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Gemini

Gemini Review
Trader's rating 1
Editor's rating 3.8

Account types

 

Account type

Minimum deposit

Leverage

Fees

Standard

Undisclosed

N/A

Max of 0.25%

 

Gemini is a relatively simple cyptocurrency exchange. It offers a few instruments, but on the other hand accepts USD bank transfers as a method of payment. There is also a more specific type of trading – auctions, which we will get to later on in the review, 

 

The company, security of funds

 

 

Company

Country

Regulation

Gemini Trust Company, LLC.

USA

US Trust regulation

 

Gemini is a brand owned by t Gemini Trust Company, LLC. They are regulated by the New York State Department of Financial Services (NYSDFS), but not under its infamous BitLicense, but simply as a trust. This assures some consumer confidence, while avoiding the hassle with the unpopular piece of legislation. If you are not familiar with the case, the aforementioned New York regulators wanted to create a licensing system for crypto exchanges. The idea was to make the Big Apple a major cryptocurrency trading centre, just how it is in traditional finance. That being the case the project wasn’t appreciated by most of the companies in the field, as a lot of them didn’t apply for it. Those who argue this makes it basically useless are backed by the rate at which licensing was given to the companies who did apply. At the time of writing of this review, two years since the legislation came into effect, only three companies have been granted the license.

 

The name Gemin comes from the owners of the company, the Winkelvoss twins. While they may be most famous for suing Facebook creator Mark Zukerberg over their idea for a social networking site, they also have interest in the crypto-space. It is worth pointing out, the famous rowers were also involved in Bitinstant, a company which was involved in facilitating transfers for drug deals. The brothers claimed they were only passive investors and were not aware of the operations. 

 

When it comes to security, Gemini hasn’t experienced any large-scale hacks yet. This is generally a good sign, although it does not guarantee anything for the future.

 

The user reviews on the company aren’t that many, which can be explained by the fact it doesn’t operate in the entire world. Here is a map of all of the regions, which they support (click to zoom-in):

 

 

That being the case most of the complaints are focused on slow account verification.

 

The most unique feature of Gemini are the auctions, which are held twice a day. The way they function is similar to the ones which occur at the opening and closing transactions on stock exchanges (not to be confused with “the highest bidder wins the item” auctions). This is where relatively big, in terms of volume, transactions are usually made. Traders can place buy or sell orders which are then matched at a single price. While of of this is happening, trading on Gemini still occurs. This creates an interesting dynamic, just like it does on the New York Stock Exchange – after seeing the pending orders for the auction (known as the “imbalance”) traders can speculate on them moving the market in the short term. For instance, if a relatively large buying imbalance is placed, most will expect the price to rally. That being said, this type of trading is very risky, as new orders may come to meet the imbalance, even in the last second. Furthermore the initial imbalance creator may have set a limit price for his order, above (in the case of buying) he does not want to participate. Trading on imbalances is tricky and while some traders used to enjoy doing so on the NYSE, they can all tell you stories about times when they lost a lot of money on a last second turnaround. This is definitely not recommended for beginners.

 

 

Trading conditions

 

Trading instruments (cryptocurrencies)

The trading instruments available at Gemini are only Bitcoin and Ethereum. Both coins can be traded against the US dollar and against each other. Obviously, this is limiting, but clients who wish to pursue altcoins can always transfer their BTC or ETH to an external wallet or another exchange, like Bittrex.

 

Minimum initial deposit

Gemini does not mention any minimum initial deposit, unlike the majority of forex brokers, which we mostly cover. In that industry, it is quite common for a company to specify an amount, below which one can’t open a new trading account. The levels are fairly low now, with FXCM requiring $50, for instance.

 

Leverage

Margin trading is not available at Gemini. More aggressive clients will not appreciate this fact, although there is enough volatility in cryptocurrencies already. The forex brokers who offer Bitcoin trading, provide leverage. As an example the FCA-regulated industry pioneers at IG have a 1:13.3 ratio (7.5% margin requirement) for Bitcoin trading.

 

Fees

Gemini offers relatively competitive fees. The maximum is in line the current industry standard of 0.25%, with discounts for bigger trading volume. On top of that, fees are lower for market “makers” (traders who passively place their orders in the book). The fees actually turn into rebates above a certain point in volume (only for "makers"). As a comparison, forex brokers usually condense all of their fees in the spread. This makes comparing the two types of services a bit tricky, although we have done so in this post.

