How do the two top cryptocurrency exchanges compare?
The two most popular cryptocurrency exchanges are Coinbase and Binance, arguably. In this review, we provide information to help you figure out which one is better for you, covering Funding Methods, Interface, Trading Fees and more.
Coinbase |
Binance |
Funding methods |
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| You can deposit money and/ or buy cryptocurrency via ACH transfer, debit card, or wire transfer. You can also deposit supported cryptocurrencies – currently Bitcoin, Ether, Litecoin, and Bitcoin Cash. | Purely a cryptocurrency exchange, so you can only fund your account with cryptocurrency. Traders must buy major crypto coins on Coinbase or another exchange and transfer them to Binance to trade here. |
Interface |
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| The team designed their interface with the novice investor in mind. You do not have options for margin trading or even market/ limit orders. You just have simple buy and sell options. | If you are the type interested in including technical analysis (TA) in your trades, Binance is better suited for you. It gives you order books, charts, trade history and more. |
Trading fees |
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| Coinbase fees vary based on the buying method but typically range between 1.49% and 3.99%. Investments under $200 could bring you even higher fees as well. | It has some of the lowest fees at 0.1% per trade. Additionally, this fee is cut in half when you pay using the Binance coin, BNB. |
Available cryptocurrencies |
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| Currently, the exchange just supports Bitcoin, Ether, Litecoin, and Bitcoin Cash. The team has announced, though, that they plan to add ERC20 tokens to the platform soon. | It includes the same coins as Coinbase, plus over 100 more. Including Ark, Cardano, EOS, Monero, NEO, Ripple and VeChain. The coins on Binance are in trading pairs with select coins. |
Transfer limits |
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| Your buying history, account age, and verification level determine the maximum amount you can transfer into and out of your account in one week. | There is no limit to the amount you can deposit, and your withdrawal limit is based on your verification, which includes sending in personal information and photo. |
Company trust |
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| A US-based company that has adhered to regulations since its founding. It has over 10m users and has exchanged over $ 50bn worth of digital currency. They also have the backing of the New York Stock Exchange. | CEO Zhao Changpeng is known for his transparency no matter which situation Binance is in. Whether it is hack attempts, platform outages, or rumours, Changpeng keeps users informed over email and Twitter. |
Fund security |
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| The U.S. dollar funds you store are covered by FDIC insurance for up to $ 250,000. Additionally, the exchange stores 98% of users’ digital assets in offline storage with the remaining 2% being insured. | Security is a top priority. Recently, some users fell victim to a phishing attack. Binance suspended withdrawals immediately and reversed the appropriate trades and returned users’ funds. |
Customer Support |
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| It was slow, but recently added a customer service phone number. Although email responses can still take over a week, getting through on the phone line is quick and easy. | There is a backlog of support tickets, but the team is communicative on both Reddit and Twitter in helping users fix the issues that they have. |
Conclusion
Both Coinbase and Binance are reputable cryptocurrency exchanges that excel in different areas. And, they easily complement one another.
Coinbase is perfect if you are a beginner or want a quick way to purchase coins to transfer to other cryptocurrency exchanges. This comes with a higher price tag, though.
Binance is ideal to purchase a wide array of coins for minimal fees. Its more complex interface also gives you more information for you to make TA-based trades.
This article is an abridged version of an article originally posted at Coincentral.com (a P27 Partner) under the headline “Coinbase vs Binance Exchange Comparison”.
CoinCentral’s owners, writers, and/ or guest post authors may or may not have a vested interest in any of the above projects and businesses. None of the content on CoinCentral is investment advice nor is it a replacement for advice from a certified financial planner.
