When Robinhood launched in February 2018, it amassed a waitlist of one million users in under a week! The crypto platform co-founded by Vlad Tenet has since become the digital currency marketplace's dark horse.
It proves well-positioned to dominate the crypto universe. What's more, it's exciting to see a FinTech company that has delved into the blockchain tech space the way Robinhood has. But how does the company compare to other competitors such as Gemini?
Here's what you need to know about Gemini vs. Robinhood so that you can make a confident decision about which platform's right for you.
What Is Gemini?
An American-based company, Gemini, is an FDIC-protected crypto company that's never been hacked. Besides impressive and comprehensive security features, Gemini is a simple-to-use, straightforward platform. Founded by the Winkelvoss twins (Cameron and Tyler), the company's name references the "twin" zodiac sign.
Before dabbling in cryptos, the Winkelvoss twins stole the scene with ConnectU, the predecessor to Facebook. They founded Gemini in 2014, headquartering it in New York, New York.
It remains one of only a few exchanges regulated in the United States. After all, most crypto companies don't even operate in the US, let alone New York, which boasts some of the most rigorous regulations.
Which Services Does Gemini Offer?
Gemini falls within the purview of the New York State Department of Financial Services (NYSDFS) guidelines. The company supports more than 20 cryptocurrencies. These include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin cash (BCH)
- Litecoin (LTC)
- ZCash (ZEC)
- Gemini dollars (GUSD)
You may use the stablecoin Gemini dollar in a wide variety of different transactions, including lending, investing, and spending. The American dollar backs this stablecoin held by the State Street Bank and Trust Company.
When transacting in GUSD, you'll enjoy 1:1 transferability to USDs at any time. What's more, Gemini and BlockFi have partnered to offer savings accounts for your Gemini dollars. You'll enjoy interest rates of up to 8.6% APY when using this cryptocurrency marketplace.
Pros and Cons of Gemini
Now that you have a better concept of the cryptos supported by Gemini as well as some of the services it provides, let's take a closer look at the platform's pros and cons.
Whether you want to buy cryptocurrency, sell, or store it, Gemini makes it a cinch. The platform comes with tools for both new and more advanced traders, and it maintains a security-first platform philosophy.
If you know anything about the tumultuous history of other crypto platforms, you'll appreciate this focus. How comprehensive is the platform's security? It was the first exchange to become compliant in terms of SOC 1 Type, SOC 2 Type 1, and Type 2.
What else distinguishes Gemini from other crypto brokers? It offers a streamlined app for iOS and Android that renders trading on the platform a breeze. What's more, you'll love the access to professional-level trading features offered through its ActiveTrader feature.
Of course, no platform is perfect, and this holds true for Gemini, too. What are some of the drawbacks of using this company for your crypto transactions? The platform offers limited payment methods, which means no credit card or debit card payments.
You'll also find limited international availability when using Gemini. For this reason, you may wish to explore other companies, particularly if you live outside of the United States or do a lot of travelling.
What Is Robinhood?
Gemini exchange represents an innovative new take on crypto financial services. How does Robinhood compare? Robinhood shook up the investment when it debuted.
The company's decision to permit stock trading without commissions shocked other crypto exchanges. Robinhood also launched an exchange and outlet known as Robinhood Crypto, enabling users to transact in digital currencies 24/7 without paying any fees.
If you're new to the crypto world, Robinhood represents a wonderful way to get your feet wet.
That said, the company's road hasn't always proven bump-free. In December 2020, Robinhood had to pay $65 million to the SEC for misleading customers about inferior trade prices. Officials charged the brand with encouraging inexperienced users to make risky trades, resulting in losses of $34 million. So, if you plan on exploring the trading side, we recommend a measured, low-risk approach.
Which Services Does Robinhood Offer?
You'll find Robinhood Crypto on a state-by-state basis at the moment. You can go here to see if you're state's covered.
Which digital currencies are available on Robinhood? They include:
What's more, the app also supports real-time market data for the following cryptos:
- Bitcoin Gold (BTG)
- Monero (XMR)
- Dash (DASH)
- Lisk (LSK)
- OmiseGO (OMG)
- Ripple (XRP)
- NEO (NEO)
- Qtum (QTUM)
- Zcash (ZEC)
- Stellar (XLM)
Moving forward, Robinhood has plans to expand the variety of cryptos it supports. There's a caveat to this, though.
Robinhood may support market data for individual digital currencies. But that doesn't always translate into the ability to sell and buy on the platform. You should also note that Robinhood doesn't currently support ICOs.
Pros and Cons of Robinhood
You've been introduced to Robinhood and have a better understanding of which cryptos the platform supports. What are the benefits and disadvantages of choosing Robinhood for your crypto platform? Let's take a closer look.
When it comes to advantages, they include commission-free purchases, a refreshing departure from other platforms.
You'll also enjoy Robinhood's support of fractional coins and availability in 47 states. The app supports the seven most common cryptos, and you can trade 24 hours a day, seven days a week.
What are some of the cons of using Robinhood? For starters, you'll find ten cryptocurrencies on the platform that are viewable but not transferable. This fact can prove highly frustrating if you wish to trade in one of these currencies.
You'll also find the platform doesn't permit you to transfer coins into or out of the platform. In other words, you must liquidate before moving assets.
Compare with the best alternative exchanges
|Nexo||Best overall crypto lending platform.||Go to site →|
|CoinLoan||Best for crypto loan borrowers.||Go to site →|
|YouHodler||Most versatile crypto lending platform.||Go to site →|
|Bit.com||Best crypto derivatives platform.||Go to site →|
|Matrixport||Best for institutional investors.||Go to site →|
|Gemini||Best crypto exchange for U.S. investors.||Go to site →|
|Binance||Best overall crypto exchange.||Go to site →|
|Kraken||Best U.S. crypto exchange for advanced traders.||Go to site →|
Gemini vs. Robinhood
What's the takeaway when it comes to Gemini vs. Robinhood? If you're relatively new to the crypto world, Robinhood is a fantastic way to get started.
When it comes to Gemini vs. Robinhood fees, there's one clear winner. With Robinhood, you won't have to worry about transaction or trading fees. What's more, you can focus on seven popular currencies without getting distracted.
And once you're ready to graduate to the next level? We recommend giving Gemini a try. Not only does Gemini prove easy to use, but its security features remain unbeatable.
What's more, you'll gain access to additional features and digital currencies, making it an excellent step-up in the crypto finance world. Are you interested in exploring more crypto platforms? Find out about the top sites in one handy location.