Since Bitcoin exploded in April 2013, everyone was hooked. Digital or cryptocurrency became internet gold and a lot of people struggled to cash in on the opportunity to own the profitable digital currency. Not surprising as the value of Bitcoin (BTC) rose from $0.30 in 2011 to a whopping $266 in April 2013. From tweets speculating, if Elon Musk and Bill Gates traded in Bitcoin to the numerous meme tokens like SHIB that suddenly rose to prominence after Elon Musk posted a picture of his Shiba Inu dog, the cryptocurrency became a trending topic almost overnight.
As exciting as it is, the world of cryptocurrency can be overwhelming to a beginner who has no idea which of the cryptocurrencies to invest in. Whether to invest in the established “giants” like BTC, Ethereum, Litecoin or the relative newcomers like Solana, SHIB, Cardano etc.) It is often a hard choice to make as daily more coins and tokens are being launched daily.
READ MORE: Binance vs Binance Us
Coinbase vs Binance: Which Exchange Platform Do You Need?
After dealing with that hurdle… Whew! The next source of confusion is often which cryptocurrency exchange to choose from. Cryptocurrency exchanges are platforms where both buyers and sellers meet online to trade crypto.
There are a lot of platforms out there but we’ll be looking at the platforms with the highest trading volumes – Coinbase and Binance.
Both Coinbase and Binance provide platforms for traders to exchange, sell and buy cryptocurrency but they have their differences.
If you’re interested in cryptocurrency out of curiosity or a desire to build a digital currency portfolio, this article will help you make a more informed decision as you begin your journey into the world of cryptocurrency trading. So, we will be making a comparison of the features of both platforms and we’ll start with:
Ease Of Use/ User Experience (UX)
On the other hand, the Binance home page has a lot of information, charts, promos, training and earning opportunities. Although beneficial, (who doesn’t like extra cash?)can be a bit much for a newbie to understand. Coinbase and Binance also provide mobile apps but the user experience on each is wildly different.
Coinbase vs Binance: User Reviews
Coinbase’s Play store review is below 4 stars. Most users complain of issues ranging from inability to log in, complications with trading or poor customer service.
On the plus side, the Binance app seems to be a favourite of traders with 4.3 stars. Most users praise the easy to use mobile app and swift resolution of complaints by customer service.
However, this is subject to change with regular app updates and changes in both platforms’ algorithms.
Coinbase vs Binance: Security
Both platforms are considered generally secure and use 2FA (Two-Factor Authentication) before transactions can be made. Coinbase requests ID verification from all users via a photo or government-issued ID, Binance doesn’t. Binance only requires this of the U.S.-based users or those wanting to invest and trade larger amounts. Coinbase security features consist of fingerprint biometric access for its digital wallet, air-gapped cold storage for 98% of cryptocurrency funds via vaults and safe deposit boxes.
Coinbase has an insurance policy to cover the 2% of funds kept in hot storage. This policy only covers security breaches on their end, not ones due to a user security problem. The advantage of Coinbase’s cold storage method is that it stores the majority of users’ funds offline. Likewise, it separates user funds from operating funds to prevent any form of abuse.
Brand Reputation
Also worthy of note is that Coinbase has built a better public reputation; it was founded in the US in California ( known to have one of the world’s strictest regulations) in 2012, was publicly listed in April 2021 on the United States Security and Exchange Commission and boasts of having the financial backing of the banking giant, J.P Morgan.
Binance was established more recently in 2017 in China before it later moved out and set up its headquarters in the Cayman Islands because of China’s increased regulation on crypto trading.
Binance doesn’t have a lot of regulations and it’s under investigation by several countries most notably, the US Department of Justice in 2021. However, the lack of rigorous security checks is an advantage to traders because the relaxed security measures mean they can make higher volumes of trade in less time.
Coinbase vs Binance: Fees
Let’s talk money…or trading fees. Binance is one of the most affordable trading platforms out there with a charge of 0.1% on all transactions and 0.9% on deposits and withdrawals. Binance users can further reduce costs of trading through options like purchasing Binance tokens (BNB) to pay fees with a 25% discount, referrals and VIP discounts for high volume traders.
Coinbase charges a 0.50% fee on all transactions. There’s a 3.99% charge if you use a credit card (in total, you are looking at up to a 4% charge per transaction ).
However, for U.S users, Coinbase is a better choice because it offers more varied payment options. Apart from the classic payment options like credit card and bank transfers, Coinbase also offers targeted payment methods based on location like 3D Secure and single Euro payments provisions or SEPA – Single Euro Payments Area.
