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Coinbase vs. Binance: Why Binance is Better than Coinbase

December, 14th 2023 Coinbase vs. Binance

Coinbase vs Binance and are two of the most popular cryptocurrency exchanges globally. While Coinbase is more user-friendly and geared towards those new to the world of cryptocurrency, Binance delivers a broader range of features and is more suited for experienced traders. Here's a glance at some of these two exchanges' primary and critical differences.

What is Coinbase, and what does it offer?

Coinbase is a US-based cryptocurrency exchange that delivers a user-friendly platform for purchasing, selling, and trading cryptocurrencies. It is one of the earliest and most popular exchanges globally, started by Brian Armstrong and Fred Ehrsam in 2012. It allows you to buy cryptocurrencies such as Bitcoin, Ethereum, and Litecoin with fiat currencies such as USD and EUR. Coinbase also offers a built-in wallet for storing your cryptocurrencies.

What is Binance, and what does it offer?

Binance is a global crypto exchange that delivers various cryptocurrencies for trading. Changpeng Zhao started it in 2017. It has a much more comprehensive range of coins than Coinbase, and it allows you to trade cryptocurrencies against each other. Binance also offers a very user-friendly interface, and it has been known to be one of the fastest exchanges in the world. One of the overriding principles at Binance is that they offer a low-fee exchange. You can expect your fees for using this platform to be significantly lower than other cryptocurrency exchanges.

How do you buy cryptocurrency with Coinbase?

If you're looking to buy Bitcoin, Ethereum, or Litecoin with fiat currency, Coinbase is the exchange for you. Here's a look at how to use Coinbase to buy cryptocurrencies.

1. Create an account on Coinbase

Creating an account on Coinbaise is the first step. You can accomplish this by visiting Coinbase's website and clicking on the "Sign Up" button. You will be asked to provide your name, email address, and password.

2. Verify your account

Once you've created your account, you'll need to verify it by providing your full name, date of birth, and phone number. Then, Coinbase will send you a Text message with a verification code, which you will be asked to enter on the website to confirm your account.

Add a payment method

You can count either a bank account or a credit/debit card as your pay method on Coinbase. This step will involve providing personal information, including your name, address, and telephone number. You'll need to upload a photo of an I.D. document so that Coinbase can verify your identity.

Buy some cryptocurrency

Once you've added a payment method and completed the verification process, you can use Coinbase to buy crypto such as BTC, Ethereum, or Litecoin. On the "Buy/Sell" page of your account, choose "Bitcoin," select an amount of money to spend on Bitcoin, and click "Buy Bitcoin instantly."

Store your cryptocurrency in the Coinbase wallet

When you buy cryptocurrencies on Coinbase, they are stored in your cryptocurrency wallet. You can visit the "Accounts" page to view your wallet and check its balance. Your cryptocurrencies can be sent out of Coinbase, which means that you can trade them at other exchanges for other cryptocurrencies.

How to buy cryptocurrency with Binance?

If you're looking to trade cryptocurrencies against each other, use Binance. Here's a look at how to trade cryptocurrencies on Binance.

Create an account.

Creating an account on Binance is the first step. Visit the website and click "Register." Then, you will be invited to enter your email address, make a password, and confirm that you are not a robot by entering the captcha text and clicking the "Register" button.

Confirm your email address and add a method of payment

After setting up your account, you will need to verify your email address. You'll also need to provide or enter personal information, including your name and date of birth, and upload an I.D. document, such as a photo of a driver's license. You will also be required to add your phone number, and you might need to enter a verification code before proceeding.

Trade cryptocurrencies on Binance

You can start trading cryptocurrencies on Binance after creating and verifying your account. To use the exchange platform, visit the "Exchange" page and pick either the "Basic" or "Advanced" trading view. You can choose the cryptocurrency you want to trade; moreover, view sell and buy orders for it and make a purchase.

Globally, one of the most well-known and famous crypto exchanges is Binance because it offers low fees and many other features for experienced traders and those new to the exchange market.

How Binance is better then coinbase?

Binance is one of the most prominent crypto exchanges globally because it offers low fees and many other features for experienced traders and those new to the exchange market.

Binance offers lower fees than Coinbase (0.10% deposit fee vs. Coin base's 1.49%)
One of the main benefits of Binance is its wide range of cryptocurrencies listed on the platform, which means you can use it to trade a wide range of digital assets. Binance has over 500 cryptocurrencies listed on its platform, including Bitcoin, Ethereum, Litecoin, and Ripple.
Binance uses multiple trading interfaces and order types, including derivatives and futures, API keys, and low fees per transaction. On the other hand, Coinbase uses a simple interface for buying, selling, and exchanging cryptocurrency.
Moreover, Binance supports over 500 currencies, while Coinbase can support more or less 100.
Binance supports multiple types of transactions: Buy, sell, trade, deposit, withdraw, Stop order, Limit order, Margin, options, and futures trading. Coinbase supports selling, buying, sending, receiving, and exchanging.

Conclusion:

While Coinbase is more user-friendly and geared towards those who are new to the world of cryptocurrency, with fewer features for experienced traders, Binance is the opposite. In terms of fees, Binance will cost you less to trade on the platform, and it's probably one of the best exchanges for experienced traders. It has a wide range of cryptocurrencies listed and offers more features than Coinbase.

