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Coinbase vs Binance: What’s the best crypto exchange?

best crypto exchange

Binance.US tops Forbes Best Crypto Exchanges of January 2022 Survey toppling close rival Coinbase by 4 solid star points. Kraken came in second place with 4.8 points. Others will have Coinbase on top, and Binance.US will be in a poor 6th place. The distinction is about the minimum crypto limit and promotions available, which, to the severe investor, does not merit any additional points at all. There’s a time limit for holding the crown, as with every battle and survey.

Also Read:
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• Coinbase Vs Robinhood: What’S The Better Crypto Trading Platform?
• Best Crypto Exchange: eToro Vs Coinbase

Coinbase vs Binance: What's the best crypto exchange? 1

In September 2019, Coinbase announced launching an initial exchange offering (IEO) similar to Binance’s Launchpad program. The news follows the downhill movement of Binance’s influence in the US, which eventually ended services in the United States. Although Binance has launched a US platform, the exchange still seems to be losing its grip over the region. Since then, it’s been an uphill battle for the two rival cryptocurrency exchanges. Let’s see the basis of this “supremacy” over the other crypto exchanges now held by Binance.US, primarily compared to Coinbase.

What is a cryptocurrency exchange?

A cryptocurrency exchange may be defined in many ways. Those skilled in trading may find Investment opportunities on cryptocurrency exchanges, like stock exchanges and national currency markets. This isn’t a stock exchange but much more. Most cryptocurrencies, including Bitcoin and Ethereum, are not considered securities by the SEC.

Crypto exchanges provide several benefits compared to stock brokerages, especially for smaller traders. The pattern day trading law, which penalizes traders with less than $25,000 principle who conduct four-day trades or more on stock exchanges over five working days, has no impact on crypto exchanges at this time. You may trade assets at any time since crypto exchanges are open every day of the week (except scheduled platform maintenance).

Source: Finextra Research

For example, a pass-through FDIC insurance policy is available on crypto exchanges, but the Securities Investor Protection Corporation (SIPC) protection is not available on these exchanges. SIPC covers investors up to a maximum of $500,000 in the event of a brokerage failure, theft, or illicit trading of cash or securities.

For bitcoin investors, SIPC protection would have been a blessing. However, because of cold storage, insurance, and other security precautions implemented by most major current exchanges, such as Binance.us and Coinbase, users’ crypto assets are safe.

Best crypto exchange according to Forbes survey

In the survey for best 2022 crypto exchanges, these qualities are highlighted:

  • Binance.US offers a still-extensive array of cryptocurrencies, from mainstays like Bitcoin and Ether to BNB, the platform’s proprietary stablecoin.
  • BNB is important because frequent traders may lower trading costs by 25% when converting their investing dollars to BNB.
  • Binance.US rewards high-volume crypto traders with progressively lower transaction fees.
  • Binance.US provides two comprehensive market dashboards, named Simple and Advanced, with real-time market data.
  • Binance.US enables multiple order types, including limit, market and stop-limit, which should cover most crypto traders’ needs, as well as over-the-counter (OTC) trading.
  • Traders can use U.S. dollars, USDT (a U.S. dollar stablecoin), and Bitcoin.

Binance and Coinbase

Seizing the moment with ICOs in 2017

The concept of initial coin offerings (ICOs) thrived in 2017, while 2019 became home to IEOs. Binance seizing the moment, launched an IEO platform called Binance Launchpad to launch new cryptocurrencies with exchange support.

The trend then snowballed, and various other exchanges started offering IEO services. Many new projects could attract suitable investors to support their development through the trend. However, soon Binance announced that it would no longer offer services to residents of the United South. This created quite a stir in the markets as both the IEO craze and the altcoin market started moving downhill.

Coinbase was the market leader back in 2017, but things changed when Binance charged into the scene. Binance immediately became a market leader and had been giving a tough time to Coinbase ever since.

