One of the most exciting topics in our daily lives is money, money, and money. We are going to talk about money, and digital currency to be precise. You’ve read about it, and you’ve heard about it. If you haven’t, Let’s explain it briefly. Well, a blockchain is a digital ledger that is equally distributed across a network of people. Everyone within this network has its copy of the ledger, but nobody can make a change without everyone else agreeing to it. Most digital currencies you know base their systems on a blockchain.
Digital currencies have entirely revolutionized how business gets done in our modern world. This idea changed the way the monetary system works in the developed world. It caused many people and organizations to convert their standard currencies for crypto. Many trades and business transactions have and continue to happen with digital currencies. Go figure. Digital Currencies have ended up in the currency markets. You can trade your coins for fiat currency and back.
Moreover, you won’t be shouting at the top of your lungs like trading floors in the old New York Stock Exchange. The future is here, sit back, click-click… let your mind do the whirring, and voila, the exchange platform does the rest for you.
Speaking of Exchange platforms, which is the best option you can use? Here is a breakdown of two, GDAX and Gemini. We’ll look at trading fees, usability, and customer support, and more. We’ll compare them and give you a conclusion so that you won’t have to.
Let’s start with GDAX
Overview: Gdax vs Gemini
GDAX is one of the most popular trading platforms for cryptocurrencies. They have quite a background too. Formerly known as the Coinbase Exchange during its first year of operation in 2015, Coinbase created the GDAX platform for traders who wanted more advanced trading options.
Gemini, on the other hand, is also known as the first U.S-based exchange licensed for bitcoin and ether trading. It was launched in 2015. Gemini is based in New York.
Both platforms are in the top 20 as ranked according to trading volume. At the time we wrote this, Gemini was 17th, and Coinbase was 6th.
Before you can trade on a platform, you want to be sure that your digital currencies are secure in your account. Safety first, as always. How safe are GDAX and Gemini? GDAX separates their clients’ funds and their own. GDAX does not use its clients’ funds for operational purposes.
Another thing you should note is that only 2 percent of client’s funds become available online. The rest of your currency is offline in cold storage. As a further assurance of security, GDAX insures your online funds against loss and theft for up to $250,000 per client.
Similar to Coinbase, mandatory verification of new devices and 2-factor authentication.
Gemini has robust security measures, as well. The New York State Department of Financial Services, also known as NYSDFS, regulates Gemini. All funds are held in a New York-chartered bank. Online assets are stored in AWS. Just like GDAX, what’s left gets stored in offline cold storage. Besides the separation of customer and client assets, both GDAX and Gemini secure their platforms further with two-factor authentication.
With the option of trading only a few of the more popular cryptocurrencies, GDAX and Gemini offer less cluttered user trading experiences. Both platforms support Bitcoin and Ethereum. GDAX offers your further trading options in Bitcoin Cash and Litecoin. Both platforms apply a maker-taker fee structure. Let’s look at these fees.
GDAX does not charge market makers any trading fees. Market makers are clients who place orders on the books. Both GDAX and Gemini have an upper limit of a 0.25% fee when it comes to trading Bitcoin. However, when it comes to Ethereum, GDAX charges a higher fee of 0.3% compared to Gemini’s 0.25%. You will find more information on fee structures at the GDAX and Gemini websites. We are quite confident that you should do the math before making your choice. It is important because nobody wants their profits to be eaten up by high fees. The maximum fee Gemini will charge you on your trades is 1%.
You have a withdrawal limit of up to $10,000 on both GDAX and Gemini. Gemini does not charge any fees for fiat withdrawal and deposit using a bank account. A complex calculation system determines your fees based on your trading volumes, usually within 30 days.
While Gemini only accepts bank transfers and bank wires, GDAX gives you the additional offer of Coinbase transfers. You should note, however, that while Gemini is a bit limited on deposit options. They allow you to instantly trade when a deposit is made using a bank transfer. You cannot quite do this with GDAX. Your transaction has to be processed before you make any withdrawals.
When you use a trading platform, you need to access customer support services at any time in case you have queries or issues. For Gemini, if you detect any security vulnerability, you can send them an email about it. Gemini has a dedicated Customer Support page with links to every possible challenge you may face. Each link leads to detailed articles that will take you through step-by-step until you understand and solve your problem. This page also has a chat feature where a technical expert can assist you. They also have a dedicated phone number in case your situation is dire.
For GDAX, they follow a similar system for customer support. They have a dedicated page, a customer service blog, ticket, live chat, and email support. They also have a dedicated customer support phone number
Final Verdict: Gdax vs Gemini
It is quite challenging to tell these two platforms apart based on their quality and service delivery. You can easily trade your digital currencies on both platforms. They are both secure, and they charge minimal fees. They also have similar customer support systems. However, our conclusion bases on the platform that charges you lesser fees. If you are concerned about your bottom line