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Coinbase vs. Binance 2022: Which Is Better?

Updated: Aug 4th, 2022
Kevin Groves
Kevin Groves
Coinbase vs. Binance 2022: Which Is Better?

In this comparison article between Coinbase and Binance, we will compare the largest and most popular cryptocurrency trading platforms in the world. Ranked #1 and #2 for the highest daily trading volume and liquidity, both exchanges are widely used for buying, trading and selling crypto.

Coinbase is better-suited for beginners and newer investors that are looking to buy cryptocurrency with fiat. The platform and mobile app are purpose-built for simplicity and ease of use. In contrast, Binance is geared towards serious crypto traders with its cheaper trading fees, professional trading terminal and variety of markets to trade.

Common features on Binance and Coinbase include fiat-to-crypto services to deposit traditional money, advanced trading options, staking services, mobile app and comprehensive educational articles. However, there are specific differences between the two that we will compare.

We have broken down each of the major aspects to determine which exchange is the better option against important criteria such as supported currencies, features and services, payment methods, trading fees, security and customer support so you can decide which exchange is right for you.

Binance Overview

HedgewithCrypto Score
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4.8/5Our ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
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Trading Fees:0.1%
Country:Global (USA allowed)
Currency:AUD, USD, EUR, GBP, SGD & UGX
Promotion:20% off trading fees
Ease of useStarStarStarStarEmpty Star
ReputationStarStarStarStarStar
Deposit methodsStarStarStarStarEmpty Star
FeesStarStarStarStarStar

Binance features over 600 coins across 1,634 trading pairs. The exchange is available for traders globally to access a robust and reliable trading environment with its powerful charting and trading engine. While the company has faced regulation issues in several countries, Binance is undeniably a top cryptocurrency exchange for retail and institutional investors worldwide in supported countries to use its broad range of products and services.

An innovative and advanced trading platform, a wide selection of markets, deep liquidity and world-class security are features that Binance is best known for. The exchange has branched out to provide an all-in-one platform that includes NFT's, staking services, yield farming, lending and borrowing, crypto debit cards, leverage trading, OTC services and more.

The advantage of Binance is focused around the feature-rich platform that can be used for buying, trading, storing, staking, earning and selling crypto in a single platform. The abundance of supported coins and markets to trade is second to none and includes a sophisticated desktop interface and mobile app. Coupled with a maximum trading fee of 0.1% per trade and small spreads, Binance is a popular option for professional retail and institutional traders. On the flipside, the abundance of features can be daunting for new users that just want to buy crypto with fiat currency.

Coinbase Overview

Coinbase is a reputable and trustworthy financial services platform within the cryptocurrency industry. Coinbase is the first crypto exchange to become a public company listed on the Nasdaq with the ticker COIN. Founded in June 2012, Coinbase is one of the oldest crypto exchanges that allow individuals in more than 200 countries to buy, trade, store and sell digital assets such as Bitcoin, Ethereum and 200 others. Based in the United States, Coinbase is one of the best crypto exchanges.

In short, Coinbase is ideal for first-time investors and beginners. The availability in multiple countries, variety of fiat deposit methods and range of cryptocurrencies make it easy for anyone to get started. For intermediate traders, there is the option of using its advanced platform Coinbase Pro. However, the overall fees to buy, deposit, trade and withdraw are quite high compared to other exchanges.

Coinbase vs. Binance: Quick Comparison

BinanceCoinbase
Website
Promotion20% off trading fees$5 BTC bonus (USA only)
Fiat CurrencyAUD, USD, EUR, GBP, SGD & UGXUSD, GBP, EUR, CAD, SGD, NZD & AUD
Supported Cryptocurrency600+250+
Deposit MethodBank transfer, SEPA, Bank card (VISA) & SWIFTBank transfer, SEPA, wire transfer, debit card, Faster Payments, 3D Secure Card & PayPal
Max. Trading Fee0.1%0.5%
Recurring OrdersYesYes
Mobile AppYesYes
Overall Rating
HedgewithCrypto Score
HedgewithCrypto Score
4.8/5Our ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
StarStarStarStarEmpty Star
Visit Binance
HedgewithCrypto Score
HedgewithCrypto Score
4.8/5Our ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
StarStarStarStarEmpty Star
Visit Coinbase
ReviewRead our full Binance reviewRead our full Coinbase review

Coinbase vs. Binance: Features

There are several differences between Coinbase and Binance that will determine which exchange is better for the individual. Coinbase is geared towards providing a secure and beginner-friendly onramp for customers to convert fiat currencies into cryptocurrencies such as Bitcoin, Ethereum and XRP.

