When we talk about crypto exchanges, two names usually come into our minds - Binance and Coinbase. Thus, if you feel torn in choosing between the two, it's not surprising. Still, it may make you wonder which one would be a better option for you.
In this article, we'll cover a head-to-head comparison between these two giants. This way, you'll have a better grasp of both and see which one fits you better. We'll make this comparison in a series of features through which they differ.
Without further ado, let's get into it!
What Are the Key Differences?
Both Binance and Coinbase are well-known crypto exchanges. Further, a significant percentage of crypto users use either or both of these exchanges. Still, these two would have differences at some point, making one at an edge over the other.
Below are the key differences that you need to consider in choosing between the two.
By looking at this table, you'll see the gist of what makes the two different from each other. Further, you'll also see which one suits you better.
|Best for Cryptocurrency Purchase With Your Fiat Money
|Best for Advanced or Experienced Users
|US, AS, AF, EU, and Australia
|US, AS, AF, and EU
|A dependable and popular cryptocurrency exchange.
|One of the best crypto exchanges in the industry.
Now, when it comes to features, you need to look at seven essential things, both as a beginner and as an experienced investor. These are the following:
- Currency services
- Customer support
Let's get into each one a little bit deeper!
One of the first features you need to consider in choosing between the two is user-friendliness. If you're new to crypto, you must pick the most user-friendly since it will give you a great experience as you make your first trade.
Coinbase is outstanding when it comes to this matter. The layout of Coinbase is clean, simple, and easy to navigate.
Further, the features it offers seem basic, but in a good way. For this reason, it's an excellent option for beginners.
On the other hand, Binance is a little bit more on the advanced side. While it may win against other exchanges than Coinbase, it's the kind of platform that needs a bit more experience.
In general, both platforms are simple and easy to use, but Coinbase has the upper hand on this one.
Another thing to note for every investor would be the fees to pay. In general, you need to know the three main fee types. These are:
- Deposit fees
- Withdrawal fees
- Trading fees
Coinbase charges a fee of 1.49% for each cryptocurrency you buy or sell. It can even come up to 3.99% if you transact with a credit card.
Further, Coinbase doesn't offer trading pairs. In short, it doesn't offer exchange rates. It uses a conversion service that offers a set price for each trade.
On the other hand, Binance doesn't charge fees for deposits or withdrawals. The reason is that Binance only offers crypto trades.
In short, crypto trade handling is relatively cheaper than fiat currency trade handling.
Overall, Binance charges 0.1% for all trades. It also has a 50% discount on fees for trades using a Binance Coin.
In a nutshell, Binance would have the upper hand when it comes to fees. They charge pretty low and easy to understand for every beginner trader.
The next thing to note would be currency services. In a nutshell, there are two types of currency services. These are fiat trading and cryptocurrency trading.
Coinbase has better currency services for beginners. It's all because they can buy cryptocurrencies with fiat currencies.
In short, the users don’t need to go to another exchange first. Its selection of coins may be relatively more minor than Binance. However, it’s still big enough to get started.
Binance offers better services for more advanced users due to its better currency services. Further, its coin selection is one of the best, with new coins added almost all the time.
Still, this round goes to Coinbase since Binance doesn't have fiat trading.
Another thing to know is how much currency traders can deposit or withdraw. In short, you need to look at the exchange's trading limits.
Coinbase limits vary on the fiat currency you're trading with. Further, they have levels for every user.
For instance, a level 2 user can make around $25,000 worth of trades once a day. As you reach level 3, you can make unlimited trades.
When it comes to depositing, Binance doesn't limit how much a user can deposit.
In a nutshell, it will boil down to your preference in regards to limits. Though, a new user wouldn't mind such limits.
Security is another factor to consider when it comes to the usage of these exchanges. Of course, you want to pick a secured exchange since it's the place where you're money gets involved.
In general, both Binance and Coinbase have better security records than most platforms. Further, they take customer safety very seriously. Still, Coinbase would get this one since it’s more open and honest about the fund allocation.
Customer service is essential, both for beginners and advanced traders. Thus, it's one of the most criticized things in exchange.
Such problems do not exclude Binance and Coinbase, as both platforms need to excel in this area.
Neither exchange has a live chat support option on their home sites. Both platforms support via email correspondence.
Still, both exchanges do offer automated chat to cater to general inquiries.
Summary - Which is better, Binance or Coinbase?
Both Coinbase and Binance offer incredible perks and benefits for newbie traders. Still, between the two, the former offers easier access and usage for beginners.
In a nutshell, it would be better to use both but start with Coinbase. You can make a few trades to get started. Once you feel you're ready for more, you can jump to Binance.
In general, Coinbase is perfect for getting started on trading, and Binance is the best place to continue your journey.