Today, if you want to buy something new, there are endless choices of retailers online. The same now goes for cryptocurrency. With so many decentralized exchanges now available, it can be difficult to determine the best use. Two major exchanges, Coinbase and Binance, could be great options for you, but does one outshine the other? Is there a way to choose between these two hugely popular platforms?
Today, we’ll be doing a deep dive into Coinbase and Binance to see which comes out on top so that you know what to use for all your crypto needs.
What Is Coinbase?
Founded in 2012 by software engineer Brian Armstrong and former Goldman-Sachs trader Fred Ehrsam, Coinbase began solely as a platform for buying and selling Bitcoin. Since then, it’s grown and diversified massively, along with the crypto industry itself. Today, Coinbase has become a favorite for crypto owners around the world, with users in over one hundred countries.
So, what does Coinbase offer?
The Coinbase Exchange
The Coinbase exchange allows users to buy, sell, and swap over one hundred different coins and tokens. Whether you want to get your foot in the door with a small Bitcoin investment, sell a large portion of your holdings, or just diversify your crypto portfolio, you can do so on Coinbase.
Coinbase’s exchange has two versions: Coinbase and Coinbase Pro. Coinbase’s standard exchange is super user-friendly and is designed for those who don’t need to trade professionally. On the other hand, Coinbase Pro is a little more complex and has some additional trading features for those looking to get a little more out of their trading experience. The exchange’s professional version also has an address whitelisting feature for increased security when conducting transactions.
While either version of Coinbase can be used by anyone without any kind of upgrade or subscription fee, the majority of users stick to Coinbase’s standard version. But it’s up to you whether switching to Coinbase Pro is a wise option for your crypto trading.
One of the key factors crypto owners consider when looking for a new exchange is the fees they’ll incur. On Coinbase, there are no maker fees, but a taker fee of 1.49% and a spread fee of 0.5% for fiat and 1% for crypto are all chargeable to users for every transaction. On the other hand, Coinbase Pro charges a 0.5% maker and taker fee, so no spread fees are present.
Compared to other exchanges, Coinbase’s fees are a little steep, so keep this in mind if you’re looking to minimize fees wherever possible.
Security is another crucially important part of any cryptocurrency exchange. Billions in crypto have been stolen over the past decade, so it’s vital that those who want to store their assets on an exchange can be confident that the chance of loss or theft is absolutely minimal. So, can Coinbase provide its users with adequate protection?
Well, security happens to be one of Coinbase’s most impressive elements. There is a wide range of protective features offered by Coinbase, including the cold storage of 98% of all funds, two-factor authentication, and insurance against theft via a hack. On top of this, every Coinbase employee has to go through a criminal background check during the employment process, which ensures that your funds are in safe hands. And, of course, Coinbase Pro also offers an address whitelisting feature, as stated above.
With all these useful options on offer, Coinbase is one of the best exchanges to use in terms of security.
Coinbase’s exchange doesn’t end at buying and selling. There’s also a lucrative staking option offered by the platform, through which you can earn a percentage on the funds that you lock away. Currently, you can stake Ethereum, Algorand, Cosmos, Tezos, Dai, and Cardano on Coinbase, all of which have varying reward rates.
Coinbase also has a popular software wallet, which is incredibly easy to use and highly secure. This is a great option for those who regularly use Coinbase and want somewhere to store their funds between trades, as well as those who just want a secure software wallet for long-term storage. But it’s worth noting that software wallets just aren’t as secure as hardware wallets, so keep this in mind if you’re looking to store big sums of crypto.
So, we now know that Coinbase is a diverse and user-friendly decentralized exchange with a great set of security features. But can it still be outshone by Binance? Let’s find out.
What Is Binance?
Though Binance is a younger exchange than Coinbase, this doesn’t seem to have slowed its ascent to becoming a world-renowned platform with almost 30 million users. Founded in 2017 by coder Changpeng Zhao, Binance currently has the largest trading volume of any exchange in existence, and there’s no telling where it’ll be heading next. But what makes Binance so popular?
The Binance Exchange
Binance’s decentralized exchange allows users to trade over 500 different kinds of cryptos, from the biggest in the game to less well-known newcomers. This is very impressive and certainly outdoes Coinbase in terms of supported coins. Binance lets users buy, sell, and swap their crypto, and has two versions of its exchange available on their app for different user preferences.
The standard version of the Binance, known as Binance Lite, is perfect for newcomers and casual traders who don’t need any sophisticated features. Binance Professional, on the other hand, offers an “Earn” section for crypto staking (which we’ll discuss a little later), slot auctions, and liquidity farming. While Binance Lite does have an “Earn” section, it’s very basic, so the app’s pro version might be more suited for those who want to do more with their assets.
One of the best things about Binance is that it’s super affordable to use. Currently, Binance charges a 0.1% maker and taker fee for transactions, which is certainly a lot more attractive than the fees charged on Coinbase. There is no difference in fee rates between Binance Lite and Binance Professional, so you don’t need to worry about varying fees if you tend to switch between the two.
Like Coinbase, Binance also has a clear focus on the safety of its customers’ funds. Binance stores 98% of all funds existent on its exchange in cold storage, wallet address whitelisting, two-factor authentication, and suspended withdrawal periods for any unusual activity. Users are also sent security notifications to alert them of any suspicious activity, so they don’t have to be active on the exchange to be aware of any unprecedented changes to their account.
Binance also has a number of compliance initiatives and works closely with law enforcement whenever funds are stolen. The platform seems to be committed to helping combat cybercrime, and does what it can to protect its users.
If you’re looking to get started with staking, Binance is a great option. Binance supports staking for over 100 assets, with varying lock-up periods and rewards rates depending on the coin or token in question. On top of this, Binance supports slot auctions, in which users can support new projects on the blockchain while making a profit for themselves.
Binance’s two blockchains are also widely popular for different reasons. In early 2022, Binance went through a rebranding process, with its two chains known together as the BNB (or “Build and Build”) Chain. The first of these two blockchains are used for governance, and is known as the BNB Beacon Chain. The second chain is a little more exciting, allowing the development and operation of smart contract-based applications. This is known as the BNB Smart Chain.
The BNB Smart Chain is now challenging the likes of the Ethereum blockchain, with many developers choosing the former over the latter to build new projects.
The Final Verdict: Coinbase vs. Binance
Though Coinbase is certainly a great crypto exchange with a wide range of supported assets, security features, and trading options, it is a more limited and expensive exchange compared to Binance. With over 500 supported assets, over 100 staking options, high-security levels, and low fees, Binance seems to outshine Coinbase in several ways. What’s more, Binance is available in more countries worldwide than Coinbase, making it accessible to millions more individuals.
While Coinbase is undoubtedly still a solid option for crypto traders, it falls just shy of Binance for a number of reasons, so we’re crowning Binance as the best crypto exchange between the two!
What Is Binance and Are Your Crypto Holdings Safe There?
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