Several crypto exchange platforms sprung up over the years to serve the growing number of crypto investors. Some of the crypto exchanges include Binance, Coinbase, Kraken, OKX, and others. With their novel offerings and best features, Binance and Coinbase stand out from the rest of the platforms.
Beginner investors who would like to enter the crypto industry often feel confused, thinking which crypto exchange to choose between Binance and Coinbase. While Coinbase is suitable for beginners and offers the best security features, Binance has several trading methods and charges low transaction fees.
If you would like to compare the two platforms and find out more about their features and benefits, this article is for you. Here, we explore Binance Vs Coinbase and compare the two platforms to help you find the right crypto exchange suitable for your needs.
Brief Overview of Binance
Binance is the leading crypto exchange platform in terms of trading volume, having users spread across the globe. A software engineer and well-known entrepreneur, Changpeng Zhao founded Binance in 2017, focusing on altcoin trading by enabling fiat-to-crypto and crypto-to-crypto trading options.
Within just six months of its launch, Binance grew to be one of the largest crypto exchanges in the world. It became popular primarily for its crypto-to-crypto transactions and the extremely low transaction fees. High liquidity and discounts on trading fees when paying in its native BNB token are Binance’s highlighted features.
BNB or Binance Coin was launched within months after the launch of the exchange based on the ERC-20 token standard. When the exchange developed its own blockchain, Binance Smart Chain (BSC) in 2020, its BNB token was moved to BSC. By enabling developers to build decentralized applications with the smart contract technology, BNB chain (former BSC) is playing its part in building the future of Web3.
Brief Overview of Coinbase
Coinbase crypto exchange is the US-based crypto exchange platform that is well-known for its industry-best security features. Brian Armstrong and Fred Ehrsam founded Coinbase Global Inc., later rebranded as Coinbase, in 2012 to offer Bitcoin trading services. Coinbase is regulated as per the US regulatory standards and it reports all transactions to the IRS.
With the help of Coinbase Pro feature, the platform helps experienced traders with advanced trading tools. Coinbase is the first crypto exchange to be listed on the Nasdaq stock exchange in 2021, under ticker symbol COIN, demonstrating the overall development of the crypto industry.
Apart from offering crypto exchange services, Coinbase is exploring other aspects of the blockchain. It is developing the Base blockchain, which is a layer2 blockchain network on top of Ethereum to enhance scalability and efficiency. The platform also launched Coinbase NFT marketplace, enabling users to interact with non-fungible tokens.
Binance Vs. Coinbase: How Do They Compare?
While Binance charges low transaction fees and supports hundreds of cryptocurrencies for trading, Coinbase offers a user-friendly interface and follows the best security practices to keep users’ funds safe. Adding to that, the two of the top exchange platforms share many differences when it comes to their features and benefits. Let us learn them here.
Binance crypto exchange supports more than 500 cryptocurrencies including Bitcoin, Ether, Cardano, Ripple, and more in 180 countries across the globe. On the other hand, Coinbase only supports more than 150 cryptocurrencies to trade. It is not like the more cryptocurrencies, the better. It is all about which cryptocurrencies you are interested to buy and if those are supported by the exchange you would like to choose or not.
Supported Payment Methods
Being the top most crypto exchange platforms with a wide user base, both Biannce and Coinbase support multiple payment methods to offer convenience. Binance allows you to pay with credit cards, bank transfers, and you can also make crypto-to-crypto transactions.
When it comes to the payment methods of Coinbase, you can pay with debit cards and bank transfers. Coinbase also supports additional payment methods such as Apple Pay, Google Pay and PayPal payments for buying cryptocurrencies on the platform.
Binance charges free deposits when you make payments with ACH, wire transfer, and crypto conversions. However, you need to pay 4.5% fees for using debit card or credit card payments. When it comes to trading fees, Binance charges 0.1% trading fees for all cryptocurrencies Maker and taker fees on Binance vary based on the last 3-day trading volume.
The fee structure of Coinbase is a bit more complicated than Bianche. While maker and taker fees vary based on the last 30-day trading volume, Coinbase does not charge any fees when you use ACH transfers. For wire transfers, it charges $10 USD for depositing, and $25 USD for withdrawal. Additionally, fees can vary based on other payment method types.
While both Binance and Coinbase offer the best security features, Coinbase is well-known for its robust security options. 2-factor authentication (2FA) for your funds, FDIC-insured USD balances, and cold storage options are available on both the platforms.
However, Coinbase is a step ahead by offering AES-256 encryption for digital wallets and insurance for hot wallet storage of customers’ funds. Moreover, Coinbase has biometric fingerprint logins to ensure the legitimacy of users.
Binance has numerous trading methods such as limit orders, market orders, peer-to-peer trading, margin trading, stop-limit orders, and more. On the other hand, Coinbase only enables users to buy, sell, send, and receive cryptocurrencies. However, if you would like to use Coinbase while having all the trading features, you can use Coinbase Pro, an advanced platform for experienced traders.
While trading of cryptocurrencies is similar on both the exchange platforms, they differ greatly based on their unique platform features. Let us first look at Binance’s unique offerings.
Binance Academy: Apart from offering crypto exchange services, Binance has a comprehensive set of educational articles on its Academy. It helps beginners learn advanced concepts like mining, NFTs, metaverse, and more complex aspects of crypto.
User rewards: Binance hosts giveaways and contests and offers rewards for participants to its community members. It gives an additional incentive to get involved with the platform for its users. Binance also rewards users for successfully completing quizzes in its learning program.
Binance DEX: Binance launched a decentralized exchange (DEX) platform on its BNB Chain to offer users decentralized services in trading cryptocurrencies. Investors who are interested in having complete control over their funds can use Binance DEX.
Binance feed: Binance exchange allows its community members and crypto influencers to share their insights on its feed. It covers everything from latest market news to market sentiments and trending topics.
Coinbase does not share several features of Binance such as DEX and offering rewards through giveaways and contests. But, it has its own platform offerings, we have explained below.
Learning rewards: Coinbase also offers learning rewards for watching its educational videos and completing quizzes. Users can attend its courses, watch videos, complete quizzes, and earn rewards in GRT tokens.
Coinbase News: Coinbase exchange has a news section where it posts the latest news and updates of the crypto industry.
Tips and tutorials: The tips and tutorials section of Coinbase helps users navigate the complex world of crypto. It explains everything from how to buy NFTs, invest in crypto, to expert trading tips and strategies.
Binance Vs Coinbase: Which Crypto Exchange is Right For You?
Crypto exchanges have long been playing an indispensable role in bringing cryptocurrencies closer to investors. They not only act as an interface between the complex crypto world and beginner investors but also introduce crypto investment to people from all walks of life. Both, Binance and Coinbase are good crypto exchange platforms, enabling millions of users to interact with cryptocurrencies on a daily basis.
It is not actually a question of which exchange is better? It is all about which exchange is suitable for your investments needs. If security is your priority with fundamental investment features, Coinbase is the suitable platform for you. But, if having low transaction fees, with multiple trading options, and several additional features, Binance is the right choice for you.