Coinbase vs Binance: Which crypto exchange is right for you?

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Binance and Coinbase dominate exchanges in the current cryptocurrency market. Both services allow users to trade, buy, and sell cryptocurrency.

In 2012, Coinbase became one of the first crypto exchanges on the market, thanks to the efforts of Brian Armstrong and Fred Ehrsam. A regulated exchange based in the U.S., it supports some of the top cryptocurrencies currently available. A top exchange, Coinbase provides an easy-to-use app and enables users to buy crypto with their bank accounts or credit cards.

Founded in 2017, Binance is a relatively new player in cryptocurrency. The exchange has rapidly grown to become the largest cryptocurrency exchange in the world by volume. Despite Binance’s global reach, they were forced to create a separate entity, Binance US, for U.S. users.

There is a difference in the types of cryptocurrencies available on the two platforms. As of now, Coinbase offers over 40 cryptos it supports after a rigorous vetting process. Unlike Binance, it offers more than 500 cryptocurrencies.

We compared each platform based on its currencies, security, fees, features, and more to help you pick the right option.

Overview of Binance vs. Coinbase

Binance has announced that its service will no longer be available to U.S. residents after March 2021. The Binance.US platform, however, is only available to U.S. residents with limited currency options and high fees.

Top Recommended Platforms

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.8

4.9/5

73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.7

4.8/5

CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 78% of retail investor accounts lose money when trading CFDs from this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.3

4.5/5

CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 65.3% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

  BINANCE COINBASE
Features Trading interfaces with a variety of order types; API keys; low commissions per trade It offers a simple interface for buying, selling, and exchanging; USD is quoted as the price.
Fees Fees for purchases and trades are capped at 0.10% (discounts are available). Credit cards incur an additional 3% fee. Currency-specific fees apply to deposits and withdrawals. Each trade costs 0.50%; Purchases from a bank account or Coinbase Wallet cost an additional 2.49%; Purchases from a credit card cost an additional 2%
Cryptocurrencies supported 500+ cryptocurrencies 40+ cryptocurrencies
Security features Authentication via SMS or Google Authenticator app; Hardware-based authentication; U2F security; Address whitelisting A two-factor authentication system via SMS or Google Authenticator app; cold storage; multi-signature wallets; $250K FDIC insured USD balance; KYC / anti-money laundering protocols
Types of transactions You can deposit and withdraw or trade futures and options. Send, receive, exchange, and buy
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Binance vs. Coinbase: Which Is Easier? 

Binance is a choice platform for all things crypto-related.   Binance’s simplicity and advanced charting, trades, and API keys make trading accessible to all users.

Binance requires only your email address and a password to register for a free account. With two-factor authentication, you can secure your account and connect your bank account and credit card once you verify your email address. You can then purchase crypto immediately.

Coinbase’s user interface makes buying, selling, and trading cryptocurrencies easy. They have an iOS and Android app for on-the-go access.

The sign-up process and verification process on Coinbase is simple. You can register for a free account with your email address, then verify your identity. On Coinbase’s web version, you can upload your I.D. manually or take a picture with the Coinbase app.

Upon verification, you can immediately purchase cryptocurrency using a credit card or bank account.

Coinbase Vs. Binance: Security features

You can protect your digital assets with solid security settings at Binance and Coinbase. On each platform, you can choose from a variety of security options:

Features of Binance’s security

Trust Wallet partnership: In digital wallets, Binance partners with Trust Wallet, a leader in the market with more than five million users. Trust Wallet uses PINs, biometric access, a 12-word recovery phrase, and an encrypted key to secure your assets.

Whitelisting crypto addresses: You can restrict access to withdrawal addresses with Binance’s address whitelisting feature. Your address book stores these addresses, which prevent other addresses from accessing your funds.

Two-factor authentication: You can use Google Authenticator or SMS for two-factor authentication (2FA) on Binance.

