Binance vs. Coinbase: Which is Better for Buying Crypto?

Should you use Binance or Coinbase to buy crypto? Which is better for you? Which one charges lower fees? Read this Binance vs. Coinbase comparison to find out.

Binance and Coinbase are two of the largest cryptocurrency trading platforms. But which of these two crypto exchanges is better for you? Are you worried about hidden costs that you cannot afford?

This Binance vs. Coinbase comparison will focus on the differences between these cryptocurrency exchanges. It will look at trading fees, available cryptocurrencies and other features.

About Binance

Binance is a trading platform that allows you to trade and hold cryptocurrencies. There is a global version and a U.S.-specific version (Binance.US). Binance offers lower fees than many other trading platforms and a variety of trading options.

Here’s what you need to know about this popular competitor to Coinbase:

Best for: Binance is best for advanced traders with experience in trading cryptocurrencies. High-volume traders also use Binance.

Number of supported cryptocurrencies: Binance offers around 600 cryptocurrencies, including major ones such as Bitcoin (BTC), Ethereum (ETH) and other Altcoins. Binance.US offers around 120 cryptocurrencies due to stricter U.S. regulations.

Features: The main features of Binance are:

• Buy, sell and trade cryptocurrencies.
• Peer-to-peer (P2P) trading.
• Staking crypto and earning interest.
• Auto-invest with Binance Earn.
• Margin trading, which is not available in the U.S.
• Crypto futures trading.

Fees: In comparison to other platforms, Binance.US has low exchange fees.

• Tier 0 trading pairs, including BTC/USD and ETH/USD, have zero trading fees.
• Tier 1 trading pairs have different trading fees depending on the trading volume and whether you’re buying or selling the currency.
• It is free to deposit and withdraw USD via the Automated Clearing House network, but there is a 3.75% charge when depositing USD with a debit card or Apple Pay.
• Other currencies may also incur fees when deposited or withdrawn.
• You will get discounts on some trading fees when paying in Binance Coin (BNB).

Types of transactions supported: Order types on Binance include market orders, stop-limit orders, one-cancels-the-other orders, trailing-stop orders, P2P trading and more.

Security: Binance security measures include:

• Offline, cold storage for most of your funds.
• Cover from the Federal Deposit Insurance Corporation (FDIC) is available for USD deposits at Binance.
• US.Data encryption, including know your customer (KYC) data.
• Real-time monitoring of withdrawal attempts.Two-factor authentication.
• Security notifications.

About Coinbase

Coinbase is a top cryptocurrency exchange platform that allows you to buy and sell popular cryptocurrencies. It is easy to use, and there are many ways to deposit money.

Advanced Trade replaced the old Coinbase Pro platform for experienced traders in 2022. Here’s what you need to know about this popular Binance competitor:

Best for: Coinbase is best for active crypto traders and beginners. It is easy to understand, and you can deposit money with your credit card or by connecting your bank account.

Number of supported cryptos: Coinbase currently offers around 70 digital currencies in the U.S., but availability might vary from state to state.

Features: The top features of Coinbase are:

• Buy and sell popular cryptocurrencies.
• Hold crypto in your Coinbase wallet.Send crypto to friends.
• Set up recurring purchases.
• Earn cash-back rewards with the Coinbase card.
• Stake and borrow with Advanced Trade.

Fees: Here are some important facts about Coinbase fees.

• There isn’t a flat rate. Instead, Coinbase calculate your fees at the time of trading.
• Using your Coinbase card is free, but there is a currency conversion spread charge.
• There might be a small fee for buying crypto with a card and withdrawing USD or other fiat currencies.

Types of transactions supported: Coinbase supports buying, selling, trading and sending cryptocurrencies.

Security: Coinbase security measures include:

• Encryption.
• Two-factor authentication.
• Security notifications.

Binance vs. Coinbase: How do they compare?

Let’s compare Binance and Coinbase in three key areas: availability, ease of use, and reward-earning potential.

Availability: Both platforms are available in more than 100 countries. Binance.US is not available in Hawaii, New York, Texas, or Vermont.

U.S. users cannot use the global version because it’s not compliant with U.S. financial regulations. Coinbase is available in all states except Hawaii.

Ease of use: Coinbase is more user-friendly for beginners than Binance. It’s easier to send crypto to friends using your Coinbase wallet on the mobile app.

Search your phone contacts for recipients who use Coinbase and scan a QR code or enter an email or phone number. Binance does not offer a built-in digital wallet.

Instead, it recommends you use the secure Trust Wallet. The Binance and Coinbase apps are available on iOS and Android devices.

Rewards: Coinbase offers a debit card that allows you to spend your USD or crypto and earn cash back in selected currencies. You can choose your rewards, such as 1% cash back in BTC or 4% cash back in Stellar Lumens.

These rewards go directly to your crypto balance. Binance also offers a debit card, which you can use across the U.S. It is available in select European countries, and you can earn BNB (8% cash back) in rewards.

Which Platform Should You Choose?

If you are an experienced investor located outside the U.S., Binance is the better choice. But I recommend Coinbase for beginner traders and users in the U.S.

Choose Binance If:

• You’re located outside the U.S.
• You are an experienced investor.
• You don’t mind the learning curve involved in using Binance.

Choose Coinbase If:

• You’re a new crypto investor and want an easy-to-use platform.
• You are an experienced investor located in a U.S. state where Binance.US is not available. Coinbase Advanced Trade may be the best Coinbase option for you.
• You want to earn cash back in various cryptocurrencies with the Coinbase debit card, which is available in most US states, including New York.

FAQs

If you’re still wondering whether Coinbase or Binance is better for you, here are answers to some popular questions we see on the topic: