Cryptocurrency is rapidly rising all over the globe. And with numerous crypto exchanges available in the market, it’s really challenging to choose which one is best for you: Binance and Coinbase top other platforms with their popularity. Although Binance and Coinbase are the largest and most famous cryptocurrency exchanges today, these two platforms have very different approaches.
Binance presents international traders with hundreds of currency trading choices, provides a steep learning curve, and gives support to beginners. On the other hand, Coinbase is a United States-based exchange created for starters with only a limited transaction type and a simple interface.
Binance vs. Coinbase
Coinbase was considered as one of the earliest crypto exchanges globally, established by Fred Ehrsam and Brian Armstrong in 2020. This platform is a U.S.-based exchange that regulates access to some of the leading cryptocurrencies available in the market today. With an accessible, easy-to-use application and capacity to buy cryptocurrencies through credit card or bank, Coinbase has created a remarkable name for itself as one of the most notable exchanges globally.
Binance, founded by Changpeng Zhao in 2017, is a relative neophyte in the crypto world. In a short time, it has swiftly spread and became the most prominent exchange by volume worldwide. Binance grants its users from 180 countries around the world access to hundreds of cryptos.
The crucial difference between the two platforms is the availability of cryptocurrencies. Binance opened their exchange to more than 500 cryptocurrencies and counting, while Coinbase has a pretty strict evaluation process to the cryptos they will support and only has approximately 40 of them.
Binance vs. Coinbase: Features
Considering the platforms are designated for varying types of people, you’ll notice broad discrepancies in the set of their features. Nevertheless, both Coinbase and Binance provide mobile utilization with watch lists or live rate tracking. However, the similarities in features stop there.
Binance Features
With Binance, you will come to have a/an:
- Advance charting within numerous overlays and indicators
- Unrestricted API keys to integrating other tools
- Option to utilize a third party wallet
- Rewards center to offer giveaways and challenges to make crypto
- User interaction in approximately 180 countries, although only 43 states in the U.S. can use Binance.
Moreover, U.S. customers can’t give payment through a credit card or total margin trades. On the contrary, Coinbase supports total credit card payments, and margin trades are also available on Coinbase Pro.
Coinbase Features
In contrast to Binance, Coinbase extends more hallmarks for U.S. residents but fewer alternatives for global traders. The features include a/an:
- Ability to withdraw capitals to a PayPay account
- Newsfeed that showcases the latest crypto news
- Optional Coinbase Pro exchange platform with restricted charting features
- Earning crypto through watching short video clips
- Capability to trace exponential moving averages
- Availability for usage in more than 100 countries
Binance vs. Coinbase: Ease of Use
Binance can be considered as a man-of-all-work, equipping users all crypto-related in a single platform. It presents the Binance Academy, comparable to Gemini’s Cryptopedia, where users can access helpful articles or tutorials related to cryptocurrency trading courses.
Binance makes it easier for starters to sign-up and begins trading. It also gives high-level users a custom API key, trades, and advanced charting.
To join Binance, you can just simply create a free account using your personal email address and password. The moment you verify your email, make sure to secure your account with two-factor authentication, then connect your credit card or bank account. After these, you can proceed with buying crypto right away.
Coinbase provides a simple and easy-to-use network for selling, buying, and trading cryptocurrency. Their mobile application is also available on both Android and iOS for access anytime, anywhere.
You only need to fill up a simple sign-up form and go through a verification process to get started with Coinbase. You just need to verify your government-issued I.D. by taking a picture of it through the Coinbase app, or you can simply upload an image of it on the Coinbase website. After getting verified, you can immediately start purchasing crypto.
In a nutshell, Coinbase offers a simple and secure way to trade. Binance platform is also easy to manage, yet it can be overwhelming with the sheer abundance of choices, especially for beginners.
Binance is suitable for traders accustomed to crypto lingo and investing options, while Coinbase is built for easy and convenient trading.
Even though Coinbase has the advantage for ease of use, their customer service benefits are abruptly user-friendly. Coinbase is only reachable through a help ticket or via email, while Binance grants live chat and even responds to social media platforms like Twitter.
Coinbase vs. Binance: Transaction Fees
The transaction fees between Coinbase and Binance are reasonably significant. In general, Binance charges pretty little for funding your account and trading cryptocurrencies. A flat fee of around 0.50% per transaction is charged for Coinbase users. An additional fee is also charged based on the account utilized in the transaction.
Here is a chart comparing the fees in Coinbase and Binance:
Binance vs. Coinbase: Security
Both Binance and Coinbase extend robust protection settings to secure your digital asset. Here are some of the security benefits given to each platform.
Binance Security
- Device command. Binance enables you to examine every device that accessed your account and restrict any you don’t recognize.
- Trust Wallet. Because Binance does not have its own wallet, it partnered with Trust Wallet, which is a globally leading digital wallet space with more than five million users. This wallet is secured with an encrypted key, biometric access, and pin.
- Two-factor authentication. Binance has a two-factor authentication by the Google Authenticator app or via SMS.
- Whitelisting. Binance grants address whitelisting. Whitelisting is the capacity to regulate access to addresses that can get or withdraw your cryptocurrency. These addresses are stored in your address book, preventing unspecified addresses from accessing your crypto.
Coinbase Security
- Built-in wallet. Coinbase has its own wallet for storing your cryptocurrency. It is secured with identification and biometric access checks. Coinbase also grants a 12-word recovery phrase to protect your asset.
- Two-factor authentication. Just like Binance, Coinbase has a two-factor authentication through the Google Authenticator app or via SMS. This 2FA protects access to your account by asking for a time-dependent six-digit passcode.
- Cold storage. Coinbase is among the only exchanges that hold your assets in “cold storage.” Cold storage is storage that is not linked to the internet. Coinbase protects 98% of your balances within cold storage to secure your assets from online frauds.
- Crypto Vault. A cryptocurrency vault secures your assets furtherly by having multiple users approve withdrawal transactions. Through this, fraudulent withdrawals are prevented. Crypto vault is also time-locked which means that any transaction approval that is not completed within 24 hours will be called off.
- FDIC Insurance. Coinbase is one of the only exclusive exchanges that grants FDIC insurance on U.S. Dollar deposits. This guarantee is similar to that of a traditional bank, warranting up to $250,000 of invested USD funds.
Key Takeaways
While comparing Coinbase and Binance, you will find similarities like access to similar currencies, permission to trade, buy and sell digital assets, and both grant user education for newbies to the crypto space.
Be mindful that no matter which platform you pick, understand that putting up your money in cryptocurrencies always comes with risks, thus never invest in crypto more than you are prepared to lose.
