For both new and old crypto enthusiasts the Binance vs Coinbase question can be quite difficult to answer accurately.
There are so many factors to consider: ease of use, ease of fund transfer, coins on offer to trade, ease of staking & lending, customer service, etc. But the two platforms have an edge that other currencies don’t have – customer support.
That’s right, with the top rated online brokerages in the world such as Commission Junction, Trade Doubler, Trade Spy and E-Trader, Binance has a huge customer base which speaks for itself.
They have an unmatched customer support network, which is unrivalled. In fact, the most important thing about any trading platform is its customer support.
Both platforms allow traders to open an account with them and initiate trading.
However, unlike most of the other popular exchange platforms out there, it’s crucial to note that with the Binance exchange you need to provide a higher amount of money in order to start trading and the minimum deposit is only $100.
The difference between the two platforms lies in the way they operate and the ways in which they differ from one another.
Here’s a quick comparison between Binance and the other popular currency exchange platforms out there:
Binance vs Coinbase comparison
Both Binance and Coinbase offer the same features and functions. Both allow you to trade, buy and sell currencies with leverage, execute options and leverage and set up automatic trading transactions.
Binance also offers a robust software library, including things like indicators, calculators, and backtesting code.
All the same, Coinbase beats Binance when it comes to user friendliness. The reason for this is because with Binance, all transactions are done via the web while with Coinbase, you need to login/authenticate manually.
The major difference between these two top trading platforms lies in their approach to regulation compliance.
The former requires its users to meet all of the trading requirements outlined by the United States Commodities Futures Trading Commission (CFTC). With this in mind, CFTC authorizes both Binance and Coinbase to trade on behalf of their clients.
Also Read: Coinbase vs Bittrex Comparison
This means traders can be rest assured that they will not be cheated or ripped off by these companies. For traders who want to trade Cryptocurrencies without being shackled by federal laws and regulations, Binance might be a good choice.
On the other hand, with the launch of the Coinbase exchange, Binance has implemented a “staking” mechanism to protect their users.
Staking is a controversial feature of the platform, as many traders have raised questions on its effectiveness and reliability.
The gist is that if you’re not making money, you’re not going to make any money. With this in mind, the platform offers two types of stakes, referred to as Binary Exchange Stocks and Preferred Stock Stocks.
Each type has their own advantages and disadvantages, but the two together provide a solid return for investors.
In addition to the two major differences between Binance and Coinbase, there are some smaller ones as well.
As stated above, both companies offer a functional way for users to execute their trades.
However, some users may find one service better suited to their needs.
Binance’s withdrawal system is simpler and more streamlined compared to Coinbase’s.
Although Binance offers a more user-friendly interface, many traders still report difficulty in processing their withdrawal transactions, primarily due to bank fees and long wait times.
Similar to most online trading platforms, Binance allows its users to set up a demo trading account.
During this time, a trader can choose which types of trades they would like to engage in, either short term or long term. In order to execute these trades, traders need to deposit a certain amount of money in a “brokerage account” and use it to buy or sell the coins they wish to trade in the market.
Once they’re ready to execute real transactions, they simply access the trading section of the platform and click on the “buy” button.
From here, they are required to key in their use value, which is an index based on current prices of the selected tokens.
Both Binance and Coinbase boast the ability to trade in both Euros and US Dollars, but their major differences lie in the types of accounts they offer and the method by which they execute these trades.
As with any Forex broker, both Binance and Coinbase allow their clients to open a standard account, called a Forex Broker account, using a deposit of up to $5000.
A new client is then given the chance to choose the currency pair in which he or she wishes to trade. However, as a note of caution, it is recommended that new traders to deposit money only into a Forex Broker account with a greater balance than what they intend to spend, since this is a type of virtual funding facility and thus may not always be available – especially during the initial weeks and months following a successful trade.
Another important thing is both Binance and Coinbase are run by a central organization.
Both Binance and coinbase keep your digital asset (private keys and funds) in secure cold storage for you to offers a seamless user experience.
There is also a decentralized exchanges or DEXs which is powered by a global computer network as alternative option to a central custodial service.
In DEXs there is no point-of-contact.
It also means that it is your responsibility to keep your digital assets secure.
Binance Pros and Cons
Coinbase Pros and Cons
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