Coinbase vs Binance: Which is Better?

coinbase vs binance

Coinbase vs Binance is a trending term being searched by users. Coinbase and Binance are the two largest cryptocurrency exchanges available today. They both give users access to buy, sell, and trade cryptocurrency.

The world has seen a rapid rise in the use of cryptocurrency all over the globe. With a huge variety of these crypto exchanges available, sometimes choosing what’s best for you is difficult. Recently, Coinbase vs Binance has been two popular platforms that people use. But the users want to know which of these is the best app to buy cryptocurrency in UK?

Coinbase was one of the earliest crypto exchanges on the market, started in 2012 by Brian Armstrong and Fred Ehrsam. It is a U.S.-based, regulated exchange that offers access to some of the top cryptocurrencies on the market today. With an easy-to-use app and the ability to buy crypto with your bank account or credit card, Coinbase has positioned itself as one of the top exchanges in the world.

Binance is a relative newcomer to the cryptocurrency space, founded in 2017 by Changpeng Zhao. It has quickly grown to be the largest exchange in the world, by volume, and offers users access to hundreds of cryptocurrencies. Binance is available in more than 180 countries worldwide, though they did have to spin off a separate entity, Binance US, specifically for United States users.

We’ve reviewed both platforms based on their supported currencies, security, fees, features, and more so you can decide which option is right for you.

About Coinbase:

As the leading mainstream cryptocurrency exchange in the United States, Coinbase has become a standard on-ramp for new crypto investors. Coinbase offers a wide variety of products including cryptocurrency investing, an advanced trading platform, custodial accounts for institutions, a wallet for retail investors, and its own U.S. dollar stable-coin.

Coinbase was founded in 2012 and is a fully regulated and licensed cryptocurrency exchange supporting all U.S. states except Hawaii. Coinbase initially only allowed for Bitcoin trading but quickly began adding cryptocurrencies that fit its decentralized criteria.

Its list expanded to include Ethereum, Litecoin, Bitcoin Cash, XRP, and many others with the promise of more as long as its requirements are met. To learn more look at our extensive coinbase review here.

Pros

  • Solid variety of altcoin choices
  • Extremely simple user interface
  • Very high liquidity

Cons

  • High fees when not using Coinbase Pro
  • User does not control wallet keys
  • May not have as many altcoins as some other exchanges

START TRADING NOW!

About Binance:

Binance came from the combination of words “Binary” + “Finance”. And indeed, Binance offers a lot of different products in the financial space related to cryptocurrencies, including spot trading, fiat purchases, margin trading, and crypto futures on their global exchange.

The company behind Binance is currently registered in Malta. Before moving to Europe, originally they were completely operating in China, but due to the regulatory issues with cryptocurrencies, the company decided to transfer operations first to Japan then later to Malta for a more regulation-friendly and favorable environment.

The company’s CEO and founder are Changpeng Zhao who previously dealt with high-frequency trading in Shanghai before joining the crypto space. He worked in Blockchain.info’s wallet team and served as a CTO on OKCoin crypto exchange, before founding Binance in China in 2017. To learn more look at our extensive binance review here.

Pros

  • Very low fees
  • A myriad of coins to exchange with
  • No lags experienced with website

Cons

  • Customer support lacks phone
  • Has been hacked one time (but compensated their users)
  • Different domains for the US and the rest of the world users

START TRADING NOW!

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Features on Coinbase:

Coinbase is one of the best crypto trading apps UK for beginners because of its educational resources and simple interface. Its Coinbase Earn program partners with a few cryptocurrencies including Stellar Lumens, Compound Finance and Ampleforth to earn users a few tokens while learning about each project. Right now you can earn up to $28 in 5 different cryptos by watching a series of short videos and answering a few quick questions about them. Once you run out of the crypto lessons that pay you, you might want to check out Coinbase’s incredible catalog of guides on common crypto concepts. 

You can also earn passive interest in Coinbase’s 4 different staking pools. The most popular is likely its Ethereum 2.0 pool which safely moves your Ether onto the new Ethereum 2.0 test blockchain to earn about 5% APY.

Coinbase Pro is a free platform owned by the same company as Coinbase and is designed for more advanced users. The interface of Coinbase Pro may be a bit more intimidating to new users, but it’s quite simple. It doesn’t have any of the guides or staking pools that are on Coinbase, however, it has more trading features. 

Features on Binance:

Binance has a clear advantage over Coinbase in advanced trading features. Binance has an advanced trading interface with many technical analysis tools. At the moment, you can’t even set up limit orders on Coinbase (although Coinbase Pro lets you do so), and Binance offers limit and stop-limit orders. If you want to make a fast order to buy or sell at whatever the market price is, Coinbase is fine. However, if you want to set specific prices for trades, Binance (or Coinbase Pro) is the better option. 

Binance has a useful series of educational blog posts to help beginners learn about crypto basics. It has dozens of guides on complicated topics and even a bunch of quick guides about specific cryptocurrencies. One of these is a great guide on staking cryptos to learn how to earn interest on the platform’s staking pools where you can deposit 7 different cryptos to earn between 0.5% to10% per year. Both exchanges also let you set up recurring buys to make the highly recommended strategy called dollar-cost averaging extremely easy.

Altcoins Supported on Coinbase vs Binance

Coinbase has a wide range of supported cryptocurrencies with 71 tokens that users can trade at the time of writing. Even though the main Binance Exchange has one of the longest lists of supported cryptos of any centralized exchanges, Binance only has about 40. Both platforms are actively researching and vetting new tokens all the time and Coinbase has sped up listings tremendously in the last 2 years. Each exchange supports Bitcoin and many of the top altcoins like Ethereum, Chainlink, Uniswap, and Cardano. 

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Many cryptocurrency investors don’t need more than the top 10 or 20 cryptos on their exchange. However, it’s more convenient for users that want to invest in a diverse array of cryptos to buy them all on the same exchange. As long as the exchange has the assets you want to trade, this shouldn’t be a major factor. 

Altcoins on Binance

  • Binance Coin (BNB)
  • Binance USD (BUSD)
  • Vechain (VET)
  • Elrond (EGLD)
  • Hedara Hashgraph (HBAR)

Altcoins on Coinbase

  • Polkadot (DOT)
  • Aave (AAVE)
  • Yearn Finance (YFI)
  • Synthetix Network Token (SNX)
  • The Graph (GRT)
  • Internet Computer (ICP)

Coinbase vs Binance: Supported Currencies

Binance is well-known for its massive altcoin list, with more than 500 choices available to non-U.S. users. However, the Binance exchange only supports 52 coins. Coinbase offers 51 trading currencies on its regular platform and 57 on the Coinbase Pro exchange. Coinbase also supports fiat currencies, including USD, GBP, and EUR, whereas Binance supports 19 fiat currencies, such as USD, EUR, AUD, GBP, HKD, and INR. Depending on your location, Binance offers 50 to 591 cryptocurrency pairs, while Coinbase supports 51 for users in the United States. 

The following cryptocurrencies are on Binance but not Coinbase: BND, VeChain (VET), Harmony (ONE), VeThor Token (VTHO), Dogecoin (DOGE), QTUM, and Matic Network (MATIC). On Coinbase, you’ll find Wrapped Bitcoin (WBTC), Aave (AAVE), SushiSwap (SUSHI), and Celo (CGLD). Both platforms support popular and up-and-coming currencies such as:

  • Dash (DASH)
  • Storj (STORJ)
  • Cosmos (ATOM)
  • Compound (COMP)
  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Cardano (ADA)

Coinbase vs Binance: Fees

Binance fees are some of the lowest in the industry, whereas Coinbase’s prices are some of the highest. Although U.S.-based users will pay slightly more on Binance, it’s still much cheaper than using Coinbase. 

On average, you’ll pay 0.50% per Coinbase transaction plus extra convenience charges based on your payment method, so you might pay up to 4% per transaction. Binance uses a maker-taker structure with the same fees for both makers and takers. The fee chart can be confusing for beginners but offers vastly lower charges, especially for high-volume traders. Binance users can lower costs by:

  • Purchasing Binance (BNB) tokens to pay fees with a 25% discount
  • Ability to refer friends to earn a discount on trading fees
  • High-volume traders can level up for very important person (VIP) discounts
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

Coinbase vs Binance: Ease of Use

Coinbase and Binance 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.

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. 

Who Should Use Coinbase or Binance?

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. 

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Frequently Asked Questions (FAQs)

Is Binance cheaper than Coinbase?

The difference in fees between Binance and Coinbase is fairly significant. Overall, Binance charges much less for trading cryptocurrencies as well as funding your account. Coinbase charges users an average flat fee of approximately 0.50% per transaction.

Is Binance or Coinbase better?

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.

Is Binance safer than Coinbase?

If we look at the ease of use, it’s clear that in this Coinbase vs Binance comparison, Coinbase has better & smoother user experience than Binance. A reliable, well-known and respected cryptocurrency exchange platform. One of the leading crypto exchange platforms in the industry.

Can I transfer from Binance to Coinbase?

Coinbase does not currently support Binance Chain (BEP-2) because it is a separate blockchain that is not integrated with our platform. … Any deposits sent from the Binance Chain into a Coinbase account will not be credited and your funds will be lost.

Can I transfer from Coinbase to Binance?

To transfer crypto from Coinbase to Binance, you first need to copy your cryptocurrency’s wallet address on Binance. Then, send the crypto by clicking on “Send/Receive” on Coinbase and paste the wallet address on the “To” field. … For example, if the transaction takes 30 minutes, Coinbase will display “est.

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