Traders have the choice between between Coinbase and Binance, two major crypto platforms offering high security and transaction volumes
If, like many traders, you're looking for the best crypto platform, your main options will be Coinbase or Binance. Among the exchanges offered in the field, these two platforms are the most trusted by users. However, choosing between these two giants can be hard, as they each have their own advantages.
To make your choice easier, we have summarized their respective features in this comparison.
Questions about security are crucial when choosing a crypto platform. They include whether investors can safely entrust their money to these platforms, and whether the gains are real.
Founded in 2012 in San Francisco, Coinbase initially specialized in Bitcoin trading. It is currently used by more than 56 million traders in over 100 countries. Headquartered in California, it is a cryptocurrency exchange platform licensed by FinCEN (Financial Crimes Enforcement Network). The latter is part of the U.S. Department of the Treasury and has the role of monitoring financial transactions, to combat domestic and international money laundering, as well as terrorist financing and other financial crimes.
Coinbase is also licensed to operate in each country where it offers its services. In particular, it is authorized by the FCA (Financial Conduct Authority), which is the regulator of the financial sector in the UK. This platform is also approved by the BaFin, which is the financial supervisory authority in Germany. BaFin regulates more than 2,700 banks, 800 financial service providers and 700 insurance companies.
Currently valued at over 50 billion USD, Coinbase has a quarterly transaction volume of over 300 billion USD. This makes it a powerful company with a global reputation.
For the security of its users' funds, it uses an offline account that is separate from its operating capital. Moreover, due to an attempted hijacking of 7000 BTC that took place in 2019, Coinbase has strengthened the security of its users' funds by creating the SAFU (Secure Asset Fund for Users). This is a fund dedicated to compensating traders in case of default.
To create an account on Coinbase, it is necessary to identify yourself by providing identity documents and proof of residence less than three months old. KYC (Know Your Customer) protocol is applied for a Google 2FA (two-factor authentication) of each user. This includes password verification via email/sms and biometric data, such as facial, voice or fingerprint recognition.
Founded in China in 2017 by Changpeng Zhao and Yi He, Binance is a world renowned crypto platform. Shortly after its launch, it was forced to move its offices to Japan, as a law banning virtual currency trading was introduced in China. In 2018, it also set up new offices in Taiwan and Malta.
Currently, Binance has over 15 million users from all over the world. However, it should be noted that this exchange does not have a head office. It is not regulated in Europe either. On the other hand, its American subsidiary Binance. US operates the license issued by FinCEN to its partner BAM Trading.
Opening an account with Binance is not subject to any identity verification procedures. You will not be asked for any documents. Moreover, this step is very fast and requires only a few clicks. However, a user who wishes to withdraw more than 1000 BTC will be required to confirm their identity. This step is not necessary for withdrawals of less than 2 BTC per day.
Account opening and withdrawal of funds, on the other hand, are subject to the KYC protocol, which includes email confirmation and SMS verification. Moreover, in case of login from a new device, the platform also performs a verification. On the other hand, if the account password is changed, withdrawals are suspended for 24 hours.
Both beginner and more seasoned investors have their own needs in terms of crypto platforms. Here is a comparison to help you choose between Coinbase and Binance.
One of the great advantages of Coinbase is that it offers training courses to help beginners learn the principles of trading and how its platform works. Moreover, to meet the needs of its multi-origin users, it is available in 16 languages, including French, English, Spanish, Italian, Portuguese, and Turkish.
Moreover, it offers a smoother and faster interface than Binance. However, the features are mostly dedicated to traders who are new to the classic platform.
Through its Coinbase Pro platform, it offers more advanced charting tools. More experienced traders can use order books and risk management functions.
This platform allows you to trade over 100 virtual currencies. It allows you to exchange crypto-currencies with each other, but also to buy virtual currencies directly with currencies. Indeed, more than 32 fiat currencies are available. When it comes to user fees, Coinbase charges for transactions, deposits and withdrawals. Its rates are very competitive, although they vary depending on the payment methods used. The cost of a transaction is established on the basis of the highest amount between a previously established amount and a percentage established according to certain criteria, such as the type of product, payment method, or location.
Flat rate billing tiers are also applied. For transaction volumes below $10, there is a $0.99 fee. Between $10 and $25, the fee is $1.49. Between $25 and $50, the fee is set at $1.99. And for transactions over $50, there is a $2.99 fee. The flat fee for traditional buy/sell is 1.49% of the transaction value. Card purchases are charged at 3.99%. Deposits by SEPA transfer are free, but withdrawals are charged €0.15.
Card withdrawals are subject to a fee of up to 2% for a minimum of $0.55. It should also be noted that Coinbase applies a 0.5% spread on all transactions. In addition, it has offered a cryptocurrency payment card since 2019. This allows users to pay in cryptos at stores or make withdrawals from ATMs. However, the fee for this card is 2.49% of the transaction.
Binance offers two platforms: a lite version and a professional version. However, it stands out through its wider choice of products. Indeed, more than 500 cryptos are available. This broker also offers many offers dedicated to savings so that investors can receive interest in virtual currencies. In particular, traders can take advantage of flexible savings, one-time loans and practice cryptocurrency staking. This makes it possible to meet daily trading strategies and also to hold virtual currencies in the longer term.
Cryptocurrency traders can take advantage of the lowest transaction fees, set at 0.10% of the traded value. In addition, it is also possible to use Binance Coins (BNB) to pay the transaction fees. This allows you to pay 0.075% less. The platform also categorizes its users with VIP levels. By upgrading to a higher tier, traders benefit from lower billing. Thus, a VIP0 user who reaches VIP1 level will see their transaction fees reduced to 0.02% for selling and 0.04% for buying. However, credit card transactions are charged at a higher rate.
Recently, Binance added trading with fiat currencies to its services, meaning its no longer necessary to go through a third-party platform to buy crypto. In addition, Binance offers leverage to multiply your gains. These derivatives can multiply profits of up to 125 times.
Here is a summary table that will help you choose between Coinbase or Binance.
COINBASE
BINANCE
Date of creation
2012
2017
Head office
San Francisco, California (USA)
Malta
Number of users
over 56 million
more than 15 million
Available cryptocurrencies
more than 100
more than 500
Transaction fees
1.4% (3.99% by credit card)
0,10%
Filing fees
0
0,90%
Withdrawal fee
0,15 €
0,90%
Getting started
Simple, fluid, fast, suitable for beginners
More complete, adapted to experts
Security
Very secure
Very secure
License
FinCEN (USA) + FCA (UK) + BaFIN (Germany)
Regulated via its partner BAM Trading Services by FinCEN (USA)
Transaction volume
300 billion USD per quarter
2 billion USD per day
