2022 crypto wallet reviews | Binance US vs Binance vs Coinbase vs Coinbase pro
2022 wallet reviews bring us to compare the four most essential apples in the Crypto wallets. Yes, you are right. We are comaparing Binance us vs Binance vs Coinbase vs Coinbase pro.
What are Binance and Coinbase?
Coinbase, a U.S.-regulated cryptocurrency trading platform, allows users to send, buy, sell, and receive altcoins through a mobile app or web browser. Binance is another exchange. However, it has the most significant cryptocurrency volumes and is not considered U.S.-regulated. That is why not all functions or coins are available for U.S. users.
Binance offers advanced transaction types such as stop-limit and limit orders, market orders, and post-only orders. It also supports peer-to-peer trades, and the U.S. has fewer options.
How do Binance and Coinbase work?
These platforms can be used as an online broker for cryptocurrency. To trade, buy or sell digital currencies, users deposit fiat money. Both signups are similar, but international Binance users will not need to present a photo I.D. to verify their account. Binance.US does require a photo I.D.
In both cases, you will create an account, verify your email and add funds using an acceptable method. When ready to trade, go to the exchange platform and complete an order for your desired altcoin. Follow the on-screen instructions. You can withdraw the cryptocurrency from the exchanges, move it to a digital wallet, or trade it.
Is it safe to hold cryptocurrency on the Binance and Coinbase exchanges?
Binance and Coinbase are two of the most popular crypto exchanges. However, it is recommended that users store their funds in a physical wallet to save long-term money. Hackers can target any currency held online. Many exchanges suffered breaches in 2019, including Binance, and Coinbase claimed that it has never been hacked. Still, mistakes can occur on your part, which could put your coins at risk.
Binance and Coinbase both insure hot storage. However, it is safer to store your cold storage locally via a hardware wallet. To access your digital currency, you will need to connect your hardware wallet to your computer.
Who should use Binance and Coinbase?
Coinbase is ideal for beginners who value security and convenience. It is easy to use and intuitive. The application opens with a simple interface that offers minimal options. It’s a U.S.-based, trusted exchange that is an excellent fit for anyone interested in trading or buying cryptocurrency. You will pay more for convenience deposit and withdrawal options.
Binance is best for experienced investors who want advanced trading options and lots of analytics to support their strategic decisions. There will be some learning curves for novice users, and it becomes much more manageable once you get used to the platform. Binance is an excellent choice for those not U.S. citizens and wants a more sophisticated platform. It has low fees, over 500 cryptocurrencies, and is available in more than 180 countries.
How do we evaluate Binance vs. Coinbase?
We looked at Coinbase and Binance to see how they work, the cost, and how simple it is to use. We also looked at Binance. We evaluated the website and mobile apps functionality, access to knowledge bases, and customer service. The fee and feature charts provide a side-by-symbiotic view of security, transaction types, and accepted fiat currencies, payment methods, and cryptocurrencies.
|Main platform features||Intuitive, beginner-friendly platform offering basic transactions, a digital wallet, and withdrawals to PayPal||Lessfees, comprehensive charting options, and many cryptocurrencies|
|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||0.015% to 0.10% purchase and trading fees, 3.5% or $10 what ever is higher for debit card purchases, or $15 per U.S. wire transfer|
|Number of supported cryptos||107||Over 500 for global traders on Binance. 60 available for U.S. investors on Binance.US|
|Security features||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||Two factor authentication (2FA)verification, Federal Deposit Insurance Corporation (FDIC)-insured United States dollars (USD) balances for Binance.US, device management, address whitelisting, cold storage|
|Supported Transaction types||Buy, sell, send, receive, and exchange||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|
|trading amount ( Max)||Limits vary based on your payment method and region||Limits differ based on the cryptocurrency purchased|
|Bank account||1.49%||Free outside of the U.S.|
|Debit/credit cards||3.99%||3.5% or $10 whichever is higher|
|Automated clearinghouse (ACH) transfer||Free||N/A|
|Wire transfer||$10 deposit, $25 withdrawal||$15 per U.S. wire transfer|
|Cryptocurrency conversion||0.50% to 2%||Free, however Binance has a spread above market price|
|Purchases||0% to 0.50%||0.015% to 0.1%|
|Trades||0.50%||0.015% to 0.1%|
|Other fees||$0.99 to $2.99 based on the amount||0.50% instant buy and sell fee|
Coinbase Pro vs. Binance US
Coinbase Pro was launched in January 2015. The initial release of the exchange was under the name “Coinbase Exchange.” Coinbase saw the exchange as a platform that allowed professional investors to trade cryptocurrency via liquid order books. Coinbase has seen a lot of branding changes throughout the years. Still, they are committed to providing a professional trading platform. Coinbase Pro is home to thousands of traders from all over the world, including hundreds of thousands in Europe and the U.S. It is considered the best way to trade cryptocurrency. Over the past year, it has been fascinating to see how these two exchanges have completed.
