Binance vs Coinbase – Which is Best?

This Binance vs Coinbase article compares the two best crypto exchanges in the world. These two are massively popular and have the highest Bitcoin reserves. They are also the two most liquid crypto trading platforms, accounting for over 60% of all spot crypto trades in 2022. But they also have their fair share of differences, chief among them being their approach to regulation.

In this comparative guide, we look at their similarities and highlight their core differences. By the end of this post, you will have decided which of the two is the best place to buy cryptos.

Binance vs Coinbase Summary

Binance and Coinbase are the world’s two most dominant crypto exchanges. They, therefore, have a lot of similarities, starting with the fact that they are both crypto trading and staking service providers. Both Exchanges also offer crypto custody services and have integrated an NFT marketplace.

They are two highly reputable exchanges. Coinbase draws much of this reputation from the fact that it is a multi-regulated and publicly traded exchange. Binance, on the other hand, draws much of its reputation from thousands of positive user reviews and independent analyst endorsements.

Below, we compare some of their core features:

• Crypto library: Both Binance and Coinbase support a decent range of crypto assets. Binance, for example, supports 600+ cryptos and 1000+ crypto trading pairs. Coinbase, on the other hand, supports 100+ cryptos and 300+ trading airs. Note, however, that Binance.US only supports 50 of the best cryptos to buy today.
• Multi-asset platforms: Both Coinbase and Binance are multi-asset crypto trading platforms. In addition to buying the best altcoins on either platform, either exchange will let you invest in NFTs. You will, however, note that Binance has a more expansive NFT marketplace supporting more NFTs than Coinbase.
• Trading fees: Coinbase and Binance take different approaches to charging clients on their platforms. Binance maintains a volume-based maker/taker model. On the other hand, trading fees on Coinbase are based on such factors as the preferred payment model and trade volume.
• Passive investing: Both Binance and Coinbase expose traders on their platform to passive investing. Coinbase does this through staking. Passive investing programs on Binance include staking, yield farming, saving, dual investing, and DeFi staking.
• Trading tools: Coinbase is the more beginner-friendly crypto exchange. It has an easily navigable user interface, which makes it easier to use. Binance, on the other hand, integrates more trading, research, analysis, and risk-management tools. These help it appeal to the more experienced crypto investors, making it one of the best exchanges for crypto day trading.

Below, we will expound on these features and highlight more Coinbase and Binance similarities and differences.

From the foregoing, it is clear that Binance maintains a slight edge over Coinbase. This, however, only applies to the international markets. Coinbase remains the best crypto exchange in the US, thanks to its solid reputation for security, reliability, and regulation.

But are Binance and Coinbase the only best places to buy top trending cryptos? Our analysts rank eToro highly among the best crypto exchanges because it appeals to both beginner and pro investors. It also secures and integrates revolutionary crypto trading tools and also supports copy trading and smart crypto portfolios.

What are Binance and Coinbase?

We have already mentioned that Binance and Coinbase are two of the largest and most liquid crypto exchanges. In this section, we take a closer look at each platform. We provide you with their brief history and highlight their most outstanding features.

What is Binance?

Binance is the crypto exchange in the world by trade volume and number of registered users. It launched in July 2017 in China and was created by Changpeng Zhao (CZ). In its first six months of operation, it experienced rapid growth – eventually becoming the most liquid crypto exchange. This crypto market dominance is evidenced by the 2022 industry statistics.

These indicate that more than 50% of all crypto spot trades took place on the Binance exchange. It even overtook Coinbase to become the crypto exchange with the deepest Bitcoin reserves.

Today, Binance has onboarded more than 150 million registered users. It has also extended its service delivery to 200+ crypto-friendly countries and territories across the world. Here, it makes it possible for individuals and institutions to buy, sell, and manage digital assets. These include cryptocurrencies, NFTs, and crypto derivatives like futures and options.

These services are offered through its feature-rich web and crypto mobile trading app. They both give you access to a wide range of features and tools designed to ease the crypto investing process. For example, they both make it possible for you to buy cryptos instantly using PayPal and bank cards.

