FTX vs. Gemini: Which Is Better to Trade and Grow Crypto Holdings On?
Cryptocurrency exchanges are similar to online brokerage companies. They give you the tools to invest in and trade cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin. As cryptocurrencies gain popularity, platforms like Gemini and FTX make it simple and safe to trade crypto. Choosing the best cryptocurrency exchange might be challenging. Learn how to thrive in the trading sphere- here.
Crypto Exchanges Expounded
The crypto market has expanded considerably since its inception. As a result, picking the best crypto exchange may be difficult. It’s vital to consider factors like supported assets, costs, payment methods, and security while choosing a cryptocurrency exchange.
Gemini and FTX are cryptocurrency exchanges that provide some of the finest trading services in decentralized finance. Choosing the best exchange for your cryptocurrency trading or investing needs is critical. You have different choices when picking a platform for digital trading assets. You might want many options to trade, the lowest fees, or a user experience that is easy for beginners.
Before creating an account on a crypto exchange, doing some research is a good idea. Read client evaluations, look up the exchange’s history, and check for any recent news reports that might offer helpful information.
Company Overview
The FTX Exchange is a fast-growing cryptocurrency exchange that provides sophisticated trading tools such as margin and futures trading. While Americans cannot use it owing to stringent rules, there is a separate exchange—FTX.US—but with fewer crypto assets.
FTX, based in the Bahamas, made its way onto the cryptocurrency scene in 2019. Its goal is to become the world’s leading platform for trading tokens. Now, just a few years after its founding, it is a top centralized crypto exchange valued at over $18 billion.
FTX provides various services that may attract new investors and experienced traders. In addition, it has spot trading on its platform for newcomers. FTX supports futures, equities, and levered tokens for seasoned traders.
Gemini, on the other hand, is a user-friendly cryptocurrency exchange appropriate for novice and expert traders. Gemini is a good option for crypto investors and traders since it offers industry-leading security measures, its hot wallet, and a comprehensive support team.
After failing to find a safe location to store their bitcoin, Tyler and Cameron Winklevoss founded Gemini in New York in 2014. Gemini has had four main pillars: product, security, licensing, and compliance since inception. Its mission is to create and preserve user confidence by providing a secure and compliant cryptocurrency exchange platform.
Gemini’s emphasis on security and compliance distinguishes it from the competition. However, it doesn’t have as many cryptocurrencies as some of its rivals. Despite having fewer assets, this platform is still a fantastic choice for novice and expert traders. This is due to its strong focus on security and various services and tools.
Gemini is the first SOC 2-certified cryptocurrency exchange in the industry, as shown by its dedication to security. The SOC 2 exam is carried out by third-party auditors and assesses a product or firm’s levels of security and compliance.
It might be difficult and time-consuming to pick between FTX and Gemini. They provide almost identical services. Furthermore, several of their services are interconnected. However, they have differences that investors should consider separately. Are you unsure which exchange to choose? There is no need to worry any longer!! Continue reading to make your decision.
