Binance vs. Coinbase: Which is Best for Crypto in 2022?

Cryptocurrency is a booming market right now and this seems to be the trend for the foreseeable future. In fact, banks are even creating their own blockchain based system.

However, there are still many people who don’t understand which is the best crypto exchange that they should use to buy and sell crypto. This is one question that always comes up when talking about this subject.

Since Coinbase and Binance are the two largest exchanges available today, both offering similar services, the confusion is understandable.

So which one is best?

In order to help you avoid confusion and make it easier for you to decide which platform will work best for what you’re looking for, I’ve put together an in-depth comparison between Binance and Coinbase.

In this post, I look at everything from fees and security to supported cryptocurrencies and customer service satisfaction levels, as well as ease of use, accepted trading methods, trading fees, and anything else that might sway your decision one way or another! Let’s dive right in.

Binance vs. Coinbase: Crypto Exchanges Overview.

Here’s a brief overview of the two largest crypto exchanges – Binance and Coinbase.

Binance:

Binance is the number one global cryptocurrency exchange, with over 300 different digital assets listed. It was founded in 2017 by Changpeng Zhao and quickly grew to one of the largest cryptocurrency exchanges in the world.

It’s one of the best platforms in the industry, owing to its numerous token-listings, advanced charting, tradable tokens on their exchange, network stability, security, and more.

From the security front, Binance offers address whitelisting. This means that only a specific address can withdraw your cryptocurrency. It also offers two-factor authentication, device management, and advanced verification (uploading a photo ID and a picture of yourself).

The platform also has its own coin (BNB), which can be traded against other cryptos, paying lower fees than nearly any other exchange.

Coinbase:

Coinbase is a crypto exchange and wallet provider founded by Brian Armstrong and Fred Ehrsam and is based in America. Right there with Binance, Coinbase is one of the most popular online platforms for buying, selling, transferring, and storing digital currency.

You can also set up recurring buys daily, weekly, or monthly. The platform also offers crypto-insurance, and all USD cash balances will get covered by FDIC insurance (up to $250,000).

It also has a few limitations. For instance, it doesn’t allow you to trade futures or options and has higher fees. However, Coinbase’s lack of features contributes to its ease of use and makes it suitable for beginners.

Binance vs Coinbase: Comparison Table.

Here’s a quick comparison table for Coinbase and Binance:

Binance vs. Coinbase Detailed Comparison.

I’ll be comparing Coinbase vs. Binance on several factors to identify the best cryptocurrency exchange for you. I evaluated Binance and Coinbase based on factors like trading fees, currencies supported, payment methods, trade options, and more.

Table Of Contents

1. Ease of Use.

Binance:

Binance is one of the most popular cryptocurrency exchanges in the world. It’s easy to see why, but many people are reluctant to use Binance simply because it looks too complicated.

The user interface isn’t too cluttered per se, but the sheer number of features and options can be intimidating for novice users.

Keeping this in mind, they direct new users to “Binance Lite” to make trading cryptocurrencies easier for them.

The Binance Lite version allows you to:

• See the prices of popular cryptocurrencies.
• Purchase cryptocurrencies.
• Check your wallet balance.
• Subscribe to “Binance Earn” – an all-in-one Binance hub to see your earning possibilities.

The interface doesn’t push you to choose from too many features, allowing you to trade in crypto without any hassle. You don’t get bogged down by tons of functions and options on your way.

And it’s not some separate app. The Binance app is just the default interface, and you can always change the mode by toggling the button next to Binance Lite.

The green and red lines accompanying the currencies indicate the price trend over a given time.

Despite the simple user interface, you get to sort the coins based on their market cap, popularity, price, and 24-hour changes. You can further view easy-to-comprehend candlestick charts for any coin. Other details and news about the currency are also available at the bottom.

Buying crypto is also a straightforward process with Binance Lite. Just tap on the “Trade” button on the coin page.

Pick your fiat currency, enter the amount, and finally choose the payment method to confirm your order. Your wallet will reflect the purchased crypto right away.

Selling crypto is equally simple. Select the “Sell” option from the top right corner. There’s also an option to convert between different coins using the “Convert” button.

Aside from these essential functions, Binance Lite also has “Binance Earn” that works akin to a regular savings account. You can submit your idle cryptocurrencies to their BNB wallet and enjoy steady interests.

The process is pretty simple. You can deposit coins, receive stable returns, and redeem your profit any time you want without paying any transaction fees.

All in all, using Binance Lite is a breeze for new users. They can trade in crypto, check their current prices, past trends, asset allocation, and even invest for steady returns using Binance Earn. One downside is the limited number of cryptocurrencies.

