Coinbase vs. Binance: How Do the Leading Centralized Exchanges Compare?
Coinbase and Binance are the most trusted centralized crypto exchanges worldwide. However, choosing between the two can be challenging, considering they offer a wide range of products and features.
This guide explains key aspects of Binance and Coinbase to help you understand what makes each unique, thus making it easy to select your ideal crypto trading platform.
User Experience
Are you a beginner or a seasoned crypto trader? Your answer to this question will guide you when selecting between Binance and Coinbase. If you are just getting started, Coinbase can be ideal for you since it has a simple user interface that facilitates easy navigation. Furthermore, the US-based exchange gives access to educational tools to help beginners understand everything about crypto and blockchain.
As for seasoned traders seeking advanced trading tools, they can opt for Binance as it integrates with TradingView, which has thousands of indicators.
Supported Cryptocurrencies
Binance and Coinbase support the top two leading cryptocurrencies by market cap: Bitcoin and Ethereum. Besides the two digital assets, Coinbase facilitates the trading of 238 other currencies. Binance, on the other hand, supports over 500 crypto assets.
Fee Structures
Fees should be a key consideration when choosing a crypto exchange. Here is how fee structures for Coinbase and Binance compare:
Trading Fees
Binance charges maker and taker fees of 0.1%. However, users who pay for trading fees using the exchange’s native token, BNB, are given a 25% discount, meaning they pay 0.075%.
Coinbase, on the other hand, charges fees based on users’ trading volumes. If your monthly volume is above $1 million, you pay a 0.15% fee. Meanwhile, users with low volumes are charged up to 0.5% per transaction.
Withdrawal Fees
Fees charged by both exchanges on crypto withdrawals via blockchains are determined by network congestion. Regarding bank transfers (crypto to fiat transactions), Coinbase and Binance withdrawal fees start from $25 and $15, respectively.
Payment Methods
As leading crypto exchanges, Coinbase and Binance support multiple payment methods to allow users to deposit or withdraw funds conveniently. For instance, Binance supports peer-to-peer trading, debit/credit cards, and bank transfers.
Notably, Coinbase supports more payment options than Binance. It lets users fund their accounts using Apple Pay, PayPal, debit/credit cards, bank transfers, SEPA transfers, and Google Pay.
Security Features
Binance and Coinbase are known for offering a secure trading environment. Here are some of the security features that the two share:
Real-time monitoring: The exchanges have adopted mechanisms to detect suspicious activities and take the necessary action immediately.
Sophisticated data encryption: Binance and Coinbase employ advanced encryption techniques to protect user data.
Safe Sign-in Process: Users of both exchanges are required to activate two-factor authentication to prevent unauthorized access to their accounts.
Security Alerts: Both crypto exchanges send notifications to users to alert them of suspicious activity.
While Binance and Conbase share several security features, we have identified some differences in various areas, including:
Know Your Customer Procedures: Coinbase users must complete the identity verification process before using the exchange. As for Binance users, they can register accounts and explore the exchange without completing the KYC checks.
Asset Storage: About 98% of user funds on Coinbase are stored in cold storage, and the exchange provides insurance against losses caused by theft. Binance, on the other hand, doesn’t offer insurance but maintains user funds in cold storage.
Biometric security: The Coinbase exchange lets users use their fingerprints to log into their accounts. Binance doesn’t have this functionality.
Withdrawal Delays: If you change your password, Coinbase will not allow you to withdraw for 48 hours due to safety reasons. Meanwhile, Binance delays withdrawals for 24 hours.
Customer Support
As a crypto user, you want to trade digital currencies on a platform with excellent customer support to help you when you’re stuck. While both exchanges offer unique customer support, Coinbase comes out on top since its customer service team is more responsive than Binance’s.
Conclusion
Our comparison between Binance and Coinbase helps you understand which exchange suits your needs better. But before signing up with any of the two platforms, ensure they operate in your country.
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