Crypto Invest

Gemini Earn – Is It Safe? (Review)

Gemini Earn Review

Last updated on June 28th, 2021

Lending out your crypto for high interest rates is becoming extremely popular now. Many platforms offer this functionality, and Gemini is the latest to do so.

With the release of Gemini Earn in Singapore, here is my breakdown of this platform:

Gemini Earn review

Gemini Earn provides an easy way to earn interest on your crypto that you already have on Gemini’s platform. You are not charged any transaction fees, and withdrawing your crypto is very flexible. However, Gemini may loan out your funds via unsecured loans, which may have an increased risk of losing your funds.

Here is this platform reviewed in-depth:

What is Gemini Earn?

Gemini Earn is a platform that allows you to lend 38 different cryptocurrencies to Gemini’s approved borrowers. In return, you will earn an interest rate on your crypto that is calculated daily.

Gemini Earn is similar to other lending platforms, like Celsius or BlockFi. You will lend out your crypto via these platforms, and receive interest in return.

How do I use Gemini Earn?

Here are the steps you’ll need to start using Gemini Earn on Gemini’s platform:

  1. Go to the ‘Earn’ tab
  2. Select the crypto you wish to earn interest on
  3. Select the funds that you want to transfer to Gemini Earn
  4. Select the amount of the crypto you want to earn interest on
  5. Confirm the transfer

#1 Go to the ‘Earn’ tab

On the Gemini app, you’ll need to go to the ‘Earn‘ tab.

Gemini Earn Select Earn Tab

#2 Select the crypto you wish to earn interest on

Once you’re there, you can select the currency that you want to earn interest on.

Gemini Earn Select Currency

You can select 38 different currencies to earn interest on, including:

  1. UNI
  2. BTC
  3. ETH
  4. LINK
  5. AAVE
  6. LTC

#3 Select the funds that you want to transfer to Gemini Earn

There are 2 types of funds that you can earn interest on:

  1. Your existing balance
  2. Your new funds that you can buy using with your bank account or debit card
Gemini Earn Select Balances

If you want to buy crypto on Gemini, you may want to consider using Gemini’s Active Trader. This is because they charge much lower fees compared to their Exchange platform.

#4 Select the amount of the crypto you want to earn interest on

You’ll be asked to select the amount of crypto that you want to transfer to Gemini Earn.

Gemini Earn Select Amount

#5 Confirm the transfer

You’ll be given one more time to review the transaction, before confirming your transfer.

Gemini Earn Confirm Transaction

Your funds will be transferred over,

Gemini Earn Successful Transaction

and you can start earning interest on your crypto after one business day.

Gemini Earn Successful Transaction 1

You can view the total interest you’ve earned over the past 30 days.

Gemini Earn View Interest Earned

What are the interest rates for Gemini Earn?

Here are the interest rates that you can earn when you lend your crypto to Gemini:

CurrencyInterest Rate
1INCH1.51%
AAVE3.05%
ALCX2.25%
AMP1.78%
ANKR2.25%
BAL1.54%
BAT3.49%
BCH4.29%
BTC2.05%
COMP2.47%
CRV1.77%
DAI7.40%
DOGE2.25%
ETH2.05%
FIL4.48%
FTM2.25%
GRT1.26%
GUSD7.40%
INJ1.51%
KNC1.77%
LINK4.08%
LPT2.25%
LTC2.77%
MANA1.80%
MATIC1.51%
MIR2.25%
MKR1.98%
OXT2.47%
PAXG1.81%
REN1.77%
SNX1.77%
STORJ1.77%
SUSHI3.10%
UMA1.77%
UNI3.59%
YFI3.29%
ZEC1.75%
ZRX1.81%

Gemini Earn is one of the few ways that you can earn interest on Dogecoin.

It is interesting to see that Gemini does not allow you to earn interest on GUSD, even though that is their native stablecoin!

The only stablecoin that you can earn on is DAI.

These interest rates are subject to change, and you may earn a higher or lower rate compared to these predicted rates.

Gemini will announce when they change their interest rates. Furthermore they intend to change their rates for a maximum of once per month.

Can I withdraw my funds from Gemini Earn?

You are able to withdraw your funds from Gemini Earn at any time, without incurring any fees. However, it may take up to 5 business days for your funds to be transferred back to you.

Gemini Earn is very flexible, and you can withdraw your funds at any time!

Gemini Earn View Withdraw Crypto

Your crypto should appear in your account once the transaction has been processed.

If Gemini’s partners experience a large volume of withdrawal requests at the same time, it may take a longer time before your funds reach your account.

Gemini has given their partners a 5 business day limit to transfer your funds.

Gemini Earn 5 Busienss Days Withdrawal

Is Gemini Earn considered as staking?

Gemini Earn is different from staking your crypto. Gemini lends out your cryptocurrencies to approved borrowers. Meanwhile, you can only stake cryptocurrencies that use a proof-of-stake network. Most currencies on Gemini Earn do not have this feature.

