Do you want to get into the mysterious world of cryptocurrency to make more money in passive income? Then you need to know read up on the Binance vs. Coinbase debate!
One of the hottest topics in the finance world is cryptocurrency, which may be one of the new best investments for your portfolio. With Bitcoin hitting record highs, many people are jumping on board to invest with Binance, Coinbase, and other cryptocurrency platforms.
New investors to the crypto world want a reputable and trustworthy exchange platform to invest their money in crypto exchange and often ask these questions.
This blog post will compare Binance vs. Coinbase, two of the most popular exchanges for buying cryptocurrencies online.
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At A Glance: Binance Vs. Coinbase
Binance and Coinbase are being put towards the tops as two of the best crypto exchanges, with some other crypto platforms running to catch up. Not only that, they’re the two largest cryptocurrency exchanges- Binance is sitting at 13.5 million active users, and Coinbase is only a little behind them with 13.3 million!
They have a lot in common, like their easy-to-use mobile apps, digital wallets, and other account features, but each has advantages and disadvantages that can sway you to one of the other.
Let’s take a look at how Binance and Coinbase compare at a glance!
Binance
Binance is a popular site for buying cryptocurrencies.
It’s easy to use, offers a wide variety of currencies and tokens, has low fees, good customer service, and allows users from all over the world (except the U.S.) to purchase cryptocurrency with little hassle.
Binance Pros:
- Binance offers low rate fees, making it reasonably affordable.
- A variety of payment options is available plus additional payment services and institutional services, like crypto loans.
- Several different order types are available for traders to use.
- Currently, there are over 500 cryptocurrencies available for global traders, and over 60 cryptocurrencies are available for U.S. investors on Binance.us.
- The second layer of protection is offered with 2FA security through SMS or Google Authenticator.
Binance Cons:
- It may be better for advanced traders- the interface may appear cluttered or confusing for beginners new to trading.
- There is a limited amount of cryptocurrencies available for U.S. traders on Binance.us.
- The minimum trade on Binance.us is $10.
Coinbase
Coinbase Global, Inc.(its full name!), is known for higher fees but additional features including its digital wallet, crypto loans, and institutional services. They also offer educational resources, which makes investing easier for newbies!
Before signing up for the service, you need to know some Coinbase pros and cons. Let’s take a look at those now.
Coinbase Pros:
- Coinbase has a user-friendly interface, making it easy for beginners to get started with cryptocurrencies.
- Coinbase is one of the most secure and oldest cryptocurrency exchanges in the world. They have implemented multiple layers of security, including two-factor authentication and a host of other measures.
- Coinbase users can use their Apple Pay, Google Pay, and PayPal accounts to purchase bitcoin, ethereum, and other cryptocurrencies.
- Coinbase offers 107 trading currencies on the regular platform, while Coinbase Pro offers 57.
Coinbase Cons:
- Coinbase charges higher fees than other exchanges. That can be a significant drawback for many crypto traders looking to save money on every trade they make.
- In addition, you have fewer transaction types available than other crypto exchanges like Robinhood or Binance.
- The crypto coins available on Coinbase are limited as well, so you can’t trade all the types of cryptocurrencies that other exchanges offer.
- Advanced trading options are not available on Coinbase, which may be a big drawback for advanced traders. Margin trading was shut down on November 25, 2020.
Binance Vs. Coinbase Fees
One of the most important factors for a cryptocurrency exchange is its trading fees.
If you’re trading on an exchange that has high fees, you could be losing serious money just by doing what you love – trading cryptocurrencies. Binance and Coinbase are very different in operating when it comes to costs.
Binance
Binance charges less in fees per transaction than Coinbase. The purchase and trading costs may differ depending on the cryptocurrency and your VIP level status.
Binance offers several perks, including reduced fees if you pay with Binance’s native currency (BNB). The charge is reduced even more if the trading volume is large (measured in Bitcoin amounts) and the time of day is more active (measured in Eastern Standard Time).
When you buy and sell crypto, Binance charges fees like:
- 1.10% – 2.10% if you pay with a credit or debit card
- .10% if you pay with your bank account or digital wallet
- .10% for exchange crypto
- $15 for each U.S. wire transfer and it’s free for each international wire transfer
Coinbase
The fees charged by Coinbase are higher than the fees charged by Binance.
