The first step in investing in cryptocurrencies is determining how to obtain Bitcoin, Ethereum, and other cryptocurrencies. While there are other sites for this purpose, Binance and Coinbase are the most widely used and popular crypto exchanges. For this reason, beginners always asking binance vs coinbase, which is better? To begin investing in the market, you must first select which cryptocurrency exchange is ideal for you.
Beginners may be disheartened if the procedure is not smooth and purchases are difficult to make. Both conversations are quite old. Coinbase was founded in in 2012, while Binance was founded in 2017. Is Coinbase superior to Binance? Coinbase is generally thought to be more user-friendly. How do they compare, and is Binance a good place to start? In this article, we will answer some of these questions.
Binance vs Coinbase — Which Should You Choose?
There is no better platform; it is primarily a matter of which is more appropriate for the new user or for any user, based on their investing objectives. They both have pros and limitations, but in a nutshell, Coinbase is easier to use and more suited to beginners, whilst Binance is less expensive and better suited to advanced traders. However, there is much more to consider before deciding on a platform to begin your adventure into crypto trading and investment, and we recommend you to keep reading to learn more.
A Little History of the Two Exchanges.
Binance was founded in 2017 by Changpeng Zhao, a Chinese-Canadian businessman and former developer who built Blockchain.info and then served as CTO of another crypto exchange, OkCoin. Binance currently boasts the world’s largest daily cryptocurrency trading volume. In terms of trading volume and market capitalization, it is Coinbase’s direct competition in the United States. Due to the country’s more expensive local jurisdictional requirements, they had to incorporate a second firm, Binance.US, for US users. Due to worries about money laundering, several countries throughout the world have prohibited the trade. Before establishing in the Cayman Islands, the corporation had to relocate multiple times.
Binance has a reputation for conducting business without the sanction of the government, which raises regulatory concerns. As demonstrated by the exchange and other platforms, functioning without constraints fosters faster invention. However, this prompted officials to delve deeper. The Binance Coin was announced immediately after the exchange’s establishment and has since risen to become one of the top five coins in terms of market capitalization.
BSC is a blockchain network that is aimed to host smart contract-based decentralised apps (DApps) and allow users to manage their digital assets across blockchains. Binance’s success has been aided by decentralised finance (DeFi) and other financial crypto services.
Coinbase is named after the “input” of a generation transaction that has no parent transaction outputs. The initial transaction in a new block. Former Airbnb programmers Brian Armstrong and Fred Ehrsam founded the first major Bitcoin exchange in the United States. It was released in June 2012, three years after the Bitcoin white paper went viral.
Initially, only Bitcoin was exchanged on the platform, and it was purchased for the first time using bank transfers. Union Square Ventures and Andreessen Horowitz were among the early backers. It accepted Bitcoin payments from Overstock, Expedia, and Dell.
Coinbase is available in two flavour: Coinbase and Coinbase Pro.
Coinbase Pro is a fork of the GDAX (Global Digital Asset Exchange) designed as a more complex trading platform. The Coinbase interface is intended for new crypto investors who only want to buy or convert. It can also be used to educate. Coinbase Global was the first cryptocurrency company to list directly on the NASDAQ exchange in April 2021.
Coinbase has over 73 million verified customers from over 100 countries that trust the site to invest in cryptocurrencies and trade them swiftly and safely. Coinbase has typically complied with regulatory requirements. The crypto community, on the other hand, has regularly chastised it for closely partnering with the IRS and similar authorities in other countries to expose personal data for tax purposes.
How Do They Compare?
Both Coinbase and Binance allow customers to buy cryptocurrencies with fiat currencies such as the US dollar, Euro, and Pound Sterling. Their service offerings, however, varied significantly, beginning with the quantity of cryptos offered on each platform. Binance offers access to over 380 cryptocurrencies, whereas Binance US offers access to over 80 different forms of digital assets. On the other hand, Coinbase and Coinbase Pro support more than 160 coins.
Users who want to buy, keep, or trade the top cryptocurrencies can do so through Coinbase, which has coins such as Bitcoin, Ethereum, Cardano, Solana, and all key cryptocurrencies readily available.