 

Trading platform 

 

The platform provided by Gemini is web-based and rather simplistic, with the order book being the main focus. Here is a preview:

 

 

We must note this is an old screenshot, which wasn’t taken by us, due to the restrictions on accepting clients. That being said, the platform may have been improved in the meantime.

 

Methods of payment

 

Gemini accepts Bank Transfers as well as Bitcoin or Ethereum ones. Not a lot of exchanges accept bank transfers nowadays, with the major two ones being Coinbase and Bitstamp.

 

Conclusion

 

Gemini is a US-based crypto currency exchange. The company is registered as a trust, which should give investors a bit more confidence, when compared to a lot of other entities in the crypto-space. The people behind the company are the Winkelvoss twins, which you may be familiar with. Gemini offers little variety, in terms of the trading instruments, but accepts bank transfers. The company operates in a relatively small number of countries. The Auctions which they offer are a neat idea, but most traders will probably not feel the need to use them. Here are the pros and cons of Gemini :

 

Pros

Cons

Regulated US trust

Operates in a few countries

Commissions in line with the industry

Trading platform looks simplistic

Auctions available

Only BTC and ETH available

Accepts bank transfers (from some countries)

 

 

 

Crypto Facilities

Crypto Facilities Review
Trader's rating 5
Editor's rating 3.8

Trading accounts

 

Account type Minimum deposit Leverage Maker Fee Taker Fee
Standard Undisclosed 1:50* -0.03% (rebate) 0.05%

* Trading conditions at this exchange are more specific due to the nature of the products available for trading. For more details check the full review.

 

Crypto Facilities is a platform for cryptocurrency futures trading. This makes them one of the options for miners, looking to hedge their exposure. The most well-known other similar platform is BitMEX

Warning: Several other companies have used Crypto Facilities' FCA registration number. As far as we know, their original website is the only one at which they operate. Here is proof of their disagreement and frustration with these scammers:



 

 

The company, security of funds

 

Company Country Regulation
CRYPTO FACILITIES LTD UK FCA

 

Crypto Facilities is registered in the United Kingdom and more importantly overseen by the Financial Conduct Authority (FCA). This is very unusual as the British watchdog usually doesn’t look at companies dealing in the crypto-space. That being said, this is derivatives trading company, and the crypotocurrencies are only the underlying asset.

 

While the FCA oversees a lot of companies (like forex brokers) and enforces a lot of rules, there are a few specifics in regards to Crypto Facilities. You are probably familiar with the Financial Services Compensation Scheme (FSCS), especially if you have read some of our reviews on forex brokers. This is a mechanism, which guarantees client funds, in case their brokerage goes bankrupt. As point 3.2 of the Membership Agreement at Crypto Facilities states, the FSCS does not apply, as your account balance is kept in cryptocurrencies, which are not yet defined as either “money” nor a “Specified Investment”. 

 

That being said, all of the client accounts are held in segregated cold-storage wallets, backed by Elliptic, an industry-leading crypto-security company. Additionally the blockchain settlement is insured by an “A-rated, Fortune 100 underwriter”. Given the fact the company is based in the UK, you probably have a pretty good idea of which insurer they are referring to, presuming you have any knowledge of that market. 

 

With such major security claims, it probably wouldn’t surprise you to hear that Crypto Facilities has not been hacked yet. In general, this company appears to be much more secure than a lot of the traditional cryptocurrency exchanges.

 

Crypto Facilities partnered with the CME group in order to provide two Ethereum indices. They are the CME CF Ether-Dollar Reference Rate (Ether Reference Rate), which will provide a daily benchmark price in U.S. dollars at 4 pm London time, and the CME CF Ether-Dollar Real Time Index (Ether Real Time Index), which will allow users access to a real-time Ether price in U.S. dollars. Price data is gathered from two of the most reputable exchanges: Kraken and Bitstamp.  Being connected with such an established derivatives trading institution, like the CME Group is a positive sign.

 

There aren’t that many user reviews on Crypto Facilities, which is understandable, given the relatively complicated nature of their offering. The few comments we found were all positive.

 

We feel the need to reiterate, trading on this venue is very different from other cryptocurrency exchanges. The company has even set-up a questionarie, which one must fill before being allowed to trade. This is done in order to protect unsophisticated enthusiasts from loosing their funds due to not understanding the nature of margin trading.

