Crypto

Binance vs Coinbase: Choose the right Cryptocurrency Exchange for you

Binance and Coinbase are two cryptocurrency platforms that can best be defined as two sides of the same coin. Both exchanges cater to the same audiences yet Binance always trumps Coinbase in terms of trading volume, trading fees, and value of their exchange tokens respectively. But Coinbase also makes a standpoint for itself being a US-operated exchange.

As an investor, beginner or advanced, it is absolutely crucial to trade on an exchange that is safe and sustainable in the long run. And to help you decide which exchange is better between Coinbase and Binance I compared all aspects of both platforms including the price charts, trade order execution time, fiat currencies, available trading pairs, NFT platform, trading prices, customer support service, security protocols, web and app functions, and additional features.

Based on these comparisons, we have a clear winner between Binance vs Coinbase that you will find by the end of this article.

Please note: Investing in cryptocurrencies and/or Initial Coin Offerings (ICOs) is subject to market risk, it is purely speculative and comes with extreme risk. This article is not to be considered as financial advice as we do not promote the products included in this article. The prices of cryptocurrencies are subject to constant change which means there is no guarantee of data accuracy.

Binance Exchange in a nutshell

Main platform features: Buy crypto with fiat currency, a beginner-friendly chart displaying real-time crypto price, a digital wallet, and withdrawals to bank or Paypal, derivatives, spot, and newly launched NFT trading
Fees: Trading fees, 3.5% or $10 whichever is higher for debit card purchases, or $15 per U.S. wire transfer, 0.015% to 0.10% purchase.
Number of cryptocurrencies supported: The original Binance platform supports more than 540 cryptocurrencies for global traders and the Binance.us platform has 64 cryptocurrencies for U.S. investors.
Security features: Two-factor authentication verification (2FA), Federal Deposit Insurance Corporation insured United States dollars (USD) balances for Binance.US (FDIC), cold storage address whitelisting, device management.
Types of transactions supported: peer-to-peer trading, trailing stop order, market order, limit order, stop-limit order, post only order, margin trading, one-cancels-the-other order, among others
Maximum trading amount: This limit varies for each cryptocurrency purchased on the platform

Pros

Known as the world’s largest cryptocurrency exchange
One of the quickest platforms for purchasing Cryptocurrency
Versatility for transaction types
Over 545 cryptocurrencies for trade
Trading fee is cheap
Built-in wallet to store your cryptocurrency holdings

Cons

Binance global exchange is not available for U.S. traders.
Binance.US exchange is not as big as Binance

Coinbase Exchange in a nutshell

Main platform features: cryptocurrencies with high potential, reasonable fees, easy to read charting options, wire transfers available for withdrawal and deposit
Fees: Credit card purchases are 3.99% per trade, 0.50% per trade, 1.49% for Coinbase wallet or bank account purchases, and wire transfers are $10 for deposit and $25 for withdrawal
Number of cryptocurrencies supported: 110
Security features: 2FA verification, AES-256 encryption for digital wallets, FDIC-insured USD balances, biometric fingerprint logins, In case of breach insurance is provided for hot storage
Types of transactions supported: Exchange, sell, purchase, send, receive
Maximum trading amount: Limits are determined by two factors region and your payment method

Pros

User-friendly platform with constant updates
The most trusted cryptocurrency exchange by U.S. regulators
Purchasing cryptocurrency is very simple

Cons

Fees are high for transactions and payment methods
Not a preferred platform for expert traders
Comparatively fewer transaction types vs Binance

Binance vs Coinbase (Quick Summary)

Cryptocurrency Exchange Platforms	Binance	Coinbase
Main platform features	Low fees, comprehensive charting options, and hundreds of cryptocurrencies	Intuitive, beginner-friendly platform offering basic transactions, a digital wallet, and withdrawals to PayPal
Fees	0.015% to 0.10% purchase and trading fees, 3.5% or $10 whichever is higher for debit card purchases, or $15 per U.S. wire transfer	0.50% per trade, 3.99% for credit card purchases, 1.49% for Coinbase wallet or bank account purchases, and wire transfers are $10 for deposit and $25 for withdrawal
Number of cryptocurrencies supported	Over 500 global traders on Binance. 60 available for U.S. investors on Binance.US	107
Security features	2FA verification, FDIC-insured USD balances for Binance.US, device management, address whitelisting, cold storage	2FA verification, insurance for hot storage if Coinbase is breached, biometric fingerprint logins, cold storage, FDIC-insured USD balances, AES-256 encryption for digital wallets
Types of transactions supported	Limit order, market order, stop-limit order, trailing stop order, post only order, peer-to-peer trading, margin trading, one-cancels-the-other order, and more	Buy, sell, send, receive, and exchange
Maximum trading amount	Limits differ based on the cryptocurrency purchased	Limits vary based on your payment method and region

Binance vs. Coinbase: Fees

Binance fees are some of the lowest in the industry, whereas Coinbase’s prices are some of the highest. Although U.S.-based users will pay slightly more on Binance.US, it’s still much cheaper than using Coinbase.

