Coinbase vs Binance: A Side-By-Side Comparison 2023

Supported Cryptocurrencies

Over 600 cryptocurrencies are listed on Binance’s global platform, making it a large crypto exchange worldwide. However, it is crucial to note that the Binance US trading platform provides fewer assets owing to legal constraints. Binance US supports over 100 tokens for US investors at the time of writing. Seasoned crypto traders may prefer Binance, which offers several trading options for cryptocurrencies and tokens with low market caps.

On its retail and institutional platforms, Coinbase presently supports over 182 major cryptocurrencies. They pay attention to client demand by listing new coins that surpass a specific volume level on decentralised exchanges. All major coins, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Solano (SOL), are available for Coinbase’s users to easily purchase, store, or trade.

Winner: Tie

Although Binance supports more cryptocurrencies than Coinbase, US-based users can only access nearly 100 kinds of cryptocurrencies. Moreover, the number of popular coins listed on Coinbase is sufficient for novice and risk-averse investors.

Fee Structures

Binance and Coinbase both calculate their fees using a maker-taker fee scheme. Therefore, together with the volume, the type of transaction determines the fees.

Under the maker/taker structure, Binance charges 0.10% for trades under $50,000. This cost decreases inversely with the size of the order.

Transferring fiat from a bank account is free, although Binance imposes a fee of 1.8% of the trade value on the main exchange and 4.5% on Binance US for debit card transactions.

Transactions under $200 incur a fixed charge ranging from $0.99 to $2.99 on Coinbase. For orders exceeding this threshold, a transaction fee of 0.5% (for transactions up to $10,000) and a convenience fee are assessed.

In contrast, Coinbase charges a fixed fee based on the value of your transaction: $0.99 for transactions under $10, $1.49 for transactions between $10 and $25, $1.99 for transactions between $25 and $50, and $2.50 for transactions between $50 and $200. Note that transactions over $200 incur a percentage-based cost rather than a flat price.

In addition, Coinbase charges a spread-based fee of 0.50%. Other fees are more dependent on your method of payment — ACH transfers are free, while using a bank account or USD Wallet incurs a 1.49% fee, and using a credit or debit card incurs a 3.99% fee. Wire transfers incur extra fees of $10 incoming and $25 outgoing.

The trading fees of Coinbase Pro range from 0% to 0.5% for each trade. Taker fees range between 0.04% and 0.50%, whereas manufacturer fees are between 0% and 0.50%.

Here is a comparison between Coinbase and Binance’s fees:

Winner: Binance

With a maximum charge of 0.1%, Binance is the most affordable exchange for retail clients. Coinbase’s fees are more expensive than Binance’s for users who trade less than $1 million per month.

Ease of Use

Binance provides investors and traders with all the quick information they need to decide on a purchase. At the top, the website displays day trends, namely “Highlight Coins”, new listings, top gainers for the day, and coins traded by volume. However, many features on Binance can be challenging to navigate, even for seasoned investors. For instance, many users said they were uncomfortable using the advanced charting by Tradingview and the selection of order types.

In contrast, Coinbase features a user-friendly interface for investors of all experience levels and their mobile apps are also easy to use. The registration process for Coinbase accounts is effortless, as you just need complete identity verification, add your preferred payment method, select cryptocurrencies, and start transactions. It’s also easy for you to manage your investment portfolios.

Winner: Coinbase

As various features on Binance are challenging to navigate, even for seasoned investors, Coinbase is better here. 

Coinbase vs Binance Mobile App

Each exchange has a mobile app for iOS and Android smartphones that provides access to the same feature set as the desktop version.

The Binance app has the same excellent performance as the website and a compelling aesthetic appeal that inspires trust in the platform. Within the application, you will find all of the tools required to conduct a transaction. Additionally, the mobile app permits the exchange and deposit of non-fungible tokens (NFTs).

Coinbase has two applications. The Coinbase app is basic and user-friendly, making it an ideal option for novice and seasoned investors. The Coinbase Pro app, on the other hand, proved helpful for many cryptocurrency traders. It provides sophisticated tools, in-depth charts, accurate market data, and everything else required for an active trader.

According to ratings on the Android market, the Binance app has a rating of 4.2/5, while the Coinbase app has a rating of 4.3/5. As with the desktop version, the Binance app is better suited for experienced users, whereas the Coinbase app prioritises comfort, simplicity of use, and rapid trade.

Winner: Coinbase

With a higher rating from users and a user-friendly app, Coinbase earns the top spot over Binance.

