What are the differences between Gemini and Kraken? Both Gemini and Kraken are two of the most popular crypto exchanges that are based in the USA.
While Gemini follows a security-first philosophy with proper regulation, compliance, and FDIC protection for USD, Kraken, on the other hand, is one of the largest crypto exchanges in the world that allows staking, margin trading, and futures contracts.
There are lots of such differences between these two crypto platforms that this article will talk about and enhance your knowledge.
For example, if you want low fees, additional and useful features, reasonably good customer support with live chat support, and access to some of the most popular crypto coins then Kraken will be a better choice for you than Gemini.
And, if you want security and ease of use then Gemini is the platform to consider.
Therefore, if it comes to choosing one of these two popular American crypto exchanges, it is vital that you look into the differences between the two.
This will help you to decide and make the choice for yourself, based on your preferences and personal needs.
- 12 Differences Between Gemini and Kraken
- Which is Better – Gemini or Kraken?
12 Differences Between Gemini and Kraken
The Kraken crypto exchange has a lengthy record and history of success. It is widely dependable and has not experienced any major setbacks due to scandals or hack attempts to date. Its diversity of coins over Gemini attracts users towards it.
Gemini is also quite a reliable crypto exchange, though it is younger than Kraken. The strong point of this platform is its sleek, easy-to-use, and intuitive user interface.
Here are some more differences that you should know about these two popular crypto platforms if you need to make a choice between them correctly.
1. Company Formation
Kraken was formed by Jesse Powell, its current CEO, in 2011 but it actually started to operate officially in 2013. The head office of this company is located in San Francisco, California.
This platform allows the users to deposit and withdraw digital currencies only such as Bitcoin, Ethereum, Litecoin, Tether, Dash and others with a simple Tier 1 verification. It only needs the name, date of birth, phone number and country of the user.
Gemini, on the other hand, is based in New York City, United States and was founded in 2015 by Cameron and Tyler Winklevoss. Since they are twins, so is the name of the company Gemini, like the twin constellation Cancer and Taurus.
The platform is easy to use and provides charts to compare coins side by side and order them in an auction format.
2. Fiat Currency Support
When it comes to fiat currencies, Gemini supports USD, AUD, CAD, EUR, GBP, SGD, and HKD.
In comparison, Kraken supports USD, EUR, GBP, JPY, CAD, CHF, and AUD.
3. Crypto Coin Support
Kraken supports different types of crypto coins and pairing such as Bitcoin, Litecoin, Dogecoin, Augur, Ripple, Stellar, Ether, Ether Classic, Iconomi, Tether, Dash, Zcash, Monero, Gnosis, Eos, Bitcoin Cash and more.
On the other hand, Gemini supports Bitcoin and Ethereum, Chainlink, Dogecoin, Polygon, Dai, Uniswap, Bitcoin Cash and more.
4. Deposit Methods
The two platforms support different deposit methods that you ought to know. As for Gemini, the deposit methods the users can use include ACH bank transfer, FedWire, debit card, and crypto.
In contrast, the users of the Kraken platform can make deposits in a few ways more than the users of Gemini. Typically, Kraken supports SEPA bank transfer, ACH bank transfer, FedWire, credit card and debit card though both these are not available in the USA, Apple Pay, SWIFT, and crypto.
The Kraken platform provides its users with an interface that helps in making advanced trades. They can get detailed information about a coin from its historical bid-ask chart, put orders using simple, intermediate, or advanced options and do a lot more via this easy-to-use interface.
Gemini, on the other hand, offers a clear and crisp interface designed to offer a straightforward user experience to even a crypto trader and investor with average experience.
The charts displayed by the side allow the users to make a quick analysis of the crypto assets they want to trade with.
As for the advantages offered by Gemini to its users, it includes extreme security, full compliance, free fiat withdrawals, ten free crypto withdrawals in a month, a large number of crypto coin support, a useful and easy to use mobile app compatible with iOS and Android devices, and insurance cover against hacking and theft of crypto.
The advantages of Kraken, on the other hand, are that it offers its users a safe, secure and well-established crypto exchange and comes with an interface that is quite easy to use even by beginners.
It also offers the users some more useful additional features and trading options such as forex trading, margin trading, futures trading, OTC desk and more.
It also supports a large number of crypto coins and seven fiat currencies and comes with a live chat support from a human that is offered all around the clock.
The Gemini platform comes with its characteristic downsides as well such as the users do not find some of the major crypto coins like ADA, DOT, and XRP. It also charges higher fees for trading as compared to Kraken and its customer service does not come with a live chat option.
As for the downsides of Kraken, the users in the USA may have some complaints regarding the non-availability of credit card and debit card deposits.
