Binance vs Coinbase: A Comparison between World’s Best Cryptocurrency Exchanges

Binance vs Coinbase: A Comparison between World’s Best Cryptocurrency Exchanges
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The craze of crypto is increasing, and it is pretty evident that you cannot trade cryptocurrencies using your bank. Instead, you need a cryptocurrency exchange. Crypto exchange is the platform that allows users to buy, sell and trade cryptocurrencies. You can even convert cryptos to fiat and vice versa using a crypto exchange.

When we talk of the crypto exchanges, we often come across Binance and Coinbase as the two most common ones. Both the platforms are entirely different in their approaches, making it essential to have an honest comparison between them. 

Let’s compare the two best crypto exchanges:

Coinbase is a crypto exchange designed with a simple user interface, while Binance has a steep learning curve and supports advanced users. We will compare all the different features of both the exchanges one by one:

  • Ease of using- As we have stated earlier, Coinbase has a very user-friendly platform, which means that even a newcomer can use the platform very efficiently. On the contrary, Binance is not as easy as Coinbase to use.
  • Security- Coinbase offers 2-factor authentication, hot storage insurance, biometric logins, AES 256 encryption for digital wallets, and FDIC insured USD balances. Binance also offers 2-factor authentication, FDIC insured  USD balances, device management and address whitelisting.
  • Supported transactions- Coinbase allows its users to sell, buy, exchange, receive and send cryptocurrencies. In contrast, Binance allows Limit order, stop-limit order, post only order, peer-to-peer trading and many more such features.
  • Fees- Coinbase has a 0.5% trading fee while Binance has only 0.015 to 0.1% trading fees. Coinbase has comparatively higher fees for withdrawal and deposits compared to Binance.
  • Supported cryptocurrencies- Coinbase supports only 107 cryptocurrencies, while Binance supports more than 500 cryptos for global traders and only 60 cryptos for the traders within the United States.
  • Basic features- Compared to Binance, Coinbase has more features to offer to the residents of the United States but fewer options for international traders. The crucial elements of Coinbase include a user-friendly platform, a digital wallet and withdrawals to Paypal, while Binance offers lower fees and more cryptocurrencies to trade. Coinbase can easily be used in more than 100 countries and 49 states.
  • Working of the platform- Both the crypto exchange platforms have more or less similar working and the signup process. You are required to create an account to use the platforms. With Binance, you will be required a photo ID, unlike Coinbase.

Binance or Coinbase?

If you’re a beginner, you must go for Coinbase because of its security and convenience to use. It offers a user-friendly platform that anybody can easily use. The good thing is that Coinbase is a trusted exchange where you can conveniently trade cryptocurrencies. The only drawback is that you are required to pay a higher fee for withdrawal and deposit, but that indeed comes with more features.

On the contrary, Binance is an excellent platform, but it should be avoided by beginners for crypto trading. Although it has lower fees, if you can learn to use the platform, it might be beneficial to you to trade cryptocurrencies.

In our comparison, we can clearly say that Coinbase is much better in terms of regulatory history in satisfying its customers.