FTX vs. Gemini Summary
| Feature/ Service | Gemini | FTX |
| Supported crypto coins | Around 100 | Over 300 |
| Trading Fees | Fixed fee for trades under $200 or 1.49% for trades over $200, 3.49% debit or credit card purchase | Up to 0.07% for Takers and 0.02% for Makers |
| Supported Transactions | Buy Order Sell Order Trade Order Deposit Order Withdraw Order | Buy Order Sell Order Trade Order Deposit Order Withdraw Order |
| Main Platform Features | Beginner-friendly and secure interface Multiple buying and selling options Ability to earn interest on stored crypto | Supports margin trading Access to futures, stocks, forex, and other advanced markets Beginner-friendly and secure interface |
| Security Features | Two-step verification FDIC-insured USD balances up to $250,000 Gemini Wallet digital insurance U2F security with hardware key Cold storage | 2FA Protocols KYC and AML procedures Cold StorageWhitelisting IPs Log-in functions for sub accounts Whitelisting Wallets |
| Passive Earning Methods | Gemini Earn – Earn up to 8.05% APY on your cryptocurrency balance with Gemini Earn | FTX staking FTX Earn, |
| Cold Storage | Yes | Yes |
| Wallet | Yes | Yes |
| Maximum Trading amount | $5,000 daily and $30,000 a month for deposits $100,000 daily for withdrawals via ACH $1,000 daily for debit card purchases. | Users cant send orders that would move more than 2% (For future markets) and 25% (For spot market) through the opposite side of the book. |
| Payment Methods | ACH Bank Transfer Wire Transfer Debit Card | ACH Bank Transfer Wire Transfer PayPal Credit Card Debit card |
| Trading Tools and Features | Gemini ActiveTrader | Leveraged Tokens FTT Trading View Cryptowatch Coin Market Cap Alpha Algo Quantowner |
Key Features
Supported Currencies
Both platforms are welcoming to novice traders. They feature simple user interfaces (U.I.s), easy-to-use mobile apps, and limited trading choices. Notably, FTX has over 300 cryptocurrencies available for spot trading. Gemini and FTX accept fiat currencies. Both exchanges still provide the widest range of fiat currency and foreign nations’ options.
Gemini, unlike other big cryptocurrency exchanges, currently supports just around 100 assets. Users can buy, sell, and trade some of the most popular assets and a few lesser-known coins on its platform. However, regarding trading pairs available on both platforms, FTX has the upper hand since its list is significantly longer than Gemini’s.
Gemini and FTX continuously add new cryptocurrency choices, so the number of supported currencies may fluctuate.
Trading Fees
Gemini and FTX trading fees are more costly than those at well-known exchange platforms. Gemini’s maker/taker fee structure is tiered, with trade costs depending on 30-day trade volumes. FTT token holders may save money on their platform expenses. In addition, platform fees can receive a discount for FTT token holders. FTX users may have to pay withdrawal fees, trading fees, and fees for using leveraged tokens.
Gemini’s fee structure differs from many other exchanges, which use a tiered maker/taker pricing model. Its cost varies based on the amount you trade and your platform. Gemini, for example, has two fee schedules: a mobile fee schedule and a desktop fee schedule. For trades valued at $100 or more, but less than $200, the cost is 1.49 percent, with costs ranging up to $2.99 for bigger transactions of $500 or more (1.49 percent).
While Gemini is straightforward about its fees, the exchange’s basic fee structure is more complex than other platforms. Its costs are also somewhat greater than those charged by many market rivals.
If you use wire transfers to pay regularly, Gemini may save you money because it does not charge fees for wire transfers. Visit the Fees page on Gemini for additional information if you want to learn more about how fees operate on the platform.
Regulatory Compliance and Controversies
FTX is a cryptocurrency exchange incorporated in Antigua and Barbuda, with headquarters in the Bahamas. The Bahamas has licensed and regulated it. FTX provides services to Australian customers using OmiPay Pty Ltd.
This company is registered with AUSTRAC to provide digital currency exchange services. FTX Australia Pty Ltd is also an Australian Financial Services Licensee, which means it is authorized to offer financial services in Australia.
FTX Digital Markets Ltd does not currently allow Japanese, Bahamian, Australian, or Singaporean customers. It does not trade tokenized equities or prediction markets, either. All other services and users currently are or will be served by FTX Digital Markets Ltd.
FTX’s subsidiary, FTX Switzerland GmbH, is licensed to provide financial intermediary and custody services in Switzerland. FTX’s subsidiary DAAG Trading, DMCC, is a licensed trader and dealer in the United Arab Emirates.
The United States of America does not offer FTX. If you are looking for a platform in the U.S., you can go to FTX US. The company has licenses for Money Transmitter, Money Service Business, Derivatives Clearing Organization, Designated Contract Market, Swap Execution Facility, Broker-Dealer, and other licenses in the United States.
It’s important to note that the company does not have an office in mainland China. Additionally, FTX does not provide RMB trading or access in any way. FTX Japan is the only place where you can use the FTX e-wallet for Japanese people.
