In the thorough comparison of Coinbase vs Binance, we intend to talk about today’s two prominent giants in the crypto exchange market. Starting with our introduction, we will discuss what services they usually offer and how secure they are for your use. Then, focusing our discussion primarily on its review and comparison, we will start with the best option for beginners or novices in the crypto market.
What do you know about Cryptocurrencies?
We also know that cryptocurrency has emerged as a new investment avenue with a capital of more than $3 trillion as of current stats. So, if you intend to invest in Bitcoin, Ethereum, or Ripple, it is worth your consideration. The crypto giant established the entire industrial nexus to facilitate a convenient platform for buying and selling interested investors. You can easily term businesses involved in procurement mechanisms as cryptocurrency exchanges. Coin Market Capital’s massive cryptocurrency enlistment provides 204 cryptocurrency alternatives for its investors to trade.
For beginners, I must mention many fruitful options at their disposal to gain a beneficial deal. However, various crypto exchanges can be pretty risky for initial investment. The main concern for the initial investment in cryptocurrency is arguably related to its secured investment. You are now fair on asking if Binance is safe or the limit on Coinbase.
Let’s start with its introduction. Binance is by far the best platform for the beginner or even expert investors, with an overall rating of 9.8. In contrast, Coinbase is the best option for exchanging fiat currency, with a widespread acceptance of 9.6 out of 10.
Introducing the Crypto Exchange Titans: Coinbase vs Binance
Getting back into the history of Coinbase, it got initially launched in 2012 under the leadership of Brian Armstrong and Fred Ehram in California. Coinbase initiated its services as a broker exchange where it took on the job of purchasing cryptocurrencies for its customers rather than engaging buyers and sellers on the trading platform. With a decade of constant effort, you can find Coinbase as the most prominent broker exchange on the market.
Entry of Coinbase in the Crypto Exchange Market
Coinbase became the first financial unicorn in 2017, with a valuation of more than $1 billion. With its resounding success, its founder, Brian Armstrong, was ranked in the Fortune Top 10 List of the most influential young people in business.
Since its inception, Coinbase has collaborated with some of the most prominent companies in the industry, including Dell, Expedia, and Times Inc. Recently, Facebook rumored its intention to purchase Coinbase alongside the Coinbase app. That makes Coinbase the legal business expert in the Crypto Exchange Market.
Information from Binance Insight
Let’s look at Binance, created in 2017 by Changpeng Zhao and Yi He. Its headquarters were initially in Malta, but it now has branches in China, Taiwan, and Japan. Binance initiated dealing in cryptocurrency at the OKCoin exchange. The cryptocurrency market is primarily concerned with connecting buyers and sellers of cryptocurrency for trading. Binance raised $15 million when it launched its BNB Coin and began trading cryptocurrency in 2017. It features and adds value for its users, giving away some exciting incentives for top-rated investors. Initially offering iPhones, MacBooks, and Mercedes-Benz prizes, now they intend to form investment funds in alliance with business partners.
Coinbase, with an immense magnitude of over 20 million users in almost 32 countries, brings $3.38 billion investment in the cryptocurrency exchange market. In contrast, Binance ranks second in the coin market with over $15 billion daily trading volume.
What makes Coinbase differentiated vs Binance in the Exchange Market?
What should be the striking factors for Coinbase vs Binance? First and foremost, both effectively fascinate their users worldwide in the currency trading market. The following section will describe how each crypto exchange market offers its services, their costs for various trading agreements, and the fiat currencies and alternate coins for transactions. Furthermore, how well it works in users’ web and mobile applications services, security problems, unique features, and quick customer support.
- Trading services for Cryptocurrencies
- Transaction Fees for exchange in the cryptocurrency market
- Trading limits
- Security concern for safe fund transfer
- User experience for each Crypto Exchange Market
- Customer Support Services
Coinbase vs Binance Currency Service
Now that we know that both indicate their strong position in the crypto exchange market, the question of which you should choose remains unanswered. Elaborating on how each crypto exchange market offers its services makes its comparative analysis.
For example, on Binance, over 500 cryptocurrencies are available to almost 180 countries’ international investors worldwide. At the same time, Coinbase floats 107 cryptocurrencies for its users in the exchange market.
Coinbase Currency Trade Offering
In Coinbase trading cryptocurrencies, you can find different cryptocurrencies that help in exchange rate offers. The cryptocurrency market mainly trades in fiat and cryptocurrencies.