8. Buy and Sell Fees
There are different types of fees charged by these two platforms for performing different activities. In terms of the buy and sell fees of both these platforms are also different.
As for Gemini, the trading fee usually is 0.25% and 0.35% respectively. If you want to buy from Gemini instantly, you will be charged 0.5% as a ‘convenience fee’ and a ‘transaction fee’ as well that may vary depending on the fiat currency used and the order amount.
If you make your purchases by using other types of fiat currencies supported by this platform, the fee charged may be more.
For example, if you buy crypto coins worth more than $200, the fee charged by this platform will be a total of 1.99% which will include a 0.5% convenience fee and a 1.49% transaction fee.
The maker fee charged by this platform starts at 0.25% and the taker fee at 0.35% which can be lowered if you trade large volumes over a 30-day rolling period.
On the other hand, on Kraken, the trading fee usually is 0.16% for makers and 0.26% for takers respectively and has a tiered structure. However, to buy your crypto coins directly from the platform or trade those on the market instantly, the exchange will charge you a fee of 1.5%.
The fees charged by this platform can also be reduced like Gemini by a frequent trader. However, it is easier to reduce the fees on Kraken than on Gemini.
9. Deposit Fees
When you are using Gemini to deposit fiat currency, the fee for it will vary depending on the method of deposit you use.
For example, ACH bank transfers are usually free just as wire transfers do not on Gemini, but then you will have to pay fees to your bank. However, if you choose to use your debit card for depositing into your Gemini account, it will incur a fee of 3.49% fee.
On the other hand, if you make your deposits of fiat currency into your Kraken account, the fee charged will not only depend on the method you choose to deposit but it will also depend on the currency you choose to make the deposit with.
For example, if you deposit USD via FedWire via MVB Bank, there will be no fee charged for it but if you use FedWire via Synapse, it will cost you $5. Kraken has a daily deposit limit of $25000 if the proof of funds is provided and the time taken for approval of deposits can range anywhere from 1 to 5 days.
10. Withdrawal Fees
When it comes to withdrawals, there are no such fees charged by the Gemini platform, but that is for the first ten crypto withdrawals. Over and above that, the platform charges fees that are based on and vary according to the individual type of coin withdrawn by the users.
On the other hand, Kraken usually charges a fee when the users withdraw fiat currency. The amount, once again, depends and varies depending on the currency used and the method of withdrawal.
However, there are a few specific coins that may come with a flat fee for withdrawal just to cover the transaction costs. The withdrawal limit of this platform is however $25000 a day.
11. Additional Useful Features
The range of features offered by these two platforms is an important parameter to consider while comparing. Both these crypto platforms come with a lot of useful yet different features. As for Gemini, there are:
- Gemini Pay – This feature will allow you to spend your crypto assets directly at more than 30000 retail establishments all over the United States. You can access this feature via the Gemini mobile app. Just scan your phone with the barcode reader and make the purchase. It is simple, and there are no fees involved in it.
- Gemini Custody – This is a secure and an excellent method that allows storing the crypto assets safely for a long time, especially by the long-term HODLers. This feature is customized and built by technical experts in finance, security, and cryptography. This feature is easy and free to set up and comes with flexible pricing and no minimum limits to suit all your custody reeds.
In addition to that, Gemini, a regulated New York State Trust Company, also offers a $200-million insurance coverage.
This is one of the largest limits offered by any crypto custodian in the world assuring the users that their funds will be safe and will not be affected even by a cyber security breach due to the insurance cover.
On the other hand, Kraken also offers some useful features additionally to its users.
- One such feature is staking. This feature allows the users to earn interest on their crypto assets when they invest. The platform even allows them to stake fiat currencies like USD and EUR which is a unique feature and found lacking in most of the crypto exchanges. The staking rewards are usually paid twice by the platform in a week and it also allows you to compound your future rewards. This will help you to grow your investments exponentially and quickly.
- The users of this platform, especially those crypto traders who want to trade with other assets, can also take part in forex trading, though this is not a full-fledged forex platform. However, it is quite good to gain some knowledge if you especially want to try your luck out in a new market. It offers low trading fees, minimum orders as low as 10 units base currency, a useful and professional trading interface, and nine trading pairs as of now.
In addition to that, the platform also offers excellent customer support with a knowledgeable team that provides live chat support 24/7, apart from email ticket requests and phone support.
Usually, most of the crypto exchanges out there, including Gemini, do not offer live chat support. They do so via a bot with automatic answers that are not enough and sometimes an email ticket request option as well.
Gemini is known for its special emphasis on the security aspect which has made it one of the most popular and extremely safe crypto exchanges that the crypto users fall for. The platform typically follows three basic principles in terms of security which are:
- Offering protection against human error
- Offering protection against external threats and
- Preventing insider access and guarding against misuse.
