Coinbase vs Binance – Which Exchange to Choose?
And since I’m avid user of both I wrote down this Coinbase or Binance competition, where I describe key aspects and see all the pros and cons in trading with these cryptocurrency exchanges along with a detailed review on each of the company’s trading accounts, security, customer support etc.
|Coinbase vs Binance Key Features|
|Fees||Upto 4%||0,10% or
0,05% using BNB
|Buy/Deposit||Credit Card, Debit Card,
Bank Transfer, Cryptocurrency
|Sell/Withdrawal||PayPal, Bank Transfer,Cryptocurrency||Cryptocurrency|
|Available Cryptocurrencies||BTC, ETH,
LTC and BTH
|BTC, ETH, LTC…
(267 coins overall)
|Mobile App||Google Play||Google Play|
If you are looking to start investing in cryptocurrencies, then Coinbase is a great place to get started as it offers a pretty simple and easy to use interface.
It is designed like your regular banking sites to provide the similarity and ease of use to every customer.
With Coinbase you can buy available cryptocurrencies (BTC, LTC, ETH…) after you deposit funds using your credit cards, debits cards, transfer funds from your bank there. Or if you already own these coins you can easily transfer them straight to Coinbase as well.
Binance is fairly a new cryptocurrency exchange that mainly focuses only on cryptocurrency to cryptocurrency trading.
Even though the company has been launched just a few months back, it’s already started to gain huge popularity (7 million’s user’s and counting) among the blockchain users.
The Binance fees are extremely low when compared to Coinbase and it also offers various cryptocurrencies to trade with.
When it comes to trading it offers a very good trading platform and provides you with two trading options including Basic and Premium.
Unlike Coinbase, Binance is not for total newbies as you need to have little experience in trading if you need to use the Binance trading platform.
It comes with a lot of charts and graphs that a beginner may not understand at the start. But Binance is also specially developed keeping mind the pros as it offers every tool that can help them trade efficiently.
In this Coinbase vs Binance fight Coinbase loses with a hefty fees when compared to Binance. Frankly speaking, you cannot compare at all the trading fees between Coinbase and Binance as Coinbase charges the highest trading fees in the market as Binance comes with a pretty much low transaction fee.
With Coinbase, your trading fee may come upto 4%, if you deposit money from your credit card and buy a cryptocurrency directly. But if you want to trade with fiat currencies, then fees may come to around 1.5% which is also high when compared to other exchanges.
You can find more detailed fees structure on their support page.
Binance offers one of the lowest transaction fee in the market with as low as about 0.1%. And what more, you can further reduce the trading fee by around 50%, if you start using their own tokens (BNB).
Yes, when you use BNBs to trade with, then the transaction fee comes to only 0.05%!
You don’t get a trading platform when it comes to Coinbase as all you will get is only an newbie friendly interface that is much more similar to your regular online banking application.
The trading interface comes with a basic chart on the top and your wallet detail and transaction history is provided in the bottom.
You can easily switch between the 3 instruments supported by Coinbase and also between multiple timeframes.
Overall, the trading interface is one of the best and easy to interface you can find and is also the perfect place for beginners to start learning and improving their trading skills. It also offers an advanced trading platform called GDAX.
Binance comes with a web-based trading platform that provides you with a basic and premium trading interfaces.
While the basic is intended for beginners, if you are starting with trading, then Binance is not your best bet as even the basic interface comes with charts and graphs that you might find difficult to cope with in the beginning.
When it comes to transfer limits with Coinbase, it can differ based on your location, mode of payment along with your verification status, account age and purchase history – In other words using your account to buy and sell crypto currency will result into higher limits.
You can always check your transfer limits in the accounts limits section. If you are a verified US customer the transaction limits will be around:
$5000 – When buying through your bank accounts
$50 – When buying Credit/Debit Cards
- And a $50000 limit when you are selling
With Binance, you can only deposit cryptocurrencies and cannot deposit fiat currency into your Binance account. And you don’t have any limit on the amount of coins you send into your account along with there is no transaction fee charged too for the deposit.
But the amount you withdraw from your account comes with a limit that largely depends on your verification status.
If you are not verified, you’ll fall into the Level category and will be allowed to withdraw 2 BTC. To increase your withdrawal limits and move to Level 2, you need to provide either two-factor authentication or Google Authentication.
And once you are verified and move to Level 2, you can withdraw upto 100BTC per day.
Coinbase offers various payment methods (depends on your location) which you can link to your account.
