Binance and Coinbase are two of the biggest and the most popular cryptocurrency exchanges in the world. After reading this Binance vs Coinbase comparison, you will be able to decide which exchange is the right fit for you.
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What is Binance?
Binance is the largest cryptocurrency in the world and handles more trading volume than any other exchange on a daily basis. It was first introduced in 2017 and is relatively younger than most of its competitors, including Coinbase.
The exchange was founded by Changpeng Zhao, a Chinese Canadian business executive who had several years of experience in the cryptocurrency and blockchain sector.
Right after the launch, Binance gained immense popularity and became the primary exchange for a lot of crypto traders in no time.
It has over 500 different cryptocurrencies available on the platform, and customers can buy any of them with ease. These cryptocurrencies are paired with USDT, BTC, ETH, and a few other FIAT currencies and can be exchanged on the spot market.
The user experience and security provided by Binance are also top-notch, and users can trade or store their assets worry-free.
Binance is also well-known for offering other features and services like Futures trading, staking, and stock token.
The reliability combined with the ease-of-access and advanced features is what makes Binance a great cryptocurrency exchange.
What is Coinbase?
Unlike Binance, Coinbase is one of the oldest cryptocurrency exchanges out there and has been around since 2012.
It is a US-based cryptocurrency exchange that was founded by Brian Armstrong and Fred Ehrsam in San Francisco.
When it comes to reputation, Coinbase is one of the most trusted and safest crypto exchanges not just in the United States but in the entire world. It has over 56 million users and offers over 55 different cryptocurrencies.
Coinbase offers its services in the U.S. and is also the most successful cryptocurrency exchange in the country. Its simple and easy-to-use interface makes it easier for new investors to buy and sell crypto instantly.
However, Coinbase does not offer features like margin trading which might not be ideal for some traders.
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Binance vs Coinbase: Cryptocurrencies Comparison
Cryptocurrency exchange Binance is one of the major players in the crypto space, and when it comes to the cryptocurrency roster, it has a lot to show off.
The Binance exchange offers more than 500 digital currencies paired up with USDT, BTC, ETH, and other major FIAT currencies.
It is an ideal exchange for people who want to diversify their investment portfolio or are interested in less popular cryptocurrencies.
From high market cap coins to low market cap coins, Binance has it all. It also promotes new projects with its launchpad, and there are a lot of cryptocurrencies out there that were first released on Binance.
The exchange supports multiple payment methods, so these cryptocurrencies can be bought easily.
You can also buy the native token of Binance (BNB) and can trade these cryptocurrencies with an extra discount. Some of the main cryptocurrencies offered by Binance includes:
The cryptocurrency roster offered by Coinbase is not nearly as good as the one offered by Binance, but it still has all the major cryptocurrencies.
Up until recently, Coinbase was only offering a handful of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
However, due to the demand, the exchange opened its door to new cryptocurrencies and started listing new assets gradually.
Just like Binance, Coinbase also supports multiple FIAT currencies, and you can purchase them directly with your credit/debit card.
Some of the main cryptocurrencies offered at Coinbase includes:
Binance vs Coinbase: Fees Comparison
In terms of trading fees, Binance uses the old maker and taker model and is known to charge low rates. It charges a fee of 0.1% for both the makers and takers for low-volume trades.
Customers who are interested in trading high-volume can enjoy fees as low as 0.02% for makers and 0.04% for takers.
The fees can be reduced even further if the customers decide to pay the fee in BNB token.
Currently, Binance is offering a discount of 25% on trading if you pay with the BNB token. You can also earn a 5% to 20% discount by inviting a new member to Binance.
Binance charges no fee for FIAT withdrawals and deposits if you are using ACH.
If you are going for bank transfers, you will have to pay a fee of $15 on every transaction(an additional fee could be added by the bank as well).
The fee for cryptocurrency withdrawals depends entirely on the asset you are withdrawing.
Coinbase is not the ideal cryptocurrency exchange when it comes to the fee structure as it is more on the expensive side.
To access the trading platform, you have to sign up on Coinbase Pro, and the fee there starts from 0.50%.
Just like Binance, the fee goes down as the volume increases, but it does not happen that fast. Customers should always keep the 0.5% fee in mind before making any trade.
Similarly, the bank transfers on Coinbase have a fee of 1.49%; however, ACH deposits are free on Coinbase as well.
Binance vs Coinbase: Security Comparison
The crypto exchange Binance offers an excellent security structure and uses two-factor authentication to secure customer login.
With Binance academy, customers can learn how to manage their accounts in a safe way and learn to protect their accounts better.
With its advanced features like Address security management, the wallet addresses that can be connected to a single account can always be limited.
Whenever you need to add a new wallet address, you will have to verify it through your email.
Binance has also done well against cyber-attacks and has never made its customers suffer. It did experience a breach in 2019 where the exchange ended up losing $40 million worth of Bitcoin.
However, the company came forward and covered the losses of any customer who was a direct victim of the attack.
Coinbase, on the other hand, is considered one of the most secure cryptocurrency exchanges out there. If you are using the exchange right away and are keeping your login information secure, you will never run into any troubles on Coinbase.
The main issue with Coinbase in recent years has been social media scams, and unfortunately, many customers have fallen victim to that.
Even though it is an external issue, the exchange has still taken some extra measures to ensure that customers aren’t falling prey to such scams.
Coinbase also keeps 98% of all the cryptocurrency in cold wallets to protect it against any sort of online attacks. Also, the data is encrypted and distributed, which adds an extra layer of security.
Binance vs Coinbase: User Experience
Binance User Experience
One of the main reasons behind Binance’s popularity is the user experience it offers to its customers. Binance is not the simplest cryptocurrency exchange out there, but it is not a complicated one either.
The website has enough assistance for new investors, and they can learn their way around the exchange in a matter of days. It also has video tutorials for new users that can help them complete certain actions.
Binance is also one of the most advanced cryptocurrency trading platforms out there as it offers more than just spot trading.
It is one of the reasons why Binance is an ideal exchange for all kinds of investors.
Coinbase User Experience
The regular version of Coinbase has a very basic interface for new investors as they can buy or sell crypto directly from the exchange.
Customers have to pay a premium fee for such transactions, but they are convenient and can be executed in seconds with no hassle.
Binance vs Coinbase: Payment Methods
Binance Payment Methods
The payment method supported by Binance includes:
- Credit/debit cards
- Wire transfers
- Peer-to-peer transactions
Coinbase Payment Methods
The payment methods supported by Coinbase includes:
- Wire Transfers
- Credit/debit cards
- The largest cryptocurrency exchange in the world
- Offers multiple trading pairs against different FIAT currencies
- High liquidity
- Low trading fees
- Future Trading
- Earn passive income through Binance staking and savings
- Top exchange for new investors/traders
- Easy portfolio monitoring
- Advanced trading tools and indicators
- Earn with staking and learning
- Secured cold wallets (offline storage)
Conclusion: Which is Better Binance or Coinbase?
American citizens cannot access Binance global, but they can always sign-up on Binance US to enjoy some of the features offered by the platform.
If you are interested in margin trading or features like pool swap and staking, then Binance is an ideal option for you. Similarly, if you are interested in just spot trading, Binance is a better option as it charges much less fee than its competitor Coinbase Exchange.