Binance vs Coinbase

The main difference between Binance.US and Coinbase is that Binance.US was designed to provide a seamless and familiar experience to traders with all the trading tools they need, while Coinbase is designed to make crypto investing as simple as possible for beginners.

However, Binance.US also provides a simplified buying process, while Coinbase has integrated some advanced trading features. There are lots of finer details that differentiate them, though, which is why we put together this guide.

We’ll be thoroughly analyzing both platforms and comparing them on important factors such as fees, features, security, and more. We’ll also explain which crypto exchange is better for each use case, so you should have all the information you need to decide whether Binance.US or Coinbase is right for you.

Binance and Coinbase Compared

Binance vs Coinbase: Fees

Both Coinbase and Binance could be more transparent about the fees they charge. The table above details the costs we were able to discern, but for both platforms the actual fees charged may vary depending on factors such as market conditions, transaction type, transaction size, and payment method.

Instant Purchases and Conversions

The instant crypto purchase and conversion features are difficult to compare. While neither platform charges a fee for conversions, they both include an unspecified spread in the price of the asset. When making an instant purchase, fees can vary greatly on both platforms depending on the payment method, order size, and other factors.

Trading Fees

The most transparent fees are those charged for using the Advanced Trade features on Binance and Coinbase. They both use a similar maker/taker fee structure with tiers based on your 30-day trading volume. In either case, you’ll pay 0.4% in maker fees or 0.6% in taker fees if you’re trading less than $10,000. However, Binance offers a 25% discount when you pay fees with BNB, and doesn’t charge any fees on major Bitcoin and Ethereum trading pairs.

Deposit and Withdrawal Fees

Here’s a breakdown of the fees you can expect to pay on Binance and Coinbase when you deposit or withdraw via the various payment methods they offer.

Winner: Overall, Binance is our winner when it comes to affordable fees. Although the costs are difficult to compare in some cases, Binance’s cheaper wire transfers, fee discounts, and free BTC trading make it a clear favorite for low-cost trading.

Binance vs Coinbase: Features

Binance and Coinbase have several features in common. Let’s take a look at how they compare on these features.

Trading tools

Both platforms support instant purchases, sales, and conversions. Their advanced charting and trading features are pretty similar, but Binance just has the edge as it offers One Cancels the Other orders and is integrated with TradingView. The Binance platform also has an OTC trading portal, unlike Coinbase.

Staking

Coinbase and Binance offer easy-to-use staking services that enable crypto investors to start earning interest at the click of a button. Binance is the better of the two as it offers significantly more coins, generally higher staking rewards, and an auto-restake feature to compound earnings.

Wallets

Binance and Coinbase provide free custodial cryptocurrency exchange wallets where users can store and easily trade

their crypto. Both platforms keep the majority of users’ crypto in cold storage, but Coinbase leads when it comes to wallets as the company has crime insurance for the crypto it holds in hot wallets.

What’s more, Coinbase users can also use the self-hosted Coinbase Wallet, which allows them to take custody of thousands of different tokens, store and trade NFTs, and explore the world of decentralized apps.

Educational Resources

Binance and Coinbase are two of the best cryptocurrency exchanges when it comes to education. You’ll find a wealth of resources on either platform explaining how to use them, defining blockchain terminology, and exploring advanced concepts.

Binance’s resources are more comprehensive as it has slightly more articles. And although the Binance Academy is a part of Binance.com, Binance.US users can still access it to find hundreds more articles and free courses.

Unique Binance Features

Pay

The Pay feature makes it easy to settle up with other Binance users. You don’t need to enter long wallet addresses as you can simply import your contacts’ phone numbers or email addresses. Then you can send and receive crypto with instant settlement and no fees.

Tax tools

Binance’s tax center simplifies the process of reporting crypto tax. Users can export a custom transaction history or tax report from the Tax Statements portal. They also have the option to create a tax API key so they can automatically sync their transactions with a tax calculator platform.

Unique Coinbase Features

Learning Rewards

In addition to the educational resources in Coinbase Learn, customers have the opportunity to earn free crypto with the Learning Rewards feature. They simply watch short videos about up-and-coming crypto projects and answer questions to receive free tokens.

NFT

Although Coinbase NFT is still in beta, it already has a huge array of art, music, and collectible NFTs available to trade. Users can also create their own NFT collections with the platform and sell them.

Web3

Coinbase’s Web3 feature gives users access to the decentralized web. They can explore hundreds of dApps across different categories and access them using the Coinbase mobile app.

Borrow

Users in more than 20 states can access loans quickly with no fees or credit checks. They simply put their Bitcoin up as collateral, choose how much to borrow, and then make flexible repayments. The APR is just 8.7%, and the feature means users can access cash when they need it urgently, without having to sell their BTC and trigger a taxable event.

Winner: Coinbase is our top platform for features. Although Binance leads the way in trading tools, staking, and educational resources, Coinbase simply has more features overall. Highlights for us are the Coinbase Wallet and the Learning Rewards feature—who doesn’t love free crypto?

Binance vs Coinbase: Supported currencies

While Binance.com is known for offering a wider range of cryptocurrency assets than many competitors, the coins supported on Binance.US only represent a limited selection. Coinbase, therefore, offers US users significantly more crypto trading options.

