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Binance vs Coinbase- An Honest Comparison

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  • George Shnurenko
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    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
Cover image via u.today

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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About the author

George Shnurenko is a Bitcoin and cryptocurrency enthusiast, financial analyst and writer. He's majoring in history but he believes that the digital currency which has taken the world by storm will bring about change to all us humans. 

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Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism

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  • Joseph Young
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    The so-called “China fever” on crypto like bitcoin has noticeably declined since President Xi’s speech on October 28.

Why China Fever on Bitcoin is Already Dropping After 1 Month of Blockchain Optimism
Cover image via 123rf.com

Since Chinese President Xi Jinping expressed his support for blockchain technology on October 28, the so-called “China fever” on crypto like bitcoin has noticeably declined.

The price of bitcoin fell from around $10,600 to $8,500 and cryptocurrencies that are known have Chinese development teams such as NEO, Ontology, and TRON have slightly increased over the past three weeks, but not enough to be described as a speculative mania.

Why demand for bitcoin and other cryptocurrencies is not on the rise

Following the newly established vision of the Chinese government to push the development of blockchain technology, expectations for strengthened momentum of the cryptocurrency market rapidly increased.

Initially, such expectations combined preceded an abrupt overnight increase in the price of bitcoin to above a key “psychological level” at $10,000, but the price fell back to “pre-Xi” levels in a relatively short period.

Global markets analyst Alex Krüger said:
“Have mainland China investors increased their demand for bitcoin? BTC volumes quickly dropped back to pre Xi news levels; online searches in China are back down to pre Xi news levels; website traffic for exchanges catering to China barely changed since the news.

The ‘Chinese tokens,’ NEO, ONT and TRX, have all done well since the aftermath of the news, while VET (a supply chain oriented blockchain) has been cruising on China news. Don't think though this is a sign of a ‘speculative fever’ of any kind.”

The analyst emphasized that prior to the statement of President Xi on the focus of China to facilitate the development and implementation of blockchain technology, the penetration of cryptocurrencies in the region was already high.

Also, most mainland Chinese cryptocurrency investors are said to have been trading digital assets through overseas markets like Hong Kong, purchasing stablecoins like Tether with the Hong Kong dollar.

Hence, it is possible that the public already anticipated the government of China to eventually reiterate its plans to encourage blockchain development with the People’s Bank of China (PBoC) consistently stating that its plans for a state-operated digital currency is in the works.

“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” Dave Chapman, BC Technology Group executive director, said.

Is this the end of the Xi-effect?

Some technical analysts have suggested that the upside movement of bitcoin to $10,600 in late October may have not been primarily fueled by the optimism around China’s blockchain development initiative, and that a cascade of short liquidations amidst a build up of sell pressure caused the rally.

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About the author

Joseph Young is an analyst based in South Korea that has been covering finance, fintech, and cryptocurrency since 2013. He has worked with various recognized publications in both the finance and cryptocurrency industries.

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