Advanced verification: 

Advanced verification is required to unlock more features on Binance (like larger deposit/withdrawal limits). Also, it ensures that your identity won’t be used to create a fake account. Advanced verification requires a photo I.D. and a photo of yourself.

Device management: If you do not recognize an I.P. address that has accessed your account, you can restrict it.

Features of Coinbase’s security

Built-in wallet: The Coinbase digital wallet is a secure place to store your cryptocurrency. Access is controlled by biometrics and a password. As with other digital wallets, it features an encrypted 12-word recovery phrase.

Two-factor authentication: You can authenticate with Coinbase using SMS or Google Authenticator. Passcodes are time-sensitive, which allows you to secure your account access. 

Cold storage and crypto vaults: Coinbase maintains your assets in “cold storage.”. Their cold storage keeps 98% of all crypto balances protected from hackers.

A cryptocurrency vault is also available on Coinbase to ensure that your digital assets are secure. To prevent fraud, the vault is configured to require multiple user approvals for withdrawals. The withdrawal is also time-locked, which means it is canceled if it does not receive all approvals within 24 hours.

FDIC Insurance: FDIC insurance is available only on USD (U.S. Dollar) deposits at Coinbase. It covers USD deposits up to $250,000, similar to a traditional bank. The FDIC insures only dollar investments in your account, not other investments. Therefore, any cryptocurrency lost would not be covered.

Binance vs. Coinbase: Features

While Binance and Coinbase make buying and selling cryptocurrencies easy, they do so differently. Here are some features that make each platform unique:

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Binance Unique Features

User rewards: To encourage user participation on Binance, the company regularly holds giveaways and challenges. These prizes can be redeemed at the Binance rewards center. Additionally, Binance conducts crypto airdrops for upcoming listings.

Binance Academy: Binance Academy is a free educational platform hosted by Binance. Binance Academy has everything you need to learn about crypto, from beginner lessons to advanced trading tutorials.

Huge variety of trade options: One of Binance’s greatest strengths is the wide range of trade types it offers. Some of the trade options are as follows:

  • Pool liquidity
  • Stop limit order
  • Margin trading
  • Limit order
  • Trailing stop order
  • Peer-to-peer trading Market order
  • Limit TP/SL order (strategy order)
  • Stop market order
  • Post only order e.t.c

Advanced charting: Through the embedded TradingView charts, Binance users can create advanced charting views. 

API keys: Third-party apps can integrate with Binance API keys thanks to Binance’s open API.

Coinbase Unique Features

Free education (+ free crypto): Short educational videos on Coinbase explain the different cryptocurrencies. In exchange for watching the videos, users will receive a small amount of free cryptocurrency on the platform and mobile app.

Newsfeed: Coinbase users can keep up with the latest crypto news with Coinbase’s built-in newsfeed. This feed aggregates articles from the web that provide information on important market trends and changes related to cryptocurrencies.

Price alerts: The Coinbase platform allows users to set up alerts for price changes in cryptocurrency they want to track. The watchlist feature allows users to view currency updates on the app or receive mobile notifications. 

Binance vs. Coinbase: Currencies

The top cryptocurrencies are available on Binance and Coinbase, but Binance offers 10% more currencies than Coinbase. Binance offers 500+ cryptocurrencies in comparison to Coinbase’s 40+ crypto.

You can purchase cryptocurrency in dollar amounts on both platforms. In Binance, the minimum order amount is $1, while in Coinbase, it is $2.

Also, Bitcoin, Ethereum, Uniswap, Chainlink, and Compound are some of the major currencies both platforms support.

Binance vs. Coinbase: Fees structure

In terms of fees, Binance and Coinbase differ significantly. It generally costs less to trade cryptocurrencies and fund your Binance account.

The fee for Coinbase transactions averages 0.50%. Depending on what account is used for the transaction, Coinbase also charges extra fees.

