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Binance vs Coinbase- An Honest Comparison

  • George Shnurenko
    ⭐ Features

    Two of the most popular exchanges have a lot in common, but are definitely their own companies, so what’s the good and the bad of them both?


Binance vs Coinbase- An Honest Comparison
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At first glance, they might seem very similar, but an in-depth comparison of Binance vs Coinbase reveals a stark contrast. While Coinbase is geared towards the new beginner who just wants to buy and sell cryptocurrency, Binance offers investors the opportunity to do so much more. They also have their peculiar limitations. Before we go into describing each, let’s see the different platforms for what they are.

What is Coinbase?

Coinbase is one of the most popular digital asset exchange companies and it has been adopted in over 190 countries worldwide. This platform is not just for digital assets as it also supports the fiat currency in 32 other countries. As far as reputation goes, Coinbase is undisputed. It has established itself as one of the most respected and most reliable exchanges in the world.

It was able to achieve this reputation based on the high level of security, the affordable cost of carrying out transactions, the very high volume of transactions, and the ability to support various cryptocurrency-to-cryptocurrency transactions. One more thing in favor of Coinbase is that it serves as the official exchange for currencies like Bitcoin, Bitcoin Cash, Litecoin and Ethereum.


What is Binance?

If you’re familiar with Chinese exchanges for cryptocurrency, the probability that you’ve come across Binance is very high as it is another popular exchange. One of the major reason for its popularity is the fact that this exchange has about 260 crypto-to-crypto trading pairs. It also charges a meager 0.1 percent transaction fee.

In addition to the reduced cost of transactions, users get the chance to enjoy a 50 percent discount on the transaction fee for a year (the first year). This discount is valid, irrespective of the volume of the transaction carried out. The security support is also unparalleled. 
Now that we have an idea of the different exchanges, let’s attempt to carry out an honest comparison of Coinbase vs Binance.

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1. Binance vs Coinbase- The user interface

Coinbase was designed primarily for people who are new to the process of trading cryptocurrency. A novice investor will definitely have no troubles carrying out transactions on Coinbase as it has an extremely easy and friendly interface. In fact, options trading and margin trading are not supported, rather, you can just buy and sell digital assets.

Binance, however, is for the well-experienced experts in cryptocurrency trading. Some users claim that the amount of information available on the dashboard is enough to scare a novice away. But there’s an “Advanced view” and a “Basic view.” Some people sign up on both platforms, buy a coin on Coinbase, transfer it to Binance, and then carry out more advanced tasks there.

2. Binance vs Coinbase-The cryptocurrencies supported

There’s a clear winner here, Binance supports more cryptocurrencies compared to Coinbase. On Coinbase, you only have access to Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Plans are also ongoing to add ERC20 tokens. Binance, on the other hand, supports all the coins on Coinbase and hundreds of other currencies. Some of the coins include Ark, Cardano, VeChain, Ripple, NEO, etc.

3. Coinbase vs Binance- The transfer limit

Both platforms require you to fill in personal details and a photo identification before you are verified on the platform. On Coinbase, three major factors determine your transfer limit:

  1. Your track record of transactions
  2. How long you’ve had your account
  3. Your verification level

With a verified US account, you will be able to make transactions of $5,000 in a week. You also get a cap of $50 on your card. It is also good to note that the maximum amount you can deposit is much lower. If you choose to deposit using your bank account, you might have to wait for about four or five business days. If you use your card, it is effected immediately.

Binance, on the other hand, offers more flexible limits. You can deposit infinitely and your withdrawal limit depends on whether or not you’re verified. If you’re verified, you have a daily limit of 50 BTC. If you are yet to be verified, you can only make transactions below two BTC.

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4. Coinbase vs Binance- How the accounts are funded

Coinbase generally offers more options to finance your account and Binance is a little constrained in the area. With Coinbase, you can either buy cryptocurrencies or make deposits into your account from your bank account. The various methods available are ACH transfer, using your debit card or via wire transfer. 

With Binance, the limitation is that it is solely a cryptocurrency exchange. This means that you can only finance your account with crypto. For this reason, many people will first purchase crypto coins with fiat currency on platforms like Coinbase before going to Binance.

Conclusion

In this clash of giants, there’s no winner or loser. Binance and Coinbase carry out their different jobs excellently well. Although they have their limitations, for example, you can only trade cryptos on Binance and Coinbase doesn’t support so many currencies, both exchanges are still considered top-notch.
 

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Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?

  • Yuri Molchan
    ⭐ Features

    Stablecoins show hardly any volatility compared to Bitcoin and altcoins, many are hoping that they will be able to bridge new crypto economy and regular fiat money


Question of the Day: Can Stablecoins Accelerate Cryptocurrency Adoption?
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Bitcoin, the father cryptocurrency, emerged in hope that it will remove all intermediaries in electronic commerce that cut off their share of payments. BTC was perceived as a P2P way to replace fiat cash in an electronic format, which would enable one party to pay another without any financial institution or payment platform which would demand its share of a transaction as a reward for its services.

What is wrong with Bitcoin

For quite a while Bitcoin was performing the way the crypto community expected. But the situation changed later – BTC rate became weaker, thus bringing down its financial and economic reliability, when it gets to be used as a regular means of payment.


You cannot have a currency that would cost like a British castle today, a gram of gold – tomorrow and a pack of French fries the day after.

At that point practical fintech minds came up with an idea of creating something which would become a breakthrough in the universe of crypto – a so-called stablecoin.

Will stablecoins solve the volatility problem?

Technically, stablecoins are protected from the volatility roller-coaster that Bitcoin and other cryptos love to ride. They are programmed to keep their prices stable and investors now are largely attracted to this new type of digital assets.

Stablecoin does not show any volatility in its monetary value, since it has a fixed connection to an asset it is pegged to. The major goal of using stablecoins is taking the best from decentralized crypto coins and combining it with a constant value. Thanks to it, stablecoins can be used as a reliable means of trade.

Asset-pegged stablecoins

Asset-backed ones get their value from an asset as can be understood from the name. An asset provides the necessary value to a coin, as well as the necessary legitimacy.

A great example of an asset-pegged stablecoin is Tether (USDT). In spite of a series of scandals at the end of last year, it remains the most popular stablecoin in the crypto market.

Recently, it has partnered with the Tron Foundation to launch a Tron-based stablecoin.

Other examples are TrueUSD (TUSD), USD Coin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard (PAX). They are all pegged to the USD.

Crypto-backed stablecoins

Some digital coins work in a similar way to fiat-backed ones, however, they are pegged to collateral crypto. That means that crypto assets that ensure the value of such stablecoins are stored in a wallet similar to escrow.

A good example of a crypto-pegged token is Maker, which is ranked 16 on CMC.

Algorithmic stablecoins

Even though, stablecoin can be interesting at first thought but the way they are built goes against the principle of decentralization that crypto coins have as a foundation. Thus, many crypto fans and evangelists are positive that stablecoins must be linked towards not a centralized asset but a computer algorithm which takes value from a balance between supply and demand.

Basis is now considered the most promising algorithmic stablecoin of all.

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Can stablecoin ensure smooth future for the crypto industry?

The primary goal of all crypto assets was and remains to come up with virtual asset that would be liquid enough and not vulnerable to market volatility. From this point of view, stablecoins are a dream of all crypto fans and evangelists of a decentralized economy.

Apart from the potential to conduct crypto transactions smoothly, experts believe it can bridge the two worlds – fiat and crypto, bringing them a mutually beneficial coexistence. However, that may take time.

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