Whether you’re a long-term investor in Bitcoin or an active crypto trader, your first agenda should be to use a safe and secure exchange to ensure the safety of your funds and investment.
Cryptocurrency exchanges enable customers to trade and exchange digital currencies and cryptocurrencies online in real-time as they facilitate users to trade assets by acting as an intermediary. They also earn profit through transaction fees.
The rate at which hacks and scams are skyrocketing is quite daunting. Reputable exchanges like Binance and KuCoin have fallen victim to hacks but have bounced back more robustly. This is something not all exchanges can do, and many investors go bankrupt due to hacks when they have all their investments in just one exchange.
What is Gemini?
Gemini is a privately-owned cryptocurrency exchange that allows users to buy, sell, trade, and securely store bitcoin, ether, and about 40 other cryptocurrencies. It was launched in 2015 by the Winklevoss twins (Cameron and Tyler Winklevoss).
Gemini exchange users can trade currency pairs in about 20 combinations. Most of the combinations include the U.S. dollar (USD), bitcoin (BTC), or ether (ETH). So, for example, the currency pair displayed as ZEC/USD is an exchange of zcash for U.S. dollars.
Gemini went live in 2015, and this is a couple of years longer than Binance, which means that Gemini exchange is no newbie in the crypto ecosystem. It is one of the few exchanges that can guarantee its users’ safety with its regulatory compliance features.
The regulatory compliance features are essential as it means your funds are safe. Gemini doesn’t allow the exchange to be in a crosshatch with the SEC (Securities and Exchange Commission), unlike many exchanges who haven’t complied with required regulations, and might end up endangering their customers’ financial capability.
Features of Gemini Exchange that Makes it a Robinhood
Wide Range of Coverage
Gemini exchange is a Robinhood exchange that has come to the aid of crypto investors, especially the ones based in the USA, as it can function effectively in all states in the US due to its regulatory compliance; his is a challenge many other crypto exchanges have not been able to overcome.
Several investors end up missing out on opportunities due to late entries into the market while investing, trading and purchasing coins. It’s understandable that most people have their typical day-to-day activities and can’t always be in front of their devices screen 24/7.
Gemini is a Robinhood exchange that has found an effective way to eliminate loss of opportunities for its users as it possesses an “alert notification” feature that allows users to better gain control of the market, keeping watch of the market prices of any desired coin you are placed under monitoring.
So depending on the price action you desire(either up or down), all that is needed is to click the “alert notification” and set up alerts to enjoy your trading.
Gemini exchange takes this aspect seriously. Surprisingly, crypto investors put their funds into exchanges that do not take their security procedures seriously. Such investors are skating on thin ice.
Here are a few security precautions are taken by the Gemini exchange;
- Funds allocation
- Wallets management
- Two-factor authentication
Most client funds are stored in offline air-gapped cold storage, which is transparent to the public, as Gemini doesn’t publicize them. In contrast, the minority of funds are left as residue funds that are insured are used to facilitate withdrawals meaning Gemini doesn’t put all its eggs in one basket, which is a smart way to minimize risk.
For the management of the cold storage, Gemini uses multi-signature wallets, a move that eradicates any form of single points of failure and improves the exchanges resilience against the loss or compromise of any individual private Key. The private keys are also kept in several locations globally and monitored in access-controlled facilities to ensure no loopholes.
Gemini users can further secure their funds by using an authenticator app installed on their devices to authorize Gemini account logins and withdrawals, placing users steps ahead of sim-swap attacks.
Regardless of the reasons mentioned above, some people might still disagree about Gemini being a Robinhood exchange due to its expensive trading fees. The transaction fee and convenience fee paid on Gemini might seem uneconomical, though, but using the active trader platform can help reduce costs. In all sincerity, it is still expensive compared to other rival exchanges.
Therefore, depending on the user’s needs and goals for using an exchange, the Gemini exchange platform can be convenient as a savior to your financial future.