Binance is, however, critical of external regulation. This has put it at loggerheads with governments, central banks, and financial regulators. The hard stance has seen it banned in countries like South Korea and provinces like Toronto. It has also put a target on the back of Binance.US. This exchange is currently fighting 13 cases filed against the company in the US by the SEC.

Binance Key Features

Here are some of Binance’s key features. These help it rank high on most analyst reports of where to buy cryptos.

• Binance Academy: Binance Academy is a platform by the exchange designed to teach the masses everything crypto. Here, beginners learn how to invest in cryptos while experts learn how to interact with the different trading strategies.
• Binance smart chain: Binance smart chain is a smart contract blockchain network that is closely associated with Binance. The two share a common token – the Binance Coin (BNB). The BNB is the governance token for the Binance Smart Chain and the utility token for the Binance exchange. On the exchange, it is used to settle transaction fees.
• Binance peer-to-peer trading: Binance integrates a peer-to-peer crypto trading platform into its site. This makes it possible for anyone to buy crypto for free. The platform lets you buy the best altcoins with 700+ payment options – from PayPal to gift cards.
• Binance earn: Binance earn lets you interact with multiple passive income-generating opportunities. These range from staking, yield farming, copy trading, dual investing, liquidity pooling, liquidity swaps, and DeFi staking.
• Binance Launchpad: The exchange also integrates Launchpad, a platform for launching new tokens and crypto projects. It gives you a chance to invest early in the next cryptos to explode. Popular tokens that were launched via the Binance launch pool include SUI and CITY – the Manchester City fan token.

What is Coinbase?

Coinbase is a top exchange to buy the best cryptos in the US. It is also one of the most popular and the second most liquid crypto exchanges in the world.

Established in 2012, Coinbase is also one of the most reputable and safest altcoin exchanges. It is also the only publicly traded crypto exchange in the world, having been listed with NASDAQ in 2021. Today, the exchange has onboarded more than 80 million users and extended its reach to 100+ countries across the world.

Like Binance, Coinbase makes it possible for millions across the world to buy, sell, and manage their crypto assets. At the time of writing, you can buy 100+ digital currencies on the Coinbase web or mobile trading platforms.

But Coinbase is also a multi-asset trading platform. This implies that in addition to cryptocurrencies, you can invest in NFTs on the exchange. You may even buy and trade crypto derivatives like options and futures.

Coinbase is constantly ranked among the best beginner-friendly crypto exchanges. Much of this can be attributed to the rather simplistic user interface used on the web and mobile trading platforms.

Coinbase also ranks highly among the safest crypto exchanges around. This can be credited to its commitment to the security of client funds and data. It could also be attributed to the fact that Coinbase is a regulated exchange that insures client deposits with the FDIC.

Coinbase Key Features

Below, we look at some of Coinbase exchange’s core features. These have played a key role in helping Coinbase hold its position among the best crypto exchanges in the world.

• Coinbase PRO: Coinbase PRO is the professional trading arm of the exchange dedicated to experienced crypto investors. It is different from Coinbase in the sense that it lists more crypto trading pairs. It also embraces the maker/taker fee model and integrates more advanced technical indicators and analysis tools. These help it appeal to crypto day traders.
• Coinbase wallet app: Coinbase is security conscious and, therefore, provides its platform users with a free crypto wallet for iOS and Android. The standalone wallet lets you activate multi-factor authentication. You also get to heavily encrypt your keys before depositing them in the root storage of your phone. It is designed to help users store, send, receive, and manage their digital assets.
• Coinbase Earn: The Coinbase Earn program introduces crypto investors to several passive income-generating opportunities. The most common is staking. Through the earning program, Coinbase platform users will also be rewarded free crypto when they learn about different crypto assets and crypto technologies.
• Binance Visa Debit card: Coinbase has also partnered with Visa to come up with the Coinbase Visa debit card. You may use this card to pay for goods and services in 4+ million online and physical stores globally. It also lets you download cash at ATMs and has relatively free withdrawal minimums.

