Cryptocurrency has captivated the world with its decentralised nature and high profit potential. As a result, the demand for cryptocurrency exchanges has skyrocketed, attracting investors around the world to buy, sell and exchange crypto assets.

However, with so many popular cryptocurrency exchanges available, it can be difficult to navigate through the clutter and find the right one.

Two well-known names in the world of cryptocurrency exchanges are Coinbase and Binance. Both have gained immense popularity over the years due to their user-friendly interfaces and wide range of offerings.

In this blog, we will delve deeper into Coinbase and Binance and compare their features, commissions, security measures and more.

Both Coinbase and Binance offer similar services but cater to different types of users. While Coinbase is more suitable for beginners, Binance caters to a wider audience including beginners and advanced traders.

Thus, comparing these two exchanges in terms of their features and offerings is essential so that you can make an informed decision based on your trading goals and needs.

What is Coinbase?

Coinbase is one of the most well-known and trusted cryptocurrency exchanges in the world. At its core, Coinbase is an online trading platform that allows users to buy, sell, send, receive and store cryptocurrencies.

It acts as a bridge between traditional paper currency (such as the US dollar) and digital currencies. This means that users can easily convert their paper currency into cryptocurrency or vice versa through Coinbase.

One of the key features that distinguishes Coinbase from other exchanges is its intuitive user interface, security and technology. The platform is simple and easy to understand even for beginners.

It stores 98% of client funds offline in cold storage wallets with multi-signature technology. This means that even if the exchange is compromised in any way, customer funds will remain intact.

Coinbase charges a flat fee or a percentage of the transaction amount, depending on the payment method. Another factor that makes Coinbase stand out is its compliance with regulatory requirements. Coinbase has established itself as a reputable and convenient exchange in the cryptocurrency market;

It is one of the first exchanges to operate in the US in compliance with FinCEN (Financial Crimes Enforcement Network) regulatory requirements.

However, this also means that users must provide government-issued identification and proof of residency before making transactions on the platform. For those who prioritise anonymity over an extra layer of security, it is possible to trade using crypto exchanges without KYC (Know Your Client procedure).

What is Binance?

Binance is one of the largest and most popular exchanges on the market with a daily trading volume of over $2 billion. One of the main reasons for Binance’s success is its user-friendly interface and advanced trading features. The platform offers traders basic and advanced features depending on their level of experience;

Another important factor that sets Binance apart from other exchanges is its low commission structure. The platform charges a flat fee of 0.1% per transaction, which is significantly lower than many other exchanges on the market. In addition, if users pay fees with Binance’s cryptocurrency, BNB coin, they will receive a 25% discount on all trading fees.

Binance offers two-factor authentication (2FA), device management, address whitelisting, and cold wallet storage for added protection against cyber threats. Due to the high trading volume, there are always buyers and sellers on the Binance platform, ensuring that trades are executed quickly with minimal slippage. 

Binance also stands out for its long list of features and services, such as margin trading and betting rewards programmes. It also provides multiple trading pairs with advanced charting tools that allow traders to diversify their portfolios and take advantage of different market opportunities. Whether you are a beginner or a professional trader, Binance can cater to your needs and preferences.

Coinbase Supported Cryptocurrencies

Coinbase currently supports a total of over 170 traded cryptocurrencies on its platform. This includes big names such as:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)
• Ripple (XRP)
• Bitcoin Cash (BCH)

It also offers support for lesser-known coins such as Cosmos (ATOM), Kyber Network (KNC), and Tezos (XTZ).

The main reason for Coinbase’s smaller number of cryptoassets is its strict listing process. The exchange has a strict evaluation system to ensure that only trustworthy and compliant projects are listed on its platform.

This means that popular coins with high trading volumes are more likely to be supported by Coinbase, making it easier for users to buy and sell their assets.

However, Coinbase has one of the most diversified cryptocurrency trading systems. While some exchanges focus solely on digital currencies or service tokens, Coinbase offers support for a variety of assets, including stablecoins such as USD Coin (USDC) and DAI, which aim to maintain a stable value against paper currencies.

In addition, Coinbase also supports Decentralised Finance (DeFi) tokens such as the COMP Compound Finance token and the MKR MakerDAO token. These DeFi projects have gained significant popularity in recent years due to their innovative solutions for lending, borrowing, and earning interest on cryptoassets.

Binance Supported Cryptocurrencies

Binance currently supports over 350 cryptocurrencies, including well-known and recognised coins such as:

• Bitcoin
• Etherium
• Litecoin
• Ripple

In addition to the major coins, Binance also supports many altcoins or alternative coins that have gained popularity in recent years. Some well-known examples include:

• Cardano (ADA)
• Chainlink (Link)
• Polkadot (POINT)
• Stellar (XLM).

What’s even more impressive is that Binance also offers support for many lesser known coins or coins with smaller market capitalisation.

This gives users access to potentially fast-growing opportunities while diversifying their portfolios. It also supports stablecoins – digital currencies backed by real assets such as paper currency or gold – which help traders mitigate volatility risks during market fluctuations. 

Another advantage of using Binance is the support for trading pairs. A trading pair is two different currencies that can be exchanged for each other on an exchange. Binance offers various trading pairs, including fiat-to-crypto, crypto-to-crypto, and stablecoin-to-crypto pairs.

This allows users to easily trade between cryptocurrencies or cash out their digital assets in paper currencies.

