Binance and Coinbase are two cryptocurrency platforms with very different approaches. Coinbase is a U.S.-based exchange designed for beginners with a simple interface and limited transaction types. Binance has a steep learning curve, supports advanced users, and provides international traders with hundreds of currency trading options. Although the Binance platform is user-friendly and offers three levels organized according to trading experience, it isn’t nearly as easy to use as Coinbase is. The Binance.US version is less robust with limited options. We put Binance and Coinbase side-by-side to review the overall price for various transaction types, accepted fiat currencies, and available altcoins for trading purposes. We also explored ease of use for web and mobile applications, security protocols, standout features, and customer service. On Nov. 21, 2023, Binance and its CEO, Changpeng Zhao, pleaded guilty to money laundering charges. Binance agreed to pay $4.3 billion to settle charges; Changpeng Zhao stepped down as CEO and agreed to pay $50 million toward the settlement. This came just one month after Binance paused all U.S. dollar deposits, withdrawals, and trades on Oct. 17, 2023, in response to the Securities and Exchange Commission (SEC) lawsuit filed against Binance.US on June 5, 2023. On June 5, the SEC charged Binance Holdings Ltd., BAM Trading Services Inc., and their founder, Changpeng Zhao, with various securities law violations. According to the SEC, the two companies, which operate Binance.US, misrepresented trading controls and oversight, operated unregistered exchanges, broker-dealers, and clearing agencies, and participated in the unregistered offer and sale of securities to U.S.-based investors. We are continuing to monitor the situation closely. Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. Pros Over 600 cryptocurrencies for trade One of the cheapest platforms to use Massive selection of transaction types Cons U.S. customers can’t use the Binance platform, and the Binance.US exchange is very limited It can be overwhelming, even for experienced users No built-in digital wallet In regulatory trouble in several countries and under investigation in U.S. Pros Extremely user-friendly platform Well-known and trusted by U.S. regulators Multiple ways to purchase cryptocurrency Cons Limited advanced options for expert traders Fewer transaction types than other platforms Binance vs. Coinbase Binance vs. Coinbase At a Glance Features Supported Currencies Security Fees Ease of Use Final Verdict FAQs Methodology Since the platforms are meant for different types of people, you’ll notice vast differences in their feature sets. However, both provide mobile applications with watch lists or live price tracking. But the similarities stop there. With Binance, you’ll get the following: In comparison to Binance, Coinbase offers more features for U.S. residents but fewer options for international traders. The features include: Binance is well-known for its massive altcoin list, with more than 600 choices available to non-U.S. users. However, the Binance.US exchange supports just over 100 coins. Coinbase offers 179 trading currencies. Coinbase also supports fiat currencies, including USD, British pound sterling (GBP), and euro (EUR), whereas Binance supports many more fiat currencies, such as USD, EUR, Australian dollar (AUD), GBP, Hong Kong dollar (HKD), and Indian rupee (INR). Binance and Coinbase both offer many cryptocurrency pairs, but the number may vary based on your location. The currencies each firm offers vary. For example, the following cryptocurrencies are on Binance but not Coinbase: vechain (VET), harmony (ONE),vethor token (VTHO), and qtum (QTUM). However, both platforms support popular and up-and-coming currencies such as: Although both platforms are considered secure, Coinbase has a better overall reputation. Founded in 2012, Coinbase is a U.S.-based exchange that went public on April 14, 2021, via a direct listing, and is backed by banks like J.P. Morgan. Unlike Coinbase, Binance was first established in China before moving to Japan, and the Binance.US platform is headquartered in Palo Alto, California.Binance isn’t consistently regulated around the world, but its Binance.US exchange stays within U.S. regulations. Note that Binance is currently under U.S. regulatory investigation. Both cryptocurrency exchanges provide two-factor authentication (2FA) via the Google Authenticator app or short message service (SMS), but U.S. users report some problems with the Binance.US and Google authentication process. Both Coinbase and Binance require users to verify their identity with a photograph. Binance security features also include address whitelisting, device management, and the ability to restrict device access. Like Coinbase, all USD balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and held in custodial bank accounts. Coinbase security features consist of fingerprint biometric access for its digital wallet, and 98% of cryptocurrency funds are stored in air-gapped cold storage via vaults and safe deposit boxes. Coinbase has an insurance policy to cover the 2% of funds kept in hot storage, but it only covers security breaches on their end, not ones due to a user security problem. Binance fees are some of the lowest in the industry, whereas Coinbase does not disclose its fees online. Binance uses a maker-taker structure with the same fees for both makers and takers. The fee chart can be confusing for beginners but offers vastly lower charges, especially for high-volume traders. Binance users can lower costs by purchasing Binance (BNB) tokens to pay fees with a 25% discount. High-volume traders can also level up for very important person (VIP) discounts Binance and Coinbase are geared toward different types of users. Coinbase offers a simple platform for investors new to trading cryptocurrency who want fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the sheer number of choices can be overwhelming to a new user. Binance is a better fit for people familiar with cryptocurrency lingo and investing options, whereas Coinbase is built for convenient, easy trading. Both exchanges provide mobile apps with varying functionalities. Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access tutorials or helpful articles resembling cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also lets users earn cryptocurrency for watching videos for beginners. Coinbase wins for ease of use, and also has better customer service options, including live chat, phone support, and the option to submit a ticket. In contrast, Binance offers live chat, an option to submit a ticket, or support through an X (formerly Twitter) help account.Binance does not advertise a phone support option. While Binance may be less expensive, Coinbase wins out overall. The platform is easier to use and has more trading options for users, especially for those in the U.S. Additionally, Coinbase offers more customer service options, including phone support. It is cheaper to buy on Binance. Overall, it is considered one of the least expensive platforms to use. Yes, Binance.US offers zero fees on Tier 0 pairs and a high of 0.3% maker and 0.45% taker fees on Tier 1 pairs. Coinbase Advanced Trader has a high of 0.4% maker and 0.6% taker fees on amounts up to $10,000. Binance is legal in the U.S. However, the U.S. version has fewer features than the full website includes. Yes, Binance does report to the IRS. It issues three possible reporting forms, the 1099-MISC, Form 1040 Schedule D and Form 8949. Binance and Coinbase are among the best crypto exchanges. However, Coinbase appears slightly safer. Any currencies held online may be a target of hackers, and most exchanges have experienced breaches, including Binance in 2019. Coinbase, on the other hand, told The New York Times that it's never been hacked and only 0.004% of its users experienced account takeovers in the year ending April 2021. We examined Coinbase and Binance by looking at the fee structures, cost, and how easy it is to understand. Although we looked mainly at Binance, we also evaluated Binance.US features applicable to U.S. residents. We considered the website and mobile app functionality, availability of knowledge bases, and access to customer service. Our fee and feature charts give a side-by-side view of security, transaction types, fiat currencies accepted, payment methods, and cryptocurrencies. Investing in cryptocurrencies and other Initial Coin Offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Binance.us. "Why Can't I Withdraw or Trade?" SEC.gov. "SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao." Bloomberg. "US Probes Binance Over Token That Is Now World’s Fifth Largest." Binance. "Fee Structure." Coinbase Pro. "Fee Structure." Binance. "Cryptocurrency Tax Reporting 101." The New York Times. "Coinbase Users Say Crypto Start-Up Ignored Their Pleas for Help."Binance
Coinbase
At a Glance
Cryptocurrency Exchange Platforms Binance Coinbase Main platform features Low fees, comprehensive charting options, and hundreds of cryptocurrencies Intuitive, beginner-friendly platform offering basic transactions, a digital wallet, and withdrawals to PayPal Fees 0.10% spot-trading fees, 4.5% debit card purchases Not disclosed Number of cryptocurrencies supported Over 700 for global traders on Binance. Over 100 available for U.S. investors on Binance.US 179 Security features 2FA verification, FDIC-insured USD balances for Binance.US, device management, address whitelisting, cold storage 2FA verification, insurance for hot storage if Coinbase is breached, biometric fingerprint logins, cold storage, FDIC-insured USD balances, AES-256 encryption for digital wallets Types of transactions supported Limit order, market order, stop-limit order, trailing stop order, post-only order, peer-to-peer trading, margin trading, one-cancels-the-other order, and more Buy, sell, send, receive, and exchange Maximum trading amount Limits differ based on the cryptocurrency purchased Limits vary based on your payment method and region Binance vs. Coinbase: Features
Binance vs. Coinbase: Supported Currencies
Binance vs. Coinbase: Security
Binance vs. Coinbase: Fees
Fees Binance Coinbase Wallet N/A Free Debit/credit cards 4.5% No annual fee, 1% fee on withdrawals that exceed your daily limit, 2% fee on transactions made outside the U.S., 2.49% cryptocurrency conversion fee Automated clearinghouse (ACH) transfer Free Free Wire transfer Free $10 deposit, $25 withdrawal Cryptocurrency conversion Free 1% fees on all crypto transactions which includes conversion Purchases Not disclosed 1% Trades 0% - 0.6% Variable fees (Coinbase), 0%-0.60% (Coinbase Advanced Trade) Staking fees 20% to 35% 25% to 35% Binance vs. Coinbase: Ease of Use
Final Verdict
Frequently Asked Questions
Is it cheaper to buy on Binance or Coinbase?
