In this comparison article, we take a closer look at the world’s #1 ranked exchange, Binance, and the exchange ranked #1 for U.S. crypto users, Gemini. Does size really matter? Is this a total mismatch?
Let’s find out.
Compare Binance vs Gemini
|7 Day Volume|
Binance offers 10 different VIP trading levels based on the 30-day trading volume of BTC, with higher trading volumes receiving discounted fees — an industry norm. Holders of large amounts of BNB, Binance’s native token, will pay 25% less.
Users who take advantage of Binance’s referral program can unlock a further 20% discount on top of the 25% discount from holding BNB. The quick math on this is that you will pay just 60% of the original maker and taker fees (learn more here).
|VIP Level||30-day Trade Volume (BTC)||BNB Holdings||Maker Fee||Taker Fee|
|VIP 0||< 50 BTC||≥ 0 BNB||0.10%||0.10%|
|VIP 1||≥ 50 BTC||≥ 50 BNB||0.09%||0.10%|
|VIP 2||≥ 500 BTC||≥ 200 BNB||0.08%||0.10%|
|VIP 3||≥ 1,500 BTC||≥ 500 BNB||0.07%||0.10%|
|VIP 4||≥ 4,500 BTC||≥ 1,000 BNB||0.07%||0.09%|
|VIP 5||≥ 10,000 BTC||≥ 2,000 BNB||0.06%||0.08%|
|VIP 6||≥ 20,000 BTC||≥ 3,500 BNB||0.05%||0.07%|
|VIP 7||≥ 40,000 BTC||≥ 6,000 BNB||0.04%||0.06%|
|VIP 8||≥ 80,000 BTC||≥ 9,000 BNB||0.03%||0.05%|
|VIP 9||≥ 150,000 BTC||≥ 11,000 BNB||0.02%||0.04%|
Deposit fees for bank transfers, wire transfers, and crypto transfers have been removed from Gemini’s end, with only the payment processor taking a fee. Gemini also offers users the first 10 crypto withdrawals each month free of commission. After those 10 withdrawals, users should pay a fee in the cryptocurrency that is being withdrawn, for example:
- 0.001BTC (approx. $22) to withdraw Bitcoin
- 0.001ETH (approx $0.60) to withdraw Ethereum
Like Binance, Gemini discounts users if they trade larger and larger amounts, however, Gemini measures in USD rather than BTC, as seen in the chart below:
|30-DAY TRADING VOLUME IN (USD NOTIONAL)||TAKER FEE||MAKER FEE||AUCTION FEE|
Winner: Gemini. Their fees are considerably lower.
Maker: Someone who adds liquidity to the market by placing an order above the market price, allowing their order to sit in the order book. They are rewarded with lower fees.
Taker: Someone who takes liquidity from the market by placing an order that is immediately fulfilled. They pay a higher fee as a result.
Sign up and KYC experience
Signing up to Binance is a breeze. Here’s what to do:
- Visit the Binance website here and click ‘register.’
- If you’re in the US, visit Binance.us.
- Type in your email address and password for a new Binance account.
- Binance will send you a 6-digit email verification code.
- Congratulations, you’re registered. Now you need to add some funds.
Signing up to Gemini is similar to signing up for other exchanges, with one significant difference: they want a direct connection to your bank. Spooked? Don’t be; this is so you can make faster fiat deposits than their rivals. Let’s walk you through the sign-up and KYC experience.
- Visit Gemini.com to start the sign-up process.
- Opt to create an account and provide your email address, password, and full name.
- Check your email inbox for a verification code and link.
- Next, give your phone number and physical location, wait for an SMS, then type in the code from the text.
- Now, you’ll log into your online banking as part of the sign-up process. Ensure your Gemini account and Bank account have the same name; otherwise, you’ll fall at this hurdle.
- KYC-time. Submit a document proving your identity, such as a passport or driving license, and another document to confirm your address, like a bank statement.
- Wait for verification. Once approved, you can connect to a payment method, make your deposit, and start trading to your heart’s content.
