People who use cryptocurrency exchanges often encounter the question of whether Coinbase or Binance is better. Coinbase and Binance have more than 105 million and 230 million users respectively. This makes them the most popular cryptocurrency exchanges worldwide. But which platform is better? In our Coinbase vs Binance comparison, we looked at fees, supported coins, trading features, security and more.
Overall, there is no single answer to the question of which exchange is better, Coinbase or Binance. It all depends on the user’s priorities and goals. Coinbase has strong regulations in many countries. It is by far the safer crypto exchange with robust security features and custody – after all, Coinbase is responsible for protecting institutional investments, including multi-billion dollar Bitcoin ETFs.
Tradable Cryptocurrencies
Coinbase: 7/10 Binance: 8/10
Let’s start the Coinbase vs Binance comparison by analysing the supported cryptocurrencies. Coinbase supports 258 coins and tokens compared to Binance’s 424. Both platforms offer crypto pairs in multiple fiat currencies, such as BTC/USD, BTC/EUR, and BTC/AUD. Binance not only has more coins and tokens than Coinbase. It also has significantly more markets.
This means that Binance is a better option for active investors looking for asset diversification and long-term investors looking to build a highly diversified portfolio of digital assets. However, beginners will find Coinbase’s asset package adequate considering that it supports top cryptocurrencies, including popular coins such as BTC, ETH, SOL, XRP and DOGE. It is important to note that Coinbase does not support Binance’s native coin, BNB. Other notable shortcomings include ADA, TON, TRX and LEO.
Coinbase and Binance Trading Fees
Coinbase: 4/10Binance: 9/10In the fees section, Binance wins in the comparison of whether Coinbase or Binance is better.Especially compared to Binance, fees are a big disadvantage for Coinbase. The fees are significantly higher than the market average. Let us now analyse the transaction fee schedules in more detail.
Spot Trading Commissions
Coinbase has two spot commission models, depending on which exchange is used. The standard Coinbase exchange for beginners charges a standard commission of 1.49 per cent per trade. This is charged when buying and selling cryptocurrencies with fiat money and when exchanging cryptocurrencies such as Bitcoin and Ethereum. Coinbase Advanced, which is aimed at experienced traders, has lower commissions. However, the commission depends on whether traders place market or limit orders.
Buy Instantly
Coinbase offers an instant purchase feature. This allows users to buy cryptocurrencies instantly with debit/credit cards, Google/Apple Pay and PayPal. Coinbase charges a hefty fee of 3.99% for this service. It charges more if you spend less than $200. Binance also has an instant purchase feature, with debit/credit card fees averaging 2%. However, fees can vary greatly depending on the user’s location. Users should therefore evaluate the fees before proceeding.
Non-Commercial Fees
Coinbase users can also deposit fiat money directly into their account. These funds can then be exchanged for cryptocurrencies. Most importantly, there are no fees when using local banking methods such as ACH and Faster Payments. In a comparison of Coinbase vs Binance, Coinbase takes the lead in terms of non-commercial fees. Coinbase does not charge account fees, so cryptocurrencies can be stored at no additional cost.
Is Coinbase or Binance better?
Binance is better than Coinbase in terms of fees, available markets, and more advanced trading features and tools. Coinbase is a better option for security and regulation, as well as for first-time crypto investors.
Can you trust Binance?
Binance has transparent proof of reserves, 2FA, cold storage facilities, and a self-funded insurance fund. Binance was previously hacked for an amount of more than $570 million. This information should therefore be taken into account.
Is Coinbase reliable?
Yes, Coinbase is perhaps the most reliable exchange in this industry. It is a publicly traded stock on NASDAQ. It is strictly regulated and offers institutional-grade security tools.
Which is bigger – Coinbase or Binance?
Binance is bigger than Coinbase in most measurable metrics, such as the number of registered users, trading volume and liquidity.