The world of cryptocurrency is changing day by day. With such a huge fan base and millions of transactions made, there needs to be a platform that can support all activities and provide the best possible experience to the investors.
And, the volume of trading in the crypto space isn’t small. In January 2021, the record was set - 400.000 Bitcoin transactions were made every single day, while for Ethereum, that number was 1.1 million.
Thankfully, the market isn’t monopolized, and investors have a choice. There are many platforms to choose from (they are often called brokers), but two share the crown and are considered the most popular.
These two giants have a little less than 80 million users combined, and this number is expected to hit the 100 million mark by the beginning of January 2022.
It’s evident that if you’re a newbie trader (or someone who has been in the game for quite some time now), you will pick one of these two platforms. They are the most popular ones, they are incredibly safe, and you should expect to find all cryptocurrencies there - Bitcoin, Etherium, or alts, if that’s what you trade.
But which one to pick? Indeed the two of them have their pros and cons, but which one would be perfect for you as a trader? In this article, we’ll answer that question for you.
We’ll cover everything to these two platforms, their good, and bad sides, and list all the information you may need. We’ll do it by comparing Binance and Coinbase on several different aspects we believe are most important for a trader.
In the end, hopefully, you’ll be able to draw a concussion and pick the platform that suits you the best.
Binance or Coinbase: General Information
Coinbase, founded in 2012 by Brian Armstrong and Fred Ehrsam, was one of the first cryptocurrency exchanges on the market. It’s a licensed exchange situated in the United States that provides access to some of the largest cryptocurrencies on the market today.
Coinbase has positioned itself as one of the top exchanges globally, thanks to an easy-to-use interface and the option to buy bitcoin with your bank account or credit card.
Binance, created in 2017 by Changpeng Zhao, is a relative newcomer to the cryptocurrency market. It has swiftly evolved to become the world’s largest exchange by volume, providing customers with access to hundreds of cryptocurrencies.
Binance is available in over 180 countries globally. However, they did have to create a distinct corporation, Binance US, exclusively for US consumers.
The offered cryptocurrencies are the most significant distinction between the two platforms. Coinbase has a stringent vetting procedure for which cryptocurrencies it will allow, and it presently supports over 40 of them.
Binance, on the other hand, has expanded its cryptocurrency exchange to include over 500 coins (and counting).
Coinbase is also better for US residents users but a little less appealing to the rest of the world. Binance, even though it has a US branch, isn’t that appealing to the US residents but is far more prevalent in Europe or Asia.
Binance or Coinbase: Security
Both Binance and Coinbase have strict security rules that block possible hacker attacks and keep investor funds safe.
Both Binance and Coinbase offer two-factor authentication (2FA as it’s often called) used to identify users. And security is essential, especially in cryptocurrency.
In 2019, hackers stole $40 million worth of Bitcoin from Binance, making it the most significant crypto heist up to date. For that not to repeat, 2FA identification has seen the light of the day, and thanks to it, hackers nowadays have a hard time accessing the platforms.
CoinDesk has made an interesting video about the heist that explains in detail how it began and how hackers hacked the system in order to steal milions of dollars. We suggest that you see it if you want to know more about the biggest crypto heist.
Both Binance and Coinbase offer mobile apps to the users, and inside the app, you can see all devices currently connected - which is a neat feature to control your account.
Coinbase is one of a few platforms that keeps all user assets in a “cold” storage - storage that is not connected to the Internet. Coinbase also has its own wallet, where you can store your coins. This wallet is secure and protected with a unique 12-word seed phrase known only to the user.
On the other hand, Binance doesn’t have its wallet, but it partnered with Trust Wallet, a leading digital wallet in the crypto space that keeps all assets safe behind a secure PIN and 12-word seed phrase.
Binance or Coinbase: Features
Both Binance and Coinbase offer their users to buy and sell crypto with ease, and in addition to that, they both have different features that enhance investors’ trading experience.
