Cryptocurrency trading is one of the most established emerging forms of exchange that is sure to dominate businesses in the future. Utilizing a digital currency that is used to buy various goods and services, this kind of trading has boomed in recent years partly due to the appeal of technology and the security it brings.
There are tons of cryptocurrency tenets circulating around the digital market, among them is Coinbase. Created by Brian Armstrong and Fred Ehrsam in 2012, it is one of the earliest cryptocurrency platforms and has established itself in 100 countries. Binance is another platform, which was recently established in 2017. Through the hard work of Changpeng Zhao who was a former McDonald’s employee, it was established as the global leader of digital currency exchange.
These two are considered to be powerhouses in cryptocurrency trading, but what makes them different from each other?
Binance vs. Coinbase: Platform Features
Both Binance and Coinbase offer convenience and practicality for their users and are taking the necessary steps to optimize platform interaction. Both of them has a mobile and web-based platform, but they have differences when approaching the buy and sell strategy. Both these tenets utilize unique features to satisfy customers.
Binance operates on over 500 cryptocurrencies and altcoins and has a variety of trade options to consider. Some of them are margin trading, pool liquidity, limit/stop limit order, market/stop market order, OCO orders, peer-to-peer trading, and guess the price battles. It also holds challenges with giveaway prices to increase user interactions. Users can claim their prizes on the Binance rewards center.
Binance Academy also exists, which provides a wide range of tutorials that can cater to beginners and advanced traders. These crypto lessons provide aid and additional knowledge about all the tips and tricks to further enhance the skills in digital trading. Aside from this, Binance also allows public access to their very own API keys which enables third-party applications to establish a connection. Trust Wallet, a third-party digital wallet is also an option when using this particular platform.
180 countries can trade and exchange digital money on Binance. However, it has certain restrictions in the United States. Only forty-three states are free to establish a deal in Binance, and users are unable to do so if they are located in Connecticut, Idaho, Hawaii, Louisiana, New York, Texas, and Vermont. Paying via credit cards nor margin trade completion is also impossible for the US residents using Binance.
Coinbase also offers free education and gives brief educational videos that guide the user through various cryptocurrency projects. Watching these videos will reward the user with free cryptocurrency. This beginner-friendly platform offers basic transactions and allows the checking of chart data. Withdrawal through Paypal is also a feature that Coinbase is proud of.
The newsfeed feature that Coinbase offers also gives the users the chance to be updated through cryptocurrency developments. There is also an optional price alert about the changes in the cryptocurrency users want to track. App updates or phone notifications are used to keep the customers posted.
Coinbase is available in over 100 countries and forty-nine states, Hawaii is the only exception. A built-in wallet feature can also be found in this trading platform. Coinbase Pro also has the ability to track moving averages and has access to limited features.
Binance vs. Coinbase: Supported Currencies and Fees
Coinbase offers forty-four cryptocurrencies for use, including popular coins like BTC, ETC, and LTC. In 2019, DASH is also added to the list and since then, sending and trading using altcoins depend on the usage of the cryptocurrency involved. A $2 minimum order amount is required by Coinbase and they even support fiat currencies like USD, GBP, and EUR. A 0.5% trading fee is required for users of Coinbase.
Coinbase supports currencies like SUSHI, CGLD, AAVE, and WBTC.
On the other hand, Binance offers a wider range of cryptocurrencies for use, number about five hundred available to non-US users. Binance.US users can only trade using fifty-two coins. While having a minimum order of $1, Binance also offers the lowest fee in this industry. Users only pay 0.02% to 0.10 % trading fees. The cryptocurrencies that can be traded and used in Binance, but not in Coinbase include Dogecoin, VeChain, BND, Matic Network, VeThor Token, QTUM, and Harmony.
Both platforms utilize the trading of popular currencies such as Storj, Compound, Ethereum, Litecoin, and Cardano.
Binance vs. Coinbase: Security
Both platforms are considered secure, however, in this topic, Coinbase remains superior.
As a US-based exchange platform, its security has connections with banks like J.P. Morgan. Aside from requesting identification using a photo or government-issued ID, it also utilizes a two-factor authentication. Having fingerprint biometric access for its built-in digital wallet, it also utilized a combination of cold and hot storage. 98% of the funds are kept in cold storage vaults and deposit boxes while the rest are kept in hot storage that may seem vulnerable for some. However, the company ensures the replacement of funds as long as the problem is proven to be on their part. To be at ease, setting a two-factor authentication security measure will help keep the account safer.
Binance was first created in China and moved to Japan. The Binance.Us was created for United States citizens because Binance was banned from US residents due to the allegations of tax fraud and money laundering. Binance also has device management, address whitelisting, and device restriction as a security feature. Although utilizing the same 2FA via Google, there are some reports that states with the Binance security measures.
Binance vs. Coinbase: What to use?
Both of the platforms have pros and cons, however, the biggest deciding factor is the location of the user and the accessibility of the trading applications. U.S. customers may have some limitations in using Binance, but people from other parts of the world encounter no difficulty.
When thinking about the ease of access, Coinbase is a beginner-friendly platform due to its minimalistic design. Learning more about the Binance platform will give you the edge to rise towards the intermediate trading level, and their extensive coin list is something that cannot be ignored.
No matter what platform is chosen, both are of high quality and offer the best experience for their users.