Binance and Coinbase are two of the world’s leading cryptocurrency exchanges, and they allow users to trade a range of cryptocurrencies as well as offer additional features such as staking to earn interest on crypto holdings. Binance is unregulated, while Coinbase is based and regulated in the US.
The key difference between the two is the range of cryptocurrencies and additional services on offer, with Binance users having access to a greater number of products due to Coinbase’s strict vetting process and tougher regulatory requirements.
Compare Binance and Coinbase on features like staking, coins, fees and security.
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Fees vary and depend on the order type, but your typical spot order uses a Maker/Taker system with fees starting at 0.1% and drops if your trade volume hits certain levels.
Fees vary and depend on the order type.
The average fee for buy/sell transactions is 0.5%, but this can increase depending on your payment method and where you are located.
Purchases of between $1 and $200 are also charged a flat fee between US$0.99 and US$2.99
Be prepared to pay up to 4% for purchases with a debit or credit card.
Crypto-to-crypto transactions are charged at 2%.
According to volume collected by CoinGecko, Binance is the largest exchange in the world by trade volume, with Coinbase coming in second.
At the time of writing, the 24-hour volume for Binance was $40 billion while it was $3 billion for Coinbase.
This indicates that both exchanges have lots of liquidity, which should result in low slippage.
Both Binance and Coinbase offer you a variety of ways to secure your account, including two-factor (2FA) authentication and customer support for compromised accounts.
They both also let you whitelist cryptocurrency withdrawal addresses to help prevent theft in the event your account is compromised, which helps stop your funds being taken out of your account if someone accesses it.
As for how funds are stored, both exchanges utilise cold storage. Cold storage means that cryptocurrency is stored in an offline wallet. This means that if a hacker gets into the exchange, they cannot access the funds in cold storage, which mitigates any damage done in the event of an exchange-wide hack.
Coinbase reports 98% of customer cryptocurrency is stored in cold storage, with the remaining online “hot” funds insured. According to Coinbase, this means that if the exchange were hacked and the online funds were accessed, users would be reimbursed for the full amount.
Binance does not publicly disclose what amount of user funds are in cold storage but does promote its “SAFU” fund, which is like an in-house insurance fund. The Secure Asset Fund for Users (SAFU) is an emergency fund made up of 10% of the trading fees collected by the exchange.
Coinbase is based in the US and is registered as a money services business with US authority FinCEN, which requires it to comply with a range of financial services and consumer protection laws. Coinbase is also authorised to issue electronic money in the UK under the FCA.
Binance operates in a decentralised fashion and the location of its business registration and operations is not immediately clear and the subject of conjecture.
Various media outlets have previously reported that the business is registered in Malta, although a 21 February statement by the Malta Financial Services Authority (MFSA) states that “Binance is not authorised by the MFSA to operate in the cryptocurrency sphere and is therefore not subject to regulatory oversight by the MFSA”. Media outlet Decrypt reports that Binance’s headquarters are registered in the Cayman Islands with another entity registered in the Seychelles.
Coinbase operates heavily in the US market and offers its services globally in a number of currencies and languages. Coinbase offers a conservative range of coins and products, with a focus on making the experience of buying cryptocurrency as simple as possible for new users who may have never used an exchange before.
Unfortunately, its fees are considerably higher than Binance for most products.
All in all, Coinbase is a tried and tested pick for anyone looking to purchase cryptocurrency for the first time.
Binance is the largest cryptocurrency exchange by trade volume with a huge range of cryptocurrencies and features available. In addition to its markets, it is famous for the wide range of services it offers that provide users with a rich and comprehensive experience as well as the ability to put funds to work through staking and lending to earn interest. Its fees are low and highly competitive compared to similar exchanges.
It also offers access to DeFi through the Binance Smart Chain blockchain and BNB coin.
Binance is an excellent platform for users wanting to get the most out of their cryptocurrency experience.
Keen to consider alternatives? Check out our comparison of over 50+ cryptocurrency exchanges.
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