example, we can mention the insurance for the cryptocurrency assets of its customers.
Regarding his plans forexpansion, Gemini began to enter the international trading circle after only one year of operation. In 2016, the platform has traded in Canada and the UK. Soon after, it gained ground in the Asian continent such as Hong Kong, Singapore, South Korea and Japan. Operations have expanded into more than 60 countries worldwide by the end of 2021.
However, this is not Gemini’s only expansionary strategy. It has also introduced other services such as sales to daily auctions of Bitcoin and Ethereum, respectively in 2016 and 2017. It is also the first platform to carry out this type of operation.
Trading on the platform
In terms of trading, the platform is functional at all times, i.e. 24/7. However, there may be occasional interruptions during maintenance sessions. On Gemini, a standard market order immediately obtains the best available market price. However, it also provides different kinds of limit orders. Examples include immediate limit orders (CIO), make or cancel limit orders (MOC) and auction-only limit orders (AO).
Unlike its competitors, Gemini does not allow you to perform the margin tradingnor trading at discovered. Therefore, all orders issued on the platform must be fully funded.
To ensure the safety of its users, Gemini uses what is called the ” cold storage “. It is an offline storage of users’ cryptocurrency against secure custody of their money. Depositing crypto into a Gemini account requires creating an exclusive deposit address on the same platform. After that, he can start the transfer from his wallet to the address thus created.
Gemini and its Custodian Service
The service of depositary is another service that Gemini makes available to its customers. The NYDFS authorizes it to hold a client’s digital assets as trust, on behalf of this client. The NYDFS imposes conditions such as compliance with cybersecurity measures on the part of Gemini and compliance with reserve requirements and banking compliance standards.
A New York State chartered bank, State Street, is related to Gemini. This is where the latter keeps its clients’ funds. Knowing that the platform adheres to conventional banking requirements, customers’ money is necessarily backed by adequate monetary reserves, regardless of its form.
The accounts of ordinary deposits at Gemini are free. However, one can opt for the separate deposit account or cold storage where the storage is offline and is secure. This type of service is offered in particular to large institutional clients such as investment funds, hedge funds and exchange-traded funds.
What about fees?
Each service has a separate fee at Gemini. At less than $1 million, the account fee is 0.250% for purchases and 0.100% for sales. When it comes to participating in auctions, the fee is 0.15%. However, when the value of the transaction turns out more consequentGemini does not perceive no charges.
With the Gemini Pay app, customers can pay for their purchases in cryptocurrencies (bitcoin, litecoin, ethereum, zcash, etc.). Since Gemini Pay is free, it is designed for both iOS and Android devices. At the same time, they can make their payment via the Gemini dollar. This platform-specific currency is less volatile, due to being pegged to the US dollar.
Apart from the mobile app, transactions can be made directly through the website. The advantage with the mobile application is that it offers great freedom of transactions. You can access it from anywhere and anytime.
Gemini and its expansion programs
During its first months of existence, Gemini was more of an exchange for institutional traders and individual traders had no place there. Over time, this trend has changed. As recently as December 2021, the platform listed more than 60 cryptos that users can trade at any given time. This expansion has brought about an easier method of payment, the application Gemini Pay.
This application is becoming more and more used in the world of trading on the one hand, but also, on the other hand, in the sector of sale. Thus, the number of retailers that accept Gemini Pay is around 30,000, namely Petco and Bath & Beyond among others.
Another novelty at Gemini is its partnership with TaxBit. TaxBit is a company that offers to assist Gemini customers in calculating taxes related to crypto that they have to pay.
But that’s not all, the year 2021 was significant for the company because it was able to offer its customers a new product, savings EARN. The service offers a cryptocurrency savings plan with interest of 8.05% annually. Apart from that, another product is being prepared, the Gemini credit card.
Advantages and disadvantages of Gemini
Like any platform, Gemini has both pros and cons. First, it allows trading in a number of combinations currencies. All transactions within the platform can be done with cryptos, such as bitcoin or litecoin, as well as with the Gemini dollar.
Furthermore, Gemini is more than certain of the security of its clients’ assets. Whether in one of the 50 states of the United States or in another foreign country, Gemini is always easy to access. In addition, purchases and sales of more than 60 cryptocurrencies.
However, the platform suffers from certain handicaps such as the absence of short trading. In addition, on Gemini, the transaction fees are not always the best. Some may turn out to be higher than other platforms. Despite this, it remains Coinbase’s most formidable competitor.
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Gemini: All about the growing cryptocurrency platform – LeBigData.fr
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