Binance vs. Coinbase: Which Should You Choose?
Binance
Pros
- Over 500 cryptocurrencies for trade
- One of the cheapest platforms to use
- Massive selection of transaction types
Cons
- U.S. customers can’t use the Binance platform, and the Binance.US exchange is very limited
- It can be overwhelming, even for experienced users
- No built-in digital wallet
Coinbase
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
Binance vs. Coinbase: Features
Since the platforms are meant for different types of people, you’ll notice vast differences in their feature sets. However, both provide mobile applications with watch lists or live price tracking. But the similarities stop there.
With Binance, you’ll get:
- A rewards center offering challenges and giveaways as a way to earn crypto
- Advanced charting with hundreds of indicators and overlays
- Public API keys for integrating other software tools
- More than 13 transaction types on Binance
- The option to use the third-party digital wallet, Trust Wallet
- Users in over 180 countries can trade on Binance, but only 43 states can use Binance.US, excluding Connecticut, Hawaii, New York, Texas, Vermont, Idaho, and Louisiana
Furthermore, U.S. customers can’t pay via credit card or complete margin trades, whereas Coinbase supports credit card payments, and you can make margin trades on Coinbase Pro.
In comparison to Binance, Coinbase offers more features for U.S. residents but fewer options for international traders. The features include:
- A secure, standalone digital hot wallet that you can use with Coinbase and other exchanges
- The ability to withdraw funds to your PayPal account
- Available for use in over 100 countries and 49 states, with no trading allowed for residents of Hawaii
- A newsfeed showcasing the latest cryptocurrency news
- The optional Coinbase Pro platform with limited charting features, including the ability to track exponential moving averages
- Can earn crypto by watching short videos
Binance vs. Coinbase: Supported Currencies
Binance is well-known for its massive altcoin list, with more than 500 choices available to non-U.S. users. However, the Binance.US exchange only supports 52 coins. Coinbase offers 51 trading currencies on its regular platform and 57 on the Coinbase Pro exchange. Coinbase also supports fiat currencies, including USD, GBP, and EUR, whereas Binance supports 19 fiat currencies, such as USD, EUR, AUD, GBP, HKD, and INR. Depending on your location, Binance offers 50 to 591 cryptocurrency pairs, while Coinbase supports 51 for users in the United States.
The following cryptocurrencies are on Binance but not Coinbase: BND, VeChain (VET), Harmony (ONE), VeThor Token (VTHO), Dogecoin (DOGE), QTUM, and Matic Network (MATIC). On Coinbase, you’ll find Wrapped Bitcoin (WBTC), Aave (AAVE), SushiSwap (SUSHI), and Celo (CGLD). Both platforms support popular and up-and-coming currencies such as:
- Dash (DASH)
- Storj (STORJ)
- Cosmos (ATOM)
- Compound (COMP)
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Cardano (ADA)
Binance vs. Coinbase: Security
Although both platforms are considered secure, Coinbase has a better overall reputation. Founded in 2012, Coinbase is a U.S.-based exchange set to go public via a direct listing and backed by banks like J.P. Morgan.
Unlike Coinbase, Binance was first established in China before moving to Japan, and the Binance.US platform operates out of San Francisco, California. Binance isn’t regulated, so it initially banned all U.S. residents from accessing the platform. However, its new Binance.US exchange stays within U.S. regulations.
Both cryptocurrency exchanges provide two-factor authentication (2FA) via the Google Authenticator app or short message service (SMS), but U.S. users report some problems with the Binance.US and Google authentication process. While Coinbase requests identification verification from all users via a photo or government-issued ID, Binance only requires this of the U.S.-based users or those wanting to invest and trade larger amounts.
Binance security features also include address whitelisting, device management, and the ability to restrict device access. Like Coinbase, all USD balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and held in custodial bank accounts.
Coinbase security features consist of fingerprint biometric access for its digital wallet, and 98% of cryptocurrency funds are stored in air-gapped cold storage via vaults and safe deposit boxes. Coinbase has an insurance policy to cover the 2% of funds kept in hot storage, but it only covers security breaches on their end, not ones due to a user security problem.
Binance vs. Coinbase: Fees
Binance fees are some of the lowest in the industry, whereas Coinbase’s prices are some of the highest. Although U.S.-based users will pay slightly more on Binance.US, it’s still much cheaper than using Coinbase.
On average, you’ll pay 0.50% per Coinbase transaction plus extra convenience charges based on your payment method, so you might pay up to 4% per transaction. Binance uses a maker-taker structure with the same fees for both makers and takers. The fee chart can be confusing for beginners but offers vastly lower charges, especially for high-volume traders. Binance users can lower costs by:
- Purchasing Binance (BNB) tokens to pay fees with a 25% discount
- Ability to refer friends to earn a discount on trading fees
- High-volume traders can level up for very important person (VIP) discounts
| Fees | Binance | Coinbase |
|---|---|---|
| Bank account | Free outside of the U.S. | 1.49% |
| Wallet | N/A | 1.49% |
| Debit/credit cards | 3% to 4.5% | 3.99% |
| ACH transfer | Free | Free |
| Wire transfer | $15 for U.S. customers | $10 deposit, $25 withdrawal |
| Crypto conversion | N/A | 0.50% to 2% |
| Purchases | 0.02% to 0.1% | 0% to 0.50% |
| Trades | 0.02% to 0.1% | 0.50% |
| Other fees | 0.50% instant buy and sell fee | $0.99 to $2.99 based on the amount |
Binance vs. Coinbase: Ease of Use
Binance and Coinbase are geared toward different types of users. Coinbase offers a simple platform for investors new to trading cryptocurrency, wanting fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the sheer number of choices can be overwhelming to a new user. Binance is a better fit for people familiar with crypto lingo and investing options, whereas Coinbase is built for convenient, easy trading.
Both exchanges provide mobile apps with varying functionalities. For instance, the Binance and Coinbase apps rate 4.7 out of 5 stars on Apple’s App Store. However, the Binance app receives poor ratings for Android users, with only 2.1 out of 5 stars on Google Play, with many users saying the application works much better on iPhones.
Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access tutorials or helpful articles similar to cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also lets users earn crypto for watching videos for beginners.
Although Coinbase wins for ease of use, the customer service options are less user-friendly. You can only reach Coinbase via email or a help ticket. In contrast, Binance offers live chat, responds on Twitter, or you can email them for help.
