Gemini is a cryptocurrency exchange and custodian founded in 2014 and based in New York. It is one of the largest exchanges in the world and has become popular among investors for its ease of use and a wide variety of trading options. However, despite its popularity, there are some weaknesses associated with it.
Security
Gemini provides its users with two-factor authentication and other security measures, but it has been the target of several cyber attacks in the past. In 2015, it was the victim of a cyber attack that resulted in the theft of $28 million worth of Bitcoin, and in 2020, it was the target of a phishing attack that resulted in the theft of $9 million. Furthermore, its custodial services have been criticized for not meeting the high standards of security that are expected from a cryptocurrency exchange.
Fees
Gemini also charges relatively high fees compared to other exchanges. Its fees vary depending on the type of trade, but they generally range from 0.25% to 1.49%. Furthermore, it also charges high withdrawal fees, which can be up to 3%. This can be a significant cost for traders who make frequent trades and withdrawals.
Liquidity
Gemini also has relatively low liquidity compared to other exchanges. This means that the prices of coins on Gemini can be higher than on other exchanges, as there are fewer buyers and sellers. This can lead to higher spreads, which can make it difficult to make profitable trades.
Customer Support
Finally, Gemini’s customer support has also been criticized for being slow and unhelpful at times. It has been reported that customers have had to wait days or weeks to get a response from customer support, and that the responses they have received have been unhelpful or incomplete.
Security
Gemini provides its users with two-factor authentication and other security measures, but it has been the target of several cyber attacks in the past. In 2015, it was the victim of a cyber attack that resulted in the theft of $28 million worth of Bitcoin, and in 2020, it was the target of a phishing attack that resulted in the theft of $9 million. Furthermore, its custodial services have been criticized for not meeting the high standards of security that are expected from a cryptocurrency exchange.
Fees
Gemini also charges relatively high fees compared to other exchanges. Its fees vary depending on the type of trade, but they generally range from 0.25% to 1.49%. Furthermore, it also charges high withdrawal fees, which can be up to 3%. This can be a significant cost for traders who make frequent trades and withdrawals.
Liquidity
Gemini also has relatively low liquidity compared to other exchanges. This means that the prices of coins on Gemini can be higher than on other exchanges, as there are fewer buyers and sellers. This can lead to higher spreads, which can make it difficult to make profitable trades.
Customer Support
Finally, Gemini’s customer support has also been criticized for being slow and unhelpful at times. It has been reported that customers have had to wait days or weeks to get a response from customer support, and that the responses they have received have been unhelpful or incomplete.