Which Should You Choose? – Forbes Advisor

When it comes to buying cryptocurrency, Binance.US, and Coinbase are two of the biggest names out there for U.S. users. But just because they’ve both got brand recognition doesn’t automatically mean you should use one for your crypto investing.

Here’s everything you need to know about Binance.US and Coinbase and how to decide which crypto exchange is better for you.

Binance.US vs. Coinbase: Top Similarities

Before getting too far into breaking Binance.US vs. Coinbase, there are several important things to keep in mind.

Binance is not available for customers based in the U.S. Instead, U.S. residents must use Binance.US, its spin-off platform compliant with U.S. financial regulations. While the two crypto exchanges are quite similar, Binance.US has slightly more limited functionality and coin offerings.

Coinbase, likewise, is not quite as straightforward as it seems.

The name “Coinbase” is often used as a catch-all for all of the offerings of Coinbase (the company): Coinbase (the platform), a beginner-friendly crypto app, and Coinbase Pro, a full-fledged crypto exchange. This distinction is important because Coinbase Pro offers much greater functionality and substantially lower fees, even if slightly less intuitive. Coinbase Pro doesn’t accept credit card or debit card purchases.

With that out of the way, here’s how Binance.US and Coinbase are similar.

Tradable Coins

If you’re looking to stick with the major cryptos—think Bitcoin and Ethereum—you’ll likely be equally satisfied with either Binance.US or Coinbase.

Because both exchanges offer at least 100 cryptocurrencies, you’ll probably find many of the lesser-known, so-called altcoins you want, whether that’s Dogecoin or another memeable crypto.

If you truly want to get off the beaten path regarding coins, you may have to opt for an exchange like Kucoin, which has hundreds of cryptos.

However, investing in all forms of crypto is risky. Still, newer and less popular coins may experience wild price swings, be more illiquid, be harder to buy or sell quickly, and be more susceptible to fraud.

Trading Tools

From a trading functionality standpoint, Coinbase Pro and Binance.US are relatively similar platforms: Both enable a range of order types, including market and limit, and both include advanced charting capabilities.

Neither crypto exchange currently allows users access to margin accounts, a riskier trading strategy that involves borrowing money to finance trades. Margin can amplify profits—and greatly magnify losses.

Margin trading is currently unavailable on nearly all crypto exchanges in the U.S.

Staking

Coinbase and Binance allow users to earn interest by staking their crypto to help verify transactions on their respective currencies’ blockchains. Interest rates vary by crypto.

KYC Requirements

To access the full breadth of resources available on Binance.US and Coinbase, you must prove your identity through a Know Your Customer (KYC) process. This means providing government-issued proof you are who you say you are, just as you must when you open a bank account.

Doing so helps reduce the risk of using crypto exchanges for illicit money laundering purposes. A segment of crypto investors dislike KYC requirements as they believe it is against the decentralized ethos of crypto and crypto exchanges.

Binance vs. Coinbase: Top Differences

Though, by and large Binance.US and Coinbase Pro are similar platforms, they aren’t identical, and some of their key differences may make one a better fit for you than the other.

Geographic Availability

Where you live in the U.S. may determine which crypto exchange you use. Binance.US is unavailable in Hawaii, New York, Texas or Vermont; Coinbase can not be used in Hawaii. Residents of the Aloha State may then be limited to platforms like Gemini.

Fees

Fees can make or break an exchange for frequent traders, though even beginners benefit from more money going to crypto instead of crypto exchanges’ costs. Binance.US edges out almost all exchanges but KuCoin regarding fees (where it’s equal), with its ultralow 0.1% rate.

Coinbase uses a convoluted (and pricey) fee structure that can eat up huge percentages of beginners’ crypto purchases. That’s why it’s best to move onto its more advanced trading platform as soon as you feel comfortable. Coinbase offers rates of 0.6% or 0.4% (for the pricing tier of $0 to $10,000), depending on if you’re a taker or a maker.

The latter creates a new order to be filled on an exchange (it makes liquidity), while the former fills an existing order (it takes liquidity away). While the rates for makers and takers are important to keep in mind, the distinction ultimately isn’t that important as you don’t generally get to choose whether you run as a maker or taker.

Ease of Use

Binance.US attempts to serve a wide range of customers by offering different user experiences.

Coinbase, on the other hand, is well known for its user-friendly dashboard that makes it easy to trade currencies—even without experience. Setting up an account is quick, and Coinbase makes it easy for traders to comply with KYC regulations.

Once signed in, the platform lets users connect their bank accounts through Plaid Technologies, and the search bar allows users to find and trade more than 150 different cryptos. Users can also set up recurring purchases to streamline their investments.

Interest Rates

One last area where Binance.US and Coinbase have key differences is their level of crypto rewards. Among the two, Coinbase is the only one where we could find the ability to earn rewards.

In this case, through Coinbase’s learning platform, which pays small rewards in exchange for watching videos and learning about cryptocurrency.

Coinbase also pays interest up to 5.75% annual percentage yield (APY) on crypto that users stake. Binance.US, on the other hand, pays much higher annual yields. For example, Binance.US users can earn up to 4.5% APY for their Solana tokens (SOL) and up to 6.4% on their Binance Coin (BNB).

Who Should Pick Binance.US?

Binance.US is best-suited for more experienced crypto traders who aren’t intimidated by the platform’s robust features.

That said, Binance.US does offer experiences tailored to different types of traders. More experienced investors can take advantage of the OTC Trading Portal, which provides a faster pricing option.

Binance.US Pros

• Fees are low compared with major competitors.
• Supports more than 100 cryptocurrencies.
• Offers several versions that are tailored to various crypto skills and comfort levels.

Binance.US Cons

• Not available in four states within the U.S., including New York.
• Parent company Binance was subject to a major hack in 2019.

Who Should Pick Coinbase?

Coinbase is considered one of the most beginner-friendly platforms for buying and selling cryptocurrency.

Coinbase offers super low account minimums and an intuitive trading dashboard, plus users can take advantage of the platform’s integrated wallet to store their crypto right on the platform.

Coinbase Pros

• Users can trade in over 150 cryptocurrencies.
• Users can purchase or sell as little as $2 worth of currency.
• Beginner-friendly user dashboard.
• Good user reviews and security ratings.

Coinbase Cons

• Fee structure is tiered, layered and can be difficult to understand.
• More affordable pricing structure available through subscription-based Coinbase Pro.