Fiat trading is the exchange of fiat currencies, which generally denominates in different countries’ paper currencies, such as the US dollar (US $), Canadian dollar (CAD), Indian rupees (INR), or Euro (EUR). On the contrary, Cryptocurrency trading allows you to trade cryptocurrencies in exchange for other cryptocurrencies. It will enable its investors to select the trading pair to exchange their cryptocurrencies from a list of trading pairs. It’s the same as exchanging fiat currency for cryptocurrencies, such as 1 Bitcoin worth $6300 (USD), or crypto trading pairs, such as 1 Bitcoin equaling 14 Ethereum (ETH), or fiat pairs trading, such as 1 US Dollar equaling 60 Indian Rupees (INR).
Before going into cryptocurrency trading, you don’t need to be familiar with crypto exchange markets. Coinbase supports Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH) pair trading. Each cryptocurrency offers 12 trading pairings with other cryptocurrencies. In over 32 countries where Coinbase has a presence, investors can utilize their fiat currency to trade in cryptocurrencies. Except for Australia and Singapore, its primary exchange destinations are North America and Europe. Fiat currency trading is quite helpful for beginners who do not have any insider information because everything is available on a single platform.
Binance Trading Currencies Services
Binance has a different mechanism for trading its cryptocurrencies. How it offers its services mainly classifies dealing in cryptocurrencies. In short, Binance does not facilitate any fiat currency in cryptocurrencies trading. Instead, its investors can invest their funds in their accounts, which usually works in cryptocurrencies. Despite this, Binance offers its classified currency services with better cryptocurrency selection in the trading platform than Coinbase.
The Binance exchange market transacts quite coherently with existing and newly launched cryptocurrencies. For instance, SALT, Lisk, Loopring, Gifto, Cardano, EOS, and NEO are well-known cryptocurrencies, along with many others. Binance mainly trades in four currencies for pair trading like bitcoin (BTC) with 149 pairs, Binance Coin (BNB) with 74 trading pairs, Ethereum (ETH) with 146 trading pairs, and US Tether (USDT) with 18 trading pairs.
Ease of Trading: Coinbase vs Binance
Coinbase and Binance cater to different niche markets with their platforms. Coinbase distinguishes itself for its ability to allow quick and straightforward bitcoin transfers while also providing a safe trading platform. Binance, on the other hand, provides an easy-to-use platform that is suited for both investors and cryptocurrency traders.
Coinbase makes it Easy to Switch from Fiat to Crypto
Regarding currency services, we can conclude that Coinbase provides much better open trading options for its users to deal in fiat to cryptocurrencies. However, as a novice in cryptocurrency exchange, they need to transfer their currency into cryptocurrencies quickly. That’s the main emphasis that helps you enter the world of cryptocurrency currency trading without any apprehensions.
Binance for Expert Investors offers comprehensive Currency Services
Binance allocates one of the best collections of currencies for its traders with the periodic introduction of new coins. However, the deficiency of converting into fiat currency drags its user toward Coinbase with ease of trading.
Coinbase vs Binance Service Charges
Another impact in cryptocurrency trading that each exchange indulges its trading users is imposing specific services fees. Both classify their users with different service charges. Users are usually attracted to a low-cost currency exchange market with better services. Let’s compare CoinbasevsBinance in charging the service fees.
Coinbase Service Fees
Considering that, traders are obligated to make payments to the services for cryptocurrency exchanges, like deposit fees, withdrawal fees, and trading fees.
Now, proceed to Coinbase service charges for each trade transaction ranging from 1.496% to 3.99%. You can also make your payment using a credit card. The Global Digital Assets Exchange (GDAX) offers a crypto exchange with its account for pair trading. It provides users conversion services based on GDAX with a set price or any conversion rate for each trade. “SEPA stands for “Single Euro Payments Area.” It offers an accessible deposit facility with a withdrawal cost of €0.15 across the border for fast and secure currency movement. Bank transfers in US dollars are free of charge, but withdrawals cost $10.
In short, Coinbase service fees are pretty low compared to similar services such as CEX and Coinmama, but they are pretty high on cryptocurrency exchanges like Binance.