Digital currencies available
At the crypto level, Binance has a lot more trade options than Coinbase. Binance has 1096 tradable crypto pairs for more than 500 cryptos. On Coinbase on the other hand, there are 286 tradable pairs for 51 cryptos. However, both offer the main cryptocurrencies. When it comes to Altcoins, you’ll find a lot more of them on Binance. Altcoins are all cryptocurrencies other than Bitcoin (BTC) though they share characteristics with Bitcoin. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions. Or they distinguish themselves from Bitcoin by providing new or additional capabilities, such as smart contracts or low price volatility.
Special Features
The competition is fierce on both platforms as each have features and offers that make them attractive to users. However, each platform has certain standout features that the other doesn’t offer.
Linked Visa Card
Only Binance offers a debit card directly linked to your account. Binance offers you a free Visa card to spend the tokens in your wallet anytime, anywhere. However, when it comes to the digital wallet feature, Coinbase outperforms Binance. Coinbase has a built-in integrated wallet that allows you to buy cryptocurrencies and store them in your wallet directly. Binance, on the other hand, does not offer this service but partners with Trust Wallet, a leader in the digital wallet space with over five million users.
NFTs
The availability of NFTs or non-fungible tokens on Binance is a plus for the platform, however, Coinbase does not feature NFTs on its trading platform. What are NFTs? NFTs or non-fungible tokens are digital assets that exist on a blockchain, a record of transactions kept on networked computers.
The blockchain serves as a public ledger, allowing anyone to verify the NFT’s authenticity and who owns it. Unlike most digital items which can be endlessly reproduced, each NFT has a unique digital signature, meaning it is one of a kind. NFTs is being considered by some to be the future of rights and ownership of intellectual property.
Staking
Both platforms allow for staking where traders “lock up” their cryptocurrencies to earn rewards however Coinbase allows for staking on only 6 cryptocurrencies while Binance allows for staking on 11 cryptocurrencies. On the plus side for Coinbase, the platform offers to Learn and Earn ( where beginners or new traders get free crypto for watching videos), it also offers the Coinbase card that lets you spend your crypto globally.
Probably because Binance offers a larger assortment of digital currencies its server is bigger than that of Coinbase allowing it to saturate less quickly during big rushes. In May 2021 when the cryptocurrency market suffered a staggering drop, traders rushed to cash in and buy during the dip. The massive surge in traffic put an extra load on the Coinbase exchange and this led to millions of traders being locked out of their accounts and unable to trade while the exchange scrambled to resolve the issue. However, both exchanges (Binance and Coinbase) suffered outages during the rush.
Coinbase vs Binance: User Rewards
Binance also frequently holds giveaways and challenges to increase user participation on their platform. Users can claim these prizes in the Binance rewards centre. Binance also hosts crypto airdrops for currencies that are soon-to-be listed on their platform.
On the other hand, Coinbase offers a built-in newsfeed to update its users on current crypto news and developments. The feed curates articles from the web to deliver important trends and changes in the cryptocurrency market. Coinbase users can also set up alerts about price changes in whichever cryptocurrencies they want to track.
Using a watchlist of currencies, users can either view updates on the app or get notifications pushed to their mobile phones.
Target Market
Due to better options for U.S users and fewer options for international traders such as more digital currencies, Coinbase seems targeted to U.S residents offering more features like a secure digital wallet, watch-to-earn videos, and the ability to withdraw funds to a PayPal account. While Binance is not so discriminatory with available digital currencies being the same for traders in over 180 countries, it is interesting to note that Binance U.S has only 60 digital currencies available on the platform while Binance.com has over 500 currencies available for trade.
In Summary: Coinbase vs Binance
Both exchange platforms have access to similar currencies, both allow you to buy, sell, and trade your digital assets, and both offer user education for newcomers to the crypto space. The different approach of both platforms makes them more suitable for different users.
Coinbase is perfect for beginners (preferably in the U.S) who prioritize convenience and security. The user-friendly platform is very easy for nearly anyone to use, and when you open the application, you’ll see a clean interface with minimal options.
As a trusted, U.S.-based exchange, it’s a good fit for users wary about buying or trading cryptocurrency. However, you pay a higher price for convenient deposit and withdrawal options.
Binance is suitable for experienced investors wanting advanced trading options and plenty of analytics to back up their strategy decisions. It has daily updated trading charts, novice users will experience a steep learning curve, but once you learn your way around, it gets easier.
It also has lower fees, over 500 cryptocurrencies, and availability in more than 180 countries, Binance is an excellent choice for non-U.S. residents, high volume traders and those interested in a more sophisticated platform.
No matter which platform you choose, understand that investing in cryptocurrencies is highly speculative, so never invest more than you are willing to lose.
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