Every new crypto investors always come to in the notice of these two big CrytpoCurrency buy sell platform Binance vs Coinbase as both are well popular in Crypto industry.
It is always a big concern for new investors or traders to choose the best out of existing exchanges to invest in Top cryptocurrency.
Due to high fiat to Cryptoconversion fees, trading fees, and security issues, it is best to identify all pros and cons associated with every platform.
This guide is to differentiate between Binance vs Coinbase and will give you all possible highlights, which are needed for every crypto investors.
Binance vs Coinbase: Basic Introduction
Coinbase is easy to use USA based a cryptocurrency exchange which is more sort of a wallet cum cryptocurrency exchange.
It was established in the year 2012 by Brian Armstrong and Fred Ehrsam in San Francisco California.
Well, do not consider coinbase as tradition exchange where you can place future buy sell bid, it is like instant buy sell.
It is currently limited by max 15 cryptocurrencies and very few trading pairs available and also provides the facility to convert one Cryptocurrency to another.
Coinbase is also having a fiat currency wallet based on local currency such as USD, GBP, EUR, etc.
That means you will be able to buy sell cryptocurrency in exchange for fiat currency and one of the most trusted and famous platforms to send and receive payments in a bank account.
Well to learn all about Coinbase do refer our best guide for your reference.
Binance is like a traditional exchange and one of the most popular exchange till date, it was established back in the year 2017 by Changpeng Zhao and Yi He.
It is based in Malta although it has offices in Japan, China, and Taiwan and got wide popularity over time.
Binance offers to trade more than 100 altcoins including Bitcoin, Ethereum, Litecoin and every possible major cryptocurrency in the crypto world.
Binance due to its low trading fees and timely social media updates already gained huge attention in the market.
Binance has current daily trading volumes of around 1.8 Billion USD per day, which makes it top of the all other exchanges.
It also offers to buy sell cryptocurrency in exchange of Cryptocurrency or fiat currency but Binance like coinbase won’t have any local fiat currency wallet.
All amount with Binance will be held in either cryptocurrency or stable coin, if new to Binance than do not miss the Review guide on how Binance works.
Let’s focus one by one of the major differences.
Opening of Account with KYC
Due to tightening regulatorily pressures every platform is expecting the user to complete KYC for the opening of the account.
Coinbase also asks the user to complete the basic KYC by uploading the below documents.
- Identity documents
- Your self-photo with identity document
- Email and Mobile number verification
- Bank account verification
After submitting the identity document and photo, you will be verified and later you can complete with the other part.
To open an account with Coinbase Click to Sign Up link and follow the rest verification process.
However, Binance is the only one of the exchange which won’t ask the user to complete KYC before using the exchange.
You would need just email ID and password to start use Exchange.
Well but while you try to buy any cryptocurrency using Credit/Debit card at that moment it will ask to upload the proof document due to the bank payment process.
But not the exchange, which is free to use without KYC. Means Binance vs coinbase to open an account, it is a lot easier to start with Binance.
How to Buy sell cryptocurrency
Well, both Coinbase and Binance offer to buy sell cryptocurrencies in exchange for both possible ways such as Cryptocurrency and fiat currency.
Referring to the Coinbase it has local currency wallet like GBP/USD/EUR etc based on country account.
You can deposit amount form your bank account and using that fiat currency you would be able to buy sell listed cryptocurrencies.
The other way is buy-sell using CryptoCurrencies, where if you are already the holder of cryptocurrency like Bitcoin, Ethereum, Litecoin, etc.
You would be able to buy other currencies like Bitcoin cash, Ethereum classic, and such other listed currencies.
Coinbase has also launched its own trading exchange called GDEX or coinbase pro where you can get more trading pairs, here is the guide on how to use GDEX.
Coinbase currently available in around 103 countries with different buy/sell supported method here is list from their official page.
Binance only offers an exchange of cryptocurrencies for Cryptocurrencies means if you are the holder of cryptocurrency you can buy the other cryptocurrencies.
On Binance major cryptocurrencies listed in trading pairs for below coins.
- Binance Coin
Above four are major trading pairs, so if you are the holder of any then you can buy their corresponding coins in exchange of above coin.
If you want to buy using fiat currency like USD, EUR, etc than Binance also offer to directly buy a few coins like.
Buy any of the above coins using credit or debit card directly and that amount will be available in your wallet.
If you want to buy other than above coins than the first buy either Ethereum or Bitcoin than go to their exchange market and sell them for your Altcoins.
Well, I assume in terms of buy-sell for Binance vs Coinbase you are most probably clear, let’s talk about transaction fees.
Transaction Fees for Coinbase vs Binance
Well, both Coinbase and Binance having different fees associated for deposit, withdrawal and trading fees.
Referring to the Coinbase while you perform deposit or withdrawal of the funds in case of bank transfer there won’t be any fees except few as listed below.
However, for Digital cryptocurrency it will be free to deposit or withdrawal from the wallet.
Coming to the trading fees while you process buys or sell order on Coinbase the amount of purchase or sell order you place the fees will apply accordingly.
From the above screenshot, it explains that Coinbase trading fees for each successful order will vary in between 0.99$ to 2.99$.
