What is Gemini dollar ($GUSD)?

Gemini is a leading cryptocurrency exchange used by thousands of crypto investors daily. The platform features all kinds of tools and instruments which assist users in managing their digital assets. Gemini has issued its stablecoin called Gemini Dollar, which significantly facilitates the trading process on the exchange.

What is Gemini crypto?

Key points:

  • Gemini Dollar was issued by Gemini, an exchange which is subject to the US and New York laws.
  • Unlike other stablecoins, GUSD crypto receives a regular audit to ensure its supply corresponds to that of the underlying asset.
  • GUSD transactions are free, fast, and secure and can be sent and received anywhere globally.

History of Gemini dollar

Gemini exchange

The concept of stablecoins emerged in a crypto community as a response to the need to have a cryptocurrency that would not be subject to huge price fluctuations experienced by Bitcoin. Gemini Dollar is a stablecoin issued by Gemini in 2018 with an intention to offer a crypto asset that would make it easier for crypto investors to leverage their funds on the blockchain. Gemini was deployed on the Ethereum network, and it is an ERC-20 token with a ticker symbol of GUSD. The asset instantly rose to popularity, and to this day, it remains a go-to option for investors on Gemini who want to cash out into stablecoins.

How does Gemini dollar work?

GUSD crypto

Gemini Dollar works just like any other cryptocurrency. GUSD has a set exchange rate of 1:1 with the US Dollar, a currency to which the stablecoin is pegged. In other words, at any moment, the value of GUSD corresponds to the value of USD. In order to ensure that the value is always kept at the same level, Gemini has designed a robust mechanism for increasing the supply of the token. Since the supply of USD is always rising, the amount of GUSD in circulation is also growing. Thus, Gemini manages to make sure that the amount of GUSD never exceeds the amount of the underlying asset.

What makes $GUSD unique?

GUSD | Ethereum

While there are many other stablecoins on the market, certain features make Gemini Dollar a truly unique one. Gemini is a crypto exchange which is fully regulated by the United States and is subject to New York banking laws. The U.S. Bank that holds the funds backing GUSD is FDIC-insured. As a result, Gemini Dollar was issued in accordance with all state and federal laws, and the exchange has all the necessary licenses and registrations.

Additionally, the Gemini Trust Company, LLC, as an issuer of Gemini Dollar, hires an external audit firm which regularly examines Gemini’s holdings of the underlying asset.

How to use $GUSD?

Using the Gemini coin is easy. In order to purchase it, one needs to go on the Gemini exchange and perform all basic KYC procedures. Once you have a verified account, you can start trading GUSD just like any other cryptocurrency. You can also acquire GUSD outside of Gemini on different third-party platforms.

The GUSD crypto is usually used by investors as an intermediary asset. In other words, GUSD is a convenient currency for buying and selling other cryptocurrencies, especially on the Gemini exchange.

Advantages of $GUSD

Compared to other crypto, GUSD also has a variety of advantages.

  • First of all, Gemini users can trade GUSD absolutely for free since GUSD transactions do not entail any fees, when sent via Gemini.
  • GUSD transactions are borderless and can be sent and received at any place on the planet free of charge.
  • GUSD transactions also take only a few seconds.
  • Users can stash any GUSD savings into Earn at 8.05% when not using it as currency

Basically, GUSD is a perfect alternative to the US dollar but without the need to pay for bank fees and wait days for the money transfer to go through. Answering the question “Is Gemini crypto safe,” Gemini has introduced reliable mechanisms to prevent any kind of attack on its infrastructure.

Conclusion

GUSD is a cryptocurrency which is unlike any other stablecoin. GUSD was issued by Gemini, one of the first exchanges to receive official licensing in the United States. GUSD is supervised and audited, which means that it is safe to use. You can accept GUSD as payment or donations using NOWPayments.