Binance vs. Coinbase: The Difference To Know

Binance vs. Coinbase has been argued over the years.  How do you know the best between the two platforms?

We have made it easier for you to pick Binance vs. Coinbase.  The two cryptocurrencies are the largest in terms of exchanges on the market.

You can access to trade, sell, and buy these cryptocurrencies. That is the reason people argue over the best when it comes to Binance vs. Coinbase.

With the number of cryptocurrencies on the market, it can be daunting to pick the right one, especially for beginners.

Binance and Coinbase are popular virtual currencies that are used around the world. What do you know about these two platforms?

Facts about Binance vs. Coinbase

Brian Armstrong and Fred Ehrsam created Coinbase in 2012, making it one of the first crypto exchanges on the market.

The currency is a United States-based regulated exchange with an easy-to-use app.  You can make transactions with your credit card or bank account.

Changpeng Zhao created Binance in 2017. It has become one of the largest exchanges by volume in the world.

Binance offers investors access to other cryptocurrencies in more than 180 countries in the world. However, Binance US is strictly for those in the United States of America.

The major difference between Binance vs. Coinbase is the availability of cryptocurrencies.

Binance offers exchange to more than 500 cryptos, while Coinbase has a strict vetting process and offers exchange to over 40 cryptos.

Binance vs. Coinbase: How Do They Compare?

As of March 2021, Binance is not used in the United States. The country makes use of a separate platform called the Binance.US. It comes with higher fees and limited currency options.

Binance

Pros

 

• It has low fees.
• It offers multiple transaction types.
• It has a high number of cryptocurrencies supported.

 

Cons

• A limited version is available to those in the United States.
• Lack of Know Your Customer (KYC) features for consumer protection
• U.S. customers cannot use the Binance platform
• It can be overwhelming

 

Coinbase

Pros

• The crypto is easy to use.
• It supports the most popular cryptocurrencies.
• It comes with its own digital wallet.
• Extremely user-friendly platform
• Well-known and trusted by U.S. regulators

 

Cons

• It has high fees.
• It has no advanced trading options
• Fewer transaction types than other platforms

 

Binance vs. Coinbase: At a Glance

Crypto Exchange Platforms	Binance	Coinbase
Main platform features	Low fees, comprehensive charting options, and hundreds of cryptocurrencies	Intuitive, beginner-friendly platform offering basic transactions, a digital wallet, and withdrawals to PayPal
Fees	0.02% to 0.10% purchase and trading fees, 3% to 4.5% for debit card purchases, free Single Euro Payments Area (SEPA) transfer, or $15 per U.S. wire transfer	0.50% per trade, 3.99% for credit card purchases, 1.49% for Coinbase wallet or bank account purchases, and wire transfers are $10 for deposit and $25 for withdrawal
Number of cryptocurrencies supported	Over 500 for global traders and 52 available for U.S. investors	51
Security features	2FA verification, FDIC-insured USD balances, device management, address whitelisting, cold storage	2FA verification, insurance for hot storage if Coinbase is breached, biometric fingerprint logins, cold storage, FDIC-insured USD balances, AES-256 encryption for digital wallets
Types of transactions supported	Limit order, market order, stop-limit order, trailing stop order, post only order, peer-to-peer trading, margin trading, one-cancels-the-other order, and more	Buy, sell, send, receive, and exchange
Maximum trading amount	Limits differ based on the cryptocurrency purchased	Limits vary based on your payment method and region

 

 

Binance vs. Coinbase: Ease of Use

When it comes to Binance vs. Coinbase, Binance is called the Jack-of-all-trade because it offers users virtually everything related to cryptocurrency on its platform.

For beginners, Binance is easier to sign up and start trading, while experienced traders can make use of its advanced charting, trades, and custom API keys.

You can sign up for Binance when you create an account with your email address. When your email is verified, you can secure your account with two-factor authentication.

The next step is to connect your credit card or bank account and begin your trading. Coinbase has a simple interface for your buying, selling, and trading cryptocurrency.

The sign-up process of Coinbase is simple and verification is straightforward with your email address and a government-issued photo ID.

