Binance vs. Coinbase: which one to choose?

Binance vs. Coinbase: which one to choose?

Costs Binance Coinbase
Bank account Free outside the United States 1.49%
Wallet N / A 1.49%
Debit/credit cards 3.5% or $10, whichever is greater 3.99%
Automated Clearing House Transfer (ACH) N / A Free
Bank transfer $15 by bank transfer in the United States $10 deposit, $25 withdrawal
Cryptocurrency conversion Free, but Binance has a spread above the market price 0.50% to 2%
Purchases 0.015% to 0.1% 0% to 0.50%
Professions 0.015% to 0.1% 0.50%
Other expenses 0.50% instant buy and sell fees $0.99 to $2.99 ​​depending on the amount

Binance vs. Coinbase: Ease of Use

Binance and Coinbase cater to different types of users. Coinbase offers a simple platform for investors new to cryptocurrency trading who want fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the number of choices can be overwhelming for a new user. Binance is best suited for people familiar with cryptocurrency lingo and investment options, while Coinbase is designed for convenient and easy trading.

Both exchanges provide mobile apps with different functionality. For example, the Binance and Coinbase apps score 4.7 out of 5 stars on the Apple App Store. However, the Binance app receives poor ratings for Android users, with only 2.1 stars out of 5 on Google Play, with many users saying the app works much better on iPhones.

Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access helpful tutorials or articles similar to cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also allows users to earn cryptocurrency for watching videos for beginners.

Although Coinbase wins for ease of use, the customer service options are less friendly. You can only reach Coinbase via email or a help ticket. Binance, on the other hand, offers live chat, respond on Twitter, or you can email them for assistance.

Frequently Asked Questions (FAQ)

What are Binance and Coinbase?

Coinbase is a regulated cryptocurrency exchange in the United States that allows users to buy, sell, send, receive, and trade altcoins through a web browser or mobile app. Binance is also an exchange, but it has one of the highest cryptocurrency volumes and is not considered regulated in the United States, which is why not all functions and coins are available to users. based in the United States.

Binance supports many more advanced trade types, such as limit orders, stop-limit orders, market orders, post-only orders, and peer-to-peer trading. However, US residents have fewer options.

How do Binance and Coinbase work?

Both platforms operate as an online brokerage for cryptocurrencies. Users deposit fiat funds to buy, sell or trade digital currencies. The registration process is similar for both, but international Binance users won’t need to show photo ID to verify their account. However, Binance.US requires photo ID.

Either way, you will create an account, verify your email address, and add funds from an acceptable method. Once you are ready to make a trade, you head to the exchange, create an order for the desired altcoin, and follow the on-screen steps. Exchanges store cryptocurrency until you move it to a bitcoin digital wallet, trade it, or withdraw it.

Is it safe to hold cryptocurrency on Binance or Coinbase exchanges?

Although Binance and Coinbase are among the top crypto exchanges, users are encouraged to store funds in a hardware wallet for long-term savings. All currencies held online can be targeted by hackers, and most exchanges have experienced breaches, including Binance in 2019. Although Coinbase told The New York Times that it has never been hacked and only 0.004% of its users experienced account takeovers in the year ending April 2021, errors can occur. produce on your side, putting your parts at risk.

Binance and Coinbase both provide hot storage, but it may be safer to use your own cold storage through a hardware wallet. A hardware wallet is a device that is not connected to the internet, and you will need to plug it into your computer to access your digital currency.

Who should use Binance or Coinbase?

Coinbase is perfect for beginners who prioritize convenience and security. The user-friendly platform is very easy to use for almost anyone, and when you open the app, you’ll see a clean interface with minimal options. As a trusted US-based exchange, it is ideal for users who are hesitant to buy or trade cryptocurrencies. However, you pay a higher price for convenient deposit and withdrawal options.

Binance is suitable for experienced investors who want advanced trading options and plenty of analysis to support their strategic decisions. Novice users will experience a learning curve, but once you learn your way around it will get easier. With low fees, over 500 cryptocurrencies, and availability in over 180 countries, Binance is a great choice for non-US residents who want a sophisticated platform.

How we rated Binance vs Coinbase

We reviewed Coinbase and Binance looking at fee structures, cost, and ease of understanding. Although we primarily reviewed Binance, we also assessed Binance.US features applicable to US residents. We considered website and mobile app functionality, availability of knowledge bases, and access to customer service. Our fee and feature tables give a side-by-side view of security, transaction types, accepted fiat currencies, payment methods, and cryptocurrencies.

Investing in cryptocurrencies and other initial coin offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the author to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decision. Investopedia makes no representations or warranties as to the accuracy or timeliness of any information contained herein.