Other Features

Binance Earn is Binance’s staking feature, which offers a substantially greater number of stakeable coins with over 50 tokens. The Binance staking app also provides much larger payouts of up to 82% APY on assets with a big market capitalisation, such as Axie Infinity (AXS).

The OTC desk on Binance enables traders to purchase and sell large sums of cryptocurrency (over 10,000 USDT) without submitting orders in the order book. Through Binance’s Derivatives section, users can access the futures market. Many instruments support perpetual and delivery contracts in various cryptocurrencies, including stablecoins like USDT and BUSD.

Binance has opened an NFT marketplace where users can buy, sell, and exchange digital assets such as art, music, and games. The Binance NFT exchange is still in its infancy.

In contrast, Coinbase Earn is Coinbase’s native staking product that enables investors to earn up to a 5.75% annual yield on cryptocurrencies held on the platform. Coinbase only supports six currencies for staking, including Algorand (ALGO), Ethereum (ETH), Cosmos (ATOM), Cardano (ADA), Solana (SOL), and Tezos (XTZ).

On Coinbase Pro, many order types are supported. Basic orders include market, limit, and stop orders, while more advanced order kinds are Good ‘Til Canceled, Immediate or Cancel, and Fill-or-Kill. This collection of order types enables traders to optimise trading accuracy, maximise earnings, and prevent losses.

Coinbase has recently announced Coinbase NFT, which generated significant anticipation before its formal launch. However, it has significantly underperformed, trading as little as 20 ETH in 24 hours. The Coinbase NFT Marketplace provides a few OpenSea collections with reduced trading costs. ‍

Winner: Tie

Both exchanges offer users various features such as staking, advanced trading options, NFT marketplace, etc., making it hard to find the winner here.

Security Features

In the past, users were justifiably concerned about security issues in the crypto realm. The numerous security breaches have prompted modern-day exchanges to implement more reliable security measures.

Regarding security characteristics, Binance provides its clients with several protective solutions. However, there is not always complete clarity regarding their details. For example, Binance indicates that most user funds and assets are held securely offline in cold storage. However, the specific quantity of such secured cash is not disclosed.

Binance employs two-factor authentication by SMS, the Google Authenticator app, hardware, or email. Users have extensive access control with opt-in security features such as whitelisting for IP and wallet addresses, API access control, and device management. Despite these protection efforts, Binance suffered a massive security breach in 2019 when attackers used various methods, including phishing and malware, to steal 7,000 Bitcoins worth around $40 million.

In contrast, Coinbase promises that 98% of assets will be stored offline in cold storage and is the only cryptocurrency exchange to offer FDIC (Federal Deposit Insurance Corporation) insurance on currency deposits up to $250,000. Coinbase provides two-factor authentication through SMS and the Google Authenticator application.

Coinbase also uses bitcoin vaults to protect clients’ digital assets better. These vaults restrict the rapid withdrawal of stored cryptocurrencies by adding extra security measures like several user approvals to prevent fraudulent withdrawals. Additionally, they are time-locked to ensure unauthorised vault withdrawals are cancelled within twenty-four hours.

Winner: Coinbase

Both Binance and Coinbase provide extraordinary security measures to safeguard the digital assets of their users. However, Coinbase appears to be more open about the steps it takes to protect consumer assets, and it has never been hacked or compromised since its establishment.

Customer Service

Users must go through a Binance website chatbot to get their inquiries answered. After receiving input, the chatbot shows the most pertinent Frequently Asked Questions and elaborates on a topic. The user can contact customer service if the issue hasn’t been resolved. However, several customers were dissatisfied with the support team’s slow response. Due to the volatile nature of the cryptocurrency market, this sluggish response could cause investors to lose vast sums of money.

Coinbase’s customer service is better than that of Binance. Coinbase has various contact options for customer service, including phone, email, and live chat. A phone call is a preferable option for resolving an issue and is accessible around the clock. Consequently, Coinbase’s customer assistance will be speedier and more effective.

Winner: Coinbase

Coinbase has superior customer service, including live chat, phone assistance, and ticket submission. The support team is professional and responds to users’ questions within a short time.

Overall Winner: Coinbase

After our comprehensive Coinbase vs Binance comparison, it’s clear that Binance’s consumers may be in greater danger than competitors due to the exchange’s lack of regulation. They offer better fees, but most investors should use Coinbase. Coinbase is ideal for those that place a premium on ease and security. The user-friendly platform is simple for practically anybody to use. The impeccable reputation and regulatory integrity of Coinbase may appeal more to institutional and risk-averse investors and traders than Binance.