Binance Cost of Currency Trade
Binance facilitates cryptocurrency trading by providing free deposit and withdrawal services. More precisely, dealing in cryptocurrencies is convenient and cheaper than fiat currency trading. Therefore, you can charge a 0.1% trading fee for each trade. Moreover, it offers a 50% discount on costs on Binance coin trades as well. Binance stands out clearly in offering competitive service charges. It is pretty negligible with easy accessibility for new users.
Trading Limit: Coinbase vs Binance
How user-friendly each exchange is, depends considerably on the trading limits for deposits and withdrawals.
Coinbase trading restricts fiat currencies while trading at 0 to 3 levels users. For instance, level 2 can earn up to $25000 a day. At level 3, users have unrestricted access to trade their cryptocurrencies.
Binance restricts its users depending on the level of verification of cryptocurrency trading. Level 1 traders can use 2 Bitcoins per day, while level 2 can make up to 100 Bitcoins per day worth $650,000 (USD). Binance has no limit on the amount of money cryptocurrency traders can deposit. So, being a Binance trader, you can get better chances at higher trading tendencies without any limitation than on Coinbase. But for you, on which platform do you feel best to invest?
Which offers a user-friendly interface: Coinbase vs Binance?
Another feature that distinguishes Coinbase from Binance should be its user-friendly interface. Recommending new users with convenience makes it the perfect platform. It offers a simple, well-designed layout with its essential features.
Initiating with Coinbase will help you understand and deal with your trading currencies much more effortlessly. Then you can switch to Binance for advanced insight to make much more comprehensive trading details. Binance, on the other hand, provides both basic and advanced interfaces for a far more detailed trading experience.
Concerning security, which one is better? Coinbase vs Binance
Coinbase and Binance both offer two-factor authentication to ensure secured users’ accounts. Underlying double-check on login access, first checks on signing in information from its users the Google authenticates its users for login account confirmation with Mobile App or Google Authenticator.
Coinbase security concerns
Coinbase manages its users’ data offline while keeping 2% of data secured online with indemnity against hacking or theft through Lloyd’s of London. Furthermore, it allocates its user fund apart from its operating fund to ensure privacy and prevent misuse of the user account fund. Moreover, it follows stringent financial regulations based in the United States.
Binance Security for its users
In comparison, Binance has a much more relaxed mechanism on financial regulation that apprehends its users for their fund security. For example, the incident reported in June 2018 depicts the narrative of missing funds that happened in disguise of a planned system upgrade. However, it restricts device management and addresses safe listing mechanisms with deposit insurance under the FDIC up to the limit of $250,000 on bank accounts.
So, Coinbase and Binance both check the most efficient and secure mechanism compared to any other means. However, in acceptance of stringent security, let users turn to Coinbase, which is entirely open and articulate in its user fund security and mechanism for its efficient utilization.
Customer Support Services: Coinbase vs Binance
Customer support is the primary concern since most crypto exchange markets have no proper communication channel. Coinbase and Binance both have communication mechanisms with email customer support teams. “SupportBot” is yet another feature for responding to general queries for onboard users.
Coinbase offers email responses within three days of inquiry time, but some of the users’ responses suggest being too vague or general. Instead, the users’ responses demand detailed and satisfactory answers to the asked queries, which you can find on the support site under the detailed FAQs section. Furthermore, the telephone Helpline support for US-based customers is still questionable for global customers’ access.
Binance, on the contrary, tries to connect with its customers to resolve their queries, targeting diverse users in four different languages, like English, Chinese, Korean, and Japanese. However, it lags behind its customer support operation in the busiest exchange market engagements.
Final thoughts on your option: Is it Coinbase or Binance?
Wrapping up our discussion, we examined the fee structure for Coinbase vs. Binance and how convenient it is for its users to comprehend. In addition, it supports customer service while elaborating on knowledge base availability. It then shows a detailed graphical chart that analyses their transaction modes. Another important topic to consider is security, trading for fiat or cryptocurrency, and the form of payment for each crypto transaction.
That’s all we have for our beginner’s guide to Coinbase vs Binance. However, it is pretty apprehensive and risky for first-time cryptocurrency traders, where it plays a vital role in selecting the right platform. I would recommend both platforms. Begin your journey into the world of cryptocurrency by opening a Coinbase account. It provides the best introduction to cryptocurrency trading while becoming acquainted with the cryptocurrency world. Then, use it wisely on the Binance platform to continue earning handsomely.