Now Coinbase has several advantages over Binance, which it can use to gain superiority in the markets. The most incredible advantage is that the former allows over twenty altcoins to be traded through the exchange, while Binance.US only offers seven assets altogether.

Fastforward to 2022

Binance and Coinbase are the two most popular cryptocurrency exchanges nowadays. Coinbase and Bitfinex both allow customers to buy, sell and trade bitcoins.

Coinbase vs Binance: Who will be the king of US crypto exchanges?

Brian Armstrong and Fred Ehrsam launched Coinbase in 2012, making it one of the first cryptocurrency exchanges to enter the market. You may buy some of the most popular cryptocurrencies via this authorized US cryptocurrency exchange. Coinbase has become one of the world’s most popular exchanges because of its user-friendly design and the ability to buy cryptocurrencies using a bank account or a credit card.

As of 2017, the Binance platform is a relatively young player in the cryptocurrency market, founded by Changpeng Zhao in 2017. Hundreds of different cryptocurrencies may now be purchased via it, making it the largest cryptocurrency exchange in the world. Binance had to form a separate organization, Binance US, available in more than 180 countries to serve US customers. The most notable difference between the two systems is the variety of cryptocurrencies available. Coinbase offers more than 40 cryptocurrencies after going through a rigorous screening process. However, Binance has extended its cryptocurrency exchange to cover more than 500 different currencies (and counting). Below are the features of Binance versus Coinbase.

Binance VS Coinbase

Source: The Balance

What’s the best crypto exchange?

Modern crypto exchanges must provide a wide range of choices to compete in a quickly increasing sector. The essential features are security, a wide range of supported cryptos and nations, low fees, trading capabilities, and educational resources. The platform’s most basic need is simple to access for its users.

Compared to Binance.us, Coinbase is more accessible to American customers. Aside from Hawaii, the essential serves all North America save for that island’s territories (including Canada, the UK, and Europe). In New York, Texas, Louisiana, Connecticut, Vermont, Hawaii, and Idaho, Binance.us does not provide trading services. Binance.us may not be accessible in your state or area, in which case you will need to utilize Coinbase instead. Investing in cryptocurrencies may need to find another exchange that accepts them if one of the two does not.

Advanced traders who want to use trend analysis and orders other than market orders will need to pay close attention to trading characteristics. For the most part, new investors need to place market orders. Because of the amount of cash that has been stolen from exchanges in recent years, security is the most crucial consideration. It would help to double-check your valuables’ security before entrusting them to a platform.

Coinbase Pro history

Coinbase Exchange was the name given to the exchange when it first launched, later renamed Coinbase Pro. As a platform for professional investors to trade Bitcoin on liquid order books, Coinbase envisioned itself as a competitor to Kraken and Gemini. Despite many rebrands, it is clear that Coinbase’s commitment to providing a professional trading platform has never wavered.

Coinbase Pro is the trading platform of choice for tens of thousands of investors in the United States and Europe. It is often considered to be the safest option for exchanging cryptocurrency.

Coinbase vs Binance: What's the best crypto exchange? 2

Source: Coinbase

On September 23, 2019, Binance released the initial version of its American exchange, “Binance US.” The exchange started with only a few coins, but it expanded tremendously.Coinbase vs Binance: What's the best crypto exchange? 3

Source: Binance

Coinbase Pro now has a severe competitor in Binance.US. The exchange is growing in popularity while serving a smaller number of dealers. If Binance’s meteoric rise in 2017 has taught us anything, it’s that a committed team can do anything.

Binance.US, riding high on the vast Binance brand, has the potential to upend the US crypto market.

Supported coins: Coinbase vs. Binance

Compared to Coinbase, Binance.us supported a more comprehensive range of cryptocurrencies. Coinbase offers 71 different cryptocurrencies for trade at the time of this writing. Just 40 cryptos are now offered by Binance.us, which is less than most other centralized exchanges. Since Coinbase has greatly expedited listing times in the past two years, both platforms continually evaluate new currencies. Uniswap, Chainlink, and Cardano are just a few of the many popular cryptocurrencies that can be purchased using Bitcoin on each of these platforms.