The term ‘staking’ has been used quite loosely in the crypto world. However, you are lending out your crypto with Gemini Earn, instead of staking it.

You can only stake cryptocurrencies that are on a proof-of-stake network. This includes currencies like:

  1. ADA
  2. ATOM
  3. DOT

For most of the currencies that are on Gemini’s platform, they aren’t really proof-of-stake currencies.

As such, using Gemini Earn does not mean that you’re staking crypto!

What are the minimum amounts for Gemini Earn?

There is no minimum amount required for each cryptocurrency to start using Gemini Earn. However, the lower the amount you lend out, the less interest you will receive each time.

You are able to start earning interest on your cryptocurrency, no matter how small the amount.

This is more flexible compared to Crypto Earn which has rather high minimum amounts to lend out your crypto.

What are the fees for using Gemini Earn?

You will incur an ‘agent fee’ when you are loaning out your crypto with Gemini Earn. However, the interest rates being advertised by Gemini are net of this agent fee. The agent fee may change at any time, and Gemini will notify you of these changes.

You will not incur any fees when you are transferring your crypto in and out of Gemini Earn. This is slightly better than BlockFi or Nexo. Both platforms may charge you a fee for withdrawing crypto.

As such, the main fees that you’ll incur are the agent fees.

Under Gemini’s terms of service, the agent fees may change at any time. This is something you may want to take note of!

Is Gemini Earn safe?

Gemini loans out your cryptocurrencies to their approved borrowers, which they have done extensive checks on. However, according to Gemini’s Terms of Service, the crypto that you lend out may be via an unsecured loan. This may add extra risks to your loans.

Gemini loans out your funds to their approved borrowers. So far, Gemini’s only approved borrower is Genesis Global Capital.

Gemini Earn Approved Borrower

You may want to take extra caution when placing your funds with Gemini Earn. This is because of this clause in their Terms of Service.

Gemini Earn Terms Of Service Program Risks

In the event that a borrower defaults with your cryptocurrency, you may not be able to get back your funds!

Moreover, Gemini does not require borrowers to post collateral when they take a loan.

This may mean that your loans may be much riskier, compared to lending out your crypto with BlockFi or Celsius. The borrower does not have much penalties if they decide to default on the loan.

As such, you’ll need to consider if it’s worth taking this risk when lending out your crypto with Gemini Earn!

Is Gemini Earn insured?

The funds that you lend out with Gemini Earn are not covered under Gemini’s ‘Digital Asset Insurance’. This is because they are lent out to their approved borrowers, so Gemini would no longer have control over your assets. Your funds are also not insured by the FDIC as well.

Gemini has possibly one of the most secure crypto Exchange and Wallet platforms out there. They even have an insurance policy if the funds in their hot wallet get hacked!

However, you lose all of these insurance benefits when you use Gemini Earn. This is because your assets are now with Gemini’s approved borrowers.

Why doesn’t Gemini Earn show up on my app?

Gemini Earn is currently only available in all U.S. states and Singapore. If the Earn feature does not show up on your app, it could mean that Gemini Earn is not available in your country.

Is Gemini Earn legit?

Gemini Earn is a rather safe and easy way for you to earn interest on the crypto that you loan out with them. However, the Terms of Service may be a bit unsettling due to the possibility of lending out your funds via unsecured loans. You’ll need to consider if it’s worth taking this risk when using Gemini Earn.

I’ve been earning some interest on my LINK, and I do not have any issues with Gemini Earn so far.

Gemini Earn Interest on LINK

Nevertheless, Gemini provides free 10 withdrawals each month for your crypto. This means that you are able to send the crypto that you’ve bought via Active Trader to another platform like BlockFi or Celsius.

Typically, both of these platforms provide a higher interest rate compared to Gemini Earn!

This gives you the flexibility of choosing which platform you would like to loan your crypto out to!

Conclusion

Gemini Earn provides an easy way for you to earn interest on your crypto.

It does not have any transaction fees, and the withdrawals from the platform are almost instant.

However, lending your funds with Gemini may seem a bit riskier compared to other platforms.

This is because you may be lending out your crypto via an unsecured loan.

Furthermore, the interest rates offered by Gemini are much lower compared to other platforms!

As such, you’ll need to balance between:

  1. The convenience of leaving your funds with Gemini
  2. The safety and the higher potential returns that you can achieve with other platforms

👉🏻 Referral Deals

If you are interested in signing up for any of the products mentioned above, you can check them out below!

Gemini Referral (Earn $10 USD in BTC)

If you are interested in signing up for a Gemini account, you can use my referral link.

You will be able to receive $10 USD in BTC!

Gemini Referral

Here’s what you need to do:

  1. Register for a Gemini account
  2. Trade ≥ USD $100 or equivalent on Gemini’s platform
  3. Receive USD $10 worth of BTC in your account

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