The world is undergoing a complete financial transformation recently. Many investors are choosing cryptocurrency investments over others with the hope to reap huge benefits from the decentralized finance model. With the increase in interest and willingness, the cryptocurrency market is crowded with thousands of cryptocurrencies and hundreds of crypto exchanges. However, not all crypto exchanges provide the same kind of features and services. Binance vs Coinbase is the two front-running trading platforms that are often in competition with each other.
Binance vs Coinbase is the two largest and most used crypto exchanges across the digital currency market. They both offer a variety of services including staking, peer-to-peer crypto transactions, payment services, institutional services, educational resources, and much more. Despite their similarity in basic features, they have many underlying differences that make one outperform the other. For example, crypto experts say that Binance is best for experienced people who know to handle a variety of trading tools and can deal with account features. Ironically, Coinbase settles for a complete opposite with remarks that it is better suited for beginners. Analytics Insight explores the difference between Binance vs Coinbase to help crypto investors better understand the famous crypto exchanges.
Binance vs Coinbase: Exploring the General Differences
Binance
Binance was launched in 2017 and in a very short period of time, it has emerged as one of the most adopted crypto exchanges in the world. Numbers suggest that Binance records the most daily activity of any crypto exchange and provides a plethora of features. However, only crypto investors outside the United States can use the general Binance.com platform as the US federal government has imposed regulations to limit the features. One of the biggest setbacks that Binance faced in 2021 was the regulatory compliance put forth by the US government.
Unlike many other crypto platforms that only provide services for top cryptocurrencies, Binance gives space for over 500 digital tokens, starting from the most popular to the least and emerging once. However, on the downside, Binance US is only able to offer roughly 50 cryptocurrencies for trading.
Since Binance provides many crypto services, they list them all together. For example, a new cryptocurrency will be listed along with bitcoin and dogecoin. Therefore, it makes it extremely difficult for investors to sort out the market performance of certain digital tokens that could even be a scam.
As mentioned above, Binance offers an extraordinary set of toolkits for investors. It provides custom API keys and custom-charting for investors. Besides, investors can pull in-depth data available on the Binance platform to perform analysis. They can individually sort which cryptocurrency is doing well in the market through their own analysis.
Binance also offers transactions at a very lower price. The crypto exchange charges a 0.10% fee on most trades. These fees are significantly less compared to what Coinbase charges.
Coinbase
Launched in 2012, Coinbase is one of the oldest cryptocurrency exchanges functioning today. Unlike Binance, Coinbase is very popular among US investors for its user-friendly web and mobile app services. It is also a publicly traded company, providing investors the facility to own cryptocurrency stocks.
Unlike Binance, Coinbase only offers around 50 different currencies for trading, including big names like bitcoin, ethereum, dogecoin, and XRP. Crypto enthusiasts say that the minimum digital token offering which Coinbase provides is both its biggest strength and weakness. Although the crypto exchange platform attracts all mainstream investors by leveraging top cryptocurrency services, the remaining less popular digital tokens are left out in agony. However, since the services are less, Coinbase is able to focus more on investors and vet them based on their needs.
Coinbase is mainly designed for the retail market. It is completely user-friendly. Crypto investors can see the trading options, pricing, volume, and other relevant data as per their needs. However, contrasting Binance on fees, Coinbase is not cheap. The platform charges 0.50% for all trades under US$10,000. The fee goes even higher when the features extend.
Binance vs Coinbase Wallet
Both Binance and Coinbase offer wallet services on their platform. Their main focus is on a standard web wallet where users can store their digital tokens on making a purchase. Since they are easy to use, the crypto wallets are very convenient and user-friendly. However, when it comes to security, Binance vs Coinbase leverages top-notch packages. It has exclusive security features including two-factor authentication, IP whitelisting, device whitelisting, internal security team, cold storage for bulk client funds, etc.
So, Which Should be Your First Choice?
Binance comes with many advanced features which are suitable for professional investors. On the other hand, Coinbase aims to be basic with few features and options that are designed specifically for general investors and beginners. Therefore, the choice should be made by investors themselves. If you are just starting in the cryptocurrency market, Coinbase could be your best choice. But if you are well-versed in handling the ups and downs of the crypto market, please go for Binance.
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