In terms of Binance vs Coinbase though, this is not a one-sided argumen
Binance vs Coinbase
Binance is one of the biggest cryptocurrency exchanges in the world. This is one of the first names that comes to mind for many considering a trading platform, and it has earned its place as one of the undisputed top dogs.
But while that’s true, there are also other options out there. And it’s always important to “shop around” when choosing a trading platform in order to find the best option for your own activities. There is no such thing as a platform that is objectively “best.” It all depends on your trading style, your preferred currencies, and even which interface you like the most. While some features are objectively useful or otherwise, this also comes down to taste.
One of the big contenders that is worth a look then, is Coinbase. Coinbase is another of the heavy hitters when it comes to crypto exchanges and has a lot going for it that should make it a worthy contender. In this post, we will take a look at Binance vs Coinbase and see which is the best option for you.
The Basics of Crypto Exchanges
The cryptocurrency market is huge. Don’t let anyone tell you otherwise! Right now, the market is worth over $320 billion and that is only looking to grow. If you want to invest in Ethereum, Bitcoin, or any of the others and get a slice of the pie, then you need a platform to trade on.
Cryptocurrency works differently to fiat currency. Unlike that currency – which is based on physical assets like gold – this is based on a powerful algorithm. Computers need to work through heavy computation in order to mine and “extract” this currency, which becomes more difficult with time. This limits the amount of cryptocurrency that can be created, thus preventing inflation.
In terms of regulation, this is cleverly solved by a distributed system called the “blockchain.” This is effectively a global ledger that is maintained across countless machines. This ensures that the system is unhackable, and it makes sure that there is a constant agreement over who has what money and where that money is located.
These features make cryptocurrency a fascinating concept that has the power to change the world – not to mention the powerful blockchain technology that underpins it all. But more than that, cryptocurrency is a fantastic investment thanks to its volatility and its decentralized nature. These features mean that cryptocurrency fluctuates in value rapidly, making it possible to buy at one price and then sell for a profit. This also means that you can invest in bitcoin and trade extremely quickly using methods that otherwise wouldn’t be possible.
In this post, we will be looking at Binance vs Coinbase to determine which is the better option for the widest number of users. Now you know how crypo exchanges work, it’s time to find the right one for you!
Binance
Binance is the single largest crypto exchange in terms of trade volume and has more trades than any other platform. The platform was founded in 2017 by Changpeng Zhao, who is referred to as CZ a lot of the time. It managed to raise a huge $15 million in investment in the early days and grew to become the largest platform of its kind.
The platform has a number of things going for it that make it a popular choice. However, one of the single simplest advantages of trading with Binance is its size. As a huge platform, Binance has the advantage of being well-known and widely used. This in turn can provide a lot of reassurance that the system has been well designed and is well managed.
One of the biggest questions a lot of first time traders have when using a new platform, is whether they can trust the company with their money. This is understandable, seeing as you are buying intangible assets from a company you haven’t heard of online! The good news is that when you use Binance, you are using a platform that is enjoyed by over 7 million other users with an established reputation and far more to lose by providing a less-than-stellar service.
It’s like buying a PC. When you spend that much money, you typically choose a brand that you recognize over one that you don’t – as you know the company will be held accountable when things go wrong. You can’t get much more secure than using the biggest platform in the world!
Coinbase
In terms of Binance vs Coinbase though, this is not a one-sided argument. Coinbase actually has a long history too and a certain amount of prestige. In august 2017, the platform was the first exchange to become a Unicorn! That means it was valued at over $1 billion.
Coinbase was founded by two individuals: Brian Armstrong and Fred Ehrsam, who both had illustrious careers prior. Brian was listed as number 10 on Fortune’s list of the most influential young people.
Coinbase has also had high profile partnerships with companies like Dell, Time Inc., and Expedia. Again, this provides a certain amount of assurance that this is a “serious” business and a site that you can feel safe spending money with.
Coinbase has 20 million customers in 32 different countries and perhaps the main reason it isn’t number one in terms of volume is only that it isn’t listed on CoinMarketCap. In other words, this is another seriously big platform.
