Coinbase and Binance are two of the biggest crypto exchanges on the market. There are similarities between these two crypto exchanges. But there are also some differences between them. So, read now the difference in binance vs coinbase.
Cryptocurrency is a digital asset that works as a medium of exchange. Both Binance and Coinbase are cryptocurrency exchanges. In 2019, Binance had a 24- hour trading volume of USD 1.1 billion, and their 30- day trading volume was USD 28.6 billion. Binance provides a massive platform for trading more than 100 cryptocurrencies. On the other hand, Coinbase has served more than 20 million customers. Coinbase has users in over 55 countries. So, a lot of people may be confused about which crypto exchange they should choose because both Binance and Coinbase are good. This is why a comparison between Binance and Coinbase is needed.
Comparison of Binance Vs. Coinbase:
There are many criteria where you can compare Binance Vs. Coinbase. These criteria are:
Currency Services:
Crypto exchanges offer two types of currency services: fiat trading and cryptocurrency trading. Fiat trading allows users to buy and sell cryptocurrency with fiat currencies. Fiat currencies are official currencies of nations or groups of nations. Example: the US dollar, the British pound, the Indian rupee, etc. Cryptocurrency trading allows users to trade one cryptocurrency for others.
Coinbase traders have the opportunity to buy cryptocurrencies using the fiat currencies of any of the countries where it operates. Fiat trading on Coinbase is really awesome for beginners. On the other hand, Binance doesn’t offer any fiat trading at all. But, Binance offers a much better selection of cryptocurrency trading than Coinbase. For advanced users, Binance has better currency service.
Coinbase offers fiat trading, Binance doesn’t. But Binance has a better cryptocurrency trading. So, it is a tie between the two cryptocurrency exchanges.
Fees:
To use the service of a cryptocurrency exchange, traders have to pay three main types of fees. They are deposit fees, trading fees, and last but not the least withdrawal fees.
Coinbase doesn’t offer trading pairs like Binance. So, Coinbase doesn’t offer exchange rates either. Coinbase’s conversion fees based on the exchange rates of GDAX (Global Digital Asset Exchange). On the other hand, Binance doesn’t charge fees for deposits or withdrawals. Binance only offers crypto trading, and handling cryptocurrency trades is a lot cheaper than handling fiat currency trades.
Coinbase charges 1.49% fee for each cryptocurrency sale. If the trades are made with a credit card, the fee goes up to 3.99%. Binance charges 0.1% fee for all trades and also offers a 50% discount on fees for trades made using Binance coin. So, Binance is the clear winner here. Its fees are very low and easy to understand.
Trading Limits:
Most exchanges have limits on the amount of currency traders are allowed to deposit and withdraw. Coinbase trading limits depend on the fiat currency you are using and what level user you are. There are four levels: 0,1,2,3. A level 2 user can make up to 25,000 USD worth of trades a day. A level 3 user can make unlimited trades. The level a trader achieves depends on how much personal information they provide while setting up their account. This is called account verification.
Binance limits depend on a trader’s level of verification. This could be 1 or 2 level verification. A level 1 user can trade up to 2 BTC worth of cryptocurrency per day. A level 2 user can make trades worth up to 100 BTC per day. 100 BTC is about 650,000 USD. Binance doesn’t have any limit on how much cryptocurrency a user can deposit. So, Binance offers higher trading limits than Coinbase.
Customer Support:
Coinbase takes between 1-3 business days to reply to customer emails. Some customers have complained that responses are unhelpful and too general. Coinbase has a detailed FAQ section on its support site, which new traders might find helpful. Even though Coinbase has a telephone hotline based in the United States, it is difficult for international customers to access it. Binance support can sometimes become slow when the exchange is busy, but it is available in four different languages (Chinese, English, Japanese, Korean). Both exchanges communicate with their customers by email.
Even though crypto exchanges still offer far worse customer support than traditional financial institutions, Binance has better customer support than Coinbase because Binance offers customer support in four languages so more people can find it helpful.
Final Thoughts:
In this article, we have compared both Binance and Coinbase in different aspects, and we have come to the conclusion that Binance is better than Coinbase in some aspects. Even though they are two of the biggest cryptocurrency exchanges in the world, Binance is easier to access and has more options. We hope you found this article helpful in choosing a cryptocurrency exchange.