On average, you’ll pay 0.50% per Coinbase transaction plus extra convenience charges based on your payment method, so you might pay up to 4% per transaction. Binance uses a maker-taker structure with the same fees for both makers and takers. The fee chart can be confusing for beginners but offers vastly lower charges, especially for high-volume traders. Binance users can lower costs by:

Purchasing Binance (BNB) tokens to pay fees with a 25% discount
Ability to refer friends to earn a discount on trading fees
High-volume traders can level up for very important person (VIP) discounts

Fees	Binance	Coinbase
Bank account	Free outside of the U.S.	1.49%
Wallet	N/A	1.49%
Debit/credit cards	3.5% or $10 whichever is higher	3.99%
Automated clearinghouse (ACH) transfer	N/A	Free
Wire transfer	$15 per U.S. wire transfer	$10 deposit, $25 withdrawal
Cryptocurrency conversion	Free, however, Binance has a spread above market price	0.50% to 2%
Purchases	0.015% to 0.1%	0% to 0.50%
Trades	0.015% to 0.1%	0.50%
Other fees	0.50% instant buy and sell fee	$0.99 to $2.99 based on the amount

Binance vs. Coinbase: Supported Currencies

Binance is well-known for its massive altcoin list, with more than 500 choices available to non-U.S. users. However, the Binance.US exchange only supports 60 coins. Coinbase offers 107 trading currencies on its regular platform and 57 on the Coinbase Pro exchange. Coinbase also supports fiat currencies, including USD, British pound sterling (GBP), and euro (EUR), whereas Binance supports 18 fiat currencies, such as USD, EUR, Australian dollar (AUD), GBP, Hong Kong dollar (HKD), and Indian rupee (INR). Depending on your location, Binance offers 50 to 591 cryptocurrency pairs, while Coinbase supports 107 for users in the United States.

The top digital currencies supported by both Binance and Coinbase are: Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), Shiba INU (SHIB), Polygon (MATIC), Dash (DASH), Cosmos (ATOM).

Binance is the clear winner versus Coinbase in terms of supported cryptocurrencies as it has more trading pairs. Unlike Coinbase, Binance has a huge list of coins that are rich in potential such as Near Protocol, Harmony, dogecoin, Anchor Protocol, Bitgert, veChain , and more.

Binance vs. Coinbase: Security

Binance was first headquartered in China, following which it switched to Japan. Since Binance is not regulated by USA’s SEC it launched the Binance.us platform for US residents which is based out of San Francisco, California. Coinbase, on the other hand, comes with a reputation of being one of the most secure crypto exchanges as it was founded way back in 2012 in the US and has been compliant with all regularities ever since. On 14th April-, 2021 Coinbase announced that it is going public via a direct listing that was backed by the likes of J.P Morgan.

It is now mandatory with both exchanges that a user has to enter in their KYC details before using the respective platform. Furthermore, for an added layer of security while login Coinbase and Binance have both integrated two-factor authentication (2FA) via the Google Authenticator app or short message service (SMS).

Device management, restricting device access and address whitelisting are enhanced security features offered by Binance. Whereas, Coinbase banks on its fingerprint biometric access for its digital wallet. Coinbase also comes with an insurance policy that covers 2% of the funds stored in hot storage, however, it can be claimed only in case of a security breach from within the platform and not on issues related to user security. Additionally, Coinbase also advocates the use of safe deposit boxes and vaults for storing 98% of cryptocurrency funds available in its air-gapped cold storage.

Binance vs. Coinbase: Features

The only similarities between both platforms are live price tracking, trade orders and watchlist features in comparison to the overall features as Binance targets a different set of customers than Coinbase’s targeted customers.

With Binance, the benefits include:

Earning cryptocurrency in the form of giveaways and challenges organized by Binance
State of the art charting with a simple understanding of overlays and indicators
Almost all types of cryptocurrency transaction types are covered in Binance
Able to integrate other software tools via its Public application programming interface (API) keys
Binance is available in 182 countries worldwide
One of the few exchanges with a high liquidity rate

Furthermore, U.S. customers can’t pay via credit card or complete margin trades, whereas Coinbase supports credit card payments, and you can make margin trades on Coinbase Pro.