Many bitcoin investors don’t require more than 10 or twenty of the most popular cryptocurrencies to trade on their exchanges. Consumers who want to invest in a wide variety of cryptos may do so on the same exchange, making it easier for them. This shouldn’t be a problem if the exchange has the assets you want to trade.

Binance vs. Coinbase :  Supported Coins

Source: Crypto Briefing

Altcoins supported: Coinbase vs Binance.US

Binance AltcoinsCoinbase Altcoins
Binance Coin (BNB)Polkadot (DOT)
Vechain (VET)Aave (AAVE)
Elrond Gold (EGLD)Yearn Finance (YFI)
Hedera (HBAR)Synthetix Network Tokenization
The Graph (GRT)
The Internet Computer (ICT)

Additional features: Coinbase vs Binance.US

Each platform has its advantages and disadvantages, and each investor will profit from both. To begin, if you’re unable to utilize Binance.us because it’s blocked in your state, your best bet is probably Coinbase. To choose amongst them, you may look at the qualities each has to offer.

When it comes to educational resources, easy security, and a large variety of investment options, Coinbase is likely to be the better choice. Binance.us has a wide range of trading options and the lowest trading fees in the business. Although both platforms are likely to meet most users’ needs, you should choose the best matches your financial goals.

Trading Fees: Coinbase vs Binance.US

One of the most apparent differences between Coinbase Pro and Binance US is how each exchange handles its trading fees. There are considerable disparities in trading costs between the two exchanges, even though they are vying for the same market.

Coinbase Pro

Since last year, the trading fees at Coinbase Pro have gone over the roof. As a result, those who only do a few transactions a month are the most affected. There will be a 0.5 percent trading fee for those who trade less than $10,000. As high as any bitcoin exchange gets.

The Coinbase Pro trading fees aren’t comparable to those of other well-known bitcoin exchanges until we reach volumes above $50 million. Coinbase Pro’s decision to significantly impact smaller traders is disappointing since 99.99 percent of customers do not fall into that group.

Coinbase vs Binance: What's the best crypto exchange? 4

Source: Academy Shrimpy

Binance.US

Binance US offers one of the most favorable fee tier schemes of any US-based exchange. Customers may save up to a quarter of a percentage point by paying fees with BNB, which has a base rate of 0.1 percent. The only criterion for this free function is to have enough BNB in your wallet to cover the expenses.

Binance US continues to lower charges depending on a customer’s 30-day trading volume or BNB balance. Higher levels pay as little as 0% maker costs and 0.015 percent taker fees, the lowest rates. When it comes to the crypto sector, Binance’s fee structure is unusual.

Coinbase vs Binance: What's the best crypto exchange? 5

Source: Academy Shrimpy

Liquidity: Coinbase Pro vs Binance.US

Having the capacity to handle big orders without affecting the asset’s price is liquidity. In other words, less value is lost when deals are executed in a more liquid market.

Coinbase Pro

Since its inception, Coinbase Pro has been hailed as a platform with significant liquidity. Bitcoin, Ethereum, and Chainlink make up almost all trade volumes in the above graphic, trading volumes to and trading gathered from CoinMarketCap. CoinMarketCap’s liquidity rankings reveal that most high-cap assets have a rating of between 300 and 600.

Here is the mechanism for calculating these liquidity ratings.

Binance.US

In its early days, Binance US had difficulty attracting large trading volumes. The trade volume across trading pairs is much lower on CoinMarketCap than on Coinbase Pro, as seen in the graphic.

They are below, derived from CoinMarketCap.

Liquidity is often reduced in conjunction with decreased volume. Liquidities for each asset in the range of 100 to 300 are shown in the above data given by CoinMarketCap.

Coinbase vs Binance: What's the best crypto exchange? 6

Source: CoinbasePro

On September 15, 2020, for the BTC/USD trading pair, Academy Shrimp conducted a quick study of transactions done.

