Get Into Cryptocurrency Trading Today
There are currently more than 5000 altcoins in the market. The launch of bitcoin and its success paved the way for the development of alternative coins. As the concept of cryptocurrency continues to be accepted by different investors across the globe, investors have more options to choose from.
The case is the same with cryptocurrency exchanges. Investors are often torn between the two most popular platforms, Binance and Coinbase. Binance or Coinbase? Which is the best option? Well, this might be a hard question to answer without examining the two exchanges.
By reading the article, you will get in-depth insights into the two platforms that will help you determine the best exchange for you.
The article will cover the benefits of the exchanges, their features, and their trading capabilities.
Binance or Coinbase: which will work for you?
Coinbase was launched in 2013, making Binance a younger exchange. However, the age of the two exchanges alone cannot help you decide whether it is Binance or Coinbase you will work with. Regardless of the founding years, both platforms are popular in the cryptocurrency market.
A detailed comparison will help you make an informed choice.
1. Transaction fees
Before you choose Binance or Coinbase and other exchanges, you need to consider the transaction fees. They have an impact on your revenue, which makes them important.
Binance has a lower transaction fee compared to the other cryptocurrency exchanges. Each trade on this exchange holds a standard fee of 0.1%. Traders can also get discounts on their trades.
Coinbase fee is higher than that of Binance as the standard is about 1.46%. Worth noting also is that the fees vary with the investor’s mode of payment, the jurisdiction of the trade, and the trade volume.
It is essential to look at both exchanges’ fee structures to know what you are signing up for.
2. Supported currencies
This is yet another vital piece of information you need. Different exchanges support different currencies. While some platforms only support crypto-crypto exchanges, others support crypto-fiat exchanges. Also, note that the exchanges have support for different altcoins.
This is information worth having so that you can choose an exchange that aligns with your interests.
Coinbase supports about 50 cryptocurrencies. On top of that, the exchange allows the investors to use fiat currency for payment. It allows bank transfers, and the users can withdraw the funds through debit and credit cards.
Binance supports more than 150 coins. This makes it ideal for the trader that is looking for a wide array of digital assets. The exchange supports only cryptocurrency trading, meaning that you can only trade digital pairs.
Also, the platform does not allow bank transfers. Whether to choose Binance or Coinbase will be determined by whether the exchange has the coins you want to trade.
3. Security
So far, more than 13 million cryptocurrencies have been lost. As digital assets continue to be popular among investors, hackers gain interest in them. Now more than ever, hackers are targeting cryptocurrencies, and security should be a concern.
Coinbase has security policies and protocols in place to ensure that the investors’ assets are safe. We are talking about two-factor authentication, passwords, and even alerts when an unauthorized person tries to gain access.
Coinbase also allows offline storage of assets. The funds are stored in custodial accounts where only the investors have the keys to access them.
Binance, too has crypto security protocols but not so clear as with the case of Coinbase. It is, however, known that Binance is vigilant about two-factor authentication.
4. Ease of use
The decision to pick Binance or Coinbase will also depend on how comfortable you are with the platforms. A user-friendly platform will enable a pleasant trading experience.
Coinbase is more user-friendly, especially for beginners. The interface is simple, allowing new users to navigate the platform easily. The dashboard provides the users with the direction they need with one glance.
Binance could be more complicated for beginners. It might take a user experience with another platform before he or she is able to use it. The learning curve for Binance is sharper, and its interface is suitable for experienced traders.
Binance also has a basic version, which is ideal for beginners. However, it may be short of the trading capabilities that the advanced version has.
5. Customer support
Customer support is a critical feature on any trading platform. When choosing Binance or Coinbase, you should also consider support. You are likely to face challenges the first time you interact with the platform, and prompt support is needed.
Coinbase is known to have a more robust customer support system. We are talking about responses within 24hrs to 72hrs through email. The platform also has an FAQ and knowledge base page where the users can self-serve.
Binance support is also offered through email by raising tickets. The challenge with this is that sometimes it takes long before the users get responses. Binance learning resources and FAQ section beats that of other platforms.
Binance or Coinbase?
With the detailed comparison above, you can now choose the exchange that works best for you. Binance supports more cryptocurrencies than Coinbase. Security for both exchanges is high. KYC is required with Coinbase but not Binance.
The transaction fees for Binance are low and high for Coinbase. Binance customer support is excellent, while that for Coinbase is fair. Both platforms have mobile apps, which also adds to their usability.
Coinbase is preferred by beginners, that are not necessarily looking for a large pool of coins. It is an ideal option for the investor that likes to play it safe.
Binance is ideal for the experienced investor that wants to trade a wide range of cryptocurrencies. The interface is more complex with advanced trading capabilities.
Both exchanges are popular and being used by millions of traders. They are both great platforms, and whether to choose Binance or Coinbase will depend on your level of expertise and trading requirements. Are you looking for an exchange that offers you a wide array of coins to choose from? Are you looking for usability? Are you looking at the fees?
The questions will help you determine which exchange suits you.