Tradable Cryptocurrencies on Binance & Coinbase

Both Binance and Coinbase support a decent number of cryptocurrencies. When buying crypto on Binance, for example, the exchange gives you access to 600+ digital assets. Coinbase, on the other hand, will let you interact with as many as 100 of the best altcoins to buy today. Note, however, that Binance.US only supports 50 the purchase and sale of 50 cryptos in the US.

Both crypto exchanges are also multi-asset trading platforms. This implies that in addition to cryptos, the platforms let you invest in other digital assets. For Starters, both platforms have integrated NFT marketplaces.

These let you create, launch, buy, and sell NFTs. Binance takes this a step further and integrates crypto derivatives, especially options and contracts. Note, however, that these derivative products aren’t available to US residents.

Account Types on Binance vs Coinbase

Both Binance and Coinbase provide all their clients with one standard account. They also maintain a rather quick and straightforward account creation process, which helps them appeal to beginner investors. When creating an account on either platform, you will be required to furnish the exchange with basic personal information. They will also need you to verify your identity.

Binance vs Coinbase Fees

Binance and Coinbase have a rather different approach to crypto trading fees. The Binance crypto exchange is, on the one hand, quite straightforward with its fees only charging a volume-based maker/taker fee. When trading spot crypto on Binance, the maker/taker trading fees range between 0.1% and 0.012%. Note that you also stand to benefit from a 25% discount if you settle this transaction fee using BNB coins.

But we have already mentioned that you can buy Bitcoins instantly on Binance. This can be done using bank transfer, credit card, or debit card. The crypto exchange won’t charge you a deposit processing fee. You will only need to pay the instant buy fee of 0.5% of the trade volume. Other ways of buying crypto on Binance, like P2P trading and convert, are free.

Coinbase, on the other hand, maintains a not-so-easy to understand fee model. It is a combination of pure volume and volume-based maker/taker fees. And like Binance, Coinbase maintains a separate transaction fee model for when you buy crypto instantly. The fees for the instant buy option are dependent on the payment method used.

Binance vs Coinbase User Experience

Both Binance and Coinbase have highly intuitive user interfaces. This is marked by almost similar user dashboards and easily navigable trading interfaces. They both feature customizable charts and integrate a number of charting tools and technical indicators.

Not forgetting, they both have sections of their website dedicated to user education. On either platform, you learn how to interact with the individual site, how to buy cryptos, and how to keep your assets secure. Both web trading platforms have also been optimized for mobile use.

The two, however, differ slightly when it comes to the depths and efficiency of the supported features and tools. Coinbase, for instance, has a more simplistic design that makes it appeal to beginner investors. It also integrates only the most basic charting tools.

Binance, on the other hand, has a more feature-rich trading platform. It has multiple charting options – candlesticks, lines, and depth. It then integrates tens of highly advanced charting tools and technical indicators. These range from volume to RSI, Bollinger bands, moving averages, Fibonacci, and even MACD.

Binance vs Coinbase Mobile Apps

Binance and Coinbase are also similar in the sense that they both operate highly intuitive mobile apps for crypto trading. Their apps are available on both App Store and Play Store. These have been downloaded by millions of users across the world, who have left thousands of positive reviews. Both apps are also easy to use and highly navigable.

Binance, however, operates the better mobile crypto trading app. It integrates virtually all the features and tools hosted on the Binance web trading platform. Here, you can buy and sell cryptos or even manage your crypto portfolio. The mobile app also integrates the free exchange provided wallet and the funding wallet for P2P trades. It is also home to the newly launched Web 3 wallet.

Coinbase, on the other hand, has three mobile apps. First is the Coinbase crypto trading app that replicates the web trading platform. It lets you buy, sell, and manage your crypto. It also gives you access to the exchange-provided wallet that you can use to store both cryptos and NFTs.

