Binance vs Coinbase: Compare Features, Fees & Security (2024)

In this article, I will explain the most important aspects in which Binance vs Coinbase which are among the most used crypto exchanges.

In order to determine which trading platform is best for your needs with regard to buying, selling, and trading cryptocurrencies.

We will cover the trading costs, ease of use, available currencies, security measures, and compliance with laws for both exchanges.

What is Coinbase?

Coinbase is perhaps the most well-known platform for the exchange of cryptocurrencies but also offers services for the buying, selling, and trading of digital currencies.

Coinbase was co-founded in 2012 by Brian Armstrong and Fred Ehrsam and is known to have a very easy to use interface and strong security measures.

More than 250 cryptocurrencies are available on the exchange along with a wide range of services that include trading, custodial accounts, staking, and global transfers through ACH.

It has outsourced its services to thousands of countries. They are very careful regarding compliance and operate through multiple security measures to protect the user’s funds.

It is present in more than a hundred countries and has tens of millions of customers around the globe.

What is Binance?

Binance is ranked as the world’s largest cryptocurrency exchange which was founed in the year 2017 by Changpeng Zhao. Zhao is popularly referred to as “CZ” .

The company is registered in Malta and serves a wide range of customers in countries all over the world. Binance exchange offers trading services to high volumes of Binance coins, Ethereum and numerous crypto currencies.

Binance also provide investors with the option of margin, futures, options and spot trading.

Another best service provided by the platform is its low transaction fee which enables every class of traders to use its services without any hurdle.

In terms of numbers, the exchange has millions of registered users around the world with a high user retention rate.

Binance vs. Coinbase: Deposit Methods

Binance Deposit Methods

Yes, Binance has quite a wide range of deposit options including the following:

• Crypto Deposits: Users can deposit cryptocurrencies from outside wallets and exchanges.
• Bank Transfers: Users can make a deposit through bank transfer, this may include wire and ACH transfer.
• Credit/Debit Cards: Users can add funds through the use of credit and debit cards.
• Binance P2P Trading: Users can directly trade with other users on the Binance via the P2P platform.

Coinbase Deposit Methods

Coinbase has also provided its users with multiple deposits options which include:

• Bank Transfers: Users can fund their accounts from bank accounts through wire or ACH transfers.
• Credit/Debit Cards: Funds can be deposited through users’ credit or debit cards.
• Cryptocurrency: Funds can also be deposited in cryptocurrency by the use of other wallets or exchanges.
• PayPal: There is a PayPal option in some selected countries where users can fund their accounts with their PayPal account.

If there is any deposit option you would like to know any further information about please let us know.

Fee Structures: Binance vs. Coinbase

When assessing the Binance and Coinbase profiles, there’s a key differentiation that stands out; it is their fee structures, which in fact are one of the key determinants in the rating of the platforms by the users.

Trading Fees

For starters, makers and takers engaging in spot trades on Binance are charged a trade fee of 0.10%. But this fee can be lowered to 0.075% if a user pays through BNB. This is due to a 25% discount offered. In contrast, Coinbase’s fee structure is relatively intricate again, where some users incur fees of up to 0.60% per transaction based on the amount of trading activities.

Withdrawal Fees

Looking at the two, withdrawal fees are also a crucial consideration. Since they depend on the ledger congestion and the type of cryptocurrency involved, they tend to be lower with Binance.

But when it comes to withdrawal using an account, there is a huge gap between the two with Coinbase having great fees.

Bank transfers or cashing out crypto iron triangle in particular have diminished margins.

As stated, a transfer to a US bank account withdrawing will incur a cost of $25, which is very different comparing to the charges on Binance.

Payment Methods

While both platforms feature a variety of payment methods, Binance appears to provide more convenience.

Apart from the regular ones such as wire transfers and credit or debit cards, Binance lets its customers make deposits in cryptocurrencies and even purchase crypto through its P2P marketplace using local currency.

On the other hand, Coinbase does provide p2p transfers, payment with credit debit cards, PayPal, instant withdrawals through visa cards but resorts to more standard methods for payments such as bank accounts.

As for the rest of the world, U.S. clients may find the selection of payment methods an influential factor because both platforms feature efficient payment options, however, P2P method of Binance adds more flexibility.

Binance vs. Coinbase 2024: Trading options

Binance vs. Coinbase: Mobile App

Besides being well-known for their web-based crypto platforms, both exchanges also have developed mobile apps. In the App Store, both mobile applications command the same score (4.7/5), Coinbase’s app is generally considered to be a tad superior.

Also, more features like an advanced trading imply that Binance will have trading options for features present on the desktop platform.

Once again, the company has tried to expand separately the target market for mobile applications.

This makes sense considering how younger consumers are always on the go while a typical older user of cryptocurrencies might prefer to work on a computer.

There was no denying Coinbase’s mobile application evolution, since everything that used to be available only on the desktop application can now be found on the mobile application.

As a single entity to trade on both apps, several features have remained intact on both apps like the ability to trade off a mobile device, where Binance was able to integrate a larger quantity of features to its app.

Hence, it’s likely that more people would prefer Binance’s mobile app as it is more flexible in nature. An undisputable edge that grants it an upper hand against Coinbase.

Coinbase vs. Binance: Security

Security at Coinbase

The security standards of Coinbase are impressive and include cold storage of most of customer funds, two-factor authentication (2FA), and adherence to KYC (Know Your Customer) and AML (Anti Money Laundering) requirements.

The platform also implements biometric authentication and multi signature withdrawal as additional security measures.

Coinbase’s security team keeps watch over the security of accounts and characteristics of various threats and provides assistance with securing the account.

Security at Binance

Most of user assets are kept in cold storage and transactions are monitored and analyzed in real-time.

The platform also makes use of KYC and AML protocols, encryption, and whitelisting in order to enhance safety measures for users.

Binance also reduces risks by implementing a secure asset fund for users (SAFU fund). Binance has also given failures of Bithumb, Bitgrail, and other platforms as well as risks as reasons for developing the SAFU fund.

The security of user assets at Binance is assured through various means and constant updates, therefore users are assured of high security at all times.

Binance vs. Coinbase: Customer Service

With regard to customer support, Binance provides a comprehensive help portal with numerous articles on topics such as how to verify your account, and understanding some features.

In addition to this, Binance gives its customers an automated AI chatbot, and live chat which is available throughout the day.

Moving to the other end of the spectrum, Coinbase’s help center has articles dealing with such topics as those in the service offered by Binance as well as an earning reward through the system for educating people on cryptocurrency, which might motivate some to better their understanding of this field.

An AI based chatbot and live chat support is made available to users by Coinbase as well.

Conclusion

Choosing between Binance and Coinbase basically comes down to your experience level and what you hope to accomplish.

If you are an advanced trader who needs lower fees, wider selection of coins, and P2P marketplace or similar options, then Binance would be ideal for you.

With deep liquidity and multiple routes available, it is appealing for those who often engage in trades or want to have multiple investments.

The opposite seems to be true for Coinbase as it targets beginner traders and those who want basic features – a dedicated interface, reinforced KYC, and better regulatory mitigation policies.

Although it reduces the level of fees chargeable, it gives users a much easier experience, particularly those from highly regulated markets.

Fundamentally, both platforms ultimately have their pros and cons and the difference between them boils down to which features are more vital to you.