Binance vs. Coinbase: A Complete Comparison for Traders

Choosing between the leading cryptocurrency exchanges Binance US and Coinbase can be difficult for traders. With two of the most popular, mainstream trading platforms to pick from, it’s important to weigh the pros and cons across factors like fees, features, coin selection, security, and more. 

This in-depth guide will compare Binance US and Coinbase side-by-side to help you determine the better exchange for your crypto trading needs. We’ll provide an objective overview of their key differences, fee structures, supported coins, user experiences and other variables.

By the end, you’ll know which platform offers the right blend of advantages for your personal preferences and trading style. Let’s dive in to the ultimate Binance vs. Coinbase showdown!

Introduction to Binance and Coinbase

First, a quick overview of both exchanges:

Binance US

• Crypto exchange spin-off of Binance.com for the US market. 
• Founded in 2019 and based in San Francisco.
• Offers spot, margin, futures, options and OTC trading.
• Over 130 cryptocurrencies listed.
• Geared towards active traders and institutions.
• Strong liquidity and availability across assets.

Coinbase

• One of the largest US-based cryptocurrency exchanges.
• Founded in 2012 and based in San Francisco. 
• Mainly offers simple spot trading for retail.
• 60+ cryptocurrencies listed.
• Beginner-friendly platform for first-time investors.
• Broad availability of assets and liquid markets.

While they share some similarities, Binance US and Coinbase take diverging approaches across several categories critical to traders, as we’ll explore next.

Supported Cryptocurrencies

The range of supported cryptos is vital to check before signing up for an exchange. You want to verify your desired coins are available before funding an account.

Binance US

• 130+ cryptocurrencies supported.
• Wide selection of major coins like Bitcoin, Ethereum, Solana, Cardano, Dogecoin.
• Broad assortment of smaller cap altcoins.
• Frequent addition of new promising crypto assets.

Coinbase

• 60+ cryptocurrencies supported.
• Covers most major assets like Bitcoin, Ethereum, Solana, Dogecoin.
• Very selective with smaller altcoin listings. 
• Slow to add new cryptocurrencies due to strict listing policy.

Verdict: Binance US wins for its vastly larger selection of coins. Coinbase only supports the highest profile, mainstream cryptocurrencies. Check both for your needed coins.

Trading Fees and Commissions 

Trading fees significantly erode profits over time, so finding an exchange with competitive commission pricing is key. Here is how fees compare across Binance US and Coinbase:

Binance US Fees

• 0% – 0.10% spot trading fees based on 30-day volume and if maker or taker. 
• Discount tiers with 130+ volume levels.
• 25% fee discount paying with BNB token. 
• No fees for limit orders (makers).
• Low 0.02% minimum possible fees.

Coinbase Fees 

• 0.40% – 0.50% fixed spot trading fee for orders under $10K.
• 0% – 0.50% spot trading fees based on 30-day volume above $10K.
• ~10 volume-based discount levels.
• No reduced fees for paying with Coinbase’s USD Coin (USDC).
• No fees for limit orders at highest volume tier.
• Minimum ~0.15% taker fees.

Verdict: Binance US has the clear pricing advantage with lower fees, especially for high volume traders. But fees are already quite competitive across both platforms.

Trading Interface and Tools

The quality of the trading interface can impact your experience, so examine the platforms thoroughly.

Binance US Trading Features

• Advanced trading platform with extensive charting.
• Limit orders, market orders, and stop limits supported. 
• Margin and futures trading available. 
• Built-in indicators and drawing tools.
• Customizable layouts and menus.
• Desktop, web browser, and mobile app access.

Coinbase Trading Features

• Simple buy/sell interface tailored for beginners.
• Limited charting and technical analysis capabilities.
• Only simple market and limit orders supported.
• No advanced order types or margin trading. 
• Fixed screen layouts and menus.
• Mobile and web browser access. No desktop platform.

Verdict: Experienced traders will appreciate Binance US’s much more robust trading platform and capabilities versus Coinbase’s barebones interface.

