For the past few years, Binance and Coinbase have lead the cryptocurrency exchange industry in terms of popularity and volume. Coinbase in particular is heavily recommended as the portal for absolute crypto beginners, thanks to its friendly layout. On the other hand, Binance gained momentum from low fees, relaxed verification requirements, and massive market. Here’s our comparison between these two leading exchanges along with recommendations on which one to use based on numerous factors.
Binance vs Coinbase Cryptocurrency Exchange Comparison Chart
|Fees||Check Fees at Binance.com||Check Fees at Coinbase.com|
|Fiat Currencies||n/a||EUR, USD, GBP|
|Deposit Methods||Cryptocurrency||Cryptocurrency, SEPA, Wire Transfer|
|Exchange Volume||$2 billion||$380 million|
|Has Been Hacked||Yes||No|
|Support||Email, Phone, Social Media||Email, Phone|
Coinbase has never been hacked unlike Binance.
Due to its long period of successful growth and strict regulation, Coinbase has become one of the most trustworthy exchanges in the crypto world. Based in California, Coinbase is licensed in nearly every state in the country, which is a feat only a few other platforms can match. Moreover, USD funds in your wallet are covered by FDIC insurance. To keep customer funds safe, Coinbase keeps 98% of it in offline storage while account data is split and encrypted with AES-256 standard.
Like Coinbase, Binance keeps user funds in cold storage and also uses industry best practices such as two-step verification to keep accounts safe. Moreover, it sets aside part of the platform’s profits to its Secure Asset Funds for Users, which will reimburse any asset loss resulting from a breach. Unfortunately, Binance had to use this in May 2019, when around 7,000 Bitcoin was stolen in a major hack. Affected users were entirely compensated, though it puts into question the overall security at Binance. Still, the company made improvements afterwards, including installing an AI to monitor transactions as an early warning system.
Perhaps even more telling is Binance’s continued skyrocketing towards becoming the biggest crypto exchange today. Customer trust remains high as its user count steadily climbs. Part of the reason for this is Binance’s lax registration process, as it doesn’t require KYC or ID verification on signup, so users can trade with anonymity. Daily withdrawal limits are set to up to 2 BTC and can be increased to 100 BTC once you’ve completed verification. You won’t be able to withdraw assets without setting up two-factor authentication, however.
On the other hand, Coinbase requires supporting documents as part of the signup process. It has different account levels that unlock higher account limits and functions depending on the identity verification you’ve completed. This is essential as part of Coinbase’s AML and KYC compliance with regulatory bodies.
Binance has more markets but Coinbase offers fiat trading.
With more than 500 markets, Binance attracted its user base with diverse crypto-to-crypto trading. It’s also known for its sizable support for ICO tokens, keeping users locked in with their profit potential. Moreover, with more stablecoins, altcoins, and tokens as well as its non-regulated status, Binance is more flexible and open to more countries. While you cannot make direct bank transfers to fund your account with fiat currency, their recent partnership with Simplex now allows crypto purchases via debit/credit cards.
Previously, Coinbase only offered four digital assets: Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. This list has increased to around 20 cryptocurrencies, most of which are ERC-20 tokens (BAT, ZRX, LINK) along with high cap cryptos (EOS, XRP) and more stable coins (USDC, DAI). Though it has a smaller selection, Coinbase is notable for allowing users to purchase crypto with their country’s fiat currency. You can link your bank account directly to your Coinbase account, and bank transfers via ACH, SEPA, and Faster Payments. Outside of the US, UK, and Europe, users can make deposits and withdrawals via credit and debit cards.
Binance and Coinbase both have impressive liquidity, though the former is currently unsurpassed in sheer trading volume. Binance sees more than $2 billion USD being traded daily, while Coinbase and its more advanced platform Coinbase Pro handles roughly $400 million. Combined with the multitude of markets in its platform, Binance is quite enticing for advanced high-volume traders. Moreover, it offers additional trading options such as margin trading, futures trading and more.
In comparison, Coinbase specifically targets new crypto traders with its simplified interface, easy to navigate dashboard, and well-designed controls. It’s nearly always the recommendation for anyone looking to begin investing in digital coins. On the other hand, Binance offers two interfaces, Basic and Advanced, to welcome everyone no matter their proficiency in the industry. There’s still a sharper learning curve compared to Coinbase, though it’s a viable option for those looking for a crash course.
Fees and Support
Binance charges considerably lower fees than Coinbase.
Key to Binance’s popularity and immense volume is its low trading fees, possibly the lowest among crypto exchanges. Its retail trading fees begin at 0.1% and go even lower once you reach specific tiers based on your cumulative 30-day trading volume or BNB balance. Maker fees are considerably lower than taker fees to entice users to open new market positions, and both receive additional discounts if you use Binance’s native token, Binance Coin (BNB). Moreover, BNB can be used to pay for additional services and partner offerings, while remaining stable and high in value due to its quarterly burns.
In contrast, Coinbase has one of the highest fee structures in the industry. The platforms charges a spread of about 0.5%, which fluctuates depending on market conditions, as well as a Coinbase Fee, which is the greater of a flat transaction fee or a variable percentage based on location, feature, and payment method. Purchasing crypto with non-primary fiat currencies also receive a spread margin of 2% for cryptocurrency conversions. Using a credit/debit card for purchases also net an extra 3.99% fee, though withdrawals are much lower. It’s highly advised that you visit Coinbase’s pricing and fees page to confirm the costs you’ll accrue to trade in the platform.
There are extensive guides and FAQs available on both Binance and Coinbase’s websites, though the latter takes it further with Coinbase Earn. This learning portal allows new traders to learn about crypto and receive payouts after completing each course. It’s a pretty engaging and rewarding way to delve into the blockchain industry as courses can contain a mix of videos, text, and even quizzes.
As you can expect, Binance and Coinbase rely on email ticketing to address customer concerns which can take anywhere from 24 to 72 hours. Both have a chatbot that can direct you to knowledge base articles closest to your query. However, you’re likely going to have to wait for their support team to respond to your ticket if it involves your account. Coinbase does have hotlines that you can call for compromised accounts and similar urgent matters.
Binance is better for experienced traders while Coinbase is better for beginners and US residents.
Even though it’s quite young compared to other established exchanges, Binance is spurring ahead with its incredible trading volume and high liquidity. Combined with lower trading fees and numerous trading options, experienced traders will find the platform to offer nearly everything they might want in an exchange. There are hundreds of altcoins and markets so you can diversify your digital assets and there’s no question that Binance’s matching system is one of the best, making it an extremely responsive trading platform.
Novice traders should definitely check out Coinbase as it makes the new experience seamless and easy to understand. You can start with fiat currency and trade with the most popular and stable digital coins today. Its fully regulated and licensed status makes it particularly well-suited for countries such as the US, which also provides extra security in the form of deposit insurance. Once you’ve gained sufficient experience and know-how, you can move to its more advanced platform Coinbase Pro for more trading options and earning opportunities.
No, you can’t directly withdraw funds from Binance to a bank account since it’s strictly a cryptocurrency exchange. You can withdraw assets from Binance to an exchange like Coinbase which allows fiat-to-crypto conversion and withdrawals to linked bank accounts.
There’s no definite answer from Coinbase, though logging in two accounts from the same address will lock both accounts.
Yes, exchanges that allow fiat-to-crypto trading lets you sell digital assets to fiat currency. Coinbase and Kraken are two popular exchanges that will allow you to then withdraw your fiat funds to your bank account.
Unverified users can withdraw up to 2 BTC in value daily. Completing ID verification will increase this limit to 100 BTC.