For example, Binance is famous for the rewards that it offers every week. If the user trades more than a set limit, they will get a “ticket” and can participate in a lottery to win a specific cryptocurrency.
Binance also educates its users and has a free academy platform called “Binance Academy.” There, users can educate themselves on crypto and blockchain and become better traders. They also share sweet trading strategies that can help you open or close your positions more wisely.
Binance also has many (and we mean many) different trading options. Besides the regular buy and sell options, investors can use limit orders, market orders, trailing stop orders, margin trading, and many more.
In contrast, Coinbase doesn’t have such diverse features available and sticks to the old-school way of trading. They don’t have many trading options, but they do also have free education for their users.
They also have a newsletter that they publish weekly that aims to educate users on different trends on the market and share with them popular crypto-related news.
Binance or Coinbase: Currencies
This point can make it or break it for most people when choosing the perfect platform for their needs. After all, if you want to invest in a specific coin, you’ll surely pick the platform that offers it, right?
Binance is the king when it comes to the variety of coins offered on crypto trading platforms. Besides Bitcoin, Tether, and Etherium, which are probably the most popular currencies nowadays, Binance offers 500 more currencies to their users, ranging anywhere from small caps to bigger acts such as Cardano or Solana.
They also have their own coin called the Binance coin that users can use to get smaller trading fees.
On the other hand, Coinbase is far more strict when it comes to currency versatility. They don’t approve all coins created, and the coins they approve need to pass a complicated verification process that filtrates scams from the stuff that is worth it.
This means that Coinbase doesn’t offer a lot of currencies. Currently, only 40 coins are available for trading, so if you are a person that loves alts or coins that aren’t that popular, you probably won’t find them on Coinbase.
Binance or Coinbase: Fees
Fees play a significant role in choosing the perfect platform for your needs. It might not sound like a big deal, but having small fees is extremely important if you trade considerable amounts of coins.
For this purpose, "The Balance" has made a wonderful table with a small comparison of fees present on both platforms. After all, do you think that the CEO of Binance could be one of the richest men in the world without any fees on his platform? Probably not.
Binance offers way smaller fees for almost every transaction. Coinbase is best for investors that want to buy and hold. If you’re an investor that wants to trade and withdraw money regularly, then Binance’s fees will probably be far more appealing to you.
Binance or Coinbase: Access
Binance and Coinbase are platforms that offer their services globally. However, there are some differences you should be aware of, especially if you are a US citizen.
Binance can be used in more than 180 countries worldwide. US residents can also use it, but a bit differently than the rest of the world. Binance has built a different US-based Binance website that is tailored for US citizens only.
This is because of strict regulation in the country and anti-money laundering laws that are present. Users also need to provide proof of identification to create an account.
Compared to their primary platform, Binance US offers fewer cryptocurrencies for trading. There are also not many trading features on the original website (missing margin treating, for example), so you should be aware of this if you’re a US citizen.
Coinbase is far more open to US citizens, and besides that, it’s available in 100 countries worldwide. It also has more history than Binance (which is about four years old) and a more extensive customer base.
In a nutshell, if you are a US citizen, then Coinbase would be a better choice for you. However, if you live in a small country, then Binance is a better pick.
Binance or Coinbase: Final Verdict
All in all, both Binance and Coinbase have their pros and cons. Both are very popular platforms that are leaders on the market and have millions of active users that trade daily.
Coinbase is the first crypto trading platform created, and because of that, it’s the first pick for most users. Binance is new on the market, but it’s considered the best platform for trading many different cryptocurrencies because of the small fees.
If you are a US citizen, then Coinbase is tailored for you. If you aren’t a US citizen and want to dive deeper into the crypto space, then Binance is a great choice. It’s better than Coinbase for trading and offers many more coins.
All in all, both platforms have their customer base, and it depends on your needs which one you’ll pick. Hopefully, this article will help you make an easier choice.