READ ALSO: Coinbase: A Beginner’s Guide to the Leading Cryptocurrency Exchange

Security and Protection

As centralized exchanges, both platforms store user funds and entrust assets to third parties, so evaluating security is critical.

Binance US Security 

• Mandatory 2FA for account access and withdrawals.
• Majority of funds held in cold storage.
• FDIC insurance coverage for USD balances.
• #SAFU insurance fund as last resort for assets. 
• Anti-phishing and other security protocols.
• Relatively short operating history (since 2019).

Coinbase Security

• Optional 2FA available. 
• $256 billion traded with no major security breaches. 
• FDIC insurance coverage for USD balances.
• Mostly cold storage for crypto with 2% held online.
• First crypto firm to go public giving confidence.
• Over a decade of secure operating history.

Verdict: Coinbase edges out Binance US based on its longer demonstrable security track record and public company status. But both exchanges take security seriously.

Cryptocurrency Staking

Earning crypto staking rewards is an attractive feature offered on both platforms. Here is how they stack up:

Binance US Staking

• Over 30 coins supported for staking.
• Includes major coins like Ethereum, Solana, Cardano.
• Offers very competitive annual percentage yields.
• Most staking done on users’ behalf and rewards added to balance.

Coinbase Staking

• Around 10 coins supported currently. 
• Support for Ethereum, Solana, Cosmos, Algorand. 
• Slightly lower yields than on Binance US.
• Some staking requires locking up assets yourself.

Verdict: Binance US offers significantly more staking options with higher yield potential. Easy win here for Binance US.

Altcoin Availability

Access to smaller cap altcoins can be important to diversify holdings. Here’s an overview:

Binance US Altcoin Offering  

• Extensive selection of 100+ altcoins.
• Availability across Layer 1s, DeFi, metaverse, gaming, and other sectors.
• Quick to list assets experiencing breakouts in demand. 
• Frequent addition of new promising crypto assets.

Coinbase Altcoin Offering

• Very limited altcoin selection.
• Highly selective about adding new cryptocurrencies. 
• Prioritizes only top 20-30 projects with wide adoption.
• Very slow to add latest trending cryptocurrencies.

Verdict: Binance US is the clear winner if you want access to smaller-cap altcoins and the newest crypto assets.

READ  ALSO: Binance Reviews 2023: Details, Pricing, & Features

Customer Support

There’s nothing more frustrating than needing help and not being able to reach customer support. Here is the breakdown:

Binance US Support

• Support forms and knowledge base materials.
• 24/7 live chat available.
• Active Twitter and Reddit presence but not official.
• No direct phone support number. 

Coinbase Support 

• Email and support ticket options. 
• Phone support and 24/7 live chat.
• Active Twitter, Facebook community support.
• Direct customer support line.

Verdict: Coinbase offers better customer service overall with direct phone access and more channels.

Final Verdict: Coinbase vs. Binance US

And the winner is… both Binance US and Coinbase have their merits! Each caters better to different types of traders.

Binance US is best for:

• Active traders wanting low fees.
• Access to a vast selection of altcoins. 
• Advanced trading platform and tooling.
• Earning high crypto staking yields.

Coinbase is best for:

• Beginner investors wanting an easy onboarding.
• Sticking to only top mainstream cryptocurrencies.
• Preferring U.S. based companies for security. 
• Requiring direct phone or chat support.

As you can see, Binance US skews more towards active, sophisticated traders while Coinbase appeals to casual crypto investors. But both exchanges offer liquid markets for top cryptocurrencies.

Evaluate your individual needs against the pros and cons outlined here to decide which platform fits your trading style the best! You can also use both if each has advantages that benefit you.

Getting Started on Binance US 

If you’ve weighed the comparisons and decided to trade on Binance US, here is a quick guide to getting started:

Step 1: Sign Up for a Binance US Account

Visit binance.us and click “Register” to create your account by entering your email and creating a password. Verify your email to complete signup.

Step 2: Complete Identity Verification

Submit government ID and personal information to complete identity verification. This is required to remove account trading limits. 