  • • Total number of transactions: 9191
  • • There were 4680 orders placed.
  • • The percentage of orders that were delayed by more than 30 percent
  • • There were 15.64 percent of orders with slippage of greater than 0.01%
  • • There were 2.31 percent of all orders that had more than 0.05 percent slippage
  • • Orders having a slippage percentage greater than or equal to 0.19%
  • • If any order slipped by more than 0.162%, it was canceled

Trading Characteristics: Coinbase vs Binance.US

Because cryptocurrency exchanges are places where people go to trade, they must provide the trading capabilities that investors want to execute successful trading strategies.

Binance.US

First-time traders will be pleased to know that Binance US boasts an impressive array of trading alternatives based on the information gathered on Binance.com.

Coinbase vs Binance: What's the best crypto exchange? 7

Source: Binance.US

  • Basic trading terminal: Futures, Margin trading, and decentralized apps are likely targets for Binance US in the near future.
  • Advanced trading terminal: Traders new to Binance US may use the basic trading terminal to become acquainted with the platform.
  • OTC trading: Traders with more excellent experience may use an advanced trading terminal to access a broader range of advanced trading tools. It is possible for institutions to conduct large-volume transactions on Binance US via OTC trading.
  • Markets in real-time – Spot trading is available in theBinance.US.
  • Limit orders: Limit orders may be made for any trading pair on the spot markets.
  • Market orders: The option of placing an order on the spot market is accessible.
  • Stop-limit: The “stop-limit” order type may be used to automate stop-limit orders, making them easier to manage.
  • OCO orders: If you’re an expert trader, you’ll be able to use OCO orders.
  • Flexible Staking: It is possible for investors to obtain staking incentives for holding certain assets on the exchange with flexible staking.

Coinbase Pro

Primary trading terminal: The basic Coinbase Pro trading interface provides the minimum trading capability. While it’s great for beginners, more experienced traders may find themselves wishing for more.

Coinbase vs Binance: What's the best crypto exchange? 8

Source: Academy Shrimpy

Spot markets: Only the spot markets are supported by Coinbase Pro.

Limit orders: Limit orders may be put on any spot market trading pair that accepts them.

Market orders: Individual trading pairs may be manually performed using market orders.

Stop orders: Stop orders safeguard against sudden price drops.

Choice of Asset: Coinbase vs Binance.US

Many traders would ask what assets are accessible for trading before transferring cash to exchange. How investors deploy their cash will be determined by the available assets. Investors in the cryptocurrency industry have shown a willingness to go to exchanges with the most comprehensive range of assets.

Binance vs. Coinbase: Cryptos on offer

If you want to purchase a few well-known currencies, such as Bitcoin or Ethereum (ETH), you won’t need to hunt for a crypto platform with a large number of access tokens. However, if you want to expand and acquire some smaller tokens, nothing is more aggravating than discovering that your exchange doesn’t carry the currency you’re looking for.

Fortunately, both Binance.US and Coinbase provide a diverse range of currencies. There is considerable variance between Coinbase and Coinbase Pro, but not enough to distinguish the two systems. The primary Binance platform blows them all out of the water, but if you reside in the United States, that doesn’t help much.

Conclusion

When it comes to trading from outside the United States, Binance.US is an excellent choice because of its cheap costs, a large selection of ways of payment and order types, and sophisticated technical capabilities. Traders in the United States who want cheaper costs may want to use Binance.US, but for those just getting started, it’s hard to surpass Coinbase because of the wealth of resources, simplicity, and account features it offers.

Binance US trading costs are far better than Coinbase Pro in every regard. Binance US is more accommodating to small traders who don’t anticipate executing more than $50,000 in trading volume per month and whales who intend to execute more than $1 billion in trading volume per month.

Regarding asset listings, Binance.US and Coinbase Pro are neck and neck. Although Coinbase Pro has a good reputation for offering high-quality assets, Binance US has been on fire for listing assets swiftly and regularly.

