Today, if you want to buy a new item, there are endless options from online retailers. The same now applies to cryptocurrencies or cryptocurrencies. With so many decentralized exchanges now available, it can be difficult to determine which use is best. The two major exchanges, Coinbase and Binance, can be great options for you, but does one outperform the other? Is there a way to choose between these two hugely popular platforms?
Today, we're going to do a deep analysis of Coinbase and Binance to see which one comes out on top so you know what to use for all your crypto needs.
What is Coinbase platform?
Coinbase was founded in 2012 by software engineer Brian Armstrong and former Goldman-Sachs merchant Fred Ehrsam, and only started as a platform for buying and selling Bitcoin. Since then, it has grown and diversified widely, along with the crypto industry itself. Today, Coinbase has become a favorite of cryptocurrency owners around the world, with users in over a hundred countries.
So, what does Coinbase offer?
- Coinbase Exchange
The Coinbase platform allows users to buy, sell, and swap over a hundred different currencies and tokens. Whether you want to make a small investment in Bitcoin, sell a large portion of your holdings, or just diversify your crypto portfolio, you can do it on Coinbase.
The Coinbase exchange has two versions: Coinbase and Coinbase Pro.
Coinbase's standard exchange is very easy to use and is designed for those who don't need to trade professionally. On the other hand, Coinbase Pro is a bit more complex and has some additional trading features for those looking to benefit a little more from their trading experience. The professional version of the exchange also has an address whitelist feature to increase security when making transactions.
While anyone can use any version of Coinbase without any kind of upgrade or subscription fee, the majority of users stick to the standard Coinbase version. But it's up to you whether switching to Coinbase Pro is a wise choice for cryptocurrency trading.
Coinbase Platform Fees
One of the main factors that cryptocurrency owners take into account when looking for a new exchange is the fees they will incur. On Coinbase, there is no maker fee, but a 1.49% taking fee and a 0.5% spread fee for fiat currencies and 1% for cryptocurrencies are all leviable to users per transaction. Coinbase Pro, on the other hand, charges a 0.5% maker and take fee, so there is no spread fee.
Compared to other exchanges, Coinbase's fees are a bit prohibitive, so keep that in mind if you're looking to reduce fees as much as possible.
Coinbase Platform Security
Security is an important part of cryptocurrency exchanges. Billions of cryptocurrencies have been stolen over the past decade, so it is essential that those who want to store their assets on the exchange are confident that the chance of losing or stealing is very small. So, can Coinbase provide adequate protection to its users?
Well, security is one of the most impressive elements of Coinbase. There is a wide range of protection features offered by Coinbase, including cold storage for 98% of all funds, two-factor authentication, and theft by hacking insurance. Moreover, every Coinbase employee is required to undergo a criminal background check during the hiring process, ensuring that your funds are in safe hands. Of course, Coinbase Pro also offers an address whitelist feature, as mentioned above.
With all these useful options on offer, Coinbase is one of the best exchanges that can be used in terms of security.
Additional features
The Coinbase exchange does not end when you buy and sell. There is also a profitable "Staking" option offered by the platform, with which you can earn a percentage of the funds you book.
Currently, you can participate in Ethereum, Algorand, Cosmos, Tezos, Dai, and Cardano on Coinbase, all of which have varying reward rates.
Coinbase also has a popular software portfolio, which is very easy to use and very secure. This is a great option for those who regularly use Coinbase and want a place to store their money between trades, as well as those who just want a secure software wallet for long-term storage. But it's worth noting that software wallets aren't quite as secure as hardware wallets, so keep this in mind if you're looking to store large amounts of cryptocurrency.
So, we now know that Coinbase is a diversified and easy-to-use decentralized exchange with an impressive set of security features. But can Binance still outdo it? Let's find out.
What is Binance platform
Although Binance is a smaller exchange than Coinbase, this doesn't seem to have slowed its rise to become a world-famous platform with nearly 30 million users
Founded in 2017 by programmer Changpeng Zhao, Binance currently has the largest trading volume of any existing exchange, and there's no indication where you'll be heading next. But what makes Binance so popular?
- The Binance Exchange
Binance's decentralized platform allows users to trade over 500 different types of cryptocurrencies, from the biggest in the game to lesser-known newcomers. This is very impressive and definitely beats Coinbase in terms of supported currencies.
Binance allows users to buy, sell, and exchange cryptocurrencies, and has two versions of the exchange available on their app for different user preferences.
The standard version of Binance, known as Binance Lite, is ideal for newcomers and casual traders who don't need any high-end features. On the other hand, Binance Professional offers a "earn" section for crypto vault (which we will discuss shortly), slot auctions, and liquidity cultivation. While Binance Lite has a "earn" section, it's pretty basic, so the pro version of the app might be more suitable for those who want to do more with their assets.
Binance Platform Fees
One of the best things about Binance is that it's very affordable to use. Currently, Binance charges a 0.1% maker and socket fee for transactions, which is certainly more attractive than the fees charged to Coinbase. There is no difference in fee rates between Binance Lite and Binance Professional, so you don't have to worry about varying fees if you tend to switch between the two.
Binance Security
Like Coinbase, Binance also clearly focuses on the safety of its clients' funds. Binance stores 98% of all funds on the exchange in cold storage, wallet address whitelisting, two-factor authentication, and pending withdrawal periods for any unusual activity. Safety notifications are also sent to users alerting them to any suspicious activity, so they don't have to be active on the exchange to be aware of any unprecedented changes to their accounts.
Binance also has a number of compliance initiatives and works closely with law enforcement when money is stolen. The platform appears committed to helping fight cybercrime, and is doing what it can to protect its users.
Additional features
If you're looking to get started with Staking, Binance is a great choice. Binance supports staking for over 100 assets, with varying lockout periods and reward rates depending on the currency or token in question. Moreover, Binance supports slot auctions, where users can support new projects on the blockchain while making a profit for themselves.
Binance blockchain is very popular for various reasons. In early 2022, Binance went through a rebranding process, with its series known together as BNB (or "Build and Build"). The first of these blockchains is used for governance, known as the BNB Beacon Chain. The second series is a bit more exciting, allowing the development and operation of applications based on smart contracts. This is known as BNB Smart Chain.
BNB Smart Chain is now challenging the likes of the Ethereum blockchain, with many developers choosing the former over the latter to build new projects.
Final Verdict: Coinbase vs. Binance
Although Coinbase is definitely a great crypto exchange with a wide range of backed assets, security features, and trading options, it is more limited and expensive compared to Binance. With over 500 supported assets, over 100 staking options, high security levels, and low fees, Binance seems to outperform Coinbase in many ways. Moreover, Binance is available in more countries than Coinbase worldwide, making it available to millions of other individuals.
While Coinbase is undoubtedly still a solid choice for crypto traders, it's relatively inferior to Binance for a number of reasons, so we're crowning Binance as the best crypto exchange between the two!