A cryptocurrency exchange is a business that enables customers to trade cryptocurrencies. According to CoinMarketCap, currently, there are about 204 cryptocurrency exchanges where cryptocurrency trading takes place. Of these 204 cryptocurrency exchanges, Coinbase and Binance are the two most leading crypto exchanges by size and popularity.
Coinbase
Introduced in 2012 by Brian Armstrong & Fred Ehsram, Coinbase is headquartered in San Francisco, California, US. They have over 56 million registered users and a total monthly trading volume of $335 billion. For more about it, read the complete Coinbase review here. It offers high liquidity and a straightforward trading process operating in more than 100 countries. They have over 43 million registered users and a total monthly trading volume of $455 billion.
Binance
Binance was founded in 2017 by Changpeng Zhao and is based in Malta. It became the largest cryptocurrency exchange in 2018 with a market cap of $1.3 billion. This crypto-to-crypto exchange supports a massive number of crypto coins on its platform for trading. 2019 onwards, the exchange started offering perpetual futures contracts. Binance has a daily average trading volume of 2.0 billion.
Similarities between Coinbase & Binance
- Both Coinbase and Binance are popular cryptocurrency exchanges.
- Both of them operate in 100+ countries all over the world.
- Both crypto exchanges offer on-site wallets.
- Coinbase and Binance offer smartphone apps.
Differences between Coinbase & Binance
| Category | Coinbase | Binance |
| Type of exchange | Broker exchange. | Crypto-to-crypto exchange. |
| Fiat currencies | Supports fiat currencies. | No support for fiat currencies except stablecoins |
| Transaction methods | Bank transfers, debit & credit card, PayPal, cryptocurrencies | Only cryptocurrencies |
| Available cryptocurrencies | 50+ | 175+ |
| Native crypto asset | USDC | BNB |
| Exchange charges | High | Moderate |
| User friendliness | High | Low |
| Security | High | Moderate |
| Customer Support | Moderate | 24*7 |
A comparison between the features of Coinbase & Binance
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Regulatory Compliance
Coinbase is registered with FinCEN and is compliant with the Bank Secrecy Act, the USA Patriot Act, and state money transmission laws and regulations.
Binance, on the other hand, is not found to be adequately compliant with the US regulatory bodies.
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Ease of use
Coinbase offers easy-to-use features and comes with a simple UI on all platforms and devices. Thus, it is well suited for beginners and new traders.
Binance is suited for more advanced crypto traders who are adept at the basics of crypto trading. They have a crypto academy of their own to train traders.
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Exchange Fees
Coinbase charges a trading fee of 1.49%. If instant purchases are made with a credit/debit card, then the trading fees can go up to 3.99%, whereas bank transfers are either free or chargeable at €0.15. Exchange rates on Coinbase are applicable as per the rates of GDAX (Global Digital Asset Exchange).
Binance charges a trading fee of flat 0.1%, and customers can even avail of up to 50% discount if they are using BNB assets.
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Security Provisions
Coinbase stores about 98% of its funds in cold storage. If you read about both platforms, they utilize two-factor authentication to secure logins and transactions. However, Binance has faced some security breaches in the past. It reported some loss of funds on June 27, 2018, after a system upgrade. Binance also experienced another system breach in May 2019 when hackers stole crypto assets worth $40 million.
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Customer Support
Coinbase has an extensive FAQ section. Traders can also reach out to the support team via email and are expected to respond within 1-3 days. Coinbase is highly active on social media such as Twitter and Facebook.
Binance offers 24*7 technical assistance to its customers. The Binance community is active on Twitter, Facebook, Telegram, Instagram, YouTube, Reddit, and CoinMarketCap.
Is Coinbase better than Binance?
So, upon the comparison of the above-discussed features, it can be assumed that Coinbase does offer better security features, is more user-friendly for novices, and is compliant with US regulations. Besides this, Coinbase operates worldwide in the US, EU, AS, AF, and Australia. Apart from this, Coinbase is a broker exchange that supports fiat currencies. Being a broker exchange, it purchases cryptocurrencies on behalf of its customers instead of bringing buyers and sellers in direct contact. Coinbase also has existing alliances with corporate giants like Dell, Time Inc., and Expedia to its credit.
Conclusion
Initially, exchanging cryptocurrency can be daunting, so it’s crucial to pick the right exchange. Binance and Coinbase are both excellent choices for newcomers, so there’s nothing holding users back in opening an account with both exchanges. Coinbase is the ideal start to crypto trading, and Binance is one of the best places to resume your crypto education. To summarise, both are professional, reliable, and user-friendly exchanges on the market. Hence, the battle of Coinbase VS Binance concludes in a tie.