Both beginner and experienced crypto traders may prefer a more complete platform, such as Binance, which provides a variety of trading choices for smaller cap currencies or tokens. The minimum order amount for Coinbase is $2, and the minimum order amount for Binance is $1.
Binance vs Coinbase Pro Fees.
The cost structure is a big difference between the two sites. Crypto exchange fees, particularly those associated with fund deposits and withdrawals, can influence a trader’s or investor’s decision. Binance has its own token, BNB, and as a result, it can offer lower fees than Coinbase. So, let’s take a look at them.
Bank transfers in available fiat currencies are completely free. Buying cryptocurrency with a credit card, on the other hand, incurs a 4.5% cost on Binance.US and a 1.8% fee on the principal exchange. All cryptocurrencies accept free deposits, but withdrawals vary depending on the blockchain network and can fluctuate owing to factors such as network congestion. Users will receive a 25% discount on trades using BNB. The usual maker and taker trading cost is 0.1%, which is reduced to 0.02% as the volume of trades increases.
Coinbase Pro also offers free bank transfers. The maker-taker charge, on the other hand, is 0.5% for individuals who trade less than $10,000 each month. It only drops to 0.1% when trading volumes are extremely high or “whale,” which implies in the millions of dollars. In addition to usual network fees, there is a 1% fee to convert and withdraw cryptocurrency to cash. A network fee is required for the transaction to be processed by the blockchain network. Credit card purchases incur a 3.99% fee, Coinbase wallet or bank account purchases incur a 1.49% fee, and wire transfers cost $10 for deposits and $25 for withdrawals.
In conclusion, Binance have significantly reduced transaction fees. It also has a cost structure that entices high-volume traders to use it.
Binance vs Coinbase: Features.
In general, Coinbase allows you to purchase and trade cryptocurrencies simply and without any complex features. Binance, on the other hand, provides a large set of tools for a more comprehensive trading experience.
Binance Unique Features.
Binance Decentralised Exchange provides access to top DeFi DApp recommendations (including lending, earning, insurance, and derivative services), NFTs, cross-chain bridge solutions, the BSC construction tool, trading, and the ability to purchase any cryptocurrency using the MoonPay payment system. Binance frequently offers freebies and challenges to encourage user participation on their platform, with participants collecting prizes in the Binance rewards centre.
Furthermore, Binance frequently airdrops currencies or tokens that are about to be launched on their marketplace.
Binance Academy: It offers a free complete crypto education that is suitable for both beginners and advanced traders, with tutorials on trading, mining, NFT, metaverse, and everything crypto.
Binance provides a variety of trade alternatives, including complex charting with hundreds of overlay managements and indicators via the embedded Trading. Binance allows third-party apps to interface with the exchange by granting the public access to their API keys.
Coinbase Unique Features.
- Learn and earn: By watching educational videos about cryptocurrency projects, users can receive prizes equivalent to a tiny amount of the cryptocurrency they are investigating.
- Newsfeed: Coinbase users can use the built-in newsfeed service to stay up to date on current crypto news, trends, and developments in the cryptocurrency market.
- Price alerts: Coinbase users can receive mobile push notifications to check updates or price changes for their coin through the offered watchlist.
Binance vs Coinbase: Ease of Use.
Binance and Coinbase cater to different types of customers. Coinbase provides a simple platform for investors new to cryptocurrency trading who want to trade quickly, easily, and securely. The Binance platform is simple to use, but the sheer number of options can be overwhelming to a new user. Binance is better suited to people who are familiar with cryptocurrency terminology and investment options, whereas Coinbase is designed for quick and easy trading.
Both exchanges offer mobile apps with varying features. The Binance and Coinbase apps both have received 4.7 out of 5 stars on Apple’s App Store. The Binance app, on the other hand, has received some poor ratings from Android users, with only 4.1 out of 5 stars on Google Play, with many users claiming that the application works much better on iPhones.
Binance offers the Binance Academy, which is similar to Gemini’s Cryptopedia and allows users to access tutorials or helpful articles similar to cryptocurrency trading courses. Both platforms have a blog and a knowledge base, but Coinbase also allows users to earn cryptocurrency for watching beginner-friendly videos.
