We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Binance and Coinbase are two cryptocurrency platforms with very different approaches. Coinbase is a U.S.-based exchange designed for beginners with a simple interface and limited transaction types. Binance has a steep learning curve, supports advanced users, and provides international traders with hundreds of currency trading options. Although the Binance platform is user-friendly and offers three levels organized according to trading experience, it isn’t nearly as easy to use as Coinbase is. The Binance.US version is less robust with limited options. We put Binance and Coinbase side-by-side to review the overall price for various transaction types, accepted fiat currencies, and available altcoins for trading purposes. We also explored ease of use for web and mobile applications, security protocols, standout features, and customer service. On June 5, 2023, the SEC filed a lawsuit against Binance Holdings Ltd., BAM Trading Services Inc., and founder Changpeng Zhao for violating U.S. securities laws.The company responded with a statement in which it stated, "All user assets on Binance and Binance affiliate platforms, including Binance.US, are safe and secure, and we will vigorously defend against any allegations to the contrary." We will continue to monitor this situation for further developments. Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. Pros Over 600 cryptocurrencies for trade One of the cheapest platforms to use Massive selection of transaction types Cons U.S. customers can’t use the Binance platform, and the Binance.US exchange is very limited It can be overwhelming, even for experienced users No built-in digital wallet In regulatory trouble in several countries and under investigation in U.S. Pros Extremely user-friendly platform Well-known and trusted by U.S. regulators Multiple ways to purchase cryptocurrency Cons Limited advanced options for expert traders Fewer transaction types than other platforms Binance vs. Coinbase Binance vs. Coinbase At a Glance Features Supported Currencies Security Fees Binance vs. Coinbase: Ease of Use Final Verdict Frequently Asked Questions Methodology Since the platforms are meant for different types of people, you’ll notice vast differences in their feature sets. However, both provide mobile applications with watch lists or live price tracking. But the similarities stop there. With Binance, you’ll get the following: In comparison to Binance, Coinbase offers more features for U.S. residents but fewer options for international traders. The features include: Binance is well-known for its massive altcoin list, with more than 600 choices available to non-U.S. users. However, the Binance.US exchange supports just over 100 coins. Coinbase offers 179 trading currencies. Coinbase also supports fiat currencies, including USD, British pound sterling (GBP), and euro (EUR), whereas Binance supports many more fiat currencies, such as USD, EUR, Australian dollar (AUD), GBP, Hong Kong dollar (HKD), and Indian rupee (INR). Binance and Coinbase both offer many cryptocurrency pairs, but the number may vary based on your location. The currencies each firm offers vary. For example, the following cryptocurrencies are on Binance but not Coinbase: vechain (VET), harmony (ONE),vethor token (VTHO), and qtum (QTUM). However, both platforms support popular and up-and-coming currencies such as: Although both platforms are considered secure, Coinbase has a better overall reputation. Founded in 2012, Coinbase is a U.S.-based exchange that went public on April 14, 2021, via a direct listing, and is backed by banks like J.P. Morgan. Unlike Coinbase, Binance was first established in China before moving to Japan, and the Binance.US platform is headquartered in Palo Alto, California.Binance isn’t consistently regulated around the world, but its Binance.US exchange stays within U.S. regulations. Note that Binance is currently under U.S. regulatory investigation. Both cryptocurrency exchanges provide two-factor authentication (2FA) via the Google Authenticator app or short message service (SMS), but U.S. users report some problems with the Binance.US and Google authentication process. Both Coinbase and Binance require users to verify their identity with a photograph. Binance security features also include address whitelisting, device management, and the ability to restrict device access. Like Coinbase, all USD balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and held in custodial bank accounts. Coinbase security features consist of fingerprint biometric access for its digital wallet, and 98% of cryptocurrency funds are stored in air-gapped cold storage via vaults and safe deposit boxes. Coinbase has an insurance policy to cover the 2% of funds kept in hot storage, but it only covers security breaches on their end, not ones due to a user security problem. Binance fees are some of the lowest in the industry, whereas Coinbase does not disclose its fees online. Binance uses a maker-taker structure with the same fees for both makers and takers. The fee chart can be confusing for beginners but offers vastly lower charges, especially for high-volume traders. Binance users can lower costs by purchasing Binance (BNB) tokens to pay fees with a 25% discount. High-volume traders can also level up for very important person (VIP) discounts Binance and Coinbase are geared toward different types of users. Coinbase offers a simple platform for investors new to trading cryptocurrency who want fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the sheer number of choices can be overwhelming to a new user. Binance is a better fit for people familiar with cryptocurrency lingo and investing options, whereas Coinbase is built for convenient, easy trading. Both exchanges provide mobile apps with varying functionalities. Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access tutorials or helpful articles resembling cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also lets users earn cryptocurrency for watching videos for beginners. Coinbase wins for ease of use, and also has better customer service options, including live chat, phone support, and the option to submit a ticket. In contrast, Binance offers live chat, an option to submit a ticket, or support through a Twitter help account.Binance does not advertise a phone support option. While Binance may be less expensive, Coinbase wins out overall. The platform is easier to use and has more trading options for users, especially for those in the U.S. Additionally, Coinbase offers more customer service options, including phone support. It is cheaper to buy on Binance. Overall, it is considered one of the least expensive platforms to use. Yes, Binance.US offers zero fees on Tier 0 pairs and a high of 0.3% maker and 0.45% taker fees on Tier 1 pairs. Coinbase Pro has a high of 0.4% maker and 0.6% taker fees on amounts up to $10,000. Binance is legal in the U.S. However, the U.S. version has fewer features than the full website includes. Yes, Binance does report to the IRS. It issues three possible reporting forms, the 1099-MISC, Form 1040 Schedule D and Form 8949. Binance and Coinbase are among the best crypto exchanges. However, Coinbase appears slightly safer. Any currencies held online may be a target of hackers, and most exchanges have experienced breaches, including Binance in 2019. Coinbase, on the other hand, told The New York Times that it's never been hacked and only 0.004% of its users experienced account takeovers in the year ending April 2021. We examined Coinbase and Binance by looking at the fee structures, cost, and how easy it is to understand. Although we looked mainly at Binance, we also evaluated Binance.US features applicable to U.S. residents. We considered the website and mobile app functionality, availability of knowledge bases, and access to customer service. Our fee and feature charts give a side-by-side view of security, transaction types, fiat currencies accepted, payment methods, and cryptocurrencies. Investing in cryptocurrencies and other Initial Coin Offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. U.S. Securities and Exchange Commission. "SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao." PR Newswire. "Binance Statement in Response to SEC Complaint." Bloomberg. "US Probes Binance Over Token That Is Now World’s Fifth Largest." Bunance.US. "Fee Structure." Coinbase Pro. "Fee Structure." Binance. "Cryptocurrency Tax Reporting 101." The New York Times. "Coinbase Users Say Crypto Start-Up Ignored Their Pleas for Help." Related ArticlesBinance
Coinbase
At a Glance
Cryptocurrency Exchange Platforms Binance Coinbase Main platform features Low fees, comprehensive charting options, and hundreds of cryptocurrencies Intuitive, beginner-friendly platform offering basic transactions, a digital wallet, and withdrawals to PayPal Fees 0.10% spot-trading fees, 4.5% debit card purchases Not disclosed Number of cryptocurrencies supported Over 700 for global traders on Binance. Over 100 available for U.S. investors on Binance.US 179 Security features 2FA verification, FDIC-insured USD balances for Binance.US, device management, address whitelisting, cold storage 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 Types of transactions supported Limit order, market order, stop-limit order, trailing stop order, post-only order, peer-to-peer trading, margin trading, one-cancels-the-other order, and more Buy, sell, send, receive, and exchange Maximum trading amount Limits differ based on the cryptocurrency purchased Limits vary based on your payment method and region Binance vs. Coinbase: Features
Binance vs. Coinbase: Supported Currencies
Binance vs. Coinbase: Security
Binance vs. Coinbase: Fees
Fees Binance Coinbase Bank account Free outside of the U.S. Not disclosed Wallet N/A Not disclosed Debit/credit cards 4.5% Not disclosed Automated clearinghouse (ACH) transfer Free Not disclosed Wire transfer Free Not disclosed Cryptocurrency conversion Not disclosed Not disclosed Purchases Not disclosed Not disclosed Trades Not disclosed Not disclosed Other fees 0.50% instant buy and sell fee Not disclosed Binance vs. Coinbase: Ease of Use
Final Verdict
Frequently Asked Questions
Is it cheaper to buy on Binance or Coinbase?
Is Binance.US cheaper than Coinbase Pro?
Is Binance legal in the USA?
Does Binance report to the IRS?
What is safer Binance or Coinbase?
Methodology
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FAQs
Binance vs. Coinbase: Which Should You Choose? ›
Advantage: Binance beats out Coinbase on the number of coins supported in the core staking rewards program, and offers higher rewards on those that they have in common. Naturally, for those who hold coins supported on one platform but not the other, a specific exchange may end up being better for them.
