This review will compare the two of the most prominent cryptocurrency exchange platforms – Binance vs Coinbase. We will assess the trading opportunities that they provide, evaluate the efficiency of their main features, and decide which one is superior in terms of investment options and potential returns.
Which cryptocurrencies are currently available for trading?
While both exchanges are designed to be user-friendly (to support beginners as well as experienced traders), the trading options that they provide vary significantly. Currently, Binance has listed more than 500 coins and tokens (52 for US users,) while Coinbase supports a bit more than 100, half of which are available only on the PRO version of the platform.
As Coinbase is US-based, most of its trading options are directed towards American and European consumers. The exchange does not offer market orders for high trade volume cryptocurrencies such as VET, Dogecoin, and MATIC. For standard users, Binance has nearly five times more listed coins and tokens than Coinbase.
Which exchange provides better liquidity?
Being able to effectively cash out when you decide is extremely important for your overall profitability. The liquidity options that Binance and Coinbase provide differ widely. Binance has an enhanced liquidation mechanism and one of the most efficient liquidation pools on the market. It is based on the Mark Price principle, meaning that the exchange rate is calculated with a combination of funding data and a basket of price data from multiple exchanges. The platform offers highly leveraged trading options controlled by a complicated risk engine.
Compared to other exchanges on the crypto market, Coinbase also offers reasonably high liquidity. The platform allows you to sell directly into your Coinbase fiat wallet, where you can choose to either cash out or repurchase more crypto. Due to government regulation, any withdrawn fiat funds from Coinbase are subject to a temporary hold.
While Coinbase will allow you to withdraw your assets when market volatility increases quickly, Binance offers more flexibility and a faster withdrawal process, which could prove essential in a rapidly moving market.
Where can you find more trading options?
Coinbase is an exchange oriented explicitly towards new consumers and beginner traders interested in cryptocurrency investing. Binance, on the other hand, focuses both on attracting and retaining new customers and providing various trading opportunities for more advanced users. Binance allows its clients to make use of 50-590 (depending on their location) crypto-to-crypto pairs, as well as many nonstandard market orders. Such examples would be the option to trade stock with crypto through the so-called ‘Stock tokens’.
Moreover, the platform offers the ability to trade ‘futures’ – contracts used for taking both long and short positions on a particular market by pre-setting a specific date and price for the buying/selling of a cryptocurrency. While Coinbase does indeed offer many desirable spot markets, Binance has the upper hand when it comes to the variety of trading options.
Which platform offers lower overall fees?
Another advantage of Binance over almost any other major cryptocurrency exchange is its low fees. When conducting withdrawals or deposits, users are not charged with any additional fees if they transfer directly from/to their bank account. For clients outside of the US, wire transfers are also completely free. Coinbase, on the other hand, has set a flat rate of $10 for deposit transfers and $25 for withdrawals.
Due to the fact that the exchange is US-based and strictly regulated by the government, transaction fees can go up to 4% for certain markets. In contrast, Binance allows its customers to purchase and stake its native token BNB to receive anywhere between 25-50% discount on their trading fees. Referring new customers to the platform will grant you additional discounts on trading fees, with VIP clients receiving premium rates for high-volume investments.
Coinbase is a platform, which any new trader could utilize due to its intuitive design and easy-to-use trading tools. Both Coinbase and Binance offer their customers various tutorials and articles to assist them in learning how to invest in cryptocurrencies properly. The two platforms differ the most when it comes to the variety of functionalities they provide to users. Due to the strict government regulation imposed on Coinbase, the exchange only offers standard spot markets for the coins and tokens, which are currently in the spotlight of cryptocurrency trading.
Coinbase provides customers with a relatively secure digital hot wallet and the ability to receive additional charting features and track records. The exchange is available in 100 countries and 49 states, with service restrictions for users in Hawaii.
Binance, on the other hand, is currently available in over 180 countries and 43 states and allows for more than 13 different transaction types.
After looking into Binance vs Coinbase, we can safely conclude that Binance might be the better choice when it comes to cryptocurrency trading. While Coinbase is still an excellent platform for US-based users, at this point, the advantages of Binance are simply too overwhelming.
As one of the top liquidity providers, Binance has proven to be a market leader when it comes to the sheer number of trading options available on the platform and the size of its transaction fees. With some of the most advanced financial software in the webspace, Binance enables non-US users to easily deposit and withdraw funds, trade & swap cryptocurrencies, and make use of various attractive investing options.
Nothing on this website should be perceived as financial, investment or trading advice. We urge you to do your own research prior to investing and we highly recommend that you consult a certified financial advisor.
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