Coinbase charges you:
- 4.49% if you pay with a credit or debit card
- 1.99% if you pay with your bank account or digital wallet
- 2% for exchange crypto
- $10 for incoming transfers
- $25 for outgoing transfers
Binance Vs. Coinbase Features
There are many unique features that both Binance and Coinbase offer for their users. Depending on your cryptocurrency trading needs, some of these features are better than others.
Binance
Binance is one of the largest crypto exchanges and is popular with cryptocurrency enthusiasts because of its robust features.
- Native Currency: The main feature that Binance offers is the ability to use its digital currency (BNB) for reduced fees when you pay your fees with BNB.
- Transaction Types: Binance supports a variety of transaction types, which is great for professional traders. These include limit orders, market orders, stop-loss orders, and take-profit orders.
- Customer Support: Many answers to common questions can be found on the Binance Support page.
- Rewards: The Binance rewards center also offers the opportunity to earn free crypto by entering giveaways and completing challenges.
- Free Education Platform: Binance users can take a free beginner to advanced lessons on cryptocurrency trading in Binance Academy.
- Charting Tools: Advanced charting views can be created by TradingView charts. Overlays and indicators are available.
- Access to API keys: Third-party apps can integrate with the Binance platform because of the access to the Binance custom API keys.
Coinbase
Coinbase offers a variety of features and crypto services that are beneficial for different types of traders. These features include:
- Two-Factor Authentication (2FA): Coinbase has two-factor authentication, an extra layer of security to protect your account from unauthorized access.
- Free Crypto: Learn about the cryptocurrency market and earn free cryptocurrency with Coinbase Earn. All you have to do is watch videos and take a quiz to earn FREE cryptocurrency.
- Address Whitelisting: You can use address whitelisting to pre-approve addresses that want to withdraw from your account.
- Insurance: Your cryptocurrency is covered by FDIC insurance up to $250,000, the same insurance used by banks for insuring a bank account.
- Device Management: You can essentially save/register the devices you use on your account, like your phone and computer, and Coinbase will save them on your account. You can sign in on other devices, and sign out as normal with no changes.
- Vault: A vault can be created to securely store large quantities of cryptocurrency.
- Coinbase Pro Trading Platform: Coinbase offers a crypto trading platform called Coinbase Pro with advanced charting views and trading on margin.
- Coinbase Crypto Wallets: The Coinbase wallet is a secure place where you can store all of your cryptocurrencies in one place. You also have the option to use this wallet as an online or offline storage solution (aka cold storage).
Binance Vs. Coinbase Currencies
Binance
As of March 2021, it isn’t available to U.S. residents BUT Binance.us is available for 43 states in the United States who wish to invest their money and grow their wealth with Binance. It is not open to residents of the states of Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Binance.US enables customers to trade sixty-five plus (65+) cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Chainlink, and Dogecoin. They also have issued their currency called Binance Coin.
Binance.com offers more than 590 cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Chainlink, and Dogecoin.
Coinbase
There are over 95 cryptocurrencies offered on Coinbase. Coinbase offers Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Binance Vs. Coinbase Security Features
Both Binance and Coinbase both provide extensive security measures to their users to keep their personal data safe.
Both offer device login pages to protect your account access. If you see a device that you do not recognize, you can deny the login and sign out of the device that you do not recognize.
Binance
Binance does not have its own digital wallet but instead works with Trust Wallet, which secures assets with a PIN, biometric access, encrypted key, and a 12-word recovery phrase.
There is also a two-factor authentication system with Google Authenticator app or SMS that is offered that users must enable to use.
The 2FA system means that you’ll need your password and a code sent to your phone that changes every thirty seconds to access an account.
To access more features, you must first verify your identity. It also ensures that no one uses your personal information to create fraudulent accounts. Advanced verification necessitates a government-issued photo ID, and a photograph of yourself is submitted to the system.
Coinbase
Coinbase offers a wide range of security features. They offer a digital wallet for storing cryptocurrency encrypted with a 12-word recovery phrase. Two-factor authentication is also offered through the Google Authenticator app or SMS.
They also provide a crypto vault that protects digital assets. This prevents fraudulent withdrawals and may be set up to require multiple user approvals before the money is transferred.
The Coinbase vaults are time-locked. If withdrawal transactions are not completed within 24 hours, the withdrawal is canceled.
Coinbase also offers “cold storage.” Cold storage is when your assets are not stored on the internet. This reduces the risk of hacks or other issues.
Binance Vs. Coinbase Usability
Before deciding on which cryptocurrency exchange platforms to use, it is essential to consider the usability of each platform. Binance and Coinbase target different demographics, so it should not be surprising that they have other usability priorities.
