Coinbase and Binance are both cryptocurrency exchanges but they are very different from one another. In this comparative post I’ll be going over Coinbase vs Binance and their many differences. They are both great exchanges to use but in their own way. You only can use Coinbase for certain things and you only can use Binance for certain things.
Here you will learn what the difference is between the two, what uses each exchange has, better options that are out there and more. I hear a lot of misconceptions out there about people switching from one exchange to the other. However, these exchanges, as I said, are very different and not interchangeable. You will understand what I’m talking about soon so don’t start depositing funds or doing anything just yet if you are unsure of the difference.
Coinbase vs Binance… Who Wins?
There is no winner of the Coinbase vs Binance battle because the two serve different purposes. There is no battle at all actually. In fact, both exchanges can be used together and many people do this.
Coinbase In a Nutshell
Coinbase is what I call an “onboarding” exchange. They give people the ability to purchase top cryptocurrencies like Bitcoin, Litecoin, Ethereum and Bitcoin Cash with fiat money. So if you live in the US you can go to Coinbase and buy cryptocurrency with USD (even with your debit card) and if you live in Europe you will be able to pay in Euros, and so on.
Alternatively, Coinbase also provides an easy way to sell your cryptocurrency back into fiat money. So if you are looking to cash out on your Bitcoin you can do that here. You can sell your crypto and end up with money back in your bank account.
But this is pretty much all Coinbase has to offer. You can buy crypto with fiat and sell crypto back into fiat. This is good if you are buying to hold onto long-term but there aren’t many investment options and its horrible if you are wanting to actively trade cryptos. This is where an exchange like Binance comes in…
Binance In a Nutshell
Binance is a crypto to crypto exchange. They don’t offer any way to actually buy cryptocurrency with fiat money. So you first must already have some form of cryptocurrency to start using the exchange.
What makes Binance good is that they have hundreds upon hundreds of different cryptocurrencies that you can trade for. So if you have Bitcoin but are looking for another crypto then there is a good chance you can find it here.
They Should Be Used Together
If you are new to the world of cryptocurrency then a site like Coinbase is where you are going to get your feet wet. This is where you can first buy cryptocurrency, but as I said, the options are limited. If you are able to buy what you are looking for and are going to be holding the cryptocurrency long-term then you can stow it away in a wallet and you are good to go.
However, if you are looking to get your hands on a different cryptocurrency or are looking to actively trade in the crypto market then Binance is one of the best options out there. What you can do is send the cryptocurrency you bought from Coinbase over to Binance and then exchange it any which way you want to.
You could do a bit of trading on Coinbase just by exchanging back and forth between Bitcoin and fiat money, Ethereum and fiat money, and so on. But this isn’t feasible due to the high fees at Coinbase. However, Binance not only has hundreds of different coins you can trade for but they also have extremely low fees that are pretty much negligible.
Binance’s exchange fees are as low as 0.05% per trade, which means if you exchange $100 of crypto the fee will be $0.05, whereas on Coinbase if you buy crypto with your bank account its going to charge you a 1.49% fee.
Easy Of Use
Both exchanges are easy to use and have a user friendly interface. In addition they both offer support if needed, although I would say they could improve in this area.
However, Coinbase is the easier of the two to use. This is because Coinbase is the first step to getting involved with crypto. They know this so the website is designed to be as user friendly as possible. This is one of the reasons their fees are high. In reality users are paying extra to be able to use a very well laid out and easy-to-use service.
Binance is a little more complicated and may seem a bit intimidating. They have all sorts of tools you can use because they are geared for traders. I’m not saying its that complicated and certainly nothing you should be worried about, but I can see how it would be a bit intimidating to a new user.
Buying/Selling on Coinbase
Coinbase makes it very simple to purchase crypto. You can hook up your bank account and buy directly with it, you can do a wire transfer, or you can even use a credit/debit card. Everything is very straightforward on the site. After you add your payment method and verify it you simply choose which cryptocurrency you want to buy, select your payment method, enter how much you want to spend and click buy. Simple as that…
If you buy with a credit/debit card or use your bank account the crypo will be available in your Coinbase wallet instantly. You can then do with it what you want.
Buying/Selling on Binance
Since Binance is more for traders, they offer many more features. You can set to buy/sell at, above, or below the market price, set stop losses and so on. You also have access to in depth price analysis with many different indicators available on the platform as well as the order book and trade history.
Binance has all the moving parts that professional traders need to really know whats going on in the market and to be able to profit from it, but it doesn’t have to be complicated if you don’t want it to be. If you aren’t into technical analysis and all of that stuff you can simply buy/sell at market price and exchange between different cryptos very easily and quickly.
Like every other exchange out there, Binance has every wallet that you need available and attached to your account. So anytime you buy something it ends up in your account’s wallet and you can do with it what you please, including hold it there if you would like.
Are There Better Options Out There?
As far as Binance goes there aren’t really any “better” options. There are plenty of other similar exchanges out there, Bittrex, COSS, KuCoin, just to name a few, but it doesn’t really get any better than Binance.
However, when it comes to Coinbase there is another option that will be better for some people, and that is GDAX. GDAX is another exchange that is actually owned by Coinbase. It is very similar and is also an “onboarding” exchange where you can buy crypto with fiat money and vice versa. However, the big difference between the two is that GDAX charges much lower fees. This is because it is made more to cater to professional or institutional traders/investors. It is a bit more complex to use and does have some downsides but if you want to save on the fees it is worth it.
You can read a comparison post on GDAX vs Coinbase I wrote for more info.
So what you could do is basically replace Coinbase with GDAX. You can buy your crypto with fiat money through GDAX and then send it over to Binance for much more trading options.
Key Takeaway Points
Coinbase and Binance are both great exchanges and two of the most trusted and reputable ones out there. But they both serve different purposes.
Coinbase is a great way to get started in crypto because it offers an easy way to buy crypto with your credit/debit card and your bank account. However, Coinbase doesn’t offer many options for what you can buy/sell. Binance on the other hand does not give you the ability to buy crypto with fiat money but offers a vast array of different coins you can buy/sell.
Because of this, both exchanges can be used together. They both provide an important service and you need both to do certain things.
And of course, as I said, GDAX is a great alternative to Coinbase. Its not quite as user friendly but if you are up for the small challenge its worth saving some money in fees.
Creating Your Accounts
Creating your accounts on both exchanges is easy and straightforward. You will have to fill out some information, verify your account, and so on..
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And again, if you are interested in using GDAX instead of Coinbase you can read this for more info.
If you have any comments, questions, or concerns please leave them in the comment section below and I’ll get back to you soon 🙂