The consistent headlines around cryptocurrency price surges have created a sense of curiosity amongst us. We all wish to trade in cryptocurrencies to join the club, make quick money, or even invest in the newest form of digital gold. The next question arises – ‘How do I invest in bitcoin, Ethereum?’, ‘What is the initial amount required?’, and for most – ‘Is it legal here?’.
Binance & Coinbase
The topmost trading platforms that pop up are Binance and Coinbase. Let’s do thorough research and decide which suits us the best.
Coinbase and Binance are two trading platforms that you can consider to be poles apart regarding their history and target features.
Coinbase being the elder sibling, born in 2012, provides a simple, user-friendly interface with limited transactions.
On the other hand, Binance is the millennial, born in 2017, renders advanced users, has a steep learning curve, and provides a ton of trading options to explore.
At the same time, it is user-friendly, has an impeccable support system but cannot beat the simplicity that Coinbase delivers.
I have juxtaposed these two exchange tycoons in terms of their market cap, number of altcoins listed, methods to trade, prices offered, standout features, security mechanisms, and their respective mobile applications.
Binance vs Coinbase: Features
Points of Distinction
|Marketcap||$86 billion||$6.4 billion|
|Altcoins Supported||51||500 for foreign investors, 52 for US-citizens|
|Standout Features||Provides a digital wallet, a simple user interface in mobile and web-app, withdrawals with PayPal||Extensive charting patterns available, low-moderate fees, any cryptocurrencies to trade|
|Fees||0.50% per trade, 3.99% for credit card purchases, 1.49% for Coinbase wallet or bank account purchases, and wire transfers are $10 for deposit and $25 for withdrawal||0.02% to 0.10% purchase and trading fees, 3% to 4.5% for debit card purchases, free Single Euro Payments Area (SEPA) transfer, or $15 per U.S. wire transfer|
|Initial amount required||Limited based on the region you hail from||Limited based on the cryptocurrency chosen.|
|Security Mechanisms||2FA verification, insurance for hot storage if Coinbase is breached, biometric fingerprint logins, cold storage, FDIC-insured USD balances, AES-256 encryption for digital wallets||2FA verification, FDIC-insured USD balances, device management, address whitelisting, cold storage|
Binance vs Coinbase: Drawbacks
Well, the two aren’t perfect. The drawbacks for each are as follows –
Drawbacks of Coinbase
- High fees for transactions and payments.
- Lesser transaction options.
- Fewer techniques for advanced traders.
- The number of charting methods available is also less.
Drawbacks of Binance
- American investors cannot make use of this crypto exchange.
- No prevailing wallet is available for users to check-in their funds deposited.
- A bit overwhelming for novice customers.
- For Indians, money is transferred through a 3rd party called Simplex, or you can buy crypto from another user via 3rd party apps.
Quick overview of Coinbase
Coinbase has three main products:
It is also popularly called simply Coinbase. It is a platform for customers to buy, sell BTC, ETH, DOT, ADA. This product is essentially a brokerage platform.
It is an exchange aimed at more advanced users, where people can trade some additional cryptocurrencies not found on Coinbase Consumer. Users can also trade using margin, and place complex order types like limit orders.
It is a way to store and access Ethereum-based assets and interact with Ethereum based DApps (Decentralized applications)
Coinbase recently launched its IPO in April and is the first company in the crypto market to go public.
It received an overwhelming response whose initial share price was set to $250 a share but saw the price surge to $414. This surely shows people’s trust in Coinbase as a crypto exchange.
Quick overview of Binance
Binance, on the other hand, has its utility token called Binance Coin (BNB), which can be used to trade and pay fees on this platform. It’s also used for credit card payments, booking travel arrangements, entertainment, and much more. A large number of projects are designed leveraging a concept called Binance Smart Chain.
Binance Smart Chain
It is a new blockchain with a full-fledged environment for developing high-performance decentralized applications. It was built for cross-chain compatibility with Binance Chain to ensure that users get the best of both worlds.
This smart chain is a fork of Ethereum, which largely speaks for itself. Binance also provides many discount features to new users, which keeps them engaged in their journey to gain cryptocurrency.
We considered the availability of knowledge bases and access to customer service. Our fee and feature differentiation give side-by-side security, transaction types, fiat currencies accepted, and cryptocurrencies.
In the end, I would urge young investors to put on their thinking hats and analyze the advantages and disadvantages of each platform and then decide what best suits them. Welcome to this beautiful era of crypto. Hope to see you on the other side of the trade!
I hope this article helps you and if you have any queries related to it, leave your comment below. If you have not joined our community then you can now. We are very active there and have been sharing important information there.
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