Categories: Financial Planning

What’s The Difference Binance vs Coinbase?

If you are new to cryptocurrency, perhaps the only exchanges you have heard of are Coinbase and Binance.

Coinbase is a convenient platform for novice investors, while Binance quickly became the largest cryptocurrency exchange, and recently even surpassed Deutsche Bank in terms of profitability.

These two exchanges are suitable for different purposes and should be viewed as complementary services and not as competitors.

In this Coinbase vs Binance comparison, we’ll lay out all the information you need to know so you can figure out which exchange is best for you.

Interface

The Coinbase team designed their interface with newbie investors in mind.

Unlike more sophisticated trading platforms, you are not given the opportunity to trade on margin, and there are not even market and limit orders. You only have the option of simple buying and selling.

This is great if you are just getting started with cryptocurrencies or if you are using Coinbase as an intermediary to transfer funds to another platform.

If you need the ability to conduct technical analysis for trading, it is better to look for another option.

Binance is better suited for more experienced traders. The exchange interface includes both “basic” and “advanced” platforms, so beginners need to be careful.

In the “basic” view, you get all the standard functions of the trading platform (order books, charts, trading history), while the “advanced” version provides you with a few more analytical tools.

Trading fees

Binance looks a lot more profitable than Coinbase when it comes to trading fees.

Coinbase fees vary by purchase method, but typically range from 1.49% to 3.99%. For investments under $ 200, they can be even larger.

Binance offers some of the lowest fees of any exchange at 0.1% per trade. Plus, this fee is cut in half if you pay using BNB, Binance’s own coin.

Trust level of the company

Both Coinbase and Binance have tremendous trust and respect from the cryptocurrency community.

Coinbase is a US-based company that has complied with all applicable regulations since its inception.

The platform has over 10 million users and has conducted over $ 50 billion in digital currency exchanges.

They also secured the backing of serious investors such as Andreessen Horowitz and the New York Stock Exchange.

Binance CEO Zhao Changpeng is known for his honesty and openness no matter what situation his company is in.

In cases of hacking attempts, platform interruptions or rumors to dispel, Changpen constantly informs users via email and Twitter.

This is just one of the reasons why the exchange currently boasts the largest trading volume of any cryptocurrency exchange.

Security of funds

Your funds are safe on both Coinbase and Binance.

The USD funds you hold on Coinbase are FDIC backed up to USD 250,000 or less.

In addition, the exchange stores 98% of users’ digital assets in offline storage, and the remaining 2% are insured. Even in the event of a data breach, this insurance will be sufficient to recover all lost funds.

While security information is not very easy to find on the website, Binance has proven it to be their top priority over and over again.

Recently, some Binance users have been victims of a phishing attack on the exchange’s API. The Binance team immediately paused withdrawals as soon as they noticed suspicious activity.

Thus, the hackers were stopped. After stopping the hacking attempt, they canceled the relevant transactions and returned the funds to users.

However, it is still recommended to keep funds in a wallet outside of an exchange account to provide an additional layer of security.

Comparison of Coinbase and Binance Conclusion

Both Coinbase and Binance are reputable exchanges that outperform the competition in various areas.

And they easily complement each other:

  • Coinbase is ideal if you are a beginner or want to quickly buy coins to transfer to other exchanges. However, this comes at the cost of a higher price.
  • Binance is ideal for buying large quantities of coins with minimal fees. The more sophisticated interface also provides traders with more information to execute trades based on technical analysis.
Olivia Chloe

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