Also, Coinbase fees per transaction can amount to about 4%. It can cost up to 9% of the total price of a cryptocurrency to purchase and sell on the same day using a credit card.

Coinbase is suitable for long-term investors who want to purchase and hold a currency.

However, the Binance fee structure encourages high-volume traders and offers lower transaction fees. Both maker and taker fees are equal in this maker-taker fee structure.

A “taker” is someone who places an order at the market price that gets filled right away and who is charged a fee for taking the order. The user is considered a “maker” when a trade is executed. 

Also, the BNB token (Binance’s native token) is discounted when used to pay for these fees with a 0.1% fee per transaction. Only Binance offers these tokens for sale.

Fees decrease to 0.02% for high-volume trading (measured in Bitcoin amounts).

Furthermore, compared to other payment systems, Binance has a fee of less than 0.1% per transaction. Binance offers some of the industry’s lowest fees if you are an active trader.

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Binance vs. Coinbase: Accessibility

Currently, Coinbase and Binance do not operate in all countries (as of March 2021).

Since the United States has restrictive KYC (Know Your Customer) and anti-money laundering laws, Binance has built a separate platform for U.S. users.

Comparatively to Binance.com, Binance.US crypto markets have fewer cryptocurrencies and trading options. 

Due to the lack of margin trading, limited crypto-to-crypto trading, higher deposits and buying fees, and the inability to use credit cards, Binance US are currently not suitable for U.S. residents.

However, Coinbase currently offers its full platform in 100 countries, including the United States.

Final Thoughts

There are many similarities between Binance and Coinbase. Besides offering access to similar currencies, both sites enable users to buy, sell, and trade their digital assets, and both offer educational resources for new crypto users.

Because of its minimalist design and fantastic mobile app, Coinbase is the easiest platform for beginners. Coinbase’s easy-to-use interface allows you to purchase and sell crypto within minutes, and your digital funds are safe and secure.

Binance is a great place to explore the crypto world if you aren’t a U.S. resident. Most active traders will find Binance suitable because of its easy-to-use platform and range of trade options.

Consider your risk tolerance before investing in cryptocurrencies, no matter which platform you choose.

Binance vs. Coinbase FAQ

Binance and Coinbase: What Are They?

A cryptocurrency exchange platform, such as Binance and Coinbase, allows users to trade cryptocurrencies. Coinbase provides beginners with an easy way to buy their first cryptocurrency, while Binance offers advanced traders a variety of trading tools.

By volume, Binance is the largest crypto exchange in the world, but it is not accessible to U.S. residents. There are several consumer protections on Coinbase to ensure the safety of investors.

Binance and Coinbase: How Do They Work?

Binance is an online brokerage that allows users to trade in cryptocurrency and buy, sell, and digital exchange currencies. Cryptocurrency is purchased using a standard bank account or credit card after users create an account. After withdrawing those currencies, users can trade them via Binance or withdraw them to their digital wallets.

Similarly, Coinbase allows users to deposit fiat funds, then exchange them for cryptocurrencies. There are no advanced trading options available on Coinbase, such as futures, options, or limit orders.

Can I use Coinbase’s wallet?

In the Coinbase Wallet, you can store all your cryptocurrencies in one place. There are several layers of security, including biometrics and a 12-word recovery phrase.

Many decentralized applications use the Coinbase Wallet to exchange crypto. The Coinbase Wallet is a trusted place to store cryptocurrencies, regardless of whether you are looking to trade or hold keys.

Coinbase vs. Binance: Which Should You Use?

Whatever your level of trading experience is, Binance is a fantastic platform. Besides no trading fees, there is a crypto education center where users can learn more about cryptocurrency. Additionally, they provide access to upcoming cryptocurrencies.

Coinbase is a great place for beginner investors to learn about cryptocurrency. You can easily buy your first digital currency with Coinbase’s intuitive interface and easy onboarding process. Coinbase has a great user education section and crypto bonuses as a start-up platform.

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