Binance US is faster than the competition and could be the default U.S. exchange since 2015. Coinbase Pro was the standard U.S. exchange for customers. There is no competition. Coinbase Pro is the most popular cryptocurrency exchange in America. But, this can all change quickly. Binance U.S.A. is moving swiftly, and Coinbase Pro must feel the heat. We predict that Binance US will surpass Coinbase Pro in the next year if it continues to list assets quickly and attract liquidity.
Binance unveiled the first American version of its exchange, Binance US, on September 23, 2019. The exchange initially supported only a few cryptocurrencies, and however, it has seen rapid growth over the past year. Binance US is today a solid competitor to Coinbase Pro. Although they service fewer traders than Coinbase Pro, the exchange is gaining momentum. Binance’s meteoric rise in 2017 has taught us something: a determined team can grow. Binance US, riding on the shoulders of the enormous Binance brand, can potentially disrupt the U.S. crypto market.
The way that each exchange structures its trading fees is one of the most striking differences between Coinbase Pro & Binance US. Despite both exchanges being in the same market, there is a stark contrast between their trading fees. In every way, Binance US’s trading fees are superior to Coinbase Pro. Binance US is more accommodating to small traders who expect to trade less than $50k per month and whales who intend on trading north of $1B each month. Binance US’s trading fees structure would make it easier for traders to succeed.
Coinbase Pro’s trading fees have increased a surprising amount over the past year. The most affected are those who only trade a limited number of trades per month. A shocking 0.5% trading fee will be charged to customers who sell less than $10k. It is the highest trading fee on any cryptocurrency exchange.
Until we reach volumes exceeding $50M, Coinbase Pro’s fees are not competitive with other top cryptocurrency exchanges. It is disappointing that Coinbase Pro has taken a step that negatively impacts small traders since 99.99% of those people are not in that category.
Coinbase Pro Fee Rating: 3.0/10
Binance US is one of the US-based exchanges with the best trading fees tier structure. Customers can immediately save 25% by using B.N.B. to pay fees. The base rate for taker and maker trades is 0.1%, and the only condition is that you have enough B.N.B. to cover the trading fees. Binance US has lowered the rates based upon a customer’s trading volume over the past 30 days or B.N.B. balance. Higher tiers may pay 0.015% taker fees and 0% maker fees, and Binance US fees are unheard of in the cryptocurrency market.
Rated 10/10 by Binance US Fees
Many traders will want to know what assets are available before moving funds to an exchange. How investors allocate capital will depend on the assets available. The crypto market has shown investors to go to the exchanges with the most assets. Binance US is in a neck-and-neck battle with Coinbase Pro regarding asset listing. While Coinbase Pro is a renowned name for listing high-quality assets, Binance US has been able to list assets quickly and consistently. Binance US will continue to grow its asset selection rapidly over the next 12 months in 2022. We could be the leader in this area.
Coinbase Pro currently has 35 assets on the exchange at writing. The Coinbase team carefully vets every asset listed on the Coinbase Pro Exchange. Coinbase Pro can list new assets without any problems or backlash from the community. Coinbase Pro is also known to delist assets after they are listed rarely. Coinbase Pro is a leader in asset selection and has an excellent reputation for selecting viable long-term assets. A listing of an asset by Coinbase can often result in a price increase and increased exposure to U.S. customers. Although Coinbase Pro lists fewer assets than most exchanges, customers can still expect that the listed assets are worth their attention.
- Coinbase Pro Asset Due Diligence: 9/10
- Coinbase Pro Asset Variety: 5/10
Binance US currently has 47 assets on the exchange. Binance US launched its business just one year ago. The quick aggression to list assets as soon as possible shows that Binance is committed to providing a broad range of assets to U.S. customers. That is exciting and will encourage existing exchanges that are competitive to list new assets.
Binance’s selection process is less stringent than the Coinbase Pro’s strict listing procedures. It could compromise between listing assets quicker and being strategic with the range of assets available.