Other than that, you have all of the core functions you’d need as a complete beginner. And once you’re well versed with the crypto market, you can switch to the Binance Pro version any time you want.

The “Pro” or the “Professional” version naturally appears more complicated with versatile trading options, advanced charts, nearly every cryptocurrency available on the market, Futures and Options trading, and more.

There’s also a noticeable difference between their trading interface.

Binance Pro’s trading interface is more suitable for expert traders familiar with the in and out of crypto and those who require advanced charting options and order book information.

Other than advanced charting and trading options, you can also grow your crypto with more Binance Earn products, such as Locked Staking, Locked Savings, Dual Investment, Liquid Swap, and a lot more.

The ability to trade crypto using the P2P method (trading crypto directly with your peers or other Binance users) is another reason to prefer Binance Pro over Binance Lite.

That said, Binance Pro will appear complicated to a novice trader or to someone who is just getting started with crypto trading. And it’s natural with the medley of trading options and other features it has to offer.

But you don’t have to turn to another Cryptocurrency exchange company since you can switch to Binance Lite until you learn the ropes of cryptocurrency trading.

Binance also has “Binance Academy” for new users. Binance Academy is a learning and literacy platform built and run by the Binance team to educate users in the blockchain and cryptocurrency market.

It’s a one-stop shop where you can learn everything about trading cryptocurrency, blockchain technology, Binance platform, and more.

Coinbase:

On the other hand, Coinbase positions itself as an entry point for new users interested in purchasing crypto.

Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency. Aside from being an intuitive platform and allowing basic transactions, Coinbase also allows withdrawals to PayPal.

Coinbase doesn’t offer advanced trading options like Options and Futures, contributing to its ease of use. Plus, Coinbase doesn’t list all of the coins on the market that may incur profit in the future.

That said, the lack of too many advanced features naturally results in a simple platform suitable for beginners.

Winner: Coinbase.

Coinbase is specifically famous for its immense ease of use, while Binance is for more advanced traders. However, Binance does offer a separate, easier-to-use version that you can switch to anytime you want.

2. Supported Cryptocurrencies.

Binance:

Binance is one of the largest international multi-language cryptocurrency exchanges. It currently offers trading pairs in the most popular cryptocurrencies and most altcoins available on the market.

You can expect about 300 altcoins on the platform, but only for non-US residents. The Binance.US exchange platform provides access to only over 50 coins.

Binance also accepts a vast range of traditional currencies to buy crypto. It accepts USD, EUR, CNY, AUD, INR, RUB, among other fiat currencies. It also accepts a wide range of stablecoins, including Binance USD (BUSD), Coinbase USD Coin (USDC), and Tether (USDT).

Other than this, ​​you can use the platform to buy altcoins generated through bitcoin mining software, including Litecoin, Monero, and Zcash. You’ll also get access to thousands of trading pairs.

Coinbase:

Coinbase supports more than 70 cryptocurrencies.

You’ll find the most common crypto on Coinbase, including the following:

• Bitcoin (BTC)
• Ethereum (ETH)
• Aave (AAVE)
• Cardano (ADA)
• USD Coin (USDC)
• Dogecoin (DOGE)
• Litecoin (LTC)
• Tether (USDT)

You can follow this link to view all supported cryptocurrencies on Coinbase and Coinbase Pro.

Note that the availability of altcoins may also depend on the country you’re residing in.

Here’s a quick comparison table:

Check out their cryptocurrency listing to review all of the altcoins on Binance. And follow this list to review all tradable altcoins on Coinbase.

Winner: Binance.

Binance is the clear winner here, with more altcoins in their directory.

3. Accepted Payment Methods.

Before buying the cryptocurrency of your choice, it’s essential to know what payment methods they accept. These two exchanges have different payment solutions. Let’s see how they compare.

Binance:

Binance offers many different payment methods so that you can use your coin or tokens freely.

You can use it to buy Bitcoin and other cryptocurrencies using a multitude of payment methods, including P2P, bank transfer, credit or debit card, and third-party payment gateways. There’s a payment method for everyone.

Here are some of the methods and payment gateways available at Binance:

Credit and Debit Cards.

One of the fastest ways to buy cryptocurrencies is to use a debit or credit card on Binance.

Just click on Buy Crypto and then choose the “Debit/Credit Card” option – after which you’ll get prompted to add your VISA/Mastercard credit or debit card to your Binance account.

You can buy crypto for a minimum of approximately $15 and a maximum of $5,000.

The minimum amount also varies depending on the currency you use.

While picking the fiat-to-crypto of your choice, you can also enable the “Recurring Buy” option to purchase crypto regularly.

Deposit Local Currencies and Trade via Bank Transfers.

Binance allows you to deposit select fiat currencies via bank transfers.