Second is the free and non-custodial mobile wallet app for iOS and Android, given to all Coinbase users. The wallet comes in handy for investors who want greater access and control over their digital assets. In addition to these two, the exchange operates the Coinbase PRO app. This has all the features of the Coinbase PRO web trading platform and is dedicated to expert investors.

Trading tools and features on Binance and Coinbase

Below, we discuss the trading tools and key features that define Binance and Coinbase.

Technical charts

We have already mentioned that both Binance and Coinbase are home to technical charts and indicators. But we have also said that to access most of these tools when using Coinbase, you will need to switch to Coinbase PRO. And even then, the charting tools and technical indicators hosted on Coinbase PRO aren’t as elaborate.

Binance, on the other hand, is home to hundreds of advanced charting and analysis tools as well as technical indicators. The most commonly used include moving averages, as well as price and volume indicators. It also features drawing tools like trend lines and pitchforks. Plus, it integrates all of TradingView’s technical indicators, including Fibonacci extensions.

The table below compares the common trading and charting tools and indicators hosted on the two top crypto exchanges:

Passive investing

Staking is the process of locking up tokens and cryptos onto a blockchain network. It works on blockchain networks that use the proof of stake (PoS) consensus mechanism. And these coins are used to secure that platform. Examples of platforms that use the proof of stake consensus mechanism are Ethereum, Solana, Cardano, and Avalanche.

Both Coinbase and Binance support crypto staking. They also pay competitive interests for staked crypto. There, however, are two primary differences when it comes to their approach to crypto staking.

First, you can have as many as 100+ cryptos on Binance compared to the less than 10 supported on Coinbase. Secondly, staking on Binance is free. Coinbase, on the other hand, charges a staking commission that it deducts from your staking reward.

Coinbase earn

The Coinbase Earn is the passive investing arm of the Coinbase crypto exchange. It hosts all the passive investing programs supported by the exchange – which at the moment only include staking. Here, you stand to earn as much as 10% APY passively on your crypto investment.

Binance earn

Binance Earn is, on the other hand, the passive investing arm of the Binance exchange. Unlike Coinbase, it is home to multiple passive income generators. Here, you earn through staking, saving, dual investing, DeFi staking, and liquidity swapping. You also earn passively when auto-investing via smart algorithmic traders (bots) and copy trading.

Binance vs Coinbase Payments and Minimum Deposits

Both Binance and Coinbase support a wide range of deposit and withdrawal options. They then maintain different deposit and trading minimums. Both don’t charge a deposit processing fee. You will only have to part with those charged by the payment processor. They also have varied daily maximum withdrawal limits.

The table below captures everything you need to know about deposits and withdrawals on Coinbase and Binance.

Binance vs Coinbase Customer Service

Both Binance and Coinbase maintain impressive customer support departments. These are highly responsive and available online 24/7. On either exchange, customer support service starts at their comprehensive FAQ page. These have how-to guides and provide troubleshooting tutorials for the most common challenges faced by investors.

Binance then prioritizes the live chat feature on its website. At first, you will interact with a chatbot. But if a problem persists, you may press the thumbs-down button, and a human will join the chat within 5 minutes.

Coinbase, on the other hand, presents users with three primary ways of getting help. First, you may email their support team. You may also choose to engage this team via the live chat feature. And for more immediate solutions, you may call them through the support numbers offered for different countries.

Binance vs Coinbase Regulation & Security

Binance and Coinbase have very different approaches to regulation. While Coinbase is welcoming of external regulation, Binance proposes self-regulation for the crypto industry players. Coinbase has subjected its platform regulation from top-tier finance regulatory agencies around the world.

In the US and the UK, for example, Coinbase is regulated by the SEC and the FCA, respectively. It is also publicly listed, trading on NASDAQ. Binance, on the other hand, is registered in the crypto-friendly nations of Bahrain and Dubai. These do not have strict financial regulatory controls.

Binance Security

Binance is one of the safest crypto exchanges in the world. It has also embraced multiple measures aimed at making the exchange as secure as possible. For starters, it doesn’t share sensitive client data with third parties. Secondly, all client accounts support multi-factor authentication.