Binance vs. Coinbase: Security

Security is vital when you compare Binance vs. Coinbase.  The two crypto offer users robust security that safeguards their digital assets.

While the two platforms offer solid security to their users, Coinbase offers a better overall reputation. Coinbase is a U.S.-based exchange backed by banks like J.P. Morgan.

Binance started in China and moved to Japan. The Binance.US platform operates out of San Francisco, California.

When it comes to regulation, Binance is not regulated because it initially banned all U.S. residents from accessing the platform. Its new Binance.US exchange is only for those in the U.S.

Both cryptocurrency exchanges offer their users two-factor authentication (2FA) via the Google Authenticator app or short message service (SMS).

Those in the United States report some problems with the Binance.US and Google authentication process.

Coinbase requests identification verification from all users via a photo or government-issued ID.

For Binance, it only requires this of the U.S.-based users or those wanting to invest and trade larger amounts.

Security Features: Binance

Trust Wallet partnership: Binance partners with Trust Wallet, which is a digital wallet space with millions of users.

Trust Wallet helps in protecting users’ assets with a PIN, biometric access, encrypted key, and a 12-word recovery phrase.

Whitelisting crypto addresses: It provides address whitelisting to users. That makes it restrict access to users’ addresses when withdrawing cryptocurrency.

While users’ addresses are stored in their address books, it blocks other addresses the access to other users’ funds.

Two-factor authentication: When it comes to Binance vs. Coinbase, Binance provides two-factor authentication (2FA) via SMS or the Google Authenticator app.

Advanced verification: It offers an advanced verification to unlock more access to the platform (withdrawal limits, larger deposits, etc.).

Binance ensures that no fake account is created for fraud with its advanced verifications. That means you need to upload your government-issued photo ID and a picture of yourself.

Device management: It allows users to review all the devices that have accessed their accounts, and restrict any that they do not recognize.

Security Features: Coinbase

Built-in wallet: The crypto offers users a digital wallet that helps them store their cryptocurrencies. Coinbase is protected with a password and biometric access controls.

Coinbase offers an encrypted 12-word recovery phrase that helps in protecting your assets.

Two-factor authentication: It provides two-factor authentication via SMS or the Google Authenticator app.

Coinbase uses this process in securing access to their accounts when they get a time-sensitive six-digit passcode.

Cold storage and crypto vaults: The crypto makes use of cold storage to keep users’ assets. These storages are not connected to the internet.

Coinbase provides a cryptocurrency vault, which secures its stored digital assets. With these vaults, fraudulent activities are prevented with these security measures.

They are time-locked, which ensures that if all approvals for the transaction are not completed within 24 hours, the withdrawal is canceled.

FDIC Insurance (up to $250K): When it comes to exchanges that provide FDIC insurance on USD (US Dollar) deposits, Coinbase is listed.  It insures up to $250,000 of deposited USD funds.

Binance vs. Coinbase: Features

Binance and Coinbase let their users buy or sell cryptocurrency in a simple way. However, the two has different ways of trading.

Binance Features

User rewards: Binance offers users challenges and giveaways to improve its maximum participation on its platform.

Winners of offers receive their gifts from the Binance rewards center. It also hosts crypto airdrops for currencies.

Binance Academy: This cryptocurrency hosts its free Binance Academy. This provides crypto lessons and advanced tutorials on trading, Traders get all information here.

Massive variety of trade options: Binance provides massive arrays of trade types on any exchange. Some of the trade options available:

 

• Limit order
• Stop limit order
• Market order
• Post only order
• One-cancels-the-other (OCO) orders
• Time in force limit orders
• Stop market order
• Trailing stop order

Limit TP/SL order (strategy order)

• Guess the price battles
• Pool liquidity
• Margin trading
• Peer-to-peer trading

Advanced charting:  Users make use of advanced charting views that provides hundreds of overlays and indicators via the embedded TradingView charts.

API keys: Binance provides public access to their API keys, thus allowing third-party apps to integrate with the cryptocurrency.

Coinbase Features

Free education (+ free cryptocurrency): It provides short educational videos that helps uisers with cryptocurrency projects.