Mind this detail as the trading fees will apply for your each buy or sell order once that got fulfilled.
In case of regular trading, you can use coinbase Pro or GDEX where for every trading you will be charged maker or taker fees in between 0.15%-0.25% only.
Keep in mind the transfer of money or withdrawal from Coinbase to GDEX or outside Coinbase wallet will be only available after 5 days of deposit.
Binance first won’t allow depositing fiat currency like USD or EUR or any directly to exchange.
But have provided the facility using Simplex Payment Gateway for the user in case they want to buy few cryptos like BTC, ETH, LTC directly using Credit/Debit cards.
In that case, the charges will be applied by the payment processing gateway Simplex as a 3.5% or 10$ whatever is maximum.
But if you are trading using cryptocurrencies on the exchange than you will be levied with a fixed fee of 0.1%, which is one of the lowest of existing exchanges.
Using Binance coin trading pairs, it also offers to reduce this more up to 50% which means the new trading fee will be just 0.05% only.
Well, Binance also supports stable coin like USDT, which value match with united states Dollar so after buy sell you can hold your asset in USDT as local currency wallet.
But Stable coin claimed that the price of their coin is backed up by USD but it is not regulated coin and like another unregulated cryptocurrency.
I advise holding in USDT will be your own point of decision. While performing the withdrawal of digital asset from Binance it charges you the minimum fees as explained here.
Binance and Coinbase Interface
Coinbase offers a secure wallet interface where with a single click you can complete Buy sell order.
The price chart movement also looks easier for beginner to understand and the user can easily understand the current market trading price of the cryptocurrencies.
Deposit of Fiat will be done through deposit in the bank account directly to the provided Coinbase bank account number and within an hour amount will be credited to Coinbase wallet.
Coinbase also offers insurance for your funds in case of any security breach but will not refund your funds if you compromised your account own.
While referring to the Binance interface, is like a typical trading platform where the price chart, order history and buy-sell window will display.
User can place a market order or limit order or stop limit order to buy sell cryptocurrencies.
The interface will not look that much familiar for new investors but if you are aware of any basic trading platform it would be easier than that.
If you are beginner than advice to the first start with Coinbase and parallel monitor how to buy sell happens in Binance as explained in our guide.
Fund Deposit Withdrawal Limit
We have earlier discussed the fees associated in both deposit and withdrawal of funds with Coinbase vs Binance.
However, Binance allows you to trade without completing the KYC where you can create your anonymous account.
Which restrict your limit to withdrawal up to 2 BTC daily basis but if you complete KYC than that limit will be a lift off to the new point of 100 BTC daily limit.
There is no restriction to deposit of any amount, you can deposit as much as you want.
While referring to the coinbase limit will be defined based on the verification level of the account.
For verified account at the personal information level 2, you will be able to trade either buy sell or send funds to bank account up to 25000$.
You can get the updated detail from their official support page.
While referring the digital asset the very most concern is with the security, I advise to hold your all asset out from any web wallet or cryptocurrency exchange to the hardware wallet.
But referring to the security associated with Coinbase is one of the very best for which no one heard about the security breach.
Your funds with Coinbase will be insured under the policy of security breach happens at any point.
For secure user login, it has the facility to activate 2FA secure login and Email IP address validation before the user is able to access the dashboard.
The first user has to provide an email address and master password set by the user then ask for 2FA random code generated in your mobile device.
An email will be triggered to the registered email ID for IP address verification, once user will authorize through email then only the dashboard will be accessible.
Binance is like Exchange where no private key, no insurance is covered for user funds, till date recently in the month of May 2019 a security breach was reported.
Around 7000 BTC were hacked from their hot wallet, not from the exchange and all user money was safe.
But Binance team has built the trust of people by fulfilling that funds from the SAFU funds of Binance.
Due to Security breach Binance exchange deposit withdrawal was on hold for around 1 week and they have placed some extra security features.
If your choice is to trade with exchange than Binance is one of them where the user would be able to access the exchange simply providing below details.
- Email ID
- Solving Captch
- 2FA security Code
The simple and easy login process where the user will have more control of their own account.
Coinbase and Binance both are very active on their Twitter page and most probably all their major updates you can get from the Twitter official account
Both providing the best class customer support where Coinbase is having Three ways.
- Open support request
- 24 hour Call service to customer care
- Drop an email to support team.
Similar way Binance also offers the best customer support and quick problem resolution by providing facility using.
- Live Online Chat Support
- Best FAQ guidelines
- Raise support request
Both are providing best of the customer support facility and happy to help us as quickly as possible.
My View on Binance vs Coinbase
If your target is to convert fiat into cryptocurrency than Coinbase and GDEX makes your job easier with very low transaction fees.
But if you are a daily trader than I would suggest having an account with Binance due to just 0.1% trading fees.
The whole crypto industry has a very strong trust with both equally but I advise to hold funds out from Binance as it is an exchange.
Binance is listed with more than 100 cryptocurrencies however Coinbase is as of now with just 15 with less trading pairs.
The other Big Exchange is Bittrex which is well known for its security and listed coins and running since 2012 much older than Binance and close to Coinbase.
So if you want to buy Top altcoins than you would need to start with Binance, let me know which one you chose the best place to start with Cryptocurrency investment.