Is Binance.US Cheaper Than Coinbase Advanced Trader?
Is Binance Legal in the USA?
Does Binance Report to the IRS?
What Is Safer, Binance or Coinbase?
Methodology
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Crypto.com vs. Coinbase Binance Review 2024 Gemini vs. Coinbase Uphold vs. Coinbase: Which Should You Choose? Kraken vs. Binance Kraken vs. Coinbase
FAQs
Which one is best, Binance or Coinbase? ›
Binance is the leader in platforms that offer a one-stop crypto hub for everything crypto-related. Coinbase is a better platform for users who are simply looking for an easy place to buy and sell crypto, and those with simple trading requirements that don't need a wide range of trading tools.
What will you use Coinbase for best answer? ›It facilitates the instantaneous, click-based storage, trading, and exchange of crypto assets.
Why should I choose Binance? ›Binance's fees are among the lowest in the industry. While U.S.-based users will pay slightly more on Binance.us, its fees are still lower than what you'd see on other leading platforms. Binance employs a maker/taker fee structure, and fees vary based on trading volume and Binance Coin (BNB) balance.
Is Coinbase the best option? ›Coinbase and Crypto.com are both excellent cryptocurrency exchanges with services that will suit different types of customers. Coinbase charges higher fees, particularly on smaller trades. But its wealth of information and extremely easy-to-use trading platform may work well for first-time crypto investors.
Is Binance trustworthy? ›In conclusion, Binance is a safe and legitimate cryptocurrency exchange that offers low fees, strong security measures, and a wide range of currencies. Its user-friendly interface and helpful customer service make it a top choice for many traders.
Is Binance accepted in the USA? ›Yes, you can use Binance in the US. But the American version of the platform (Binance.US) is quite limited compared to the international one. Also, Binance is entirely banned in several states, including New York, Texas, Louisiana, Hawaii, Idaho, and Vermont. For more details, check out this article.
What are the disadvantages of Binance? ›Cons: Binance has Transaction Fee and Trading Fee.it has technical issues while using NFT section.
Is Binance really worth it? ›Binance is one of the safer exchanges compared to others. So if you're actively trading crypto and need to keep it on an exchange, Binance is a pretty secure choice. However, if you're holding large amounts of crypto long term, a private hardware wallet may be a better choice than keeping it on an exchange.
Which crypto exchange is best? ›NerdWallet's Best Crypto Exchanges, Apps & Platforms of May 2024
- Coinbase: Best for crypto exchanges.
- Robinhood Crypto: Best for online brokers.
- Gemini: Best for crypto exchanges.
- Binance.US: Best for crypto exchanges.
- Webull Pay: Best for online brokers.
- Kraken: Best for crypto exchanges.
4 days ago
High fees compared to competitors: Many reviewers believe that Coinbase charges relatively high fees when compared to other platforms in the industry. Users express dissatisfaction with these fees, especially considering that they are imposed on top of the fees already charged by crypto networks.
Should you still use Coinbase? ›
Coinbase is considered one of the top cryptocurrency exchanges in the U.S. The interface for Coinbase basic service is quick and user-friendly, but it also has a handful of features that might appeal to more seasoned users.
Is Binance safe from hackers? ›Every Binance user has access to advanced security tools designed to thwart a wide range of threats, from phishing attacks to account takeovers. Notable tools include anti-phishing codes, withdrawal whitelists, and various forms of two-factor authentication.
Is Binance as safe as Coinbase? ›Coinbase prioritizes security, employing measures such as 2FA verification, biometric fingerprint logins, and FDIC-insured USD balances. While Coinbase may offer fewer transaction types than Binance, its reputation for security and regulatory compliance sets it apart.
Who is better than Binance? ›Quick One: OKX is the best and overall Binance Alternatives in Nigeria, it has lower fees, excellent customer support, and top-notch security.
What is the safest crypto exchange? ›Top Crypto Exchanges
| Exchanges | SECURITY RATING | |
|---|---|---|
| 1 | Crypto.com Exchange | AAA |
| 2 | Kraken | AAA |
| 3 | WhiteBIT | AAA |
| 4 | Cryptology | AAA |