Coinbase and Binance are both giants in the crypto-sphere. Coinbase has an estimated 89 million users, while Binance has around 28.5 million. There are a lot of similarities and some important differences that we’ll consider in our take on Coinbase vs. Binance.
What is Binance?
Binance is the largest cryptocurrency exchange by volume in the world, with platforms available in many countries like the U.S.A., trading $76 billion USD during a peak 24-hour period. Founded in China in 2017, Binance offers over 350 cryptocurrencies on its exchange, but only 65 are available in the U.S. including Dogecoin (DOGE), VeChain (VET), Harmony (ONE), Ethereum (ETH), and Bitcoin (BTC) to name a few. Binance does not offer an in-app wallet.
Trading on Binance can be done on the Binance website, desktop app, or mobile app. The app is highly convenient, while the platform is geared towards more advanced crypto traders than rookies. The real-time charting tools and exponential moving averages are great features for those looking for an in-depth analysis of their crypto. Binance also offers several order types like stop order, trailing stop order, and stop-market order.
The fee structure at Binance is based on trading volume and is among the lowest in the industry. By using Binance, you are rewarded for making large volume trades. You can also receive fee discounts by using Binance (BNB) coins in your trading, making referrals, and achieving VIP status when you trade enough assets.
Binance charges no fee for ACH transfers or wire transfers unless you’re in the U.S., then wire transfers cost you $15 each. Paying with your debit card costs you 4.5%, trade fees range from 0% to 0.1%, and buying and selling crypto is charged a flat 0.5%.
The security features on Binance are average across crypto exchanges. It has two-factor authentication via SMS messaging, address-whitelisting, and device restriction. However, recent regulatory issues in Binance security have come up. Current investigations into Binance are happening in several countries, while other countries have banned Binance altogether. Safe to say, it doesn’t have a five-star reputation in security.
Customer service at Binance is available over three channels: submit a ticket through email, reach out via Twitter or, ask basic questions via chat. That being said, the customer service experience of members at Binance is a mixed bag. Some reviews praise the excellent service and simple user interface of Binance. Others complain that customer service is ineffective, and some claim the exchange is poorly-managed because accounts become frozen, making it impossible to withdraw funds. Binance has received some heat from various countries, including a recent investigation regarding money laundering in the U.S.
Binance Pros & Cons
Largest crypto exchange by volume on the planet available in many countries
Low fees based on volume
Extensive market analysis tools are available
Hundreds of cryptocurrencies supported
Interface isn’t very user friendly
Regulatory issues have arisen in several countries
No wallet available in the app
What is Coinbase?
On the other hand, Coinbase is a beginner-friendly crypto exchange and the most popular option for trading, buying, and selling cryptocurrency in the U.S.A.
Starting in 2012, the decentralized company now employs nearly 4,000 people worldwide and supports over 120 cryptocurrencies on its exchange, including Shiba Inu, Dogecoin, Cardano, SushiSwap, and, of course, Bitcoin.
Coinbase’s trading structure starts with a minimum purchase of $2 regardless of the coin you’re buying. The fees collected by Coinbase scale based on trade amount. A trade of $10 or less incurs a fee of only $0.99, while a trade between $50 – $200 incurs $2.99. The fees stop scaling according to volume for trades above $200 and settle into a flat charge.
Security practices at Coinbase are some of the best in the industry, with bank-worth encryption software and two-factor authentication. Also, nearly all users’ assets are stored offline in physical non-digital safety deposit boxes spread around the world, which sounds like a challenge even for Danny Ocean. Of course, crypto is still a new and high-risk industry. Many people have lost their assets to hackers. It’s always advisable to use unique and random passwords when signing on to any financial website, including Coinbase and Binance.
Coinbase Pros & Cons
User-friendly interface with simple buy/sell/trade buttons
Simple sign-up process
Supports many different cryptocurrencies
Excludes some countries
Coinbase vs Binance: Compare and Contrast
While looking at the most important factors of these two exchanges, the Coinbase vs. Binance questions can be furthur explored in depth. Many crypto traders regularly use more than one exchange. So more information about the most popular options available will serve you well.
We’ll go through a few specific areas of each exchange, juxtaposing them to highlight where one may shine over the other.
Binance charges no fee for ACH transfers or wire transfers unless you’re in the U.S., then wire transfers cost you $15 each. Paying with your debit card costs you 4.5%, trade fees range from 0% to 0.1%, and buying and selling crypto is charged a flat 0.50%. In that regard, they’re just like Coinbase, whose maker-taker fees are set at 0.50%.
Coinbase’s trading structure starts with a minimum purchase of $2 regardless of what you’re buying. The fees collected by Coinbase scale based on trade volume. A trade of $10 or less incurs a fee of only $0.99, while a trade between $50 – $200 is charged $2.99. The fees stop scaling according to volume for trades above $200 and settle into a flat charge. All credit card purchases are charged 3.99%.
Coinbase is much more user-friendly than Binance. But it’s not really a fair comparison because Binance offers every trading option under the sun and all the reports you could ever need, while Coinbase is intended to be a stripped-down exchange for crypto-novices. A better comparison would be Coinbase Pro which cranks the reporting tools to 11.
Binance has a steep learning curve. Inexperienced traders may be intimidated by the platform because there is SO much information and SO many things you can do. Binance and Coinbase both have an education section and reward users with crypto for reading their blog posts and watching the videos upon completion.
Number of Currencies
Coinbase offers more than 120 cryptocurrencies on its exchange. Binance offers over 350 different cryptocurrencies, but only around 65 are available in the U.S.
Binance does not have its own in-app wallet, however, it recommends Trust Wallet for its users. Security at Binance includes two-factor authentication, whitelisting addresses, device management where you can review which devices have accessed your account, and more. The largest exchange in the world has experienced regulatory issues and investigations recently. Some countries do not allow the use of Binance within their borders.
Coinbase is the only crypto exchange to store nearly all its users’ assets offline in cold storage. It also uses two-factor authentication but prohibits SMS recovery incase a user’s phone is stolen.
Types of Transactions
Binance offers many trading types and several orders like stop order, limit order, stop-limit order, and trailing stop order. Users also have the option to adjust the trading views along a spectrum, from classic, margin, and OTC views. Sadly, not all these features are available to the U.S., specifically margin trading, among others.
Coinbase is a little more stripped down in comparison. A basic Coinbase account offers the following transactions: buy, sell, send, receive, and exchange.
A Coinbase vs. Binance comparison isn’t completely fair. They are both highly useful to crypto traders in different ways. Coinbase is simpler to use, so it draws beginners into crypto.
Binance offers next-level reports and market insights, but these two exchanges are not mutually exclusive. The trick is to figure out which one will serve your needs more.
Frequently Asked Questions
No. Coinbase is much simpler for beginners to use than Binance. Cryptocurrency can be very hard to understand, which is why Coinbase exists, to guide newbies into and through their first few trades. Both Coinbase and Binance have an education section that rewards completing the blogs and videos with actual cryptocurrency.
They are roughly the same. Coinbase caps fees on their rolling scale once $200 in trade volume has been achieved.
Both Coinbase and Binance charge 0.50%, Coinbase for maker-taker fees, and Binance charges the same flat rate for all buying and selling.
Coinbase Pro is Coinbase on steroids. The basic Coinbase has a simple user interface, is clean, and offers only a few options for placing orders. Coinbase Pro has a different interface geared toward more advanced crypto traders with next-level charting and reporting options for the experienced trader.