The United States of America, Cuba, Crimea and Sevastopol, Luhansk People’s Republic, Donetsk People’s Republic, Iran, Afghanistan, Syria, and North Korea have banned FTX. Furthermore, FTX does not offer services to Ontario residents, and FTX does not allow non-professional investors from Hong Kong to invest in certain instruments.
The New York state government has a regulatory body that regulates cryptocurrency exchanges in the state. Gemini is the first authorized digital asset exchange for individuals and financial organizations, obtaining licenses from the New York State Department of Financial Services (NYSDFS).
Gemini reports to the IRS. Cryptocurrency is considered a kind of property by the IRS, which implies that it is subject to capital gains and income taxes. Investors face capital gains or losses whenever a user sells a cryptocurrency. It includes trading your cryptocurrency for another coin or selling it for real currency.
FDIC, SIPC, or any other government program does not insure Gemini Earn and is similar to many non-deposit services provided by financial institutions. Gemini’s technology allows quick access to earn interest and withdraw funds, with all loans being open-term and callable.
Account Setup
Creating an FTX account is straightforward. The exchange will walk you through the process from beginning to end, step by step. You’ll need to provide your email address twice and create a secure password first.
FTX requires new customers to verify their identities before they can trade crypto or make deposits. It is a safety measure to protect users’ accounts and funds. Unverified users can still explore the platform by logging in to their accounts.
People who provide some basic information, including full name, birthday, and country of residence, get limited access to the platform and are subject to withdrawal limits. Users who complete the entire verification procedure, which includes producing residence documentation, providing a government-issued I.D., and undergoing facial recognition, get access to the whole platform and unrestricted deposits and withdrawals.
Supply your first and last name, email address, and password to get started on Gemini. You’ll then confirm your account via email after that. Once you’ve completed identity verification, you’ll be able to link your bank account or debit card and begin purchasing and selling cryptocurrency.
Gemini users may access their accounts, make payments, and buy and sell cryptocurrency through the company’s online dashboard and mobile apps, which are available on Android and iOS. Its ActiveTrader platform is also accessible via desktop and mobile browsers, allowing customers to conduct trades at home or on the go.
Trading Experience
The features available on FTX are numerous, and the site acknowledges that new users may struggle to discover them. The exchange has put up a guide introducing all the options to help these individuals.
The FTX website also straightforwardly provides essential information. The exchange, for example, clearly states the rules for staking FTT, the token issued by XTZ. It explains that unstaking takes 14 days and that unstaking tokens will not contribute to staking earnings. It also points out that customers who wish to unstake quickly can choose to pay a fee.
Numerous postings on various themes describe the various benefits, terms, and regulations of FTX. For example, a wealth of information is available on the subject of margin trading. Given the intricacies of margin trading, FTX does an excellent job explaining its conditions for these transactions.
The essential question people who dabble in margin trading ask is what causes a margin call. FTX says that if you have less money in your account than needed to keep your positions open, they can sell your assets to cover the costs. They say this could happen if you are 16.66x leveraged, meaning you borrowed a lot of money to trade.
The Gemini website and mobile app provide a simple trading experience for users. Beginners will appreciate Gemini’s basic buy and sell option and comprehensive help page, which is easy to use. Experienced traders will like Gemini’s ActiveTrader platform, which includes sophisticated charting tools and various order types that let customers trade quickly.
To utilize Gemini’s full trading capabilities, account users must undergo an identity verification procedure. It involves using a government-issued photo I.D., such as a driver’s license or passport, to upload it.
Security and Insurance
The Gemini and FTX popular exchanges, like all US-based platforms, meet the highest standards for security and compliance. Investors have adopted these platforms due to their high safety standards and U.S. regulations. Gemini’s security procedures differ from those at FTX because these exchanges have different structures. However, they have comparable security precautions in both exchanges.
FTX provides a broad range of security features, including the following: The company has a uniquely hot and cold wallet architecture. It also includes an external financial guarantee for all hot wallet funds. Each account has protection via two-factor authentication (2FA). In addition, it also offers Optional 2FA, a password for cryptocurrency withdrawals, and industry-leading custodian relationships.
