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Gate.io

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Top 10

Gate IO Review 2023: An Expert's Comprehensive Analysis

4

3.9

3.75

4.25

4

Overview

General

Fees

Customer service

Requirements & Accessibility

Pros

Cons

Key Takeaways

  • Long-running and feature-rich exchange

  • Great for those with some crypto knowledge

  • Multiple trading options

  • Higher withdrawal limits for more currencies

Origins

Introduction

 The Gate.io platform may not have reached the god tier of contemporaries like Binance and Coinbase but is nevertheless an extremely popular voice for many traders.

Margin trading, futures, perpetual contracts, and crypto lending and borrowing are all on offer, making it a robust trading exchange that can appeal to many.

But do we rate the gate or think it pales in comparison to its peers? Find out as CoinScan dives in! 

History

Gate.io was originally founded as Bter.com by Lin Han in 2013, before being rebranded to Gate.io in 2017 after the Chinese government banned fiat-to-crypto trading.

Originally founded  in China, the company later relocated to the United States, (MCLean, Virginia specifically).

The company managed to raise $64 million in 2019 by selling its native GateChain Token, which was followed by the launch of its startup investment platform – which allows users to invest in new cryptocurrency projects.

This second release then raised more than $165 million in funding by April 2021, and the platform has enjoyed a steady rise to the top from there.

Indeed, since May 2021, Gate.io has become the world's ninth largest cryptocurrency exchange by trading volume.

A few other notable releases by the platform along its ascent were:

  • Cryptocurrency options trading in 2020

  • Gate.io Labs (an incubator program) in January 2021

  • NFT Magic Box (an NFT trading platform) in May 2021

User Experience

Ease of Use and Design

With hundreds of trading alternatives, live market updates, and trade information, Gate.io offers a robust trading experience.

For novice investors, Gate.io also offers a superb help section, including a "Cryptopedia" of terms and supplementary information.

A lot of the exchanges’ technology and services are interestingly presented in a comic-book cartoon style, (and are often accompanied by educational videos) making it easier to understand for all and make for a more enjoyable experience.

These same pages also offer a calendar of significant crypto events that have affected (and will continue to shape) the market.

This all combines to improve technological understanding so users can make wiser elections and trading choices. 

In terms of general use, Gate.io has a plethora of features. On every cryptocurrency platform, spot trading is available, but some users also have access to leveraged and futures trading (depending on location).

Additionally, it provides cryptocurrency interest-earning products and has an NFT trading platform.

Unfortunately, in several countries – including the United States, certain functions are not available. But with the US this is no surprise due to their overly complicated laws around crypto trading – step it up America! 

Usage and Popularity

Gate.io holds its own when it comes to users and popularity. Sure, it might not boast the 29 million users of Binance, but it still has a very impressive 12 million worldwide, which is nothing to be sniffed at.

It has a bunch of trading options, such as

  • Margin

  • Leverage

  • Futures

  • Lending

  • Staking

That said, the site does have a few teething issues that make it in many ways not the ideal choice for some traders.

Firstly, inexperienced and new investors will likely be completely overwhelmed by the sheer number of options on the platform and may well be frustrated by the inability to deposit fiat currency to buy crypto directly on the platform.

It's worth noting however that users can buy cryptocurrency with a credit card and pay no card fees on some crypto transactions on the platform.

Another barrier is the platform's geographic limitations. Gate.io is not available to residents of the following countries:

  • United States

  • Canada

  • United Kingdom

  • the Netherlands

  • France

  • Germany

  • Italy

These countries are restricted to only spot trading on the exchange, with no access to the rest of Gate.io's comprehensive products and features. 

On the plus side, Gate.io's abundance of tradable coins and competitive fees make it a great platform for advanced traders looking to pursue lesser-known tokens on a centralized exchange.

It is important to note however, that some of the tokens on its site (like KuCoin) are relatively unknown with smaller marketcaps, making them far riskier and volatile.

Of course all crypto currency can be viewed as inherently risky,  but it is a good idea for traders to keep in mind that a wealth of quantity doesn’t necessarily reflect a wealth of quality.   

Customer support

There is a wide range of options to get in touch with customer support. Nearly all of the social media platforms are there, and each one offers open direct messages.

Additionally, customers can use the 24/7 live chat feature through the Talk and Telegram apps as well as the website itself, or go the traditional route of email support.

Users can also monitor their inquiries through their accounts by using an email-based ticketing system, which is a nice touch, but there is no direct phone line (when is there ever?)