Although Coinbase is the most user-friendly, the customer service options are less so. Coinbase can only be contacted through email or a support ticket. Binance, on the other hand, provides live chat, responds on Twitter, and can be reached via email.
Binance vs Coinbase: Customer support.
Despite the soaring growth of crypto exchanges, customer support appears to be largely an afterthought. However, Coinbase has recently expanded its efforts in this area, adding phone support, a much-needed addition to previous options that only included email and a support ticket. Furthermore, if you notice any suspicious activity, you can contact customer service to have your account locked (though it raises the question of why this feature is needed, when traditional stock brokers seem to have no such issues.)
Unfortunately, Binance only provides support tickets, which may be part of the price you pay for its extremely low trading costs.
Binance vs Coinbase: Security.
The crypto sector has dealt with security challenges that have rightfully alarmed people in the past. However, the numerous security breaches that have occurred over the years have spurred exchanges to provide stronger security features that provide more trustworthiness nowadays. Despite this, leaving assets on exchanges is still not strongly advised, and users should be aware of the hazards that such conduct may entail.
Coinbase appears to be more secure, given that it has never been subjected to severe attacks since its establishment. Binance, on the other hand, was the victim of a massive attack in 2019, with up to 7000 Bitcoin taken from the exchange. Following the terrible experience, Binance has taken stringent measures to raise all security requirements. Binance and Coinbase provide strong security protections to safeguard users’ digital assets. Coinbase, on the other hand, appears to be more forthcoming about its efforts to keep consumers’ assets secure.
The following are some of the security features accessible on each platform.
Binance Security Features.
In terms of security features, Binance provides its customers with a plethora of protective tools. However, it may not always provide complete transparency into their details. The website, for example, says that the great majority of user duties and assets are safely held in offline, cold storage facilities. It does not, however, provide the specific amount of such secured funds.
Binance offers strict sign-in protocols, such as two-factor authentication through SMS, Google authenticator app, hardware, or email. It offers advanced access control and opt-in security features like IP and wallet address whitelisting, API access control, and device management. Whitelisting crypto addresses is becoming more popular among exchanges. It allows you to limit access to addresses that can withdraw a user’s cryptocurrency. Customers save them in their address book, preventing other addresses from gaining access to their funds.
If suspicious activity is discovered, Binance sends out emergency emails, notifications, and security alerts. Every withdrawal attempt, password reset, two-factor authentication, and email address change is scrutinized by the exchange risk management system. Unusual activity causes withdrawals to be suspended for a minimum of 24–48 hours for the user’s benefit.
End-to-end encryption is used to protect user data and personal information, including Know Your Customer (KYC) information and data in transit, ensuring that only users have access to their data. To unlock more services, such as higher deposit and withdrawal limits, the advanced verification option requires a government-issued photo ID and a picture of the customer.
Coinbase Security Features.
Coinbase pledges to keep 98% of assets offline in cold storage and is the only cryptocurrency exchange that offers FDIC (Federal Deposit Insurance Corporation) insurance on currency deposits up to $250,000. Coinbase supports two-factor authentication with SMS and the Google Authenticator app. Coinbase also provides cryptocurrency vaults to users in order to further secure their digital assets. These vaults prohibit stored cryptocurrency from being withdrawn instantly by implementing optional security measures such as several user approvals to prevent fraudulent withdrawals. They are also time-locked, which means that unapproved vault withdrawals are cancelled within 24 hours.
Binance and Coinbase are two marketplaces for buying and selling cryptocurrency. Binance’s international edition enables you to trade around 400 cryptocurrencies, a significant advantage over Coinbase. Binance is also significantly less expensive than Coinbase, and it is a better option if you are an experienced trader. Coinbase charges greater fees, but it is intended largely for new investors who will not be making as many transactions. Both systems have good security protections, with Coinbase having a minor advantage due to its built-in wallet and KNY features. Now, decision is yours…
Disclaimer – I’m not a financial advisor. The article is for informational and educational purposes only.