We predict Binance.US will take the lead in the asset area over the next 12 months as they continue to expand their selection significantly. However, you should do your research and seek investment advice from experts before trading the cryptocurrency or involving your fiat currency.

FAQs about Coinbase and Binance

Is it preferable to use Coinbase or US Binance?

The UK also encourages investing a lot of money into digital currency, but Binance does not. America is an excellent place to live if you want to make a lot of money. For those looking for more regular payments and educational opportunities, Coinbase is a preferable alternative.

Is Binance superior to Coinbase Pro?

CoinmarketCap data and our proprietary analysis of the transactions between the two exchanges indicate that Coinbase Pro is the clear winner. Coinbase Pro routinely has greater trade volume as well as decreased slippage.

Why is Binance prohibited in the United States?

Six states, however, have declared Binance to be unlawful. Binance was probed for money laundering in May 2021, according to Bloomberg reports.

Is Coinbase the same as Binance?

Coinbase caters to newcomers by providing simple interfaces and limiting the sorts of transactions available. Binance is a fast-growing cryptocurrency that caters to sophisticated users. In the currency market, there are hundreds of alternatives.

Is Coinbase or US Binance better?

Coinbase and Binance. The UK also supports putting in digital currency, but Binance does not. America should suit a person seeking a high reward. Coinbase offers better options for people interested in more frequent payouts and educational opportunities.

Coinbase has announced that it may launch an initial exchange offering (IEO) similar to Binance’s Launchpad program. The news follows the downhill movement of Binance’s influence in the US, which eventually ended services in the United States. Although Binance has launched a US platform, the exchange still seems to be losing its grip over the region.

So can Coinbase seize the opportunity to establish a stronghold in its homeland?

The concept of initial coin offerings (ICOs) thrived in 2017, while 2019 became home to IEOs. Binance seizing the moment, launched an IEO platform called Binance Launchpad to launch new cryptocurrencies with exchange support.

The trend then snowballed, and various other exchanges started offering IEO services. Many new projects could attract suitable investors to support their development through the trend. However, soon Binance announced that it would no longer offer services to residents of the United South. This created quite a stir in the markets as both the IEO craze and the altcoin market started moving downhill.

Regardless, people are still invested in the idea of IEOs, as is evident by the fact that Coinbase itself is seeking to launch an IEO platform. According to the company’s head of sales in Asia, the company is also looking into Security Token Offerings (STOs). However, as of now, he is unable to make any formal announcements regarding the topic.

What is Coinbase trying to do differently from other crypto exchange(s)?

Is Coinbase just following the trend of IEOs, or is it trying to utilize the gap between Binance and US investors for its benefit? Coinbase was the market leader back in 2017, but things changed when Binance charged into the scene. Binance immediately became a market leader and had been giving a tough time to Coinbase ever since.

Now Coinbase has several advantages over Binance, which it can use to gain superiority in the markets. The most incredible advantage is that the former allows over twenty altcoins to be traded through the exchange, while Binance.US only offers seven assets altogether.

Where did Binance lose to Coinbase in the Forbes survey for top US crypto exchanges?

Binance.US’s 50+ available coins may satisfy most crypto investors, but enthusiasts may miss the more than 300 cryptos this domestic version doesn’t offer. In addition, not all US residents currently can access the platform: Those who live in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont cannot hold Binance.US accounts.

Unfortunately, Binance.US’s educational resources lag behind those offered by the original Binance’s Binance Academy and those from slightly more beginner-friendly exchanges, like the pick for newbies, Coinbase. However, Binance remained on top by 4 solid star points.

Shawn Du'Mmett

Shawn Du'Mmett

Former IT development and consultant, remote team and collaboration expert, PM, CCO, writer, dreamer, idealist looking to collaborate with global teams on a global teal/turquoise organisation. Shawn's dream is working together openly, to get what writers need and want, and to solve biggest global problems. He is building a collaboration system from the start that everyone can own and define, allowing them to work together, to decide how it works and to their highest ideals.

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