Coinbase is designed for ease of use with a visually appealing user experience to monitor a crypto portfolio at any time or place using the app. These are the key strengths of Coinbase and the reason for its popularity amongst newer investors. Customers that create an account with Coinbase will have access to:

  • An easy to use exchange to buy and sell crypto
  • Modern and beginner-friendly mobile app
  • Educational guides and videos to learn about crypto
  • Coinbase Earn to earn crypto while learning
  • A secure digital wallet
  • Coinbase Card to spend crypto
  • Borrow cash using Bitcoin as loan collateral

In comparison, Binance is one of the best alternatives to Coinbase as it offers a premium exchange for trading cryptocurrencies with a maximum fee of 0.1%. While it lacks the simplicity and ease of use that beginners may be looking for, Binance has a world-class trading terminal and charting platform that is suited for experienced investors. The exchange has deep liquidity across its expansive list of supported markets and coins with much lower spreads.

The best part about Binance is that the platform caters to a broader audience of crypto enthusiasts with products and services. Examples of features on Binance that are not offered on Coinbase include:

  • Margin, derivatives and leveraged tokens
  • Option and P2P markets
  • Grid trading
  • DeFi and liquidity farming
  • Market place to buy and sell NFTs
  • Lending and borrowing
  • Crypto mining pools

While there are limitations in features on Binance.US, customers outside the United States can use an abundance of services to grow their portfolio that are not available to users on Coinbase. There is something for everyone on Binance that will appeal to new and existing customers.

Binance NFT MarketplaceBinance NFT MarketplaceBinance NFT Marketplace.

Binance vs. Coinbase: Supported Coins

Binance is best-known amongst altcoin traders for its large selection of cryptocurrency assets. At the time of writing, Binance supports 600+ coins across several markets that are available and is one of the best altcoin platforms for this reason. However, the list of assets for US residents on the Binance.US platform is significantly reduced and limited to 50 cryptocurrencies.

In contrast, Coinbase offers 250+ crypto projects across its exchange that are available for customers to buy, trade and sell worldwide, including the United States. Therefore, Coinbase is a better option for individuals that reside in the United States compared to Binance.US in terms of supported coins at the time of writing.

Coinbase asset listCoinbase asset listCoinbase asset list.

For customers located outside of the US, Binance offers a greater list of altcoins compared to Coinbase. These coins can be traded on several markets (e.g. leveraged tokens, futures, margin etc) against Bitcoin, Ethereum, XRP, Tron, Binance Coin, Doge, Fiat and Stablecoin pairings. This is unique to Binance and gives the individual more flexibility to switch between assets using the collateral of choice. Customers within the United States have more options to buy cryptocurrencies with USD on Coinbase.

Coinbase vs. Binance: Fees

The fees on Coinbase for buying, trading and sell is quite complex and can vary based on the individual's location, payment method, order size and volatility at the time of the transaction. The trading fee is based on a maker and taker model which starts at 0.5% per transaction and decreases with increased volume. There are additional payment fees such as USD 10 and USD 25 for deposits and withdrawals using a wire transfer.

Trading Volume (30 day)Binance Fees (without BNB)Coinbase Fees
$0 - 10K0.1% / 0.1%0.5% / 0.5%
$10K - 50K0.1% / 0.1%0.35% / 0.35%
$50K - 100K0.1% / 0.1%0.25% / 0.15%
$100K - 1M0.1% / 0.1%0.20% / 0.1%
$1M - 10M0.08% / 0.1%0.18% / 0.8%

Binance uses a similar fee structure for makers and takers. The highest fee starts at 0.1% per transaction and can be reduced via increased trading volume and holding BNB tokens for a 25% discount. The latter is not offered on Coinbase. Serious crypto traders that often trade above 1 million per month may consider using Coinbase for 0% maker fees, however, this bracket is out of reach for the majority of customers.

In short, Binance is the cheaper exchange for retail customers with a maximum fee of 0.1%. The fees on Coinbase are more expensive compared to Binance for users that trade below 1 million in volume per month. The expensive fees are a major reason Coinbase users switch to Binance. For a list of the top competitors to Coinbase with cheaper fees, read this article.