 

Trading conditions

 

Account types (cash and margin)

Before we begin discussing the trading conditions at Crypto Facilities, we must mention the accounts are only kept in Bitcoin, Ethereum and Ripple. Additionally, before you begin trading, you must transfer coins (internally) between your main (cash) account and one of your margin accounts. The latter vary by trading instrument. While all of this seems very complicated, in reality it isn’t. Here is how the wallet interface looks:

 

 

Each of your secondary wallets serves as your trading balance for that particular futures contract. This provides a form of risk management, which is always appreciated. 

 

Trading instruments (cryptocurrencies)

Crypto Facilities supports Bitcoin (with the newly agreed upon symbol XBT, instead of the more traditional BTC), Ethereum (ETH) and Ripple (XRP) futures trading. 

 

The currently available crosses can be seen in the previous screenshot, where three coins are traded against the USD and there is an XRP:XBT pair. 

 

In terms of maturity, contracts are weekly, monthly and quarterly (for some instruments).

 

Leverage

The maximum leverage ratio offered by Crypto Facilities is 1:50 for Bitcoin to USD trading. The conditions vary for different instruments and are a bit more complicated than the ones offered by other companies. Here is a preview:

 

 

Be sure to fully understand the meaning of all the terms listed here before you start trading. 

 

Margin netting, between long and short positions is available, presuming you trade from the same margin portfolio. 

 

We must mention, that there are other derivatives based on digital assets. These are the spot CFDs, available at some forex brokers. While Bitcoin and Ethereum are the most popular, Litecoin is also occasionally being offered. While these CFDs are linked to the current price of the asset in question and not the future value, they do have some further specifics. You can read all about them here, if you are interested.

 

Fees

The fees at Crypto Facilities are charged in XBT, ETH and XRP, in accord with the specific contracts. Here are the details:

 

We have to compare these fees with ones charged by the major competitor offering a similar service. The taker fee at BitMEX is 0.075%, while market makers get a 0.025% rebate, which makes Crypto Facilities the cheaper trading venue.

 

Summary 

 

While the above description of the trading conditions may appear complicated, here is a table, summarizing it all:

 

 

 

Trading platform

 

The trading platform at Crypto Facilities is web-based. While this shouldn’t come as a surprise to anyone familiar with cryptocurrencies, there is an argument to be made for desktop solutions.  The platform was updated to feature charting by TradignView (which is a top-tier third party provider) and have an interface which is generally cleaner.

 

 

The order book is arranged in two columns, which traders versed in traditional markets will prefer to the single column approach, used by many exchanges. 

 

Update: This section of the Crypto Facilities website is apparently taken down, but we will keep the following text. 

 

The “analytics” section off the website offers some extra features.. Here is how the index charting looks (The overall index allows comparison to the quotes provided by Bitstamp, Bitfinex, BTC-E, Coinbase and ItBit.):

 

 

And here is a preview of the futures curves, which allow one to see if the market is in a contango or backwardatiwon:

 

 

Our opinion of the Crypto Facilities platform is neutral. While it offers some futures-specific elements, the main trading window is less than ideal. Additional tools will probably needed for serious trading.

  

Methods of payment

 

The only way of transferring funds in and out of Crypto Facilities is the blockchain. Once you register an account, you are given Bitcoin, Etherum and Ripple wallets, to facilitate your trading. As mentioned above the control to specify how much to put into each margin wallet and how much to leave as “cash” is a neat feature.

 

Conclusion

 

Crypto Facilities is a London-based cryptocurrency futures trading platform, overseen by the FCA. While the they do not participate in the FSCS, they still follow other major rulings. The company’s overall security appears to be much higher than what is currently offered by other exchanges. That being said, trading at Crypto Facilities is not for everybody. The mere concept of futures trading is somewhat more complicated than the ordinary crypto trading. Add the volatility of cryptocurrencies on top of that and you get a potentially explosive combination. More experienced traders, as well as miners looking to hedge their “virtual crops” may find this to be one of their best options. Here are the pros and cons of Crypto Facilities:

 

Pros Cons
FCA-regulated (FSCS doesn’t apply) Complicated trading environment
Top-tier security features Accounts held in crypto
Blockchain settlement insured Only accepts blockchain transfers
Charts by TradingView  
Two-factor Authentication
 

 

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