Is Gemini Safe? Security Review of the Cryptocurrency Exchange

gemini logo security review

If you want to receive, send, and trade cryptocurrency, you have to have a dependable wallet and trading platform.

The Gemini platform is a cryptocurrency exchange that has its own crypto wallet. Founded in 2014, it is one of the very few cryptocurrency exchanges that are fully regulated in the United States. With its headquarters in New York, it is regulated on the state level by the New York State Department of Financial Services or NYSDFS.

What Does the Gemini Cryptocurrency Platform Offer? 

Gemini's platform enables users to easily buy, sell, trade, and store Bitcoin, Ethereum, and roughly over 40 other types of cryptocurrencies. They even have the Gemini dollar, which is it's own stablecoin.

Please note that the list of crypto Gemini supports continues to grow. Unlike the Robinhood crypto platform, the Gemini trading platform is not static when it comes to its coin options.

Gemini is the only crypto exchange where users have opportunities for interest-bearing accounts on several cryptocurrencies. It also allows you to transact with some retailers using your crypto as payment.

It was co founded by the Winklevoss twins, Tyler and Cameron Winklevoss which are trust-worthy names in the startup world.

gemini logo

What fees does Gemini charge?

There is no minimum account when you transact with Gemini. However, their transaction fee may vary for mobile and web orders. They also charge a flat .5% convenience fee.

As a new investor, you will earn a Bitcoin equivalent to 150 dollars for a minimum investment of 1000 dollars for 30 days. This feature is perhaps one of the best perks you can have from a cryptocurrency exchange. 

Aside from their highly-rated mobile app, the company has an advanced cryptocurrency trading platform called Gemini ActiveTrader. It is optimized for mobile use, where you can place multiple transaction types such as a market order or limit order. You can find different trading pairs and charting tools.

Here is my complete guide to Gemini fees.

Gemini Review: Is Gemini Secure?

Gemini Trust Company LLC is subject to cyber security regulations set by New York Department of Financial Services.

It's important to note that when Gemini stores cryptocurrency, your Gemini Wallet acts as a hot wallet for your assets. In other words, it is accessible over the Internet and accordingly, it can be exposed to all sorts of hacking threats. 

This goes with the territory. Any kind of deposit of funds online is accessible through the Internet, there's always the chance that it can be hacked. Unless you withdrawal it from your digital wallet to a hardware wallet.

The good news is that Gemini is one of the few exchanges that offer protection against hot wallet theft. It has in place several measures that ensure that independent parties can verify Gemini's safety.

When you buy and sell on Gemini, you can use direct trading to trade directly with another Gemini Account.

If you have been wondering about the question if the Gemini wallet is safe, keep in mind the following. 

key with sim card

Gemini Security Features

Gemini has a security-first mentality. It claims to shield its users, not only from external threats but also from basic human error. 

This includes security features like Two factor authentication (2fa). They also encode sensitive information like bank account info.

Gemini has industry-leading SOC 2 Type 1 security compliance which shows that they are dedicated to safety..

Fiat currencies like USD are FDIC insured up to $250,000. You can fund your account via wire transfer or bank account deposit.

The majority of the Gemini exchange assets are actually kept in cold storage called Gemini Custody. It is a free setup, has no account minimum, and provides instant liquidity with same-day withdrawals. Your virtual assets are insured against theft up to 200 million dollars.  

How are funds secured?

The cold storage is protected with multiple signature technology that ensures there is no one single point of failure. Because these wallets are not directly accessible through the Internet, cold storage or totally offline wallets provide one of the safest ways to store Bitcoin. 

This offline storage is also protected by redundancy. All the private keys used for cryptocurrency transactions on the Gemini platform are kept off-site in the cold storage system secure and geographically spread-out facilities. 

In other words, if one facility is somehow compromised, the rest of the system remains safe. That's how important a geographically diverse physical facility network is. 

Gemini's system also uses multi-signature technology. Dubbed multisig, this technology adds an extra layer of security against external assaults. It also improves the system's overall fault tolerance. 

In the case of some sort of disaster or, if all physical facilities and equipment become inaccessible or gets flat-out destroyed, the multisig system ensures that all the crypto assets can still be retrieved. 

On top of all these technical and practical security measures, Gemini offers insurance for its capital reserves and digital assets as mentioned.

At any one time, only a tiny percentage of cryptocurrency on this platform is kept at Gemini's online hot wallet environment. 

This amount is then ensured in a combined amount that is more than the value of customers' crypto assets housed in the hot wallet at any one time. 

This way, if the hot wallet is in any way compromised or there's some sort of hacking, Gemini's insurance will cover the value of whatever crypto assets were taken. 

Other features

The platform guarantees that it will continue supporting its clients with their capital reserve investments. This means that if the system suffers some sort of loss, it will continue to operate because it has enough capital reserve to make up for whatever losses the system suffers.

Another common security method the Gemini exchange employs is two-factor authentication as well as IP address whitelisting and of course password encryption.

Pros

  • Low fees when using Active Trading
  • Simple interface
  • Can earn interest with Gemini Earn

Cons

  • High fees when not Active Trading
  • Only available in 50 countries 

Gemini Conclusion

Gemini, another cryptocurrency exchange that is easy for beginners, offers a much simpler fee structure and even has the ability to earn interest on your assets throguh Gemini Earn

gemini logo

Is Gemini Trustworthy for Crypto Trading?

Whether you are looking at Gemini for trading crypto or crypto storage, please note that this platform is subject to regular financial and security audits and assessments. This is due to the fact that it is duly licensed in the state of New York. 

As part of its BitLicense, it has to undergo systemic and regular security and financial audits and assessments. This should put customers at ease when using this platform. You're not taking a risk with an untried and unproven crypto platform when you use Gemini. 

For all the reasons above, the Gemini platform is considered one of the safest cryptocurrency exchanges currently available. If you're still wondering about the best Bitcoin wallet or if Gemini is safe, you can rest assured that this is one platform that is built on a solid foundation of security. 

Based in the United States, it delivers seamless performance and is quite transparent. If you're looking for a platform you can trust, definitely check out Gemini.

With that said, be very careful with your personal information. Never place your trust totally in any one system. As much as possible, make sure that a significant amount of your cryptocurrency information remains stored offline. It might be a good idea to look into a physical cryptocurrency wallet.

Any questions or comments? Let me know what you think about Gemini below!

About Crypto Ryan 61 Articles
Hi, I'm Ryan. I started investing in cryptocurrency in early 2014. Naturally, I want everyone to have the chance to learn about the crypto world so I created this blog! I hope my articles help you understand blockchain and cryptocurrency. Cheers!