Services
Coinbase offers both fiat and crypto currency trading. That means that as well as buying and selling crypto, you also have the option to trade using traditional currency. This not only gives the advantage of being able to see multiple trades of different types in a single place, it also means that you can benefit from a fiat gateway. In other words, you can simply log on and buy your cryptocurrency in order to get started. This is a great feature for those new to crypto that don’t already have a wallet full of bitcoin!
This might sound obvious, but a lot of platforms actually require you to already have a cryptocurrency before you begin. This is because you don’t have the option to buy currencies with USD or GBP, meaning in turn that you can’t get started if you don’t have some somewhere else!
Binance is one such option, which means that those new to trading crypto will need to use another site in order to purchase their bitcoins or other crypto currencies.
However, it’s worth noting that the purely crypto-basis of Binance is not necessarily a negative thing. You see, this freedom from financial institutions will significantly reduce the running costs, which allows Binance to offer a far lower set of fees.
Others like the fact that their trading on purely crypto-based sites is entirely private and secure. They also like the fact that this makes the service highly streamlined and focussed with no distractions.
Ultimately, this single distinction says a lot about who should use which platform. At least on the face of it, Binance is better suited to the experts, while Coinbase is a little more beginner-friendly.
Currencies
Right now, Coinbase only offers a fairly limited number of currencies to trade with. These are:
Bitcoin
Bitcoin Cash
Litecoin
Ethereum
That’s a total of 12 cryptocurrency trading pairs, which is significantly less than binance. Binance actually offers 150+ currency pairs, but the company only uses four major cryptocurrencies.
Fees
One of the most important things to consider when using any crypto exchange is the fees. This is of course how the exchanges make their money: by charging a small amount on top of every transaction and keeping that fee.
Coinbase charges a fee of 1.49% for every cryptocurrency purchase or sale. That goes up to 3.99% for trades made by credit card.
Meanwhile, deposits are entirely free. In the SEPA, withdrawals of Euros however are charged 0.15EUR. Withdrawals of USD are charged a much higher fee of $10!
While Coinbase is affordable compared with other crypto-to-fiat exchanges, its offerings pale in comparison to Binance. Binance doesn’t charge at all for deposits or withdrawals for example, and the fee on exchanges is only 0.1%.
This means that over time and a lot of trades, it becomes hugely more profitable to choose Binance over Coinbase.
Interface
Both these exchanges use great interfaces that are fast, intuitive to use, and very powerful. You’ll be able to see all the information you need at a glance, and you’ll never waste time searching for features and options that you can’t find.
But while this is true, there is a clear winner in terms of the interface and that’s Coinbase. Once again cementing itself as the “option for the new trader,” Coinbase is one of the most user-friendly platforms that we have ever reviewed. This is the option we always recommend to newcomers and this is one of the only places you may find the experience isn’t overwhelming the moment you boot up!
But while this is true, it’s also true that Binance is very good. These are both platforms that have the benefit of a lot of investment, user-feedback, and refinement. If Coinbase is the number one in this regard, Binance is a strong number two!
Customer Services
The customer service offered by both platforms is also excellent, which is an important consideration for this Binance vs Coinbase review. This matters a lot, because it determines whether you will be able to trade confidently.
If you have any issues at all on either platform, you can always rely on a customer service representative getting in touch quickly to resolve your problem. Both platforms have multiple ways to contact a support member, and teams on both platforms are extremely professional, friendly, and helpful.
Final Thoughts and Conclusions
Both platforms are also, importantly, extremely safe and secure. They both use two-factor authentication, for example. Coinbase does win extra points in this regard for storing 98% of user funds offline. But on the other hand, Binance has been highly praised for its efforts in protecting users against hackers – these are both extremely safe options.
Both platforms also offer mobile apps which is excellent – although it’s worth noting that you won’t be able to download the Binance on iTunes. This is an unfortunate limitation, but it is mitigated by the fact that the website runs extremely well in a mobile browser.
If we had to give a recommendation it would be simple: Binance is the best choice for those that are highly experienced, understand cryptocurrencies thoroughly and want to avoid unnecessary fees. Coinbase is a great choice for all those looking to learn the ropes and who like the idea of being able to trade with fiat currencies as well. EITHER platform will offer a variety of powerful tools that are easy to use thanks to the clean interfaces.
No comments:
Post a Comment