Binance US will need to find a balance in the future between quickly listing assets and maintaining high standards for listed assets.
- Binance US Asset Due Diligence: 7/10
- Binance Asset Variety: 7/10
While individual assets are essential, it is equally important to have trading pairs between them. Traders need to use convenient trading pairs to trade assets between different currencies. Both Binance US and Coinbase Pro have significant problems in trading pair selection. Binance US is more successful than Coinbase Pro in terms of assets. Still, the number of trading pairs available to them is minimal. Coinbase Pro, on the other hand, has more trading pairs than Binance US. Still, it is challenging to navigate the exchange due to the complexity caused by regional restrictions.
Coinbase Pro offers a variety of trading pairs that allow you to combine fiat currencies and cryptocurrencies. Many assets will be equipped with fiat and BTC trading pairs to make it easy to move assets into and out of the market. There are some peculiarities in the way Coinbase Pro creates trading pairs. Trading between assets can require up to three trades, regardless of whether it is intentional.
Let’s say that Loom and Omise go are for sale. Trades between these assets would involve an exchange starting at LOOM -> USDC and then moving to BTC -> USDC before finally ending up at O.M.G. -> BTC. These trades can result in excessive fees and reduce the availability of certain assets if the portfolio is not constructed correctly. Regional restrictions can complicate the issue. Many traders find it difficult to determine which trading pairs can be traded in their region.
Coinbase Pro Trading Pairs 6/10
Binance US has emphasized USD trading pairs. Instead of offering many trading pairs for every asset, Binance US has limited trading pairs that can be used for crypto-to-crypto trading. Only 7 of the 47 assets available on the exchange have BTC trading pairs. That, combined with the lack of other common quotes currencies, makes it extremely difficult to build a portfolio that doesn’t trade with fiat. Binance US is clear that you will almost certainly have to trade between a fiat and crypto market. Unfortunately, cryptocurrency was not intended to replace the traditional monetary system.
Binance US Trading Pairs: 3/10
Liquidity refers to the ability of exchange or another market to handle large orders without affecting the asset’s price. The idea is that trade executions will result in less loss of value if a call is more liquid. The CoinMarketCap metrics and our custom analysis of trades on both exchanges show Coinbase Pro to be the clear winner. Coinbase Pro consistently has higher trading volumes, liquidity, and slippage than Binance US.
Coinbase Pro is an exchange that has been known for its exceptional liquidity. CoinMarketCap shows that Bitcoin, Ethereum, and Chainlink dominate Coinbase Pro’s trading volume. We can also see that most high-cap assets have liquidity scores in the 300-600 range when looking at CoinMarketCap’s liquidity rankings.
- Trades: 96768
- Orders: 43788
- Slippage in percent orders: 26.86%
- Percentage orders with slippage greater than 0.01%: 6.733%
- Percent Orders with Slippage More Than 0.05%: 0.41
- Percentage orders with slippage greater than 0.1%: 0.03%
- Maximum percentage of any order that was not fulfilled: 0.187%
- Coinbase Pro Liquidity: 8/10
Binance US struggled to attract large volumes on the exchange initially. The above image is taken from CoinMarketCap. It quickly shows that trading pairs have much lower volumes than Coinbase Pro. We often see more inferior liquidity when volumes are lower. It is evident in CoinMarketCap’s liquidity metrics, which show liquidities for each asset generally between 100 and 300.
- Number of trades: 99191
- Total number of orders: 4680
- Slippage percentage: 30.00%
- Percent Orders with Slippage More Than 0.01%: 15.64%
- Percent Orders with Slippage More Than 0.05%: 2.31%
- Percentage orders with slippage greater than 0.1%: 0.19%
- Maximum percentage of any order that was not fulfilled: 0.162%
- Binance US Liquidity: 3/10
Accessibility in the U.S.A.
Trading cryptocurrency on Coinbase Pro or Binance US is impossible in all states due to strict compliance and regulatory requirements.
Binance US is a new company that has just launched in the United States. However, they are already compliant in most states. There are still some states where customers will not register to trade. The following states do not currently have Binance US:
- New York
- North Carolina
Coinbase Pro is available to trade in the United States, unlike Binance US. It has been around for more than five years. Coinbase has been compliant in almost every state over the years to enable customers to trade cryptocurrency. Coinbase Pro is not currently available in Hawaii.
