| Fees | Binance | Coinbase |
|---|---|---|
| Bank account | Free outside of the U.S. | 1.49% |
| Wallet | N/A | 1.49% |
| Debit/credit cards | 3% to 4.5% | 3.99% |
| ACH transfer | Free | Free |
| Wire transfer | $15 for U.S. customers | $10 deposit, $25 withdrawal |
| Crypto conversion | N/A | 0.50% to 2% |
| Purchases | 0.02% to 0.1% | 0% to 0.50% |
| Trades | 0.02% to 0.1% | 0.50% |
| Other fees | 0.50% instant buy and sell fee | $0.99 to $2.99 based on the amount |
Binance vs. Coinbase: Ease of Use
Binance and Coinbase are geared toward different types of users. Coinbase offers a simple platform for investors new to trading cryptocurrency, wanting fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the sheer number of choices can be overwhelming to a new user. Binance is a better fit for people familiar with crypto lingo and investing options, whereas Coinbase is built for convenient, easy trading.
Both exchanges provide mobile apps with varying functionalities. For instance, the Binance and Coinbase apps rate 4.7 out of 5 stars on Apple’s App Store. However, the Binance app receives poor ratings for Android users, with only 2.1 out of 5 stars on Google Play, with many users saying the application works much better on iPhones.
Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access tutorials or helpful articles similar to cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also lets users earn crypto for watching videos for beginners.
Although Coinbase wins for ease of use, the customer service options are less user-friendly. You can only reach Coinbase via email or a help ticket. In contrast, Binance offers live chat, responds on Twitter, or you can email them for help.
Frequently Asked Questions (FAQs)
What Are Binance and Coinbase?
Coinbase is a U.S.-regulated cryptocurrency exchange that allows users to buy, sell, send, receive, and exchange altcoins via a web browser or mobile app. Binance is also an exchange, but it has one the highest crypto volumes and isn’t considered U.S.-regulated, which is why not all functions and coins are available to U.S.-based users.
Binance supports many more advanced transaction types, such as limit orders, stop-limit orders, market orders, post-only orders, and peer-to-peer trading. However, U.S. residents have fewer options.
How Do Binance and Coinbase Work?
Both platforms function as an online brokerage for cryptocurrencies. Users deposit fiat funds to buy, sell, or trade digital currencies. The signup process is similar for both, but international Binance users won’t need to show a photo ID to verify their account. However, Binance.US requires a photo ID.
You’ll create an account in both cases, verify your email, and add funds from an acceptable method. Once you’re ready to make a trade, you head to the exchange platform, create an order for the desired altcoin, and follow the on-screen steps. The exchanges store the cryptocurrency until you move it to a digital Bitcoin wallet, trade it, or withdraw it.
Is It Safe to Hold Crypto in the Binance or Coinbase Exchanges?
Although Binance and Coinbase are among the best crypto exchanges, users are encouraged to store funds in a hardware wallet for long-term savings. Any currencies held online may be a target of hackers, and most exchanges have experienced breaches, including Binance in 2019. Although Coinbase told The New York Times that it’s never been hacked and “only 0.004% of its users had experienced ‘account takeovers’ in the past year,” mistakes can happen on your end, putting your coins at risk.
Both Binance and Coinbase insure their hot storage, but it may be safer to use your own cold storage via a hardware wallet. A hardware wallet is a device that isn’t connected to the internet, and you’ll need to plug it into your computer to access your digital currency.
Who Should Use Binance or Coinbase?
Coinbase is perfect for beginners who prioritize convenience and security. The user-friendly platform is very easy for nearly anyone to use, and when you open the application, you’ll see a clean interface with minimal options. As a trusted, U.S.-based exchange, it’s a good fit for users wary about buying or trading cryptocurrency. However, you pay a higher price for convenient deposit and withdrawal options.
Binance is suitable for experienced investors wanting advanced trading options and plenty of analytics to back up their strategy decisions. Novice users will experience a learning curve, but once you learn your way around, it gets easier. With low fees, over 500 cryptocurrencies, and availability in more than 180 countries, Binance is an excellent choice for non-U.S. residents wanting a sophisticated platform.
How We Evaluated Binance vs. Coinbase
We examined Coinbase and Binance by looking at the fee structures, cost, and how easy it is to understand. Although we looked mainly at Binance, we also evaluated Binance.US features applicable to U.S. residents. We considered the website and mobile app functionality, availability of knowledge bases, and access to customer service. Our fee and feature charts give a side-by-side view of security, transaction types, fiat currencies accepted, payment methods, and cryptocurrencies.
