Alex Manea
In recent years, there has been a surge in the number of people looking to invest in cryptocurrencies due to the huge returns generated by numerous successful investors. However, one of the main challenges that investors face is finding a reliable and reputable platform to buy these digital assets. Several platforms are great choices, but two of the most popular are Binance and Coinbase. In this article, we will compare these two platforms and reveal the advantages and disadvantages of each.
Binance is a digital asset exchange service. Said simply, it is an online platform that allows users to buy, sell or trade cryptocurrencies and digital assets. Binance was created by Changpeng Zhao in July 2017 and has quickly become one of the world's most popular platforms.
It is available in 180 countries, has over 100 cryptocurrencies, and offers different services such as margin, futures, and options trading.
The platform has been around since 2012 and continues to be a leading U.S. based digital currency exchange. In November 2013, Coinbase launched the first-ever U.S. Bitcoin exchange and now offers services for buying and selling cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
Binance has some of the lowest fees in the market, whereas Coinbase has some of the highest. Even though Binance US customers will pay a little more than those in the United States, it is still considerably less expensive than Coinbase.
The average transaction fee on Coinbase is around .50%, plus convenience fees that can range from 1.49% to 3.99%. Binance, on the other hand, uses a maker-taker model and charges 0.015% to 0.1% for both maker and taker.
1. Wire Transfer: $10 deposit, $25 withdrawal
2. Instant Card Withdrawal: Up to 1.5% of any transaction and a minimum fee of $0.55
Users who place an order for a product at the market price that is immediately filled are considered takers and charged a taker fee. On the other hand, users become a "maker" and are charged a maker fee when the trade completes, that is, if their order is not immediately matched.
Check out our Binance review for the complete fee structure. Users are charged a 0.1% fee per transaction, with reductions for paying using the Binance native token (BNB) to cover these costs. Binance is the only platform where you can purchase BNB.
The fee is also determined by the trading volume (measured in Bitcoin amounts), which drops down to 0.02% as the trade volumes increase.
Binance offers a much more comprehensive selection when it comes to available coins. All in all, Coinbase supports more than 120 cryptocurrencies. At the same time, Binance offers more than 500 cryptocurrencies.
Binance is famous for having a vast selection of popular coins and up-and-coming altcoins. In addition, Binance frequently adds new cryptocurrencies to the exchange, making it a good platform for both beginners and crypto experts.
Both platforms allow you to trade fiats such as GBP, JPN, and USD for digital assets as well.
To make investing more accessible and your funds more secure, Binance launched its "Trust Wallet" to provide an app that supports BTC, ETH, and other currency wallets on mobile devices. This is a separate app from the exchange that supports the major cryptocurrencies and altcoins.
Coinbase allows you to store your bitcoin in its proprietary digital wallet, secured with a password and biometric access controls. It is compatible with Android and iOS and has an encrypted 12-word recovery phrase to safeguard your assets (similar to other digital wallets).
Binance and Coinbase are well-known cryptocurrency exchanges that have followed all required regulations. Therefore, it is entirely risk-free to keep cryptocurrencies there under the best circumstances.
However, if you want to keep your cryptos for a more extended period, a hardware wallet is an excellent alternative.
Both exchanges are regulated under the same financial authorities and must follow the same security procedures. However, Coinbase is known for its strict verification procedures that require customers to provide extensive personal information.
Binance, on the other hand, does not require as much personal information from their customers and allows them to start trading immediately after registration, except for US-based users.
All USD funds are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and are stored in custodial bank accounts for both Platforms.
It's also worth noting that 98% of cryptocurrency funds on Coinbase are stored in cold storage via vaults and safe deposit boxes. Coinbase's insurance covers 2% of funds kept in hot storage, but it only applies to Coinbase's security breaches and not to user-caused issues.
Binance and Coinbase differ in the sense that they cater to distinct demographics.
For example, Coinbase is a simple trading platform for novice cryptocurrency investors looking for quick, easy, and secure methods to trade.
Binance, though simple to use, has so many options that it can overwhelm a first-time user.
Binance is better suited for those familiar with cryptocurrency jargon and alternative investment choices, whereas Coinbase is designed for quick, easy buying and selling.
Aside from the main features of Coinbase and Binance, there are other features that investors should be aware of when comparing the two exchanges.
Other Coinbase Features:
Other Binance Features:
Overall, both exchanges have their pros and cons. On the one hand, Binance is geared towards experienced traders, with a wide range of coins and tokens available for trading. The exchange also offers a more user-friendly interface, as well as lower fees.
On the other hand, Coinbase is more beginner-friendly, with a larger selection of fiat currencies supported. However, the fees are higher, and the range of coins and tokens is limited.
Choosing the right exchange will depend on your preferences and the specific features that you seek. Nonetheless, both exchanges will provide an excellent service if used correctly. If you're still unsure, here are some other Binance alternatives.
For more information about these and other cryptocurrency exchanges, visit our crypto exchange comparison page. We designed this handy comprehensive comparison tool is to help you find the best cryptocurrency exchange for your specific needs.