Reviews of Gate.io have also lauded the site's comprehensive help section, which offers both basic instructions for using the platform and more sophisticated advice for using its numerous trading strategies, so thumbs up here for the exchange. 

Overall, while they offer very basic customer support options that are common across almost all exchanges, the execution here is at least above average compared to those same exchanges.

Fees and Promotions

Fees 

The maker-taker model is used for Gate.io spot trading fees. Users pay different fees depending on whether an order removes liquidity from the exchange (in which case they are charged a taker fee) or adds liquidity to the exchange (in which case they are charged a maker fee).

Like rivals such as Binance, Gate.io also has a VIP system which will further reduce fees, but would fill an entire article itself to break them down, so we have instead included a handy link here. 

Users are eligible for a discount based on how much GateToken ($GT) – Gate.io's native crypto token – they own, or how much GT they trade. Individuals can lower their fees even further by paying for spot trades with GT.

 Withdrawals, (like most crypto exchanges), incur a fee that varies depending on the cryptocurrency users wish to withdraw. The majority of these are flat rates that can be steep for small withdrawals but become proportionately less impactful the higher the withdrawals.

Trading fees on Gate.io are pretty average compared to other platforms. The maker/taker charge of 0.2% is less than Coinbase or Gemini, but higher than low-fee platforms like Binance.

Fiat deposits, though, can be pricey. Like the majority of cryptocurrency exchanges, Gate.io levies a fee for deposits made in Fiat.

Depending on whether a third party handles the payment, there are various deposit fees, and some of these can be pretty extortionate.

Although it varies depending on the cryptocurrency being withdrawn, the withdrawal fee is standard across exchanges. It is super important to explain here that Fiat currency cannot be taken out of the Gate.io website, which is a pretty major thumbs down for the site. 

Comparison

When assessing the crypto landscape, both Gate.io and Gemini emerge as significant platforms, yet they cater to somewhat different demographics within the crypto community due to their features, regulatory stance, and offerings.

Gate.io is recognized for its vast array of altcoins. The platform offers a broad range of tokens, even relatively newer ones, making it an attractive choice for traders looking to diversify their portfolios or invest in niche projects.

Its user interface is intuitive, catering to both newcomers and seasoned traders. Moreover, Gate.io places a heavy emphasis on security, with multiple layers of protection such as two-factor authentication, cold storage, and encryption protocols.

The platform, however, tends to have a more global or international outlook, which means it might not be as localized or regulated as some exchanges that focus on specific regions.

In contrast, Gemini, founded in 2014 by the Winklevoss twins, is headquartered in New York and places a significant emphasis on regulatory compliance. This exchange is fully licensed and regulated, making it one of the most trusted platforms in the U.S. for buying, selling, and storing digital assets.

Its strong regulatory alignment means that it has fewer altcoins compared to Gate.io, but it offers an extra layer of trust and security for users, especially those wary of the sometimes volatile crypto market.

Furthermore, Gemini has been proactive in developing products that bridge the traditional financial world with that of cryptocurrencies. With features like Gemini Earn, users can earn interest on their crypto holdings, and its user-friendly interface makes it approachable for beginners.

In summary, while Gate.io appeals to a global audience with its extensive list of altcoins and robust security features, Gemini stands out for its stringent regulatory compliance, trustworthiness, and efforts to integrate traditional finance with the crypto world.

If you're a more seasoned crypto enthusiast, we recommend Gate.io so you can diversify and explore everything crypto has to offer. If you're not quite there yet, Gemini is a great stepping stone prior-to.

Safety Essentials

Security 

Gate.io has a number of safety and security measures in place and ticks many of the security checkboxes to help keep its users safe from hacks and issues. 

Firstly most user assets are kept in cold storage and offline. The company also employs expert auditing firms and outside virus protection to constantly evaluate it's system.

The Gate.io platform itself encrypts data transferred back and forth using the standard SSL protocol. It has a number of comprehensive security measures at the user level, including anti-phishing safeguards, account monitoring, and two-factor authentication.

In addition, when signing up, users have to jump a few hurdles, including completing a full KYC, validating their email address and selecting a unique password for when they want to withdraw cryptocurrency. 

All in all, Gate.io has some pretty robust safety features, but doesn’t go the extra mile in comparison to sites such as Kraken, which has left no node unturned when it comes to beefing up its security – so there is definitely some room for improvement here on Gate.io’s end.  

Controversy

It was all going so well wasn’t it? Unfortunately Gate.io hasn’t remained free from controversy, although far less than many of its contemporaries.

