The peculiarity that makes cryptocurrency special is its ability to be traded through the decentralized finance platforms/exchanges, or DeFi in short. Trading on DeFi requires a bit more technical knowledge and an idea about how things like wallets, blockchain networks, etc., work.

These are, however, some of the skills that take time to master. Investors may not have the time or the patience, or both, to acquire these skills, and it is here that centralized exchanges come into play.

The Popularity of Centralized Exchanges

Centralized exchanges get rid of the complex processes involved in DeFi. It feels more like interacting with a traditional trading application that has cryptocurrencies instead of fiat. In the USA, there are two competing centralized exchanges. They are always in a tug of war to become the most popular platform for investors. They are:

1. Coinbase
2. Gemini

Even though the underpinnings of these exchanges are the same, they have different facilities to offer. They come with their own quirks and features. Whatever additional perks a centralized exchange may offer, it is always the simplicity that attracts investors to centralized exchanges.

The Coinbase Exchange

Coinbase exchange was launched in 2012 by Brian Armstrong and Fred Ehrsam. Coinbase offers an array of advanced trading tools and a very user-friendly platform. With over 260 digital assets available for trading, Coinbase has listed all of the popular and major cryptocurrencies.

To open a Coinbase account, there is no minimum balance to be maintained. Coinbase levies a fee of 0.6% on every transaction, which means the maker and taker fees combined make up 0.6%.

As far as customer support and live help go, Coinbase has in place email and live chat support mechanisms.

Coinbase offers a learn and earn program and crypto staking as well.

Coinbase also offers a liquidity program where large liquidity providers can get additional benefits from supplying liquidity.

The Gemini Exchange

Gemini is a younger exchange compared to Coinbase. It was launched by Tyler and Cameron Winklevoss on 25th October, 2015. Gemini Exchange is widely praised for its simple and clean design. The clutter-free atmosphere offers a peaceful trading environment. Gemini exchange gives primary priority to security.

Gemini exchange supports over 150 digital assets, and it also requires no minimum account balance to open a Gemini account.

Gemini has relatively lower fees at 0.4% for maker and taker offers. It also offers customer support via email and live chat.

Gemini offers crypto staking and the Active trader platform as additional products.

Coinbase vs Gemini: A Comparison

Coinbase is currently the leader in the US market in terms of supported tokens. More than 260 cryptocurrencies can be traded on Coinbase. In addition to these, there is an array of altcoins that can be traded on Coinbase.

Gemini, on the other hand, offers over 150 cryptocurrencies but fewer altcoins than Coinbase. Gemini has a higher focus on institutional traders who bring in more volume of trades. They offer lower fees to these institutional traders. Gemini also has a higher number of supported fiat currencies, which makes it easier for overseas traders.

Both exchanges support staking. By locking the tokens for staking, users can earn rewards. These are usually low-risk, low-yield applications.

Coinbase’s staking process is reported to be comparatively easier than Gemini’s. Coinbase is considered to be the more beginner-friendly platform by most traders. Users can also earn crypto while learning more about crypto through the Coinbase educational materials.

Gemini’s staking program is more sophisticated, and it is for experienced users who expect more control over their staked assets. Gemini lets users earn crypto interests. These interests commonly outperform normal savings accounts. 

Both Coinbase and Gemini offer superior security features. They both make use of cold wallets, two-factor authentication, and biometric logins. These two exchanges are fully regulated under the laws of the US government.

Gemini goes a step additional and has integrated insurance for all digital assets held on the platform. Gemini is also holding a SOC2 Type 2 certification for an extra layer of security. The SOC2 Type 2 certification is only available after rigorous audits, so Gemini is really focused on the security and credibility aspect of the exchange.

Coinbase or Gemini — Which Exchange Truly Wins in 2025?

If you are a relatively inexperienced trader, Coinbase might be the better option. Coinbase offers limited support for institutional traders, making the primary focus the individual traders. Coinbase’s staking program is relatively easy to use and is more accessible for traders who are only beginning to enter the crypto domain.

If you are someone who wants to trade large volumes with a clear fee advantage, look no further than Gemini. Gemini offers extended support for institutional traders and has customized tiers for fees based on the volume traded on the platform.

If you want more control over your staked products, Gemini should be your choice. Gemini offers a more sophisticated staking control panel, where you can better adjust the parameters and customize your investment accordingly.

FAQs

Both exchanges offer excellent safety features; however, Gemini has an SOC2 Type 2 certificate, which is an added protection for investors.

An SOC2 Type 2 certification is not something that can be easily obtained. It requires the exchange to go through a rigorous audit to prove its worth to relevant authorities. This ensures the investors that there won’t be issues generated from the exchange’s part and that their funds are secured.

Exchanges like Gemini and Coinbase are under constant threat of hacks and other attacks. An insurance policy will safeguard the interests of the investors in case of such a massive attack.

When you are a taker, your order is processed immediately, meaning you are taking away liquidity from the order book. On the other hand, a maker order means you are adding liquidity. Liquidity is a key parameter for exchanges, and hence the lower maker fee.

Gemini is highly supportive of institutional traders who provide large liquidity to the market; hence, to attract such institutional investors, Gemini offers lower fees for the higher volumes traded.