Coinbase vs Binance (Trading fees, Futures)
By reading the article “Coinbase vs. Binance” published in Adaas Investment Magazine, you will get acquainted with the Coinbase and Binance exchanges and the differences between them in general. This level of familiarity can be enough when you need educational information about this topic.
Table of Contents
Introducing Coinbase Exchange
Many professional investors and traders new to the cryptocurrency market recognize Coinbase as one of the largest and most legal exchanges providing cryptocurrency trading services in the United States.
Both Coinbase and Coinbase Pro exchanges are owned by Coinbase Global, Inc. The differences between the two exchanges are very simple and practical at the same time. Simply put, the Coinbase exchange is designed and developed for new entrants and the registration of their first purchase and sale orders, and on the other hand, the Coinbase Pro exchange is designed and implemented for professional traders and investors and their transactions.
Introducing Binance Exchange
Chang Peng Zhao, known to most traders and investors in the cryptocurrency market as CZ, introduced Binance Exchange after the initial public offering of BNB cryptocurrency in 2017.
The exchange had its headquarters in China, which left the country after blocking transactions by the government, and Binance is one of the biggest competitors of the Coinbase exchange.
Compare fees Coinbase & Binance
The Coinbase exchange may be a better choice for newcomers because of the simple user interface and easier use of the service, but on the other hand, the costs that users pay to receive services at this exchange are much different from the Binance exchange.
Binance Exchange is one of the cheapest exchanges providing cryptocurrency services internationally. Although US citizens pay a relatively higher fee at Binance US, it is generally much cheaper to use Binance than at Coinbase.
Buying and selling at the Coinbase exchange carry a minimum of 4% commission for the user. For example, in a $1,000 purchase order, the user will pay $40 for the commission to the Coinbase.
At Coinbase Pro, the fees are much lower than at Coinbase. The reason for this price difference is the use of the Maker-Taker strategy in calculating the transactions cost.
Compare two exchanges Fees
|Bank Account||Free outside of the U.S.||1.49%|
|Debit/credit cards||3.5% to $10||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%|
|Trades||0.015% to 0.1%||0.50%|
Security at Coinbase & Binance
Coinbase and Binance exchanges strive to provide maximum security for their users. When an exchange gains a reputation like the Coinbase exchange, many cyber-attackers and sometimes rivals seek to carry out malicious processes and infiltrate these platforms.
In general, Coinbase Exchange has a better reputation for providing security to its users than Binance Exchange. Features such as centrality in the United States, as well as supports such as the large JP-Morgan Bank for the Coinbase exchange, are considered a positive point for the security of Coinbase users.
It is worth noting that Binance Exchange was attacked by hackers on May 7, 2019, and nearly 7,000 bitcoins were stolen. Also in October 2021, the price of Bitcoin suddenly fell from $60,000 to $8,000 at Binance US for 20 seconds.
In both Coinbase and Binance exchanges, it is possible to enable two-step authentication by sending an SMS to the verified number or using Google Authenticator application. Also, in order to invest large sums of money, users need to do their authentication process with official documents in the Coinbase exchange.
Cryptocurrency Address White List
One of the features of Both exchanges is the ability to restrict cryptocurrency withdrawal addresses. Thus, withdrawals are made only to addresses selected by the user and no other addresses are supported.
Both exchanges offer a built-in wallet to hold users’ Cryptocurrencies. These wallets are sufficiently secure, but the users’ assets are under the control of the exchange, and they have provided a so-called custodial wallet for their users.
Store users’ assets offline
Up to 98% of the assets in Coinbase and Coinbase Pro exchanges are stored and protected offline in hardware wallets. This feature keeps digital assets out of the reach of hackers and increases the security of users’ assets.
If your assets are in US dollars up to $250,000, your account will be covered by FDIC insurance by Coinbase and Binance. But the important point is the lack of support for crypto assets in this insurance.
Cryptocurrencies and fiat currencies
With more than 4,000 cryptocurrencies on the market, Coinbase and Coinbase Pro exchange only support cryptocurrencies which have sufficient trading volume and do not violate US law.
On the other hand, Binance Exchange supports transactions of more than 500 coins and tokens, but in the Binance US version, only 60 cryptocurrencies can be traded.
Binance Exchange offers more than 18 Fiat currencies such as Hong Kong Dollar and Indian Rupee to its users depending on location, while Coinbase Exchange offers Fiat currencies in US dollars, British Pounds, and Euros.
Features of Coinbase and Binance
Both exchanges offer a variety of features such as easy trading, sufficient security to protect their users’ information and assets. In the following, we have compiled the most important features that are unique to each platform for you to make your decisions with full awareness.
In general, if you live in the United States, the Coinbase exchange offers much better facilities for you. But if your country has not restricted the activity of Binance exchange, this exchange will provide you with many more choices and features.
In Coinbase Exchange, trading features are much simpler, but on the other hand, features such as free training and earning money by participating in training courses are only available in this version.
Features provided by Coinbase Exchange for users residing in the United States include:
- Financial transfers by popular platforms like PayPal
- Coinbase Pro platform with highly professional trading features such as price charts and analytics tools as well as a variety of ordering models
- Earn money by participating in Coinbase training processes
Users eligible to use Binance Exchange are provided with the following features that are not available to Binance US Exchange users in the United States, except in the states of Connecticut, Hawaii, New York, Texas, Vermont, Idaho, and Louisiana.
- Highly professional trading tools Such as Futures trading
- Development features for developers such as APIs
- Types of ordering models
- Supports a large number of cryptocurrencies
Finally, considering the features offered by the two major exchanges, Coinbase and Binance, it is easy to understand that if you are a cryptocurrency market investor based in the United States of America, according to your needs, Coinbase and Coinbase Pro exchanges are a better choice than Binance Exchange.
On the other hand, if you live in a country that has not restricted or banned the activities of Binance Exchange, this exchange is all you would expect from a platform providing cryptocurrency services.
The end words
At Adaas Capital, we hope that by reading this article you will be fully immersed in What are differences between Coinbase and Binance exchanges. You can help us improve by sharing this article which is published in Adaas Investment Magazine and help optimize this article by submitting your comments
Professional investors recognize Coinbase as one of the largest and most legal exchanges providing cryptocurrency trading services.
CZ introduced Binance Exchange after the initial public offering of BNB cryptocurrency in 2017.