Cryptocurrency exchanges are online platforms where cryptocurrencies are traded for other digital assets and fiat currencies. There are centralized and decentralized exchanges used for buying and selling crypto assets.
Two of the top centralized exchanges, based on trading volumes, liquidity and amount of traffic, are Coinbase and Binance. Read on for a comparison of Coinbase vs. Binance to see which is the better exchange for your trading needs.
What Is Coinbase?
Coinbase launched in 2012 and is one of the largest cryptocurrency exchanges in the world. It processes $145 billion in trading volume per quarter and boasts $130 billion in assets.
Here are some of Coinbase’s main features:
- Variety of trading tools. Advanced order types, APIs and TradingView charts
- World-class security. High-level security and encryption
- Low fees. Quick trading in over 550 markets with one volume-based fee structure
Coinbase Exchange Fees
Coinbase determines its trading fees using a maker-taker fee model. Fees are calculated when orders are placed and not on after-trade completion tiers.
An order placed at market price is filled immediately and requires a taker fee, which is between 0.05% and 0.60%. An order that is not immediately matched with an existing order is placed on the order book. If an order is placed that matches that order, the matched order is considered the maker order and incurs a fee between 0.00% and 0.40%.
Sending and receiving cryptocurrency is free between merchants, friends and other Coinbase users. But customers will be responsible for miner fees on external crypto transactions. Miner fees, also called mining or network fees, are paid to cryptocurrency mining systems that securely process transactions over cryptocurrency networks. These fees can vary but will be disclosed at the time of your transaction.
Coinbase vs. Coinbase Pro
Coinbase and Coinbase Pro both carry a variety of crypto assets and have similar features. The biggest difference between the two exchange platforms is that Coinbase Pro is better suited for advanced traders looking for better trading capabilities and features. The standard version of Coinbase would appeal more to basic traders needing a simpler trading platform.
What Is Binance?
Binance is a cryptocurrency blockchain ecosystem targeted at more experienced cryptocurrency investors. Although its the largest digital asset exchange worldwide, Binance is not available to U.S. consumers. The U.S. version is Binance.US.
Binance vs. Binance.US
Binance was established in 2017 and is a popular cryptocurrency exchange platform because of its variety of trading assets, excellent customer support and low trading fees. Strict regulatory compliance caused Binance to launch Binance.US in 2019 to give U.S. traders a better experience.
One of the main differences between Binance and Binance.US is the number of cryptocurrencies that can be traded. More than 350 cryptocurrencies can be traded on Binance, while about 150 coins can be traded on Binance.US. Other differences include regulations, trading conditions and margin rates.
Here’s a look at some of Binance.US’s key features:
- Offers more than 150 supported cryptocurrencies
- Allows crypto staking
- Has a user-friendly trading interface
Binance.US Fee Structure
Fees for Binance.US are based on a tiered system and can vary based on the crypto pairs users want to trade. Users can expect to pay anywhere from 0.10% to 0.60%. Here’s a look at some other fee details:
- Offers free bitcoin and ethereum trading
- Trading fees are determined by a 30-day trading volume
- 0% fees on Tier 0 trading pairs
- 25% discount on Advanced Trading fees when Binance Coin (BNB) is used to pay fees
Coinbase vs. Binance: Which Is Better?
When comparing Coinbase vs. Binance.US, you’ll find that they are very similar. They both offer U.S. crypto traders intuitive user interfaces, and have similar fee structures and features. Here’s a look at some pros and cons to consider when deciding which one is best for you.
|-Numerous crypto wallet choices
-A large variety of coins
|–Staking commission fees are high
-Complicated fee structure for novice traders
-No access to margin accounts
|-Allows trader staking
-Offers low fees
-Supports a wide variety of cryptocurrencies
-Easy to use for novice and advanced traders
|-Parent company, Binance, has experienced major security issues
-Not all U.S. residents have access
-No access to margin accounts
How Cryptocurrency Exchanges Work
Cryptocurrency exchanges are intermediaries between crypto buyers and sellers. Traders can trade crypto-to-crypto or crypto-to-fiat. Cryptocurrency exchanges typically provide secure, seamless transaction execution using hot wallets and secure, offline storage.
A hot wallet is an online virtual currency wallet that facilitates cryptocurrency exchanges between crypto owners and buyers. Currencies such as bitcoin are stored and sent using a set of private keys. Digital hot wallets provide convenient access and easy virtual currency transactions.
Coinbase and Binance.US have similar benefits for cryptocurrency traders. One important aspect they have in common is that users must prove their identity to access the platforms. This requires providing government-issued proof of identity and reduces the risk of illegal activity.
If you’re a more experienced crypto trader, you might consider Binance.US for a more robust trading experience. Contrarily, if you’re a beginner, Coinbase may be the better choice for you.
FAQHere are the answers to some of the most frequently asked questions regarding Coinbase vs. Binance.
- What is the fee comparison between Coinbase and Binance?
- Fees for Coinbase are based on a maker-taker system and are calculated at the time the order is placed. They can range from 0.40% to 0.60%. Users may also have to pay miner fees if it is an external crypto transaction.
- Fees for Binance are based on a tiered system and can vary based on the crypto pairs users want to trade. They can range from 0.10% to 0.60%. Binance also offers free bitcoin and ethereum trading, 0% fees on Tier 0 trading pairs and a 25% discount on trading fees when Binance coin is used.
- Can U.S. citizens trade on Binance?
- No, Binance is not available to U.S. consumers. Anyone residing in the U.S. will have to use Binance.US.
- What is the difference between Binance and Binance coin?
- Binance is an online platform where users can trade cryptocurrencies for digital assets and fiat currencies. Binance coin is the coin issued by the Binance exchange.
Kelli Francis contributed to the reporting for this article.
Data is accurate as of May 25, 2023, and is subject to change.
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