You can choose from the following fiat currencies:

• GBP (Pound Sterling).
• TRY (Turkish Lira).
• EUR (Euro).
• KZT (Kazakhstani Tenge).
• AUD (Australian Dollar).
• BRL (Brazilian Real).
• HKD (Hong Kong Dollar).
• PEN (Peruvian Sol).
• RUB (Russian Ruble).
• UAH (Ukraine Hryvnia).
• UGX (Uganda Shilling).
• PHP (Philippine Peso).
• USD (US Dollar).

One way to deposit local currencies on Binance is through the wallet page. First, select “Fiat and Spot” under the “Wallet” page and then click on the “Deposit” option to deposit the fiat currency of your choice.

After that, you’ll get prompted to input your bank account details. Note that you can add up to five accounts and save them for future deposits.

The name on your bank account should also match the name on your Binance account.

You will then get the Bank Details to deposit funds into. Make sure to instruct your bank to process a remittance instruction with the bank details provided.

Depositing funds with SWIFT (USD) is free and may take up to three business days to get processed, as is the norm with any international remittance.

You can start purchasing as many cryptocurrencies as you want once your fiat currency is in your wallet.

P2P Trading.

P2P (Peer-to-peer) trading is an integral part of Binance’s ecosystem. It enables you to connect with other users looking to buy or sell cryptocurrencies using an escrow account.

As there are no middlemen, there are no fees associated with this kind of trade.

You can pick a trade offer advertised by users or merchants and even filter the ads by entering the amount, your preferred fiat currency, and payment methods.

Once you see the ad you want to buy, hit the green buy button to place your order. You will then see the buying details and seller’s payment information. Finally, select the payment method and complete the payment as instructed.

The seller will release the crypto once you complete the payment. You’ll find the released cryptocurrency in your current wallet.

If you’re a small investor, it’s sometimes harder to make larger investments due to the minimum amount requirement set by exchanges. With P2P markets, you get access even to the big investors, enabling you to make trades irrespective of your investment size.

Third-party Gateways and E-wallet Options.

Binance doesn’t let you deposit money directly via platforms like PayPal, but you can deposit money through PayPal via P2P.

The popular crypto exchange enables payments via Advcash instead. You can deposit supported local currencies on Advcash and then use it to purchase altcoins and Bitcoin on Binance.com.

Additionally, you can buy and sell cryptocurrencies through Bitcoin ATMs. Or convert funds from your account to cryptocurrencies via Binance’s Convert & OTC Portal.

Coinbase:

With the recent explosion of interest in cryptocurrencies, such as Bitcoin, many new users are flocking to Coinbase to get their first wallet.

Coinbase offers several payment options to cater to their audiences, including Bank transfer, debit card and credit card support, third-party payment gateways, and more.

You can also opt for wire transfers for larger payments. Additionally, Coinbase enables payment from third-party sources like PayPal, Apple Pay, and Google Pay.

Just head to the Payment Methods on the web or select Settings > Payment Methods if you’re using the mobile investment app.

Next, choose the “Add a payment method” option and select the method you want to use.

4. Trading Fees.

Both Binance and Coinbase use the maker-taker fee structure.

The maker-taker fee structure is a type of payment arrangement used in stock exchanges, crypto exchanges, and smart contract platforms.

Maker-taker fees are paid to the market maker and the market taker. Maker fees are paid to the party that adds liquidity, while taker fees are paid by the party who removes liquidity from an exchange.

Binance:

Binance offers lower trade fees per transaction as compared to Coinbase. The purchase and trading fees can be anything between 0.015% to 0.10% based on the crypto coin and your VIP level status.

You will also get discounts if you use the BNB token (Binance native token) while paying your fees. If the trading volume is high (measured in Bitcoin amounts), the fee gets reduced even further. It can go down to 0.02%.

Binance charges 3.5% or $10 (whichever is higher) if you make a purchase with a debit card and $15 per U.S. wire transfer.

Coinbase:

On average, Coinbase will charge you a flat fee of about 0.50% per transaction.

If you make a purchase with a credit card, you will get charged 3.99%. For Coinbase wallet or business bank account purchases, they will charge you 1.49%. And for wire transfers, the fee is $10 for the deposit, and the withdrawal fee is $25.

Here’s a quick comparison table:

Winner: Binance.

5. Trading Tools.

On the one hand, you have Coinbase, the much more beginner-friendly option that offers fewer trade possibilities than Binance. On the other hand, there is Binance that provides a lot more opportunities for experienced users and crypto traders.

Let’s see how these two best crypto exchanges compare.