Users who view these videos are rewarded small amount of free cryptocurrency.

Newsfeed: Coinbase provides a built-in newsfeed to update its users on current crypto news and developments.

This feed helps in curating articles from the internet to deliver important trends and changes in the market.

Price alerts: The users can set up alerts about price changes in whichever cryptocurrencies they want to track.

Binance vs. Coinbase: What to Know at a Glance

Binance offers its users:

A rewards center that provides giveaways and challenges to encourage them to earn cryptocurrency.

Public API keys for integrating other software tools

Advanced charting with hundreds of indicators and overlays.

Over 13 transaction types

The option to use the third-party digital wallet, Trust Wallet

• Over 180 countries trade on Binance, while 43 states in the United States can use Binance.US.
• However, the following states are excluded; Connecticut, Hawaii, New York, Texas, Vermont, Idaho, and Louisiana

Those in the United States of America cannot complete their transaction via credit card or margin trades.

Coinbase supports payment via credit card and they can make margin trades on Coinbase Pro.   Coinbase provides more features for those in the United States.

However, it offers fewer options for international traders. Some of the Coinbase features include:

A newsfeed showcasing the latest cryptocurrency news

Can earn crypto by watching short videos

The ability to withdraw funds to your PayPal account

A secure, standalone digital hot wallet that you can use with Coinbase and other exchanges

Available for use in over 100 countries and 49 states, with no trading allowed for residents of Hawaii

The Coinbase Pro platform comes with limited charting features, including the ability to track exponential moving averages

Binance vs. Coinbase Fee Comparison Table

Transaction	Binance Fee	Coinbase Fee
Buy/Sell with Bank Account	0.10%	1.99%
Buy/Sell with Wallet	0.10%	1.99%
Buy/Sell with Credit/Debit Card	1.10%–2.10%	4.49%
Instant Card Withdrawal	N/A	Up to 1.5%
Wire Transfer (USD)	Free	$10 ($25 outgoing)
Exchange Crypto	0.10%	2.00%
ACH (USD)	Free	Free

Binance fees are among the lowest on the market, whereas the prices of Coinbase are among the highest.

While those in the U.S pay higher on Binance.US, the crypto is much cheaper than Coinbase.

Users may pay at least 0.50% per Coinbase transaction and plus extra convenience charges based on their payment methods.

That means they can pay as much as 4% per transaction. For Binance, it makes use of a maker-taker structure with the same fees for both makers and takers.

However, its fee chart is often confusing for many beginners. It provides users with lower charges, especially for high-volume traders.

Binance users lower their costs by:

Buying Binance (BNB) tokens to pay fees with a 25% discount

Referring friends to earn a discount on trading fees

High-volume traders can level up for very important person (VIP) discounts.

Binance vs. Coinbase: Currencies

Binance is famous for its huge altcoin list. It offers over 500 choices available to non-U.S. users.  The Binance.US exchange supports 52 coins.

Coinbase provides 51 trading currencies on its regular platform and 57 on the Coinbase Pro exchange.

Coinbase supports fiat currencies, including USD, GBP, and EUR, whereas Binance supports 19 fiat currencies, such as USD, EUR, AUD, GBP, HKD, and INR.

Binance provides 50 to 591 cryptocurrency pairs, while Coinbase has 51 for users in the United States.

Binance has these cryptocurrencies that are missing in Coinbase;  Harmony (ONE), VeThor Token (VTHO), BND, VeChain (VET), Dogecoin (DOGE), QTUM, and Matic Network (MATIC).

Coinbase has the following cryptocurrencies; Wrapped Bitcoin (WBTC), Aave (AAVE), SushiSwap (SUSHI), and Celo (CGLD).

Coinbase and Binance have these currencies: Dash (DASH), Storj (STORJ), Cosmos (ATOM), Compound (COMP), Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Cardano (ADA).

When comparing Binance vs. Coinbase, you should know that these platforms have similarities and differences.

You can decide the cryptocurrency to use after reading this article. However, the individual choice supersedes everything.

For beginners, this article is important because it can help them avoid some initial challenges posed by the two platforms.