Binance vs Coinbase: What’s the Better Alternative?
Binance and Coinbase are the two most known and used exchanges that activate in the crypto space. In today’s article, we will be looking into what sets apart these platforms and which one is the better alternative.
You can deposit money and/or buy cryptocurrency in your Coinbase account through ACH transfer, debit card, or wire transfer. You can also deposit in the supported cryptocurrencies – currently Bitcoin, Ethereum, Litecoin, Ethereum Classic and Bitcoin Cash.
The Coinbase interface is intuitive, being easy to use by any novice trader. The platform does not feature options for margin trading or even market/limit orders. You have only the buy and sell options.
The Basic displays all the standard options such as order books, charts, and trade history, while the Advanced view has incorporated more analysis tools.
Coinbase fees vary depending on the selected buying method, but they range typically between 1.49% and 3.99%. Investments which are lower than $200 could incur even higher fees as well.
Binance has a significantly broader selection than Coinbase, having in addition to its supported coins 100+ more. The list of other coins includes Cardano, EOS, Monero, NEO, Ripple, Zcash and many others.
The coins on Binance are traded in pairs with either Bitcoin, Ethereum, Binance, and/or Tether.
The maximum amount you can transfer on Coinbase is determined by your buying history, account age, and verification level. Also, the withdrawal limit is much higher than the deposit limits.
Coinbase deposits via bank account can take up to 4-5 business days, and card deposits are immediate. Withdrawals can be completed anywhere from 2 to 4 business days.
Binance is less strict with its limits. The amount you can deposit has no limit imposed, and your withdrawal limit is based on your account’s level of verification. If you are not verified you have a 2 BTC daily limit, while if you are verified you have a 50 BTC daily limit.
The verification process requires submitting some personal information and providing photo identification.
Both Coinbase and Binance are regarded as secure and trustworthy exchanges by the cryptocurrency community.
Coinbase is a US-based company which has been compliant to all regulations since its founding and has a user base which exceeds 10 million.
Zhao Changpeng, Binance’s CEO is known to be transparent in all matter which concerned Binance. Whether it’s hack attempts, platform outages, or just rumors, Changpeng addressed all these subjects through email and Twitter.
Both Coinbase and Binance employ solid security measures for their users’ funds.
The U.S. dollar funds on Coinbase have an FDIC insurance of $250,000. The platform also keeps 98% of users’ digital assets in cold storage with the remaining 2% being insured. Even if there was a hack, that insurance is enough to recover all lost funds.
Even though there is no information on the company’s website regarding their security, Binance has demonstrated that they take matters seriously. When Binance users fell victim to a phishing/API attack, the exchange immediately halted all withdrawals when they noticed suspicious activity, stopping the hackers from getting away with any funds. Afterward, they reversed the appropriate trades and returned the users’ funds.
The customer support on both platforms has been reported to be slow in the past.
Coinbase has a customer service phone number and email support. Email responses can still take over a week, but phone calls are a faster way of getting your problem solved.
Binance also has a large number of support tickets piling up, but the team uses both Reddit and Twitter to help its users solve their issues.
Coinbase vs Binance Conclusion
Both Coinbase and Binance are reliable exchanges which have their different fortes. Coinbase is ideal for beginner traders as well as for those that are looking to buy coins quickly. Binance is perfect for advanced traders which are interested in making TA-based trades, and for investors looking for a wide selection of coins and tokens.