Binance:

Binance provides European-style vanilla trading options. A vanilla option is a financial derivative that gives the holder the right but not the obligation to buy or sell an underlying asset at a specific price on a given date.

Here are some of the trade options available:

• Limit Order
• Market Order
• Stop-Limit Order
• Trailing Stop Order
• Post Only Order
• Stop Market order
• One-cancels-the-other (OCO) orders
• Limit TP/SL Order (Strategy Order)
• Pool Liquidity
• Peer-to-peer Order (P2P)
• Guess the Price Battles
• Margin Trading

You can trade options contracts for different cryptocurrencies at different strike prices.

They also show all of the option greeks and their respective contribution in the premium price. Greeks here refer to a set of calculations used to measure different factors that might affect the cost of an options contract.

Also, note that Binance lets you take a Futures trade with up to 125 x leverage.

Coinbase:

Unlike Binance, Coinbase doesn’t let you trade Options or Futures.

It only allows three basic trade types. You can place a market, limit, or stop order from their order form panel.

Taking a Market Order means you’re okay sitting on the other side of the trade. Once you place your order, it gets filled at the current market price. This essentially leads to minimal risk, and you’d live with the price at which your coins were bought or sold.

Limit Orders are another part of an order type in cryptocurrency trading, where the trader specifies the minimum price for the order to execute. Lowering this allows you to wait for a better deal if the price suddenly rises.

Then you have the Stop Order, which entails setting a trigger to buy or sell your cryptocurrency at a specified price. Stop Order is a convenient way of protecting yourself against slippage.

Winner: Binance.

6. Charting Tools.

Both Binance and Coinbase provide charting, which is helpful if you want to check up on your trades on the go. Let’s compare them both.

Binance:

Binance provides its own charting software and also allows you to use TradingView in their trading UI.

The trading interface contains all types of advanced tools and options to assist you in your trading analysis.

These include:

• Candlestick charts
• Hollow Sticks
• Heikin-Ashi (Average Bar)
• Depth charts
• Time intervals
• Drawing tools
• Technical indicators

Significant technical indicators include moving averages, exponential moving averages, RSI, MACD, Ichimoku cloud, etc.

You can switch between the original chart, TradingView chart, and Depth view.

The Depth view shows the visual representation of unfilled “Buy-Sell” orders.

You can also customize your charts in many ways. For example, you can alter the time frame represented by each candlestick. Choose from 15 minutes, one hour, four hours, one day, and so on.

You can also customize your candlestick chart. There are options to change the way they look, their scaling in the margin, the background, and the timezone.

Binance also provides real-time market depth along with volume and 24 hours highs and lows. You can even check past returns of different cryptos over different time frames.

Coinbase:

Coinbase doesn’t have any built-in charting software like Binance and only gives you access to past returns and historical prices.

That said, you can use the Coinbase pro version to get access to the charting software that provides candlestick patterns and line charts. Coinbase Pro also gives you insights into market depth, order book, and spread.

Winner: Binance.

Binance emerges as the winner here – owing to its more comprehensive charting options and availability of built-in TradeView charts.

Binance vs. Coinbase: Final Verdict.

Binance and Coinbase are two of the most popular cryptocurrency exchange platforms. Both of them allow you to buy and sell bitcoins and other altcoins through bank account, credit card, and other less known methods as well.

Once you sign up and verify your personal information, you can tie your bank account to your Coinbase and Binance account and start buying/selling crypto.

Both of them also provide their API keys, user-friendly mobile apps for Android and iOS, top-notch security features, protection from hackers, decent customer support, knowledge base with tutorials and FAQs, and more.

However, if you’re new to cryptocurrency trading, it can be hard to make up your mind about which exchange is best for you. This is because Coinbase and Binance are quite different in terms of architecture and usability.

Use Binance if:

• You’re an expert trader.
• You’re trading from outside the US, as Binance faced regulatory compliance by the US government.
• You require advanced charting views and customization options.
• You want to trade options and futures.
• You require more diverse digital currencies.
• You desire lower brokerage and transaction fees.
• You want to do peer-to-peer trading.

Use Coinbase if:

• You’re new to the crypto world.
• You are based out of the US.
• You want to carry out transactions via PayPal.
• You want an intuitive, easy-to-use interface, albeit with higher fees.

Which one of these crypto trading platforms are you planning to use? Let me know by commenting below.

Adam Enfroy

Adam Enfroy is a full-time blogger and affiliate marketing expert. Join Adam and 500,000 monthly readers on AdamEnfroy.com to learn how to scale your influence at startup speed. Before starting this blog, Adam managed digital marketing teams for large SaaS startups and reviews the best software to run your online business. He has been featured in over 100 publications, including Forbes, Business Insider, and Entrepreneur. Read more about Adam here.