Binance vs Coinbase: Key Differences of These Exchanges
Binance and Coinbase are two of the most popular cryptocurrency exchanges, but they’re actually VERY different from each other. After reading this Binance vs Coinbase comparison, you’ll have a good idea of their differences and be able to choose the one that’s best for you. You can also check out our in-depth reviews and user guides for both exchanges linked below.
Coinbase vs Binance: Two Very Different Exchanges
Coinbase is a platform geared towards beginners, that allows you to easily buy, sell, and store cryptocurrency. Unlike traditional cryptocurrency exchanges, Coinbase directly sells and buys cryptocurrency to/from their users. You should think of it more like an online retail store than an exchange.
This simplified approach makes Coinbase the easiest way for newcomers to purchase Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. You can connect your bank account or use a credit card to make purchases. All that’s required is to set up your account and payment method, then enter the amount you’d like to purchase.
Learn More About the Platform and See Exactly How to Use It In Our Coinbase Review
Binance, by contrast, is a cryptocurrency-only exchange, meaning you can only trade cryptocurrencies for other cryptocurrencies. There’s NO way to use Binance to buy coins with a bank account or credit card.
Because of this, Binance is NOT an option for newcomers looking to buy their first Bitcoin or other cryptocurrency. However, it is the most popular way to acquire many altcoins (alternative cryptocurrencies). While Coinbase only supports 4 cryptocurrencies, Binance currently offers trading for over 100 different coins. Once you have Bitcoin or Ethereum, you can use it to buy any of the other cryptocurrencies available on Binance.
Learn More About The Platform and See Exactly How to Use It In Our Binance Review.
For those of you interested in buying cryptos that aren’t offered by Coinbase, it’s likely best to create accounts on both of these exchanges.
Key Information Comparison
In the table below, you can see key information for each exchange.
|Buy/Deposit Methods||Debit & Credit Cards,
Bank Transfers, Cryptocurrency
|Sell/Withdrawal Methods||PayPal, Bank Transfers, Cryptocurrency||Cryptocurrency|
|Purchase Fees||~1.49 % via bank transfer
|Supported Cryptocurrencies||Bitcoin, Ethereum, Litecoin, Bitcoin Cash||Bitcoin, Ethereum, Litecoin, and 100+ More|
|Location||San Francisco, California, USA||Hong Kong & Tokyo|
|Review & User Guide||Binance Review|
|Site||Visit Coinbase||Visit Binance|
Community Trust of These Exchanges
As mentioned at the start of this guide, the two exchanges we’re comparing are incredibly popular in the crypto community.
As the go-to “newbie exchange”, Coinbase has served over 10 million customers, helping them exchange more than $50 billion worth of digital currencies. The company is based in San Francisco, California and has operated since 2012.
Having experienced tremendous success in its 5+ years of operation, the company has raised over $200 million in venture capital.
Another contributing factor to the trust of the platform is their industry leading security and fund storage polices.
- Coinbase keeps 98% of cryptocurrency funds in offline “cold storage”.
- The remaining 2% of crypto funds stored in “hot wallets” are fully insured.
- USD held by customers from the United States is insured up to $250,000 per user.
- Customer funds are segregated from company funds.
While this may seem crazy, it’s more reasonable when you see who’s behind Binance. Changpeng Zhao (CZ), the company’s CEO, was the CTO and Co-Founder of OKCoin. When CZ left OKCoin, it was China’s largest cryptocurrency exchange. His impressive resume doesn’t stop there, he was also formally:
- Head of Technology at Blockchain.info, one of the world’s most popular online Bitcoin wallets.
- Founder and CEO of BijieTech
- Head of Development at Bloomberg Tradebook Futures
As far as security is concerned, the exchange follows industry best practices including the CryptoCurrency Security Standard (CCSS).
Binance vs Coinbase Summary
In the battle of Binance vs Coinbase, there’s not a clear winner. Both exchanges do a great job at two different things.
Coinbase allows you to very easily buy 4 of the biggest cryptocurrencies with your bank account or credit card.
On Binance, you can’t buy cryptocurrency with fiat currencies (like USD or EUR), but you can trade 100s of coins for other coins.
If you’re interested in a variety of altcoins, chances are you’d be best off signing up for both of these exchanges.
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