Typically, the platform maintains the highest security standards, regulatory measures and operational compliance passing SOC 1 Type 1 and Type 2, as well as SOC 2 Type 1 and Type 2 examinations.
Additionally, it also holds an ISO 27001 certification as a mark of its high security and regulatory standards to provide absolute protection against cyber security breaches and theft of funds deposited by the users.
Kraken, on the other hand, also offers a strong security to protect the funds of the users held by it as well as prevents the loss of personal data and information. Some of its security features include:
- Storing 95% of the crypto assets held by it in geographically distributed and air-gapped offline cold storage and
- Securing all their servers in cages and armed with 24/7 surveillance.
Add to that, the platform offers much more financial stability to the users with full reserves. It also offers a high standard of legal compliance and a healthy banking relationship but all the time following the regulations laid by FinCEN.
Which is Better – Gemini or Kraken?
As is evident from the above differences, Gemini and Kraken appear to be quite close and therefore you may wonder which among the two is better. Well, it is all about the specific user and personal preferences.
For some users, Kraken is the clear winner since it offers more options for deposit and charges low fees for making transactions and trading, and also comes with a couple of more features than Gemini.
However, that does not mean Gemini is bad. There are lots of positive aspects of this platform as well. It comes with top-class security features and industry-leading compliance.
It also offers insurance cover to the funds, an option to make ten free crypto withdrawals in a month and more.
Both these platforms support quite a large number of crypto coins as well, though not as many as you will find in some of the major crypto exchanges out there.
However, you will get to use some of the most popular crypto coins on both, apart from ADA, XRP, DOT, and other top coins on Gemini.
Both these platforms come with a user-friendly mobile app and features that are useful for the traders and investors. However, in terms of customer support, Kraken seems to be a bit more favored due to its live chat support provided 24/7.
Also, in terms of security, both these platforms fare quite well providing features like 2FA and biometric security.
They both store the funds of the users in an offline cold storage but the ISO 27001 certification of Gemini adds to the trust factor a little bit more.
In terms of fees charged by these two platforms, the reduction in fees is a lot easier to achieve on Kraken than on Gemini.
With Kraken, you can reduce it if you trade to the tune of $50 000 in a 30-day time period but to reduce the maker and taker fees on Gemini you will need to trade for $500 000 in the same time period.
This amount is ten times than the requirement of Kraken and the fees are reduced barely below the initial fee rate of Kraken.
Actually, in terms of fees, when you compare deposit, withdrawal and trading fees altogether, Kraken is slightly better.
This is in spite of the fact that Gemini allows its users to make ten free crypto withdrawals in a month. In general, both transaction and trading fees on Gemini are much higher than those charged by Kraken.
However, on Kraken, when you want to deposit or withdraw bank currency through wire transfer, the platform needs a proof of residency and a valid government ID.
As for trading, the Kraken platform offers sophisticated options at some of the best market prices.
It also offers fixed price orders which the average traders find useful and the advanced traders can make the best use of stop limits, conditional closes, leverage options, and expirations.
If you want to invest in Altcoins and earn larger returns from your investments, then Kraken will be a much better choice than Gemini.
Typically Kraken is good for you if:
- You want a regulated crypto exchange in The United States
- You prefer to work with a crypto exchange that supports multiple deposit methods for fiat currency
- You want to trade with all popular currencies including USD and EUR
- You prefer competitive and lower fees even for trading in high volumes and
- You are a savvy trader and want a crypto platform that offers a few advanced tools for trading.
However, remember that Kraken is not the right platform for you if you are a beginner in the crypto industry.
The interface may seem to you to be pretty confusing and the tools provided by the platform are useful only for the veterans in crypto trading.
On the other hand, Gemini is the right crypto platform for you if:
- You are looking for a simple interface that is easy to use even for a beginner
- You want a platform that is regulated and licensed by the New York State Department of Financial Services or NYSDFS
- You want a platform that supports multiple fiat currencies
- You are looking for a platform that allows setting up advanced auto transactions through recurring orders and price alerts and
- You want to earn interest on your crypto deposits at a reasonably high rate of up to 7.4% APY.
However, stay away from it if you want to make sophisticated trading. It does not support margin trading or futures trading, as said earlier and even limits basic trading in spite of charging quite a high fee for it.
But, if you prefer using a reasonably good mobile app, Gemini should be your choice since Kraken does not come with it. You can keep a close watch on the price and market movements and also track your orders on the go.
These significant differences between Gemini and Kraken explained in this article will help every crypto trader and investor a great deal in choosing the right platform for them according to their needs. Well, that was the whole idea of it.