Coinbase and Binance commission structure

Coinbase has a simple tiered commission structure based on transaction volume. For transactions under $10, the flat fee is $0.99; between $10 and $25, the cost increases to $1.49. The flat rate increases to 1.49% for transactions between $25 and $50; for transactions between $50 and $200, it is 1.99%.

Anything above this amount is subject to a flat rate of 2%;

In addition to trading fees, Coinbase charges a network fee or “miner fee” for each transaction made on their platform. This amount can vary depending on network congestion, but typically ranges from 0.00001 BTC to 0.00004 BTC per transaction.

On the other hand, Binance operates on a maker-taker model where it charges different fees depending on whether you are earning liquidity in the market or taking it away.

There is also a withdrawal fee that varies depending on the specific cryptocurrency being withdrawn. The commission structure can be complicated for beginners, but it is still relatively lower than other platforms, especially for large traders. 

Both Coinbase and Binance have a competitive and transparent commission structure geared towards different traders. While Coinbase’s prices may seem higher at first glance, they offer tiered pricing that can significantly reduce commissions for large traders. On the other hand, Binance’s producer-to-receiver model is more attractive for those looking to minimise costs through limited orders.

How to set up an account: a detailed step-by-step guide 

Creating an account on both cryptocurrency exchanges is quite simple and straightforward. You can visit their website and click the “Sign Up” button in the top right corner of the page. You will then be prompted to enter your personal information such as your name, email address and password.

After confirming your email address via a link sent to your inbox, you can set up 2FA for additional security measures. The next step is to provide proof of identity, such as a government-issued ID card or driving licence.

Once your identity has been verified, you can set up your payment method by linking a bank account or debit/credit card to start trading.

While the entire process of both exchanges may seem similar, it is important to note that each exchange has specific requirements and procedures. Therefore, remember to follow these guidelines carefully to ensure a seamless account setup and trading experience.

Customer Support

Customer support on Binance and Coinbase differs in the following ways:

Binance offers support via 24/7 live chat in 17 languages, live chat on Twitter and a dedicated phone line for US customers. The team aims to respond in an average of 24 hours.

Coinbase offers customer assistance through their own hotline and allows email enquiries with a target response time of 15 working days. They help with a variety of issues such as pending transactions, troubleshooting two-step verification of customer funds, buying cryptoassets, and providing photo IDs.

Additional Services

When it comes to cryptocurrency exchanges, it’s often more than just buying and selling digital assets. Many exchanges offer additional services that can enhance your trading experience and make it easier to manage your crypto portfolio. Coinbase offers various additional services that will suit both beginners and experienced traders;

One of their most notable services is the ability to earn rewards through staking. Staking involves storing a certain amount of cryptocurrency in your wallet for a certain period, which helps to protect the network and verify transactions. In return, you can earn interest on your assets through additional coins.

For users looking to track their performance and analyse their trading strategies, Coinbase also offers a built-in tax reporting tool called Coinbase Tax Center.

This feature automatically generates reports based on your trading activity, making it easy to Easily report cryptocurrency taxes.

Like Coinbase, Binance also offers steaking services. However, one of Binance’s unique offerings is the Launchpad platform, which allows users to participate in initial exchange offerings (IEOs).

Pros of Coinbase

Coinbase has a simple and intuitive interface that makes it easy for beginners to buy, sell or exchange cryptocurrencies. In addition to supporting a wide range of cryptocurrencies, the exchange boasts high liquidity, which means you can easily buy or sell your cryptocurrencies without experiencing major price fluctuations.

Cons of Coinbase

Experienced traders may find Coinbase’s trading tools insufficient compared to other exchanges. The commission is also higher compared to other exchanges, which can eat into your profits if you make frequent trades.

Pros of Binance

Binance offers one of the lowest trading fees in the industry, at just 0.1% per transaction. It also has the highest liquidity, making it easy to buy or sell cryptocurrencies without significant price fluctuations. Users can use advanced trading tools such as margin trading and futures contracts to diversify their portfolios and get better returns.

Minuses of Binance

Unlike Coinbase, Binance has limited support for fiat currencies such as US dollars or euros, so you cannot directly deposit or withdraw these currencies. Binance’s global platform is not available for US customers, and the Binance.US exchange has limited features that can be overwhelming. Additionally, the platform does not have an inbuilt digital wallet where investors can store their crypto assets.

Frequently Asked Questions

Is my money safe on these exchanges?

Both Coinbase and Binance have advanced security measures in place to protect user funds. However, it is always recommended to keep your funds in your personal wallet rather than leaving them on an exchange.

Are there any fees associated with using these exchanges?

Coinbase and Binance charge a fee for certain transactions, such as buying or selling cryptocurrencies or transferring them from an exchange. However, Coinbase’s fees are not disclosed on the website as they are determined by a combination of factors including payment method, order size, market volatility and liquidity.

Do I need to provide personal information to use these exchanges?

Yes, both Coinbase and Binance require users to undergo a KYC verification process before they can start trading on their platforms. This includes providing personal information such as your full name, address, date of birth, and government-issued ID.

Can I use fiat currency (USD/EUR) on these exchanges?

Both Coinbase (in some countries) and Binance allow users to deposit paper currency into their accounts via bank transfers or credit/debit cards. However, it is important to note that not all cryptocurrencies are available for direct purchase using paper currency.