Thirdly, Binance holds 90% of client funds left in their care in ultra-secure offline vaults. Plus, it has established the Secure Assets Fund for Users (SAFU) insurance program that is currently worth $1+ Billion. The funds here are set aside to compensate users should the exchange lose them money. Further, Binance published audited proof of reserves report regularly.

Coinbase security

Coinbase has also put in place adequate safeguards aimed at keeping clients’ assets safe. This starts with multi-factor authentication for client accounts. The exchange then claims that it doesn’t share sensitive client information with third parties. Not forgetting that 98% of client assets left in the exchange are held in ultra-secure offline vaults.

In addition to these, Coinbase insures client cash deposits of up to $250,000 with the FDIC. It also provides users with a secure mobile wallet app. This encrypts your private keys before depositing them to the root storage of your phone.

Are Binance or Coinbase the best Crypto Exchange in 2022?

Both Coinbase and Binance have their fair share of strengths and shortcomings. Deciding the best crypto exchange for you, therefore, boils down to your needs.

We have already mentioned that Binance’s design makes it popular among expert investors. While it integrates all the important technical indicators and charges low fees, its user interface may overwhelm a beginner investor.

Coinbase is, on the other hand, designed with the beginner to intermediate investor in mind. But it has come up with the Coinbase PRO platform to address this and draw in expert traders.

But if we are to extend the scope of our search for the best crypto exchange for beginners, we would recommend eToro. A few factors make it a top contender for the best place to buy Bitcoin, Ethereum, and even meme coins like Shiba Inu and Dogecoin.

For starters, eToro appeals to both beginner and pro investors. It even provides them with passive investing opportunities through copy trading and copy smart portfolios. Plus, for every crypto listed on the platform, including the best DeFi coins, eToro provides you with a sentiment analysis report. This tells you whether the larger section of the market is buying, selling, or holding.

eToro is a viable alternative to either of these because it maintains highly competitive fees. It is also one of the safest crypto exchanges, as it has never been hacked. eToro holds 90%+ of your crypt assets offline. It then provides all its platform users with a free and non-custodial wallet app for iPhone and Android. This encrypts the private keys held in your account heavily before depositing them to the root storage of your phone.

To learn which is the best crypto exchange between eToro and Binance, read this comparative guide.

The Verdict – Binance vs Coinbase

Binance and Binance are the two most popular crypto exchanges in the world. The two share a wide range of similarities, which include running a user-friendly user interface. They also support a decent selection of crypto assets, are safe, and charge competitive crypto trading fees.

But Binance integrates more technical trading, analysis, and risk-management tools than Coinbase. It also integrates more passive income-generating opportunities. These make it the top exchange for crypto day trading. Coinbase, on the other hand, provides users with a highly navigable interface. This makes it one of the best exchanges for beginner traders.

We concluded by saying that your choice of the best exchange will largely depend on your investing needs. We then mentioned that in addition to these two, we would also recommend eToro. It is a multi-regulated crypto brokerage and it has never been hacked. It also lists a decent selection of cryptos, supports staking, and appeals to both beginner and expert crypto investors.

Reviewed and Fact Checked by Kamal Masri, Crypto Writer and Investment Analyst.

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Author: Wajeeh Khan

Wajeeh Khan is a financial researcher and writer with 7 years of experience. He has immense exposure to a range of financial assets, including stock, cryptocurrencies and forex - and is particularly well-versed in asset valuation, analysis, and portfolio management. Since 2016, Khan has worked with notable online platforms within financial journalism, including Invezz, Trading-Education, Dog of Wall Street, and News Break. All in all, he has written, editted, and published over 7,000 articles, guides, and market insight. Online casinos started as a hobby for Khan in 2018. But in only two years, it had already become another niche that he started actively researching. Over the past three years, he has written a diversified set of content around gambling for clients from all over the world. Academically, Khan has a Bachelor's in Economics and a Master's degree in Finance. He's also completed a bunch of courses on digital journalism and financial markets at large.

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