Differences between Coinbase and Binance
Coinbase and Binance are the two best-known cryptocurrency exchanges to choose from to buy your first cryptocurrency. Which one to opt for? The key to making your decision is in the characteristics, the differences between both platforms, and the type of investment in cryptocurrencies you will make.
In this article, we will see how both exchanges work, their advantages and disadvantages, and the differences between Coinbase and Binance. Also, in the end, we will give you our opinion on which one to use according to your case.
Coinbase Advantages and Disadvantages
Coinbase is the second largest volume cryptocurrency exchange, according to CoinMarketCap data.
Coinbase acts as a cryptocurrency exchange platform and as a wallet. That is, you can buy and sell assets, store them with your unique key, receive crypto transactions, and make payments there.
The main features of Coinbase are:
- It is very easy to use. Coinbase has two services, Coinbase and Coinbase Pro. The former is intuitive, easy to use, and has a clean and simple interface.
- Academy and rewards program. Coinbase is a good entry point into the world of cryptocurrencies due to its educational resources. In addition, through its training program, you can earn rewards in different cryptocurrencies and invest beyond Bitcoin, etc.
- Simple but limited tools in Coinbase and more advanced in Coinbase Pro.
The Coinbase Pro version was launched in 2021, and its focus is more focused on offering solutions to companies than to individuals, although it has made progress to improve in this section.
Have you been left with doubts? You can check out this complete step-by-step Coinbase guide.
Binance Advantages and Disadvantages
Binance has been the reference exchange for years regarding the volume of crypto assets it moves.
Binance stands out for its constant innovation, which translates into incorporating new services and forms of investment into the platform. For example, it has its own cryptocurrency, Binance Coin, which is used to carry out operations within the platform and enjoy lower commissions.
The main features of Binance are:
- Limited commissions. It is the great advantage of Binance as a platform and one of its hallmarks.
- A large number of cryptocurrencies. At Binance, you can access more than 100 different cryptocurrencies.
- Many investment alternatives. Binance stands out for offering many investment formulas beyond cryptocurrency trading. On the platform, you can do staking and even crypto lending. It also allows you to trade with leverage and even invest in NFTs.
- The rewards program and academy focused on guiding you during the first steps on the platform.
For more information, here is a complete Binance tutorial, with our analysis included.
Differences between Coinbase and Binance
Comparing Coinbase and Binance is not enough to know their strengths. It is necessary to be clear about the differences between the two in the main services you must request from any cryptocurrency exchange.
1. Number of cryptocurrencies
At Coinbase, you can buy and sell about 90 cryptocurrencies. Binance has more than 350 cryptocurrencies.
Of course, with both platforms, you will have access to the main cryptocurrencies, such as Bitcoin, Ethereum, Tether, or Solana, to give a few examples.
2. Payment methods
With Coinbase, you can buy cryptocurrencies with a card and bank transfer. On Binance, SEPA transfers are currently limited, and to use your account, you will need to do so through a third-party service like Simplex.
3. Operations and investment formulas
Both exchanges allow basic cryptocurrency operations. Namely, buying and selling cryptocurrencies with fiat or fiat money and exchanging cryptocurrencies with each other.
Coinbase allows trading directly using fiat currency, while with Binance, trading is done directly through cryptocurrencies. That makes Coinbase more intuitive and easier for new users than Binance.
From there, the Binance service offer is much broader. Through Binance Earn and Binance Finance, you can carry out cryptocurrency staking, lending, and liquidity farming. With Coinbase Pro, you can stake, but the platform is much more focused on trading.
If you are starting, it is easy for these options not to sound familiar to you, and they are not for you right now. However, if you are a long-term investor in the crypto world, sooner or later, you will want to take advantage of them to obtain additional profitability for your cryptocurrencies.
Commissions are a key aspect in any investment and cryptocurrencies; there is no color at this point.
Trading Binance is cheaper than Coinbase Pro and still much cheaper than Coinbase Basic.
With Coinbase, you will have to face commissions of between 0.5% and 4.5% when making a deposit, or withdrawing money, depending on your payment method. To this are added commissions to buy and sell cryptocurrencies by applying a conversion rate.
In Binance, there is no commission for a deposit, but there is for the withdrawal of cryptocurrencies. The specific amount will depend on the cryptocurrency with which you operate.
Binance charges a 0.1% commission when trading for each operation. The fee will be cheaper if you pay the commission as a Binance token (BNB).
That is Coinbase‘s great competitive advantage over other exchanges. It is, without a doubt, the easiest platform to use, with the cleanest and most intuitive interface.
The basic version of Coinbase offers so few alternatives that the purchase process is very simple. You can sign up and buy your first cryptocurrency in less than three steps.
Binance has more options but is also denser and less intuitive.
Coinbase or Binance Which one should you choose?
That is the key question when discussing the differences between Coinbase and Binance. For us, it has much to do with your operations and experience.
Coinbase is the best option if you have never invested in cryptocurrencies, nor have you ever traded. It is an ideal way to start in this world considering that:
- You will pay more commissions.
- Your investment options will be more limited.
On the other hand, if you have already invested in shares or are used to working with brokerage sites, Binance will give you more investment alternatives and save you a lot of money in commissions.
It is common to jump from Coinbase to Binance as the number of operations increases (you do more trading than long-term investment) or you want to obtain passive income from your cryptocurrencies as a long-term investor.
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