CER rated Gate.io as one of the top exchanges in terms of cybersecurity; however, it has been hacked in the past. The exchange was first hacked in 2015, and approximately 7,000 BTC were stolen from the exchange's wallet.

Gate.io's security systems were breached again in 2019, resulting in the theft of 4,200 Ethereum Classic coins worth approximately $271,500.

According to reports, the stolen funds eventually returned to the company, due to the hacker being a ‘white hat’ (basically a good hacker), who wanted to simply highlight security weaknesses on the site, so that they could improve their security, which they promptly did. 

Their twitter account was also hacked and used to by the malicious attacker to send out a fake gate website to steal users funds and information. Seems like this specific situation was dealt with rather quickly though by Gate.io in the end.

Overall Gate.io has done relatively well to avoid controversy and the latter of its two hacks was simply a good opportunity for the site to learn, which then makes it surprising that it hasn’t employed extra security layers to get it to the levels of say Kraken, leaving many to wonder if it has truly learned from its mistakes. 

Proof of Reserves

Ethereum Virtual Machine
$91,775,803
Ethereum Virtual Machine
$62,353,175
Bitcoin
$33,346,344
Bitcoin
$16,281,224
Bitcoin
$16,119,217
Ethereum Virtual Machine
$9,063,706
Bitcoin
$4,035,269
Ethereum Virtual Machine
$790.00
Tron
$274.00
Ethereum Virtual Machine
$940,559,930
Bitcoin
$182,693,345
Bitcoin
$181,472,912
Tron
$152,988,203
Tron
$23,752,536
Ethereum Virtual Machine
--

We don’t want to keep harping on about FTX because frankly Bankman-Fried doesn’t deserve the spotlight, but it was important to show just how crucial it is that exchanges are transparent and let users see how their money is being stored and potentially used. Gate.io do fairly well in this regard, providing full reports that anyone can easily find online:

According to the independent third-party company Armanino LLP, which published the findings in a report after finishing a proof-of-reserves evaluation, the worldwide cryptocurrency exchange Gate.io has demonstrated that it has 108% reserve ratio for all customer BTC assets.

The investigation also discovered that 104% reserve ratio of users' ETH assets are also accounted for, which means Gate.io's BTC and ETH reserves are greater than all users' assets combined.

Proof-of-reserves attestations are started by cryptocurrency exchanges to demonstrate that users' asset balances are actually stored and exist on the exchange. Despite the fact that proof-of-reserves have been present for a while, Gate.io was the first to conduct them in a way that was highly transparent, user-verifiable, and cryptographic, which is a huge plus for the company. 

Through the use of a cryptographic Merkle Treeone of the fundamental elements of Bitcoin – Gate.io has created a way that enables users to securely and confidentially confirm their participation in the attestation. 

In this area Gate.io goes above and beyond to ensure that its more than 12 million consumers throughout the world have increased security and transparency, and it deserves a tip of the hat for its dedication to transparency.

Conclusion

In conclusion, it is evident that Gate.io is a strong exchange and has a number of great features – particularly its learning section for new users which innovates on the way that those just starting their trading journey can educate themselves, and by extension avoid the various pitfalls of crypto trading.

Both novice and advanced users find value in the wide range of trading and account options, which range from the ability to simply purchase crypto with a credit card to sophisticated derivatives and finance. The sliding scale of cost reductions based on trading and holdings will suit those high volume traders even more.

Additionally, Gate.io supports a sizable number of cryptocurrencies compared to others and constantly adds new ones. Although the mobile apps aren't flawless, the PC and browser versions are quite easy to use. Although Gate.io has endured the test of time, it is not the cheapest exchange out there.

The only currency accepted for deposits and withdrawals is cryptocurrency, which is a big negative for the site compared to others. This means that in order to get access to fiat, users are forced to bring another exchange into the fold and transfer assets, which effectively defeats the entire purpose in the first place, as they might as well just use the other platform

In terms of the fundamental costs of using the platform, they are significantly greater than what many rivals charge. Users who engage in a lot of trading each month, however, might benefit from decreased fees but there are other exchanges who simply do it better

Overall the platform has gotten a lot right, especially with its learning and transparency of how it stores user funds, as well as a vast range of different trading options, as well as an exciting NFT platform giving traders lots of ways to interact with the exchange. However, its issues in various countries, its high fees, and – crucially – its lack of a Fiat withdrawal option make it a difficult platform to recommend above others.