What Is the Gemini Dollar and How to Buy It?
By SwapSpace on The Capital
GUSD is an ERC-20 crypto developed by the Gemini Trust Company — a New York-based trust overseen by the Department of Financial Services. GUSD is a USD-pegged stablecoin: a single Gemini Dollar is equivalent to the USD at a 1:1 ratio and offers little to no fluctuation in price. Gemini holds the funds that back their crypto in a State Street bank and have had their product insured by FDIC.
With the project compliant to the stringent demands of the NYDFS, the trust has to be audited by an unaffiliated third party. The initial audit was concluded by Trail of Bits, a company that does security research and penetration testing, with the report publicly listed on the Gemini’s official site. The report shows that neither the coin or the system itself has any weaknesses that could potentially expose users’ assets to attacks.
Gemini currently works with BPM — an accounting and consulting firm — for more regular audits.
- GUSD’s reliability and undisputed security is what sets it apart from other similar tokens — like Tether or Pax;
- Gemini is an ERC-20 token and benefits from the many advantages of the Ethereum blockchain;
- The project integrates the perks of blockchain with the security of the U.S. Dollar and the supervision of official regulators;
- The coin boasts high rates of turnover and retrieval in comparison with many other stablecoins;
- Users with a BlockFi Interest Account (BIA) can earn compound interest on their GUSD.
- Interacting with GUSD requires proving your identity and passing certain KYC procedures;
- GUSD is a regulated stablecoin, which may seem like an advantage, but also makes the crypto subject to regulations. Regulated tokens can be censored or confiscated if an activity or transaction associated with them is deemed illegal by the regulating authority.
How does the Gemini Dollar work?
Users looking to buy GUSD need to open up an account on the Gemini website. During registration, users can enable two-factor identification, which adds security to the account. After that, users will be asked to specify a bank account that they will transfer USD to and from. The platform requires all users to verify their identity by uploading a photo of any government-issued form of identification.
GUSD is issued when purchased off of the Gemini platform. A minimum of $100 can be swapped for GUSD at a 1:1 exchange rate at any time.
The user withdraws GUSD from their Gemini account to any ERC-20 wallet they specify. At the time of withdrawal, an equal amount of USD is subtracted from the bank account that the user had specified during registration.
The issued GUSD are redeemed when they are put back into the account by the user. After this, the system deposits an equivalent amount of USD back into the user’s bank account.
Where to trade GUSD?
GUSD is commonly swapped for USDT, BTC, and ETH. The coin can currently be found on most major exchanges, including these:
- On SwapSpace homepage, select GUSD in “You send” section and the cryptocurrency you would like to receive in “You get” section. Enter the amount of GUSD you want to exchange.
- Choose the instant exchange service that suits you most.
- Specify the recipient address and check if all the data is correct.
- Send your GUSD coins to the address you will see on the screen.
- Wait until the exchange is complete.
The Gemini Dollar can be stored on any wallet that supports ERC-20 tokens. The best options are Ledger, Trust Wallet, MyEtherWallet, and MyCrypto. You can learn more about the pros and cons of each wallet in this article.
Being a government-regulated stablecoin, the Gemini Dollar offers a secure and simple on-ramp for budding crypto enthusiasts. The token is well suited for a beginner investor, while seasoned traders may find the limited selection of trading tools to be restricting. GUSD’s strict modulation may also deter crypto-users that are looking to steer clear of censorship and over-regulation.
The coin still has plenty of room to grow and the team can make significant improvements to the current functionality of both the platform and their exchange. What makes GUSD stand out, however, is its spotless security record, which may be just what the token needs to continue accumulating interest from the community.
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Originally published at https://swapspace.co.