Is it better to use Binance or Coinbase? ›Advantage: Binance beats out Coinbase on the number of coins supported in the core staking rewards program, and offers higher rewards on those that they have in common. Naturally, for those who hold coins supported on one platform but not the other, a specific exchange may end up being better for them.
What will you use Binance for best answer? ›Binance is an online exchange where users can trade cryptocurrencies. It supports hundreds of the most commonly traded cryptocurrencies. Binance provides a crypto wallet for traders to store their electronic funds. The exchange has supporting services for users to earn interest or transact using cryptocurrencies.
What will you use Coinbase for best answer? ›In a nutshell, Coinbase is a cryptocurrency exchange where you can buy popular coins like Bitcoin, Ethereum and Solana. Not every coin is supported on Coinbase, but there are more than 120 different types of cryptocurrencies on the platform.
Is Binance a good choice? ›Binance offers a relatively secure, versatile way to invest in and trade cryptocurrencies. The platform could be overwhelming for both beginners and experienced traders. Binance offers lower fees than many other cryptocurrency exchanges.
Is Binance allowed in USA? ›The American branch of Binance, the giant cryptocurrency exchange, said late on Thursday that it would no longer allow customers to trade on its platform using U.S. dollars, after its banking partners cut the firm off in response to a crackdown by federal regulators.
Should I keep my crypto on Binance? ›Binance is one of the safer exchanges compared to others. So if you're actively trading crypto and need to keep it on an exchange, Binance is a pretty secure choice. However, if you're holding large amounts of crypto long term, a private hardware wallet may be a better choice than keeping it on an exchange.
Why are people buying Binance accounts? ›There are a number of reasons why people might be interested in buying Binance accounts. Perhaps they're looking to get involved in the cryptocurrency market and want to use one of the most popular exchanges. Or, they could simply be looking for a way to trade more easily and efficiently.
What is the advantage of using Binance? ›High Liquidity: Binance is one of the largest cryptocurrency exchanges globally, which means it benefits from high trading volumes and liquidity. High liquidity ensures that traders can easily buy or sell cryptocurrencies without significantly impacting market prices.
Is there a fee when you convert in Binance? ›Binance Convert offers an easier and faster method of conversion, with no fees. It also allows you to convert your digital fiat currencies to crypto after deposit and vice versa for withdrawal.
Does Coinbase report to IRS? ›
Yes, Coinbase reports to the IRS. It sends Forms 1099-MISC to the IRS for U.S. traders who made more than $600 in crypto rewards or staking.
Is Coinbase the best option? ›Coinbase is a great way to help beginners get started, but it can be expensive. Understanding how they charge fees for buying and selling crypto may help you save a lot. Coinbase charges maker-taker fees as high as 0.6%. 9 Of course, makers pay less than takers and higher trade volumes mean lower fees.
What do most people use Coinbase for? ›Coinbase is a secure online platform for buying, selling, transferring, and storing cryptocurrency (crypto). Our mission is to create an open financial system for the world and to be the leading global brand for helping people convert crypto into and out of their local currency.
Is Binance 100% safe? ›Binance has been mostly safe for people's information and funds, and the fact that they covered the losses themselves says a lot about them. On top of that, according to Zhao, the transaction was only around 2% of the total Bitcoin holdings of Binance.
Is my money safe at Binance? ›Never Keep Your Funds on an Exchange
Binance has long been considered one of the safest cryptocurrency exchanges. It offers extensive security options and gives users control over their funds. While Binance has experienced security issues, so have all major cryptocurrency exchanges.
You are responsible for keeping your Binance Account password safe, and you may be responsible for all the transactions under your Binance Account, whether you authorised them or not. Transactions in Digital Assets may be irreversible, and losses due to fraudulent or unauthorised transactions may not be recoverable.
Which is safer Coinbase or Binance? ›Binance and Coinbase offer robust security features to protect users' digital assets. However, Coinbase appears more transparent about its steps to keep customers' funds safe. Here are a few of the security options available on each platform.
Is Binance more expensive than Coinbase? ›The difference in fees between Binance and Coinbase is fairly significant. Overall, Binance charges much less for trading cryptocurrencies as well as funding your account. Coinbase charges users an average flat fee of approximately 0.50% per transaction.
Are Coinbase fees higher than Binance? ›Analysing this metric in this Binance vs Coinbase comparison, it's clear that Binance has the lowest trading fee percentage of 0.10%, while the second place goes to Coinbase with a fee of Up to 3.99%.