Pros and Cons of using Coinbase as a cryptocurrency exchange platform

It is one of the most prominent cryptocurrency exchanges in the world. It's user-friendly and geared towards those who are new to the world of cryptocurrency. So, here is the list of pros and cons of using Coinbase as a go-to exchange platform:

Pros:

Coinbase is user-friendly and easy to use, making it ideal for those new to the world of cryptocurrency.
The exchange presents a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple.
You can buy BTC instantly on the platform with a debit card, credit card, bank account, and PayPal.
Always insured by FDIC (for U.S. customers)
It is well known and most trusted by U.S. regulatory authorities.
Most money will arrive in your account within minutes after initiating a purchase through Coinbase (if you used a bank transfer).

Cons:

There are higher fees for buying cryptocurrency with credit or debit cards rather than using bank accounts. Fees are fairly high when compared to other trades like Binance.
Buying cryptocurrency on Coinbase is only available to those living in the U.S.
If you are in the U.K., you won't be able to use Coinbase to buy cryptocurrency. However, you can sell your cryptocurrency on the platform and withdraw funds into a linked bank account/card in the country where you originally purchased it.
The exchange has been known to be slow when processing transactions.
Advanced options for expert traders are limited.
Less transaction type compared to other platforms.

Pros and Cons of using Binance as a cryptocurrency exchange platform

Binance is one of the most popular options when choosing a cryptocurrency exchange platform. Here are some of the pros and cons of using Binance:

Pros:

There are almost no fees (0.015-0.10%) for deposits or withdrawals if you're using your bank account. However, there are fees for using credit or debit cards (3.5%).
Good reputation and wide range of cryptocurrencies supported (over 500 cryptocurrencies listed for trade).
It delivers mobile apps for both iOS and Android.
Binance provides broader options for transaction types

Cons:

Not as beginner-friendly as Coinbase. Binance is best suited for experienced traders.
Binance faces regulatory problems in several countries and is also under investigation in the United States.
Customers in the U.S. cannot use the Binance platform, and Binance.US exchanges are very limited.

Binance vs. Coinbase, which one is better?

When selecting a cryptocurrency exchange platform, there are a few popular options. Two of the most famous exchanges are Binance and Coinbase. While both platforms have pros and cons, Binance is generally seen as better than Coinbase. Here are some of the critical reasons why Binance is better than Coinbase:

Binance offers a broader range of features than Coinbase. This makes it more suited for experienced traders.
Binance has a good reputation and is widely used worldwide.
Binance offers mobile apps for both iOS and Android devices.
Binance has low trading fees of 0.015-0.10% (further reduced with BNB tokens).
Coinbase is more beginner-friendly. This makes it a nice fit for those who are new to the world of cryptocurrency.
Binance is known for having better customer service than Coinbase.
Binance has a very high trading volume.
The user interface of Binance is easier to use than that of Coinbase.
Coinbase doesn't support as many cryptocurrencies as Binance does.

Why should you use Binance over other exchanges?

On the arguments mentioned above, you should preferably use Binance over other crypto platforms like Coinbase. Let's look at some other unique features of Binance.

Margin Trading and lending on Binance feels like the normal trading you would do with stocks and ETFs, whereas it can feel like high-frequency trading in other exchanges. Margin trading allows for some of the best risk/reward features in all crypto, while lending might not be available on some other exchanges.
The interface is very intuitive and easy to use. They also have a variety of coins that aren't found at other exchanges, such as Einsteinium (EMC2), Request Network (REQ), and Cindicator (CND).
The security features are also the best in the industry.
Binance has its own coin, called Binance Coin (BNB). When you use BNB to pay fees, it reduces your total fee by 50%! On top of that, it's just another way to get users excited about holding BNB.
Over time, more information about the coin, such as price and volume.
A common problem with cryptocurrency exchanges is network congestion when there's an upcoming ICO. With Binance, you take advantage of this by transferring your coins to Binance in advance and then selling them for a profit right before they go on sale. In addition, it also means you can take profits immediately rather than wait until the ICO ends.

Binance vs. Coinbase fee comparison: See at a glance

Fee	Binance	Coinbase
Bank Account	0.015 to 0.10%	1.49%
Credit or Debit card	3.5%	3.99%
Wire Transfer	$15 per U.S. wire transfer	$10 deposit, $25 withdrawal
Cryptocurrency conversion	Free; however, Binance has a spread above market price	0.50% to 2%
Purchases	0.015% to 0.1%	0% to 0.50%
Trades	0.015% to 0.1%	0.50%
Wallet	N/A	1.49%
Other fees	0.50% instant buy and sell fee	$0.99 to $2.99 based on the amount

Bottom Line

When it comes to cryptocurrency exchanges, there are many factors to consider. Two of the most popular ones are Coinbase and Binance. While both platforms have pros and cons, Binance is generally seen as better than Coinbase. For the critical reasons mentioned above, Binance is better than Coinbase.

Moreover, Binance is a better exchange, in my opinion, and it's getting better and more popular each day. The main things that make me choose Binance ahead of Coinbase are the U.I. (User Interface) and UX (User Experience). I've been using it almost for the last year now, and it's very easy to use. Furthermore, they have almost zero fees on withdrawals for verified accounts.