Coinbase vs. Binance: Ease of Use

Coinbase is designed for new investors and beginners with its easy-to-use and modern user interface on desktop and mobile app. The whole process for buying, trading and selling cryptocurrency has been streamlined. This includes creating an account, ID verification, adding a payment method, selecting a crypto, making a purchase and monitoring the portfolio. The entire process is easy to follow with minimal distractions or confusing features.

Bitcoin overview on Coinbase.Bitcoin overview on Coinbase.Coinbase overview of Bitcoin.

In contrast, Binance provides everything in a single platform which means users need to know what they are looking for. Binance attempts to bridge the gap between beginners and serious crypto traders with specific features for both. There are many features available on Binance that can be difficult to navigate and therefore may not be suitable for beginners. For experienced traders, they will be comfortable using the advanced charting by Tradingview and selection of order types.

Both exchanges offer a mobile app for iOS and Android devices with access to the list of features available on the desktop version. According to reviews on the Android market place, the Binance app has a rating of 4.2/5 compared to 4.3/5 for the Coinbase app. Like the desktop version, the Binance app is better suited to experienced users, whereas the Coinbase app is designed for convenience, ease of use and quick trading.

Coinbase vs. Binance: Staking

Coinbase and Binance both offer cryptocurrency staking for its customers to earn rewards on crypto assets held on the exchange. Coinbase introduced staking to its platform for users to earn up to 5.0% APY on popular staking coins like Cardano, Ethereum 2.0 (ETH2), Tezos (XTZ), Cosmos (ATOM) and USD Coin (USDC). Individuals within the USA can purchase or transfer Proof-of-Stake (PoS) coins to a Coinbase wallet from as little as USD 1, however, however, there is a 25% fee on staking rewards.

Binance on the other hand is one of the best cryptocurrency platforms for staking due to its variety of supported coins. There are currently 88 coins that can be staked on Binance under a fixed, or flexible arrangement. In comparison, there are 6 staking assets on Coinbase at the time of writing. For individuals that want to maximize the performance of their crypto portfolio, Binance offers a superior staking service compared to Coinbase due to its higher APY's, bigger selection of coins, various staking arrangements and 0% fees.

Binance stakingBinance stakingStaking cryptocurrency on Binance.

Coinbase vs. Binance: Security

Binance and Coinbase are both industry-leading platforms with advanced security measures and protocols to ensure the safety of customer funds and information. 98% of users funds are held within offline security hardware storage facilities on Coinbase which are completely offline from the internet. Moreover, Coinbase has AES-256 encryption, 2 Factor Authentication (2FA) and FDIC insurance policy against theft and exchange hacks up to $250,000 per person. Overall, Coinbase is a relatively secure exchange for buying and sell cryptocurrency that has never been hacked or compromised since its inception.

Similarly, Binance features cutting-edge security measures such as cold wallet storage, wallet and IP address white listing, API secure management and 2FA. Binance has a Secure Asset Fund for Users (SAFU) that stores 10% of all trading fees in a secure fund to protect a share of user funds against losses incurred due to a security breach. While Binance was hacked in 2017 for over 7,000 Bitcoin's, the exchange has equally been a relatively safe exchange since this incident.

Frequently Asked Questions

Both Binance and Coinbase are leading cryptocurrency exchanges that implement bank-like security measures to protect users' funds and personal details. While Binance was hacked in 2019 for 7,000 BTC, Coinbase has never had a security incident and has a better safety record.

Binance is one of the cheapest crypto exchanges with a maximum trading fee of 0.1% that can be reduced based on trading volumes. There are also zero trading fees on several Bitcoin pairs. In contrast, the fees on Coinbase are more expensive and start at 0.5% per order.

Conclusion: Which Is Better?

Both Coinbase and Binance are professional trading platforms for buying and selling cryptocurrencies. Finding the right exchange depends on the individual objectives and experience level.

Coinbase is an ideal platform for beginners that want to buy and sell crypto using an easy-to-use mobile app to monitor the portfolio 24/7. While Coinbase does not offer cryptocurrency leverage trading, NFT's, or decentralized finance products, it is one of the best exchanges for customers in the United States due to its regulatory compliance in the country.

On the other hand, Binance is an all-in-one platform that allows individuals to do more with their crypto beyond buying, trading and selling. The exchange is one of the best for staking crypto, earning interest on cryptocurrencies and trading derivatives. In short, Binance is best for advanced users and experienced traders.

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Kevin GrovesKevin GrovesKevin Groves

Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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