- Bank Transfer
PayPal (restricted only to US customers)
Whereas Binance doesn’t support fiat currency transaction. It only allows you to deposit cryptocurrencies to your account. But you can deposit every coin that is supported by Binance exchange.
Regarding trading instruments, Coinbase only supports the 4 major cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
Since Coinbase has developed mainly to welcome the entry level traders, it supports only the major coins. If you are looking to trade only with these coins, then Coinbase is the great place to trade your cryptocurrencies.
Binance supports a variety of coins that numbers upto 267 coins. Many coins that are largely traded against BTC and ETH are also supported by Binance.
In regard to leverage, Coinbase does not support margin trading. It is also looked upon as the best practice to not allow margin trading when working with cryptocurrencies.
Only forex brokers that also support bitcoin trading provide CFDs on top of the bitcoins and allow margin trading on that.
Binance also doesn’t support margin trading.
Coinbase offers optimum security for its customer’s funds. One of the important aspects of Coinbase is that it keeps the customers fund separate from the operational funds of the company.
All customer funds are safely held in bank accounts. Therefore, no customer fund will never be used for any kind of operation expenses of the company.
Coinbase also claims that even if the company goes down, the customers fund will always be safe and it could not be claimed by its investors at any point of time. Hence, the customer fund is always safe and secure with Coinbase all the time.
In fact, Coinbase is so secure that in some cases users accounts are temporarily flagged and frozen until the issue is resolved.
When it comes to cryptocurrency funds, most of the securely stored in offline cold storages in string hardware wallets.
These physical cryptocurrency funds are kept in some of the safest and secure deposit boxes to ensure safety and security to its customer funds. And cryptocurrencies that are stored online are completely insured with an associate of Lloyds of London.
All verified US customers that have the USD wallet of Coinbase are automatically covered with an FDIC insurance with a maximum limit of around $250,000.
Coinbase also offers additional safety to the personal accounts of customer by allowing you to set a string 2 step authentication to secure your account.
All activities in your account are tracked and any new sign-in from other IP addresses or devices are notified immediately.
And Coinbase is registered under NY bitlicense which makes it completely legitimate.
I couldn’t find much information about the fund security on its website or cryptocurrency exchanges forums. Even though it is a new company, it needs to provide information about the security to make the customers trust in the company more.
Anyway as I mentioned earlier there are 7 milions Binance accounts already which is pretty great social proof.
Binance too offers 2 step verification by SMS Authentication and Google Authentication to secure your personal account.
If you wonder is binance safe, then we need to wait a little more time to confirm though.
And even if it was most secure exchange in the world, you shouldn’t leave your hard earned cryptocurrency there anyway. No exchange is as safe as your digital wallet can be.
Coinbase offers extensive customer support through their official email. Normally they take around 24-48 hours to get replies for all your queries.
There is also a detailed FAQ provided on their website. It may fill in for all your basic questions regarding Coinbase and its functioning.
Binance provides a FAQ section with some answers for some basic questions. It also allows you to submit your queries.
But since it’s still a new company, I would give it some time to see how it goes in the future.
Coinbase vs Binance Final Thoughts
Coinbase is one of the premium players in the crypto world. It is also one of the oldest exchanges operating in the industry successfully. It is definitely belongs the best places to start learning about crypto currency trading as the interface is pretty much simple and easy to use.
Even though it doesn’t provide any trading platform, you can use the alternative trading platform called GDAX.
Some of the major advantages of Coinbase is that your fund is super safe and secure. It also accepts bank transfer and credit cards for deposits. Although the transaction fee is much higher when compared with any other crypto currency exchanges in the industry.
It also provides only a few cryptocurrencies to trade with. But if you’re ok with Coinbase transaction fees and concentrate only on a few coins, then Coinbase is your best bet.
Beware, though: Coinbase is available only in USA, Canada, Europe (except for Russia), Singapore or Australia.
Binance is a quite new cryptocurrency exchange that is mainly based on the Chinese market, even though everyone is allowed to sign-up and start trading with Binance.
Some of the major advantages of Binance is that is founded by some of the veterans of the industry and provides you with a lot of assets. The transaction fee is way too much low when compared with Coinbase. But it doesn’t allow you deposit fiat currencies into your account as it only accepts cryptocurrencies.
I personally use both exchanges. Coinbase as middle man – to send purchased ETH or LTC straight to Binance or different exchange I trade on. As you can see they quite complement each other.
Hope this review has provided all information about Coinbase vs Binance matter. Please provide your queries and suggestion in the comment section below.