Binance and Coinbase are trading platforms / exchanges where you can buy and sell different cryptocurrencies. Coinbase is one of the oldest and most respected platforms on the market, while Binance has risen to become the world's largest cryptocurrency platform in recent years. How do Binance and Coinbase differ, and which is the better option for you?
In this post I compare Binance and Coinbase and find out which one is the better place to start trading. In this article I do not comment on Finnish providers such as Coinmotion or Northcrypto. Although they may feel like natural options to many beginner crypto investors because they are Finnish, I very strongly recommend looking into international platforms and what they offer. You will immediately notice the differences in prices and range: Finnish providers often charge many times the trading fees and offer a fraction of what is available on internationally popular platforms.
What is Binance?
Binance is currently the world's largest cryptocurrency exchange measured by trading volume alone. Binance's 24-hour trading volume is more than five times that of the other exchange in this review, Coinbase.
Binance's popularity comes from many things, the most important being: a wide range of cryptocurrencies to trade, low trading fees and its global reach. Binance is available in as many as 180 countries, and you can buy and sell over 500 different cryptocurrencies on it. Its trading fees are also very moderate compared to many competitors.
If you want to get to know Binance better, read my in-depth review of the Binance exchange.
Binance pros
Easy-to-use interface (beginner friendly too!)
The Binance interface offers a huge number of options and can feel confusing at first. Fortunately, beginner, intermediate and advanced users each get a slightly different interface, and right at the start you can switch the Binance mobile app to the "Lite" version, for example, which makes the app clear and easy to use for all levels.
Low trading fees
Binance has very low trading fees, not just compared to Coinbase or Finnish providers but compared to almost all other crypto exchanges. So Binance is one of the most cost-effective platforms for investors who want to trade a lot or whose investment amounts are still modest at first.
A wide range of cryptos to trade
On Binance you will find over 500 different cryptos to trade. Note that there is a separate Binance.US version of the platform for US users, with a narrower range.
Trading options and versatility
Binance offers many different trading options in addition to regular spot trading (buying and selling). These include futures and derivatives products, which, like stock futures and derivatives, let you invest using leverage.
Binance cons
A confusing interface
I know, I just praised its clarity and ease of use above. But since the interface comes in several different versions, this may also confuse beginner crypto investors in particular, and the flood of information is bewildering for many. Fortunately the solution is to start with the simpler Lite interface and only switch to the more versatile interface once you know the app.
Limited fiat transfer options
For EUR transfers, Binance offers practically two options: card payment (with a fairly high fee) and SEPA bank transfer. SEPA is of course the most sensible, but it is not always available, and in 2021, for example, Binance had to temporarily restrict SEPA transfers.
Storing crypto
For some people, keeping crypto directly on the exchange is the most logical and easiest option. Binance does not offer a so-called built-in wallet for storing crypto, which Coinbase does. With small investment amounts this is probably not a problem, but with larger amounts you will surely want to keep your crypto in a wallet of your choice.
What is Coinbase?
Founded in 2012, Coinbase is probably one of the oldest cryptocurrency trading platforms. Coinbase is designed primarily for beginner investors who are just getting started with crypto. The interface is simple and quick to grasp, but the trading options are limited. In addition to the standard view, Coinbase offers Coinbase Pro, which has considerably broader options for active trading than standard Coinbase. Trading fees are also lower on Coinbase Pro.
Coinbase pros
Simplicity
Coinbase suits beginners well because its interface is very intuitive and only a few different functions are available. Coinbase Pro offers more versatile options, but the interface becomes more challenging for beginners there (very much the same as with Binance).
Regulation and KYC
Coinbase was designed from the start to comply with US trading regulations. It has been around for a long time, and there is little uncertainty about its future position. Coinbase requires strong identity verification (KYC) from its users. For some, of course, strong identity verification counts as a minus for a trading platform. 😉
Security and storing cryptocurrencies
Coinbase offers plenty of security features, such as KYC features and a built-in digital wallet. So you do not necessarily need any other crypto wallet at all; you can use Coinbase Wallet.
Coinbase cons
High trading fees
Coinbase is one of the most expensive trading platforms on the market. Although its trading fees are lower than Finnish providers', they are still many times higher than Binance's. Note that trading fees drop significantly on Coinbase Pro.
Limited trading options
Unlike Binance, Coinbase offers a fairly narrow range of functions and services. In practice, Coinbase's offering is limited to buying and selling cryptocurrencies plus a wallet (storage). Its range of cryptocurrencies is also much more limited than Binance's.
Binance and Coinbase compared
Next, let's get into the comparison between these two exchanges itself. In the Binance vs. Coinbase review I compare the following, among other things:
- Features
- Currencies
- Fees
- User experience
- Security
#1 Binance vs Coinbase features
Although both Binance and Coinbase basically suit beginners as well as more experienced investors, the first impression shows a clear difference: Binance is for more experienced investors and Coinbase for beginners. For the most part, Binance offers more advanced trading features, while Coinbase deliberately keeps its platform simple for investors who are only just learning crypto trading.
Both crypto exchanges have a mobile app, and on both you can create watchlists for certain cryptocurrencies. Otherwise, Binance and Coinbase are very different in their features.
Binance features
You can read more about Binance here, but I go through its features in general here. As mentioned above, Binance offers a remarkable number of different trading options and savings services. These include:
- Spot market ("traditional" buying and selling)
- Stop-limit orders
- Stop-market orders
- Peer-to-peer trading
- Take Profit and Stop Loss orders
- Margin trading
- Derivatives and futures
- Staking, Binance Earn and other savings services that earn "interest" on your crypto
Coinbase features
Coinbase is designed primarily for beginner investors, so its features are narrower and easier for beginners to use. Coinbase also offers some education on crypto investing and news on current topics directly in its news feed.