Binance
The Binance platform is designed for people with the necessary skills and understanding to trade cryptocurrencies on the internet. Because it offers more features than Coinbase, Binance.com can be overwhelming for some users.
There is a Binance mobile app available on both iOS and Android for both Binance.com and Binance.us. The app scores a better rating on Apple with nearly 5 stars. The Binance app’s rating on Android is just 2.5 stars.
Customer service is better on Binance. They offer live chat, email, and they will respond on Twitter.
Coinbase
Coinbase is a popular crypto exchange for beginners. It is easy to get started with Coinbase. The sign-up form is simple and so is the verification process. All you need is a government-issued ID and email address. All of this can also be done on the Coinbase mobile app.
The Coinbase interface is one of the most straightforward exchanges for beginners. It is one of the simplest to use to buy, sell, and trade cryptocurrency.
There are multiple ways to pay on this cryptocurrency exchange. Coinbase users can buy cryptocurrency using one of the following accepted payment methods: a bank account, debit card, PayPal, Google Pay, and Apple Pay.
Advanced users can easily upgrade their Coinbase account to a Coinbase Pro account to access additional features and reduced prices once they have a basic grasp of purchasing and selling crypto.
Final Verdict
Cryptocurrency investors have been wondering which cryptocurrency exchange is better for them- Binance vs Coinbase?
Both crypto exchange platforms have their pros and cons, but ultimately the one that is a better fit for each investor depends on their needs and skill level.
Binance is known for its low fees and quick transactions. It has a massive selection of coins available, making it an excellent choice for more experienced traders.
Binance offers more sophisticated traders a variety of trading tools, whereas Coinbase is ideal for first-time cryptocurrency purchasers. Coinbase is simpler to use, it’s perfect for beginners or those just starting in the world of cryptocurrency.
On the other hand, active traders in crypto who aren’t a citizen of the United States will benefit more from Binance since it offers more features than Coinbase and is available in more countries.
FAQs On Binance Vs. Coinbase
Many people are new to cryptocurrency exchanges and have basic questions about Binance and Coinbase.
Here are some of the most common questions many users ask about these cryptocurrency exchanges:
What exactly are Binance and Coinbase?
Binance and Coinbase are crypto exchanges for buying, selling, and trading cryptocurrency. They both offer a user-friendly platform with a variety of features.
Who would benefit from Binance?
Binance is ideal for more sophisticated, experienced traders who want to use various trading tools. It offers features not available on other exchanges, such as the ability to margin trade and short sell cryptocurrencies.
Who would benefit from Coinbase?
Coinbase is for beginner cryptocurrency purchasers or investors looking for an easy crypto platform and who want to keep their investments safe with consumer protections provided by a regulated exchange.
Are there other investment platforms for cryptocurrency or other investments?
Yes! There are other investment platforms for cryptocurrency and other investment types you may benefit from, like retirement investing or Robo-investing.
- Robinhood: Robinhood Crypto is a commission-free platform for stocks and funds, options, gold, and crypto digital currencies. The crypto platform is for purchasing, storing, and trading the top seven cryptocurrencies – learn more about Robinhood here to see if this site is more your speed!
- Gemini: Gemini is a cryptocurrency trading platform available in all fifty states, and we’ve done a comparison of Gemini vs. Coinbase to get you caught up! Their fees are higher than some other crypto exchanges, and you can get started investing in any of these currencies by downloading the app on your phone.
- Acorns: Acorns is a money management application that rounds up your spare change from regular purchases and invests it in a mix of exchange-traded funds (ETFs).
- Webull: Webull is a commission-free stock, cryptocurrency exchange, and options trading platform with no account minimums. Check out our review of this exchange for more info!
- Betterment: Betterment is an investment platform that offers both financial advice and hands-off investing. You can invest in your retirement, save for a home down payment, or even start an IRA.
- M1 Finance: M1 is an investment platform that offers automated investing and portfolio customization. They have a wide variety of options, including stocks, ETFs, mutual funds, bonds, and even real estate investment trusts (REITs).
Final Thoughts
We hope our post has helped you understand some of the main differences between these two platforms for crypto exchange.
Binance will be your pick if you want lesser fees, especially if you’re an international trader looking for more options.
Coinbase has higher fees and still has lesser options for crypto, but their institutional services seem to be a huge benefit for their active users.
But in the end, both Coinbase and Binance are excellent cryptocurrency exchanges. Which one you choose will depend on your personal preferences for features such as ease-of-use or cost of trading fees.