Coinbase also offers more trading pairs. When using the convert feature, however, you’ll have access to thousands of options on either platform.

If you’re only interested in buying the most popular coins, it doesn’t matter much which you choose. A notable difference is that Binance offers its proprietary BNB and BUSD coins, while Coinbase does not. Moreoever, BNB coin being the native cryptocurrency of the Binance exchange, offers various benefits to its holders, including the opportunity for passive income through BNB staking, where users can lock up their tokens to participate in the network’s validation process and earn rewards.

Winner: Coinbase is the clear winner here for users based in the US. Although you won’t be able to buy Binance Coin, you’ll have access to significantly more cryptocurrencies than on Binance.

Binance vs Coinbase: User experience

Both Binance and Coinbase are strong on user experience. They have attractive designs that are clearly laid out and easy to navigate. Users have a choice between simple purchases and advanced trading on either platform. They can also access educational materials and customer support for help.

Although user-friendly, Binance’s design is a bit more reminiscent of traditional brokerage firms and as such may be favored by those who already have some experience. Coinbase is designed to be as easy to use as possible, regardless of whether you’ve ever invested before. When comparing Binance and Coinbase, it’s essential to explore Binance alternatives to ensure a comprehensive evaluation of the cryptocurrency exchange platforms.

Mobile Apps

Both platforms are available on desktop or as mobile apps. The Binance.US app has 4.1 stars on Google Play and 4.2 stars on the App Store, with users praising its advanced trading options and APIs. The Coinbase app has the same Google Play rating as Binance but scored 4.7 stars on the App Store. Customers were impressed by the app’s simplicity and reliability.

Winner: This one was a close run, but Coinbase just edges ahead as it is a bit more accessible for beginners.

Binance vs Coinbase: Security

The two platforms have a lot of security features in common. In both cases, you’ll need to provide proof of your identity as part of the Know Your Customer (KYC) verification process in order to create an account.

Security Practices

On either platform, your personal information will be encrypted and your account will be protected with two-factor authentication via SMS or the Google Authenticator app. You can protect against fraudulent withdrawals by whitelisting crypto addresses, but Coinbase also provides more secure storage with the Coinbase Vault, which requires multiple user approvals for withdrawals.

Opt-in security features include biometric access controls for Coinbase, while Binance supports device management and the ability to restrict access to certain devices.

Asset Protection

USD deposits on Coinbase and Binance are held in a bank account covered by the Federal Deposit Insurance Corporation, and they both store the majority of digital assets offline in secure cold storage wallets, but how they protect the rest differs.

Coinbase carries crime insurance to protect crypto assets from theft, including cybersecurity breaches. Binance, on the other hand, has a Secure Asset Fund for Users (SAFU), which has been funded by the platform’s trading fees. It was valued at $1 billion in 2022 and will be used to cover the value of any lost crypto in the event of a hack. On the other hand, In the realm of digital asset security, Coinbase has established a strong foothold, offering robust protections that stand up to scrutiny when compared in the Coinbase vs Gemini debate, two other prominent players in the cryptocurrency exchange market.

Regulation and Reputation

Both platforms have a fairly strong reputation and are licensed in every US state where they operate. Binance has had a bit of a turbulent history with regulators and has suffered a couple of significant hacks, but it reimbursed users and is working on being fully compliant.

Coinbase has also suffered a couple of breaches but reimbursed customers. It became a public company in 2021, which means it is audited by an independent third party. Coinbase appears to have a strong focus on regulatory compliance and financial transparency.

Winner: Both platforms are pretty safe for users, but Coinbase has the advantage thanks to its secure vault, crypto insurance, and status as a public company.

Binance vs Coinbase: Customer support

In general, crypto platforms leave a lot to be desired when it comes to customer support. Unfortunately, neither Binance nor Coinbase are especially strong in this regard. Many customers have complained about difficulty in getting their support tickets resolved and slow response times.

For both platforms, the general process is to start by looking for relevant articles in the Help Center. If your query isn’t answered there, you can talk to a chatbot through the live messaging system, and if your issue still isn’t resolved, you can connect to a live agent and raise a support ticket.

Coinbase began rolling out localized phone support in 2022 for retail customers in the US and a few other countries. This should make it easier for users to reach the support team.

Winner: Although neither platform is especially strong on customer support, Coinbase comes out on top due to its introduction of localized phone support.

Our Verdict

After thoroughly analyzing both platforms and comparing them on all the most important factors, Coinbase is the overall winner. It beat Binance on features, supported cryptocurrencies, user experience, security, and customer support.

However, Binance wasn’t far behind in many areas and came out on top for fees, trading tools, staking services, and educational resources.

Ultimately, both platforms could meet the needs of a range of different users, as summarized below.

Who is Binance Best For?

Users who will get the most out of Binance include:

• Experienced traders

• People who want to stake

• Those who want to trade large amounts

• Users who need crypto tax support

Who is Coinbase Best For?

You will likely find Coinbase more suitable if you are one of the following:

• Crypto newbies

• Security-conscious investors

• NFT traders

• Web3 enthusiasts

How do Binance and Coinbase Compare to Other Platforms?

Of course, there are many other crypto platforms available that you might want to consider as well. Here are some of the most popular alternatives to Binance and Coinbase.

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