Any crypto trader knows that one of the keys to success is finding the right trading platform to buy, sell, and trade digital coins. These days, many options are available but a few platforms are bigger, better, and more popular than the rest.
Coinbase and Binance are two of the crypto exchanges that fit into this category. They are two of the most well-known and popular exchanges. These exchanges offer traders a wide range of options and features. They also provide different, but positive, user experiences.
If you are considering which exchange you should trade on, these two are a great place to start. Below is a look at how these two platforms differ. Depending on your needs, you may value some categories over others so these differences can help you pick the best platform for you.
Here is what crypto traders need to know about Coinbase vs. Binance.
A Brief History of Coinbase
In 2012, a former Airbnb engineer named Brian Armstrong joined forces with a Goldman Sachs trader named Fred Ehrsam. These two created a platform on which people could use fiat currency to buy Bitcoin, a novel concept at the time.
Coinbase grew from that simple idea into a multiplatform exchange with two offerings, Coinbase and Coinbase Pro. The company now has over $1.1 billion in annual revenue and more than 1,200 employees. In 2021, the company became the first crypto exchange to have an IPO for public trading.
A Brief History of Binance
Changpeng Zhao, often referred to simply as “CZ,” created what would become the largest crypto exchange in the world in 2017. Later that year, CZ’s home country of China outlawed trading cryptocurrency and the company moved to Taiwan.
The company moved its operations a few more times and currently claims no centralized headquarters. This state of flux has not stopped CZ and his crypto exchange from becoming the largest and most popular in the world.
The Big Differences Between Coinbase and Binance
Both Coinbase and Binance are high quality crypto exchanges. They each have pluses and minuses and you can find big fans of each platform. Although they share many similarities, there are some major differences, too. Here is a look at what separates the two crypto trading platforms. If you want even more specific information about the two trading options, Cove Markets’ Coinbase vs Binance guide goes into greater depth on this.
Worldwide, Binance has slightly more availability than Coinbase. The former is available in just under 200 countries while the latter is found in over 100. In the US, it gets a bit trickier. Coinbase is widely available in the US, and Binance is close behind with availability in 43 states.
Being available and using Binance in the US are different stories though. Binance doesn’t accept US dollars (USD) so you have two choices if this is the platform you want to use. You can convert your USD into a USD-backed stablecoin like Tether on another site or in a private wallet and transfer it to Binance.
The other option is to use Binance US. This is their US-centric version of the exchange that has many of the features that Binance does but loses several of the availability and liquidity advantages that makes Binance so popular.
Both exchanges are secure when compared to many other platforms in the crypto exchange world. Both use industry-leading security measures to help keep their platforms safe from hackers but both have also had issues in the past.
Coinbase hasn’t had any major hacks. Any issues users on this platform face come from social engineering attacks on users, not the platform itself. Binance, on the other hand, was hit with a major hack in 2019. Hackers stole around $40 million (at the time) in Bitcoin in a “large scale security breach.”
Binance showed its commitment to keeping users’ money safe by reimbursing them for their losses but there hasn’t been a breach since.
The other issue with Binance is that it is currently undergoing an investigation by the US government for money laundering and tax issues. This may not directly threaten users’ crypto but if anything comes of these investigations, it could limit the areas in which the site operates or possibly get it banned in the US.
This is where Binance truly separates itself from not only Coinbase but also all of its competition. Coinbase has a good selection of coins and trading pairs with over 60 cryptocurrencies and around 200 trading pairs. This includes all of the most popular and widely traded coins. This stacks up well against most exchanges.
Not against Binance, though. This exchange offers over 500 cryptocurrencies to trade and more than 1,200 trading pairs. The platform truly gives you access to the wide world of crypto and allows you to find more crypto with value and potential.
Binance also beats both Coinbase and Coinbase Pro when it comes to fees. Coinbase has a 0.50% fee plus additional fees for trading. Coinbase Pro starts at 0.50% and decreases with volume. The only advantage Coinbase Pro offers over Binance is for big-time market makers where the fees will eventually drop to 0 while Binance only goes as low as 0.01%.
For all other traders, Binance offers lower fees. The fees start at 0.10% and decrease with volume. You can also get discounted fees through your Binance Coin balance. Buying the platform’s native token gives you a 25% discount on fees although that number changes periodically.
Binance and Coinbase are two of the most popular crypto exchanges in the world. They both offer a good user experience and many trading tools that cater to beginning traders as well as to the most advanced people in the field. You can choose to use either platform and would not make the wrong choice.
Many US traders find it easier to use Coinbase and the platform is incredibly secure. If you are looking for more coins to trade, more liquidity, and lower fees, though, Binance might be the best option.