Coinbase and Binance are two of the most popular crypto platforms in the world — but which exchange is the right choice for you? In this guide, we’ll break down the key differences between the two platforms — including fees, features, and user interface.
Which Should I Choose - Coinbase or Binance?
- Coinbase is the best choice for investors due to its beginner-friendly features, stellar reputation, and commitment to regulatory compliance.
- Recently, Binance faced a major scandal after money laundering charges and the resignation of CEO Changpeng Zhao.
- Coinbase: Ideal for beginners due to its user-friendly interface and educational materials.
- Binance: Offers a more comprehensive set of tools and lower fees, making it a solid choice for experienced traders. However, Binance.US, the American version of the exchange, has limited options compared to the global platform.
Learn more about Coinbase offerings here.
What’s the difference between Binance and Binance.US?
Before we go further in the article, let’s explain the difference between Binance and Binance.US.
Currently, the Binance platform is not available in the US due to regulatory restrictions. To serve American customers, Binance launched Binance.US in 2019.
Because of regulatory restrictions, Binance.US has limited features compared to its global counterpart. For example, Binance.US has a smaller selection of cryptocurrencies and no futures and margin trading.
Coinbase vs. Binance: User Friendliness
Winner: Coinbase
Coinbase is considered the most user-friendly cryptocurrency exchange on the market.
- Coinbase: Coinbase is considered one of the most beginner-friendly platforms on the market. With educational materials and an easy-to-use platform, Coinbase is the perfect exchange for beginner investors!
- Binance: While user-friendly, Binance presents a vast array of options that can be overwhelming for beginners.
Coinbase vs. Binance: Regulatory Issues
Winner: Coinbase
Coinbase is considered one of the most trustworthy exchanges in the world. While the company has butted heads with regulators in the past, Coinbase is a regulated financial institution that takes steps to comply with rules and regulations in all the jurisdictions it operates in.
Meanwhile, Binance has faced major regulator issues in recent years — including a major scandal that led its CEO and co-founder to resign from the company.
- Binance: Binance has faced regulatory scrutiny and legal challenges in various countries, including a recent settlement related to money laundering charges. Binance’s CEO, Changpeng Zhao, was forced to resign and faces criminal charges in the United States.
- Coinbase: Coinbase maintains a strong regulatory standing. However, the company has faced some issues with regulators. For example, Coinbase is currently engaged in a lawsuit with the SEC for offering ‘unregistered securities’.
Coinbase vs. Binance: Fees
Winner: Binance
The Binance platform is one of the best exchanges for users looking for low fees. Currently, users can find 0.1% spot trading fees on Binance and zero-fee Bitcoin trading on Binance.US.
- Binance: Binance has some of the lowest fees in the industry — with spot trading fees of just 0.1%!. Meanwhile, Binance.US has trading fees ranging from 0-0.57% with zero fees on Bitcoin trading!
- Coinbase: Fees on Coinbase Advanced are relatively low — ranging from 0-0.60%. However, Coinbase is not fully transparent about fees. The company’s website says that fees ‘are calculated at the time you place your order and may be determined by a combination of factors, including the selected payment method, the size of the order, and market conditions such as volatility and liquidity’.
Coinbase vs. Binance: Features
Winner: Binance
While Coinbase is geared towards crypto beginners, Binance has features for beginner and advanced traders alike.
- Coinbase: Coinbase is well-known for its beginner-friendly features. The platform provides a secure, standalone digital wallet, withdrawals to PayPal, and an educational platform where users can earn cryptocurrency. However, the platform is notably lacking in features for experienced traders — such as margin and derivative trading.
- Binance: Binance has a range of features for beginner and advanced investors. Like Coinbase, Binance has Learn and Earn available. While Binance.US does not have margin and futures trading, it still offers advanced charting for traders and a wide range of order types for experienced investors.
Coinbase vs. Binance: Cryptocurrency Selection
Winner: Binance
While Binance’s global platform supports more cryptocurrencies, Coinbase has a wider crypto selection than Binance.US.
- Binance: Offers a massive selection of over 600 cryptocurrencies for global traders and over 150 for U.S. investors on Binance.US.
- Coinbase: Supports over 200 cryptocurrencies, catering to both mainstream and niche market participants.
Coinbase vs. Binance: Staking
Winner: Binance
Currently, Binance allows users to stake more than 60 cryptocurrencies, while Coinbase only offers 16.
- Coinbase: Coinbase offers the opportunity to stake 16 different cryptocurrencies — including Ethereum, Avalanche, and Solana.
- Binance: Binance DeFi Staking offers access to stake 60+ cryptocurrencies. Binance.US (for American customers) currently offers the opportunity to stake 16 different cryptocurrencies.
Coinbase vs. Binance: Security
Winner: Coinbase
Coinbase has a stellar reputation for security and has never been hacked in its history.
In 2019, hackers stole $40 million from Binance. However, the company upgraded its security measures in the following years.
- Coinbase: Coinbase is known for its robust security measures, including cold storage, biometric access, and insurance for digital assets.
- Binance: Binance provides strong security features but has experienced hacks in the past. However, it’s important to note that Binance has since enhanced its security protocols and keeps a fund to fully compensate users in the case of a hack.
Coinbase vs. Binance: Customer Service
Winner: Tie
While Coinbase and Binance both offer customer service on email and live chat, both companies have faced criticism for slow response times.
- Binance: Binance offers customer support on email and live chat. However, customers have complained about waiting weeks for responses to queries.
- Coinbase: Coinbase offers customer service on phone, email, and chat. However, customers have criticized Coinbase for being slow to respond to support queries.
Coinbase vs. Binance: Tax
Winner: Tie
Both Coinbase and Binance provide reports that help users report crypto taxes.
However, it’s important to remember that crypto tax forms from centralized exchanges can be inaccurate — especially if you’ve transferred crypto into or out of your wallet. That’s why many investors use third-party crypto tax software to handle tax reporting.
Coinbase: Coinbase provides a gain/loss report — which provides a record of your gains and losses from your transactions, alongside the cost basis of your cryptocurrency. Coinbase issues Form 1099-MISC and Form 1099-B to customers and the IRS.
Binance: Binance allows you to download a csv file that details your capital gains and losses. Binance.US issues Form 1099-MISC to customers and the IRS.
Frequently asked questions
Which is bigger — Coinbase or Binance?
Can US citizens use Binance?
What are the disadvantages of Binance?
What is the safest crypto exchange?
