Cryptocurrency is no longer a strange and unfamiliar term. When mentioned, it is always associated with bitcoin and blockchain. For the developers, the blockchain concept is one revolutionary technology that will provide a ubiquitous digital portal through which all transactions will occur. Bitcoin is an asset that has provided tremendous returns for the investors that no asset class has ever given. By all accounts, the 1300% return for Bitcoin in 2017 has put it within the annals of one of the best return asset class ever.
However, as digital currency acceptance gains momentum, we see increased fraud, hacking, and cyber theft in digital currencies. Keeping cryptocurrency secured can be a tall order, and security is always in the mind of investors.
Envysion is proud to partner with Gemini in offering clients access to cryptocurrency trading. This partnership was cemented as a result of the inadequacies in the crypto world. In today’s context, there are multiple platforms that investors can trade crypto. In fact, clients in Singapore can even buy a crypto currency from a vending machine. This is not ideal particularly in the security and confirmation of the trade aspects.
Who is Gemini?
Gemini is a cryptocurrency exchange that is founded by the Winklevoss Twins (Cameron Winklevoss and Tyler Winklevoss) in 2014. It is a US-based company with FDIC protection, that operates on a simple platform that is easy to use with an enhanced level of security. Gemini has a track record of zero security breaches.
The Story Behind Gemini's Security
The secret to Gemini’s high-level security lies in its proprietary cold storage technique. Cold storage keeps digital wallets offline from the network, which protects them from any hackers. In the past, exchanges that were hacked are usually due to the over-storage of hot wallets. Assets under hot wallets are connected to a network and this leaves them vulnerable to hackers. Gemini is aware of this and their digital assets are mostly stored in air-gapped cold storage systems which are offline. While Gemini does manage hot wallet funds, they are FDIC insured. This means that even in the event of a hack, the digital assets will remain safe. As such, for those who value security, Gemini is the right place to go to.
With security being its main selling point, Gemini crypto exchange is suitable for investors focused on the above-mentioned cryptocurrencies. Clients who are making large volume trades or exchanging between fiat and digital currency, would certainly enjoy the enhanced security that Gemini can provide in protecting both fiat and digital currency account.
So why did Envysion choose to partner Gemini? Here are the reasons:
- Gemini offers over 47 cryptocurrencies and growing. This gives investors a wide range of options to select the crypto to trade.
- There are multiple platforms. Gemini provides the level of security expected by regulators.
- They have bought insurance to ensure the security relating to both the system functionality and custody.
- They provide 24 / 7 service.
- Trade confirmations are available within 5 minutes from the moment the trade is done.
- They are subjected to audit, compliance, and capital reserve requirements equivalent to a financial institution in the US.
- They provide updated news on the crypto world. This will aid investors in making informed decisions.
- Gemini accepts fiat currencies such as USD, AUD, CAD, EUR, GBP, and HKD as well.
- Gemini is a New York trust company regulated by the New York State Department of Financial Services (NYSDFS).
- With increasing interest from retail and institutional clients, regulators are paying a lot more attention, and sometime in the future, these platforms will be regulated eventually. It is advisable for clients to make the first move onto a recognized regulated Exchange.
- Trading Liquidity on Gemini’s Exchange is ample.
- There are tools on Gemini’s platform to assist in trading strategies.
Comparison of Avenues to Trade Crypto
|Trading Hours||24/7||24/7||0900 to 1800 on weekdays
|Number of Currencies||47 types of Cryptocurrencies||41 types of tradeable crypto currencies assets||Only four: BTC, ETH, BCH and XRP
|Execution Mode||Screen trading and OTC execution capability for block trades with algos||Screen Trading, OTC execution capability for block trades with algo, Multiple execution options, Direct access to exchange||Only screen-trading available
|Trade in Custody||More seamless liquidity with Gemini exchange. No more waiting 8-24 hours to move your crypto from your cold wallet.||Unclear||Not available|
|Custody||Qualified custodial offering with more than five years of track record, US $200mil insurance and trade-in-custody functionality.||Coinbase Custody – Qualified custodial offering|
Separate Standalone independent, NYDFS-regulated entity built on Coinbase’s crypto-first DNA.
|In-house custody with no mention of insurance coverage|
|UX/UI||Trading and custody are all within one single user interface||Trading and custody are all within one single user interface||Trading and custody of assets likely not within the same single user interface
|Accessibility||Anyone with a Gemini account||Anyone with a Coinbase account||Only for Institutional and AI clients next week
|Security||Completed third-party industry-grade security testing (SOC 1 Type 1, SOC 2 Type 1 and SOC 2 Type 2) by Deloitte ||Completed the SOC 1 Type 2 (“SOC 1”) and SOC 2 Type 2 (“SOC 2”) examinations by Grant Thornton LLP||In-house|
|Audited||Gemini custody is regularly audited and subject to the capital reserve requirements and compliance standards of a traditional financial institution in the US||Coinbase custody is regulated by Grant Thornton under rigorous audits and is subjected to capital reserve requirements and compliance standards of a traditional financial institution in US ||Not disclosed
|Crypto-Native||Deeply connected to the crypto financial markets with a global coverage (NY, UK and SG) with a pipeline of innovative products (to be announced in 2021). |
Enhanced security systems in managing both fiat and digital currency accounts
|Global platform coverage for crypto-markets. |
Supported Areas: All US states except Hawaii. Canada, Hong Kong, Singapore, South Korea
Gemini, the better choice
Lastly, Gemini provides a full suite of local coverage (i.e Relationship Managers, Customer and Tech Support), which other platforms may not have. Gemini takes a regulatory-first approach in listing tradeable tokens rather than a commercial approach. Gemini is also the only regulated exchange that did not list Ripple (XRP), which is now charged by SEC in US.
Prioritising security and regulation, Gemini maintains a good working relationship with regulators. Gemini works with 3iQ (first Canadian regulated ETF fund), Raiz Invest (Australia based) as well as State Street to globally to offer custody to institutional clients which makes Gemini attractive.
Note: This is NOT an exhaustive list of action points. This note is to enable preliminary discussion only. The information contained in this article should NOT be construed as professional advice.
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