Binance and Coinbase are two of the leading cryptocurrency exchange platforms in the market. The decision of which one to choose depends on various factors such as the range of cryptocurrencies available, commission rates, and other important elements.
Both Binance and Coinbase are well-known in the cryptocurrency exchange industry. In this article, we will refer to Binance.US as Binance, which represents the American segment of the larger global Binance. We will focus on Coinbase Advanced Trade, which is known for its lower fees compared to the standard Coinbase service.
In mid-2023, both Binance and Coinbase faced lawsuits from the Securities and Exchange Commission (SEC) for alleged illegal operations and offering unregistered securities. Binance also faced accusations of mismanaging customer funds. In response, Binance assured the security of its users’ assets, while Coinbase stated that it would continue its operations without any changes.
Trading fees are a significant cost for users, especially for those who trade in high volume. Exchanges often offer discounts based on monthly trading volume. Binance stands out for offering even more favorable conditions.
Both Binance and Coinbase have a maker-taker pricing structure, where fees vary depending on whether the user adds or removes liquidity from the market. Trading fees not only vary by volume but also by the type of order executed. Binance offers the possibility of full commission exemption on select Bitcoin and Ethereum trades.
Here is a breakdown of the commission rates for each exchange, depending on the cryptocurrency traded (Bitcoin and Ethereum or other less popular cryptos):
Binance Trading Fees:
Coinbase Advanced Trade Trading Fees:
The comparison reveals intense competition, as the main fees charged by Binance and Coinbase for cryptocurrencies other than Bitcoin and Ethereum are practically identical, with some specific variations in the cost structure. However, Binance offers an additional 25% reduction in transaction fees if payment is made using BNB, its native cryptocurrency.
For example, if an investor traded $25,000 in the last 30 days and wants to make a new trade of $10,000, on Coinbase, the fees would be $25 or $40, depending on the position (maker or taker). On Binance, the fees would be $18.75 or $30, respectively, if paid with BNB.
Binance offers significant benefits, particularly regarding recurring fees that users often face. It allows free operations for Bitcoin and Ethereum, the two most liquid and traded cryptocurrencies. This makes Binance an attractive option for many crypto investors.
In terms of the variety of available cryptocurrencies, Coinbase has an advantage, offering access to 253 cryptos compared to Binance’s 153. However, the relevance of this variety depends on the trader’s specific needs and interests.
When it comes to staking rewards, Binance surpasses Coinbase by accepting staking for 27 cryptocurrencies, including Ethereum, Cardano, and Solana. Coinbase offers staking for six cryptocurrencies and also provides other types of rewards through DeFi and “cloud staking” for over 15 cryptocurrencies.
Both Binance and Coinbase exempt their users from fees for ACH deposits in US dollars. However, Binance has an advantage with no fees for deposits and a fixed fee of $15 for withdrawals within the country, while Coinbase charges $10 for deposits and $25 for withdrawals via bank transfer.
In terms of customer support, Coinbase offers a wider range of options, including 24/7 phone support and online chat, in addition to email and ticketing. Binance has also improved its customer support by introducing 24/7 online chat but still lags behind Coinbase in terms of options.
In conclusion, Binance stands out for its lower transaction fees, while Coinbase has advantages in terms of the variety of cryptocurrencies and customer support. The choice between Binance and Coinbase ultimately depends on the individual’s priorities, whether they prioritize lower fees, a wider selection of cryptocurrencies, or robust customer support.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.