Unlike Binance, Coinbase includes a built-in wallet, so if you like you can keep cryptocurrencies directly in the wallet Coinbase provides.
Coinbase offers a traditional spot market and a wallet, and the offering expands a little on Coinbase Pro. Coinbase Pro is still not as broad and versatile as Binance, though, so if you are interested in more extensive trading features, Binance is definitely the better recommendation.
#2 Crypto selection, Binance vs Coinbase
Binance is known for its wide crypto selection. Besides Bitcoin, Binance has hundreds of altcoins. In total, Binance has over 500 different cryptocurrencies to trade. Coinbase also offers a selection of over 100 cryptocurrencies, so the largest and best-known cryptocurrencies are available on both exchanges.
Both crypto exchanges have the following currencies, among others:
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Shiba Inu (SHIB)
- Avalanche (AVAX)
- Litecoin (LTC)
- Polygon (MATIC)
- Chainlink (CHAIN)
#3 Fees and trading costs, Binance vs Coinbase
Binance has some of the lowest trading fees on the market, while Coinbase is one of the most expensive (international) crypto exchanges.
Binance uses a "maker-taker" fee structure, which may sound a bit complicated when you browse the pricing tables. Generally, Binance charges 0.1% per transaction, which is very cheap compared to competitors, or to traditional stockbrokers. On Binance you can also earn discounts on trading fees by paying them with the BNB token (the Binance platform's own cryptocurrency). You can buy BNB tokens directly on Binance. At best, trading fees can be reduced to as low as 0.02 percent.
Coinbase charges 0.50% per transaction, or 1.49% per transaction if you buy directly with funds coming from your bank account by SEPA transfer. So the price is many times Binance's fees. It should be said, though, that crypto exchange fees are generally much cheaper than traditional stockbrokers'.
Both Binance and Coinbase charge fairly high commissions on credit card purchases: Binance 2% and Coinbase 3.99%.
#4 User friendliness, Binance vs Coinbase
Setting up an account is easy on both platforms. On Binance you create an account with your email address, and you can protect your account with two-factor authentication (email, phone or an authenticator app). Then you link your bank card or make a bank transfer and can start trading right away. If you want to raise deposit and withdrawal limits, you need to complete KYC verification (identity verification) on Binance too.
Coinbase asks you to verify your identity right at the start. First you take a photo of your ID (passport or driving license) and upload it to the app. Once your identity is verified, you can link a bank account or bank card and start trading. Identity verification may sound like a chore, but it is normal practice with traditional stockbrokers too.
A few significant differences in interface and user experience:
- Interface: As mentioned earlier, Coinbase's interface is simpler and easier for beginner investors. Binance is more complex, but Binance also has a Lite version that makes it easier for beginners to get into crypto investing.
- Mobile apps: Both platforms have apps for iPhone and Android.
- Educational tools: Binance offers a blog called Binance Academy with investing guides and useful, informative articles about cryptocurrencies for its users. Coinbase has informative videos for its users to watch, and the platform encourages watching them by offering crypto in return (extremely small amounts of course, but a nice reward for learning).
- Customer support: Coinbase does not have very extensive customer support options. If you need help, you can only send an email or request help by email. Binance, on the other hand, has live chat, email and a responsive Twitter page.
#5 Security, Binance vs Coinbase
Binance and Coinbase are both well secured, and both insure USD balances through the FDIC (Federal Deposit Insurance Corporation) up to 250,000 dollars. Coinbase, however, has a stronger reputation for security. Then again, Binance is the world's largest crypto exchange, and you do not grow that big without a secure trading platform.
Binance security features:
- Address whitelist: You can restrict transfers and save known crypto wallet addresses.
- Device management: You can restrict account access to certain devices.
- Photo verification: Binance requires photo ID if you want to unlock the platform's extra features (for example if you plan to trade larger amounts).
Binance does not have a built-in wallet, which can be seen as a risk factor. The platform is, however, compatible with reliable third-party wallets. Coinbase does have a built-in wallet.
Coinbase security features:
- Built-in wallet: There is no need to connect an external wallet to the exchange separately; you can use the wallet Coinbase provides.
- Crypto storage ("cold and hot storage"): 98% of your crypto assets are kept in "cold storage", a kind of digital storage mechanism that is less vulnerable to security breaches. 2% of your funds are kept in regular "hot storage", and Coinbase covers all funds stored there in the event of a security breach. It is worth noting that Coinbase only covers breaches that happen on their side; they do not offer protection for breaches caused by the user.
Unlike Binance, Coinbase uses more KYC security features. In addition to the identity verification required for basic trading, Coinbase also uses fingerprint biometrics and manages its own cryptocurrency vaults. These vaults can be set to require approval from several users before funds can be withdrawn.
Finally: Summary of the Binance vs Coinbase comparison
Binance and Coinbase are two platforms, working in a web browser and through mobile apps, where you can buy and sell cryptocurrency. On Binance you can trade over 500 different types of cryptocurrency and use versatile features as well as interest features typical of savings accounts. Binance is much cheaper than Coinbase, and it is the better option if you want more advanced functions and a broader range of cryptos. Coinbase has higher fees, but it is designed primarily for beginner investors who do not trade as much or do not need versatile features. Both platforms have strong security features, although Coinbase has a slight edge thanks to its built-in wallet and KYC features.
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