Binance vs. Coinbase – What’s the Difference?

Coinbase

Founded in 2014 in the United States, Coinbase is a cryptocurrency exchange that offers a user-friendly interface and a limited number of transaction possibilities. With a variety of alternative currency trading possibilities, Binance, on the other hand, is a bit more complex and widespread among professional users for international trading due to its greater complexity.

With that being said, Binance is a consumer app and provides a range of levels for its consumers; yet, when compared (Binance vs. Coinbase) to Binance, Coinbase is slightly easier to use than it is with Bitcoin.

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Binance, a cryptocurrency exchange situated in the United States, is less user-friendly, has higher transaction costs, and offers fewer options. But when you compare the low price of Binance to the high price of Coinbase, there is no contest. Here we will overview the Binance and Coinbase different aspects.

What is Binance?

Binance vs. Coinbase

Founded in 2017, Binance is the world’s leading cryptocurrency exchange, with over 300 different digital assets listed on its platform. The cryptocurrency has been exchanged in 2017 by Changpeng Zhao. It has quickly grown to become one of the world’s largest cryptocurrency exchanges.

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Several factors contribute to its prominence as a top-tier platform in the industry, including its multiple token listings, extensive charting capabilities, tradable tokens on its exchange, network reliability, security, and more.

Binance provides address allow listing as part of its security measures. A unique address will be required to withdraw your cryptocurrency in this situation. Aside from that, it offers two-factor authentication and device management, and enhanced verification.

Pros

  • Over 500 cryptocurrencies for trade
  • Cheapest platform to use
  • Multiple Transaction types

Cons

  • U.S. customers can’t use the Binance platform
  • Complicated for experienced users
  • No built-in digital wallet
  • In regulatory trouble in several countries

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What is Coinbase?

Binance vs. Coinbase

Coinbase is a cryptocurrency exchange and wallet provider based in the United States that was created by Brian Armstrong and Fred Ehrsam. The digital currency exchange Coinbase is right up there with Binance as one of the most popular online venues for purchasing, selling, exchanging, and storing digital currency.

One also can set up recurring purchases to occur on a daily, weekly, or monthly. The site also provides crypto-insurance, and any USD cash holdings will be insured by the Federal Deposit Insurance Corporation (FDIC).

Pros

  • Extremely user-friendly platform
  • Well-known and trusted by U.S. regulators
  • Multiple ways to purchase cryptocurrency

Cons

  • Expensive fees for transactions and payment methods
  • Limited advanced options for expert traders
  • Fewer transaction types than other platforms

Features: Binance vs. Coinbase

Wallets

Neither Binance nor Coinbase allows you to keep track of your funds. There is no need to worry about hackers meddling with your trading activities because the wallets are protected by AES-256 encryption.

When you have a wallet with Binance or CoinBase, you can access your funds, trade with them, and withdraw them to a bank or PayPal account with ease. Since the purchase of Trust Wallet by Binance in 2018, the cryptocurrency exchange has allowed users to access it in addition to the conventional Binance wallet.

Currencies

Binance has a far more extensive selection of coins than Coinbase. It supports about 500 currencies, whereas Coinbase supports slightly more than 100. It puts Binance ahead of the competition since it allows you to capitalize on any trend. Aside from the most famous cryptocurrencies like ETH, BTC, DOT, ADA, and XRP, you’ll also discover DOGE, SOL, and SHIB on both platforms, as well as lesser-known ones such as SOL and SHIB. However, Binance has an extensive selection of alternative cryptocurrencies not available anywhere else.

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Security

Even though both systems are considered secure, Coinbase has a slight advantage in this aspect. The cryptocurrency exchanges Coinbase and Binance both provide two-factor verification on their sites, which can be accomplished by using a third-party authenticator or by SMS.

Coinbase asks customers to submit an identity in the form of a government-issued ID or an original photograph before granting access. Binance, on the other hand, confirms US users through the demand for their investment. The security protections offered by Binance also include addressing allow listing and device administration.

Cryptocurrency 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 0.015% to 0.10% purchase and trading fees, 3.5% or $10 whichever is higher for debit card purchases, 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 on Binance. 60 available for U.S. investors on Binance.US 107
Security features 2FA verification, FDIC-insured USD balances for Binance.US, 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

Fees

Compared to Coinbase, Binance charges the least amount in transaction fees, whereas Coinbase charges the most amounts. The charges will be slightly higher for users from the United States than for other consumers, but they will still be lower than clients from different countries using Coinbase.

Because Coinbase charges 0.5 percent for each transfer, which provides additional convenience depending on the payment method used, fees that can reach 4 percent can be incurred. For its part, Binance has somewhat lower costs and operates on a producer market, whereas Bitcoin does not. As a result, both the creator and the taker must pay the same amount of money.

Fees Binance Coinbase
Bank account Free outside of the U.S. 1.49%
Wallet N/A 1.49%
Debit/credit cards 3.5% or $10 whichever is higher 3.99%
Automated clearinghouse (ACH) transfer N/A Free
Wire transfer $15 per U.S. wire transfer $10 deposit, $25 withdrawal
Cryptocurrency conversion Free, however, Binance has a spread above market price 0.50% to 2%
Purchases 0.015% to 0.1% 0% to 0.50%
Trades 0.015% to 0.1% 0.50%
Other fees 0.50% instant buy and sell fee $0.99 to $2.99 based on the amount

Security

Although both systems are considered secure, Coinbase has a slight advantage in this aspect. The cryptocurrency exchanges Coinbase and Binance both provide two-factor verification on their sites, which can be accomplished by using a third-party authenticator or by SMS.

Coinbase asks customers to submit an identity in the form of a government-issued ID or an original photograph before granting access. Binance, on the other hand, confirms US users through the demand for their investment. The security protections offered by Binance also include addressing allow listing and device administration.

Effortless operation

With fewer options to get lost in than Binance, Coinbase is still a little more straightforward to use than the cryptocurrency exchange. You’ll get quick access to your account information, charts, and cryptocurrency menus as soon as you enter the website. It enables you to complete transactions quickly and efficiently in a short period.

Binance is a more complex cryptocurrency, and it may take some time to acquire your bearings. Finding the charts is straightforward, but you may have difficulty locating the spot trading menu if you’re starting with cryptocurrency. However, the platform provides a limited mode in which new users can quickly learn the ropes and get started trading.

Apps for mobile

Coinbase and Binance both have attractive and user-friendly mobile applications. While Coinbase’s interface is generally easier to use, Binance provides an “easy mode” that makes it easier to get with the platform. There aren’t any significant variations between the desktop and mobile versions, so you’ll be able to trade just as you would on your desktop even while on the road.

Conclusion

The platforms have benefits and drawbacks. However, usefulness is decided by the user’s search. Crypto aficionados want tools to examine currency listings and watch price changes. They offer users the same capabilities as exchanges like Binance and Coinbase.

About Jackson Roy

Content Writer and a Business Student. I Write About Living a Wonderful Life Without Hurry, Making Different Choices, and Finding Happiness.

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