Step 3: Fund Your Account 

Deposit USD via bank transfer or wire. Or fund directly with cryptocurrency from an external wallet for free.

Step 4: Access the Trading Interface

On the taskbar, click “Markets” then “Spot” to access the advanced trading interface.

Step 5: Place Your First Trade

Search for a trading pair like BTC/USDT and enter your order details. Click “Buy” or “Sell” to complete your first trade!

And you’re all set to continue trading on Binance US! Always use caution when investing and educate yourself on trading risks.

Getting Started on Coinbase

If Coinbase seems a better fit for your needs, here is how to get started and make your first trade:

Step 1: Sign Up for a Coinbase Account

Go to coinbase.com and click “Get Started” to create your account by verifying your email and setting a password.

Step 2: Complete Identity Verification

You’ll need to provide your personal information and photo ID to meet KYC requirements before trading.

Step 3: Fund Your Account

Link your bank account or deposit cryptocurrency from an external wallet to fund your Coinbase account. 

Step 4: Access the Trading Interface 

Click “Trade” in the top menu bar to access the simplified buying/selling interface.

Step 5: Place Your First Trade

Select a crypto like Bitcoin and enter your order amount. Preview and submit to complete your first purchase!

With your account funded, you’re now ready to buy, sell, and trade cryptocurrencies on Coinbase’s beginner-friendly platform. Always invest cautiously by sticking to responsible position sizing.

To Recap: Evaluate Both Exchanges for Your Needs

Deciding between Coinbase vs. Binance US comes down to aligning their respective pros and cons with your priorities and trading style as an investor. Fortunately, both platforms offer robust liquidity for top cryptocurrencies.

Binance US caters well to active traders who value deep liquidity across hundreds of altcoins and best-in-class trading tools. Coinbase appeals more to long term investors who prioritize the simplest interface, strictest regulatory compliance, and best customer support.

Hopefully this complete feature comparison has helped provide clarity on which exchange may be better for your needs! Look for an exchange where you feel comfortable across security, fees, coin availability and other aspects. And never hesitate to reach out to their support channels for any help when getting started.

Frequently Asked Questions

Does Binance offer staking? 

Yes, Binance US offers staking rewards on over 30 different cryptocurrencies. Supported coins include Ethereum, Solana, Cardano, Algorand and many more.

Is Binance US regulated?

Yes, Binance US is fully regulated in the United States. It is registered with FinCEN and complies with state regulations in the jurisdictions in which it operates.

Does Coinbase have wallet insurance?

Coinbase insures a small portion of crypto funds held online in hot storage. The majority is secured in offline cold storage separately. FDIC insurance covers up to $250,000 in cash balances.

Can I short crypto on Coinbase? 

No, Coinbase currently does not support derivative crypto products like shorts, leverage or options trading. For those, you’ll need to use an exchange like Binance US.

What countries allow Binance?

Binance restricted access from the United States, forcing the creation of Binance US. Binance also does not serve certain other jurisdictions where regulatory approval has not been secured yet.

Does Coinbase support limit orders?

Yes, Coinbase does allow limit orders on its exchange in addition to basic market orders. However, stop limits are not supported. More advanced order types are only available on Coinbase Pro. 

Does Binance work in New York?

No, Binance US currently does not operate in New York or four other restricted states due to regulatory limitations for crypto trading platforms in those jurisdictions.

Can I stake on Coinbase?

Yes, Coinbase offers staking rewards on about 10 different coins including Ethereum, Cosmos, Tezos and Algorand. More coins are slowly being added over time as regulatory clearance is obtained.

Does Coinbase have low fees?

Coinbasefees start at 0.50% which is quite high compared to other major exchanges. For lower trading fees, use Coinbase Pro which has a tiered fee structure starting at 0.50% down to 0%.

Is Binance banned in Canada?

While not formally banned, Canadian authorities strongly recommend that residents do not use Binance since it does not have registration to operate in the country.

In another related article, The Best Cryptocurrency Exchanges and Finance Apps in October 2023