Winner: Binance. It’s quicker to get started and requires fewer personal details.
Ease of Use & Feel of Website/App
Binance has become the world’s leading exchange thanks to low fees, high liquidity, over a thousand market pairs, and a certain friendliness that comes with their service. When China started tackling cryptocurrency, Binance moved to Malta so their users would not be disrupted and lose faith.
Both the web platform and app are simple, popular, and user-friendly. Binance P2P even allows users to trade directly with each other rather than going through the exchange.
Gemini is perfect for institutional investors thanks to the dedication to compliance and regulations; as a result, their marketing gives off a corporate vibe with terms like ‘invest,’ ‘diversify,’ ‘trading strategies,’ ‘recurring buys,’ and ‘portfolio.’ Are they targeting general beginners or corporate beginners? It’s hard to say, but the app is safe, trustworthy, and easy to get the hang of.
Winner: Gemini. Gemini’s app becomes a lot more user-friendly for beginners after removing confusing data and price information from the display options. Binance is a complete app, and novice traders would be well advised to give it a go, as it will help to learn trading much faster.
Binance does not charge users to make deposits. However, their payment processing partners do:
- Bank transfer (3.5% Simplex charge)
- Wire transfers through Paxos are free, but they more similar to crypto-purchases than traditional wires – learn more.
- Cryptocurrency/digital asset transfer (always incurs a mining cost)
Like Binance, Gemini has waived the deposit fees at their end, but their payment providers will still grab a slice:
- Instant bank account transfer – using your connected bank (free through the ACH network)
- Wire transfer (flat fee)
- Debit card (3.49% provider charge)
- Cryptocurrency/digital assets transfer (mining cost)
Instant Buy Options (Buying with credit or debit card)
You can use both debit and credit cards on Binance to purchase cryptocurrencies instantly.
Instant purchases can be made by connecting your bank account to your Gemini account. You can even start trading before the transfer has finished processing, as Gemini is confident of receiving the funds. Debit card transactions for instant purchases are permitted with the following currencies:
- U.S. dollar (USD)
- Pound Sterling (GBP)
- Hong Kong dollar (HKD)
- Canadian dollar (CAD)
- Australian dollar (AUD)
Winner: Binance, as it permits credit cards.
Binance has become the exchange that other exchanges measure themselves up to. Trading experience is a major factor in this, as Binance boasts the highest liquidity, most web traffic, and most market pairings in the world. They offer P2P and DeFi products and an almost-identical platform, especially US traders, to avoid financial regulation complications.
Did you know? Binance handles around 100x more trading volume per day than Gemini.
The trading view on Gemini is pretty simple compared to Binance. Users have some options for order book views and historical price data on several cryptocurrencies. It likely won’t be enough for advanced traders, but it’s a great place to start and familiarize yourself with crypto trading for beginners.
Winner: Gemini for beginners and Binance for more experienced traders.
Reputation & Security
There are bound to be bumps in the road along the way when growing an exchange; Binance probably didn’t expect 7,000 bumps, coincidentally how many Bitcoin were stolen in their major 2019 breach, worth $40m at the time. Binance quickly refunded the users who had been stolen from and moved on. The other major downside to Binance is their notoriously lousy customer service. Beyond these two negatives, their reputation is intact and thriving, establishing themselves as the top dog for high-net-worth traders and ambitious beginners alike.
Prioritizing security, legitimacy, and compliance, Gemini is ideal for institutional partners; they were the first US exchange for passing their SOC 1 Type 1 and SOC Type 1 and 2 exams. Unlike Binance, Gemini has never been hacked. Overall, their reputation is growing, as is their market share.
Winner: Gemini is more secure and more compliant overall.
Like always, it’s a matter of preference for the user. Here at Coin Clarity, we aim to support beginners, but in truth, both platforms are solid and viable options, so we’d suggest you try both and see which is more suitable for you. If you have any previous trading experience, perhaps in stocks, then Binance won’t overwhelm you. If you’re a total beginner, Gemini might be a more accessible starting point to onboard you into the world of cryptocurrency.