Gemini has standard security features in the industry, like two-factor authentication and wallet address whitelisting. You can also choose to review and approve devices used to log in. To use the full range of features on the Gemini trading platform, users must complete its know-your-customer (KYC) verification process. This process involves uploading a government-issued photo I.D. to reduce instances of fraud on the platform.
Gemini has also recently achieved SOC 2 certification, demonstrating the platform’s dedication to security and compliance. FDIC insurance is available for up to $250,000 in USD deposits on this exchange and digital asset insurance for funds kept in its hot wallet. This insurance protects user funds, which covers a breach or hacking occurrence.
Customer Support Services
Customer support is an essential aspect of any cryptocurrency exchange. Gemini and FTX provide different forms of assistance. Furthermore, their services are unlike any other cryptocurrency exchange on the market. FTX does not provide live chat or 24/7 phone service because it wants clients to use its platform to submit help tickets.
The average time it takes for a team member to respond to a request for support is not included in FTX’s time frame. You may contact FTX through Telegram if you wish to submit a support ticket. Again, as with any other major cryptocurrency exchange, numerous resources are available on the platform to help educate new clients about the crypto exchange.
Customer feedback is exceedingly negative for FTX, much like other cryptocurrency exchanges. Most user issues centered on the poor customer service offered by FTX. The general complaint was regarding how long it took customer service to respond to support inquiries.
Several consumers reported having to wait months for their withdrawals to be authorized. The user-friendliness of the FTX platform and its relatively low withdrawal cost bring about its praise in good reviews.
Unlike FTX, Gemini has a helpful help center where users may discover solutions to commonly asked questions. Gemini also includes a virtual chatbot and the option of submitting a support ticket for assistance from a person. Like other crypto exchanges, Gemini does not provide live contact over the phone for individual customers.
Gemini’s platform is simple to use, although customer opinions are mixed. The exchange has an average rating of 1.5 out of five stars from 370 Trustpilot evaluations. Dissatisfied customers complain about frozen accounts, lengthy verification procedures, and inadequate customer service. On the other hand, some consumers compliment Gemini’s dependability, user-friendly interface, and regulatory compliance.
Which Exchange Is Better to Trade On?
Investors are a bit perplexed by the comparison between FTX and Gemini. However, the following information may be of use. Which one should you pick? Gemini might be the right choice for those seeking a secure and user-friendly platform to purchase, trade, and exchange cryptocurrencies.
Gemini’s user-friendly interface and simple buy/sell form make it ideal for novices. The Active Trader platform of Gemini is helpful for experienced traders. Advanced charting tools, as well as a variety of order types, are available through the platform.
Gemini’s fee structure is more complicated than what you’ll find on other major exchanges, but it’s clear about costs. So you won’t be shocked by any hidden charges. Gemini may be worth considering if you’re contemplating investing in or trading cryptocurrency, whether a novice or an expert.
FTX has developed into one of the world’s most significant and well-known cryptocurrency exchanges in just three years. This exchange has also established itself as a strong advocate for cryptocurrency regulations. In addition, FTX officials have stated that they are committed to following the regulations of government agencies.
In addition, FTX provides traders with low trading costs and features that appeal to novice and expert investors. FTX is a good choice for cryptocurrency traders looking for a value-oriented exchange that meets their demands.
Bottom Line
Despite being relatively new on the market, Gemini and FTX are highly efficient in their operations. They provide a broad selection of cryptocurrencies to trade with and various security procedures that protect your investment. However, when comparing the costs imposed by the two exchanges, FTX has a slight advantage over Gemini.
On the other hand, Gemini has a much lower withdrawal fee than its competitors. These fees are calculated based on the withdrawal from or into your account. The fee structures of Gemini and FTX are relatively comparable, with only minor differences in design.
You must first determine your requirements as a trader to choose between the two. Gemini is the way to go if you are looking for low fees. However, if you want higher withdrawal limits with more derivatives to trade, FTX may be a better fit for your trading strategy.