With Coinbase the benefits are more USA based residents centric:

Quick withdrawal of funds directly in your Paypal account
Latest Crypto news updates on US markets
Users can earn crypto by watching short videos
Availability of a digital hot wallet that can be used with Coinbase as well as other exchanges
Except for Hawaii, Coinbase is available in more than 95 countries and 49 states
Coinbase also comes with a Coinbase Pro version that has exclusive charting features like the ability to track exponential moving averages

Binance vs. Coinbase: Ease of Use

Binance and Coinbase target two different user bases where Binance focusses on being an all in one Cryptocurrency exchange targets an audience that is already well versed in the crypto space whereas Coinbase onboards users who have just new to trading cryptocurrency.

The website and app of Binance and Coinbase are well equipped with all essential features including a quick customer support response team available at your disposal 24/7 in addition to informational guides for a better understanding of their respective platforms.

To learn the working of cryptocurrency Binance and Coinbase have published several guides, tutorials , and videos on their respective platform. So when it comes to Binance Academy vs Coinbase’s knowledge center both places are highly educational but I would recommend going with the latter as it incentivizes its users by letting them earn cryptocurrency for watching videos for beginners.

Comparing the customer service options Binance is quicker to react and provide a solution through email, live chat, or even Tweeting whereas Coinbase will take a while to get back to your email or a help ticket.

Frequently Asked Questions (FAQs)

What Are Binance and Coinbase?

Binance is a cryptocurrency exchange better known for having the world’s highest cryptocurrency trading volume. Coinbase is also an exchange that thrives under the context of being the most compliant in terms of SEC regulations that allow users to buy, sell, and exchange altcoins through an app or through its website. Binance is available globally but not in the USA but it comes with more finesse in comparison to Coinbase with more advanced features like NFT trading, market orders, Peer-to-peer trading, limit orders, stop-limit orders, and post-only orders. In short, both Binance and Coinbase are online brokerages for cryptocurrencies.

How do Binance and Coinbase Function?

To use either Binance or Coinbase a user must first complete a mandatory signup process which is more or less the same procedure for both exchanges.

After signing up, a user then verifies their email by completing the KYC process, following that you can then start cryptocurrency trading by the methods available on the exchange you choose.

Note: A user can make an account on Binance and Coinbase, as it is not a compulsion to go with just one.

Binance versus Coinbase: Which Exchange has the safer wallet to store crypto holdings?

If you are an institutional investor, hold a large crypto portfolio, or simply just wish to provide the best security for your digital assets then the best way to do it is by storing your holdings in a hardware wallet.

Both Binance and Coinbase have their own hot storage which is relatively safe but always under the risk of an online attack. However, the team strength of both exchanges assures that your savings are well protected.

So to sum it up, I wouldn’t recommend Binance or Coinbase for storing huge amounts of crypto savings rather just store small amounts of cryptocurrencies that you can use to make quick profits.

Both Binance and Coinbase ensure their hot storage, but it may be safer to use your own cold storage via a hardware wallet.

What is a hardware wallet?

A hardware wallet is basically any device that can be connected to a computer physically, for eg: a Pen Drive or a hard disk. Once you store your digital key in such a device it becomes your hardware wallet that holds your digital assets offline. You will have to then plug in this device with a PC to access all of your digital savings.

Binance or Coinbase, which is the better exchange?

Without intending on being diplomatic, I would say that Binance is a better exchange for experienced traders and Hodlers. The reason being Binance has the largest trading volume, quick customer support, cheaper transactional fees, and is also the quickest to acknowledge and improve its platform for a better user experience. Initially, it may take a while for new traders to figure out how Binance exchange works but once a user understands it, they can then focus on buying and selling almost all crypto trading pairs on one platform itself. And since Binance has a high execution rate users can also avoid paying higher fees for cross-platform trading.

To sum it up, while Binance is the superior exchange versus Coinbase, the former is not available in the USA. So for USA-based traders, there is no better exchange than Coinbase for trading cryptocurrency safely.

How We Evaluated Binance vs. Coinbase

Coinbase and Binance are two of the most used cryptocurrency exchanges for trading crypto, both platforms constantly roll out newer updates to improve their security and authoritativeness. Binance has established itself as the world’s largest cryptocurrency exchange by trade volume and is the clear winner vs Coinbase. But to understand the functionalities of both platforms better I minutely analyzed the cost, chart structure, and fee structure to explain the types of transactions, payment methods, trading volumes, fiat currencies, and newly launches features like NFT buying and selling as well. I also made a side-by-side comparison chart of the website and app of Coinbase and Binance to understand which has a better user base and which completes the transactions more securely and quickly.

Furthermore, I also evaluated Binance.US as it is a subsidiary of Binance to ensure that the comparison of Binance vs Coinbase is throughout and complete.

Raj Hirvate

Raj is a college dropout. But don’t let that fool you his technical abilities are far more impressive to be judged on a sheet of paper he is a digital marketing professional and a tech expert. Being into the world of digital marketing learning from his colleagues he began researching on cryptocurrencies from the age of 18. Arguably the backbone of bittmint. He and Safdar are huge anime fans.