- Coinbase Pro Availability: 9/10
Customers visit cryptocurrency exchanges to trade. Therefore, exchanges must have the trading features required for investors to execute effective trading strategies. Coinbase Pro doesn’t offer many trading options, and Coinbase Pro provides only the most basic trading features. Binance US, on the other hand, is adding more features to try to catch up with the core Binance.com platform. This exchange has the most trading options in the crypto market.
Binance US is based upon the famous Binance.com trading features, and Binance US stands out with a wide range of trading options. We expect Binance US to continue expanding into futures, margin trading, and other decentralized applications in time.
- Primary trading terminal: The basic terminal allows new traders to start trading on Binance US quickly.
- Advanced trading terminal: This allows skilled traders to use more sophisticated tools.
- O.T.C. Trading – O.T.C. Trading is available to institutions that want to trade large volumes on Binance US.
- Spot markets – Binance US offers spot market trading only.
- Limit orders: Limit orders can be placed on any market for any trading pair.
- Market orders – Market Orders are available for the spot market.
- Automate Stop-limit Orders – The “stop-limit order type” can automate stop-limit orders.
- O.C.O. orders – Advanced traders can place one-cancel-the other orders
- Flexible Staking – Investors can automatically get staking rewards for certain assets they hold on the exchange by using flexible staking
Binance US Trading Features 7/10
- Primary trading terminal: The basic Coinbase Pro terminal allows minimal trading functionality. It is excellent for beginners, but advanced traders will want more.
- Spot markets: Coinbase Pro offers only support for spot markets.
- Limit orders: Limit orders can be placed on any spot market trading pair.
- Market orders: Market orders can be manually executed for each trading pair.
- Stop orders: These orders protect against flash crashes.
Coinbase Pro Trading Features: 4/10
It can be difficult to trade on an exchange. Software is essential for automating strategies, monitoring trades 24 hours a day, segmenting funds into multiple portfolios, and monitoring transactions. Most exchanges do not support many portfolio management features. Portfolio management platforms such as Shrimpy are the most popular choice for customers. With Shrimpy, traders can automate their portfolio strategy, split funds into multiple portfolios and track funds over time in an easy way. Shrimpy allows investors to connect multiple exchanges through one interface. All portfolios can be managed using the same set of features across all exchanges.
Coinbase Pro has “Portfolios,” allowing customers to divide their funds into multiple portfolios. Each portfolio can be tracked, traced, and managed separately. A portfolio feature is only a fraction of most customers’ needs when working their money. It’s great to see Coinbase Pro starting to add more portfolio management features.
Coinbase Pro Portfolio Management: 3/10
Binance US does not support portfolio management at this time.
Binance US Portfolio Management: 1/10
Methods of funding
Transfer money to exchange before you can trade cryptocurrency. The majority of investors will purchase their first cryptocurrency using a fiat currency. This section will discuss the fees associated with fiat transactions on Coinbase Pro or Binance US. While Coinbase Pro offers more options to purchase cryptocurrency via the main Coinbase website than Binance US, Binance US is more aggressive in providing the lowest fees. For new customers looking for the lowest deposit fees, Binance US has a slight advantage because of the lower fees.
Coinbase Pro supports a range of buying options, including wire transfers and debit card purchases. It also allows you to connect directly with U.S. bank accounts. Transactions generally cost between 1.49% and 3.99%.
Coinbase Pro Funding Options & Fees: 7/10
Binance US accepts wire transfers, A.C.H. transfers, and debit card purchases. Binance US offers a variety of funding options with fees that range from 0% to 3.4%. We find these options to be attractive.
Binance US Funding Options & Fees: 7/10
We must do our research to ensure that we are comfortable with the security measures before trusting any exchange with our money. It is safer to remain safe than to deposit funds on an exchange if there are concerns about its security. These two exchanges have never considered security as an afterthought. Both exchanges have a long history of security and aggressive protection of user funds. They also do the right thing when faced with uncertainty.
Coinbase Pro is a vital security fortress. Coinbase Pro has not been hacked to the point that it could compromise its system security.
Coinbase Pro Security: 10/10
Binance’s security has been a top priority. While there have been some minor security breaches in Binance, the team has been transparent and quick to address them. They are also constantly improving their infrastructure. The security measures are in place. However, the Binance team has set an excellent standard for the SAFU fund. Binance US traders should not doubt the security of their funds.
Binance US Security 10/10
It isn’t always easy to find an elegance in the cryptocurrency market. Many cryptocurrency projects place technology first, while usability is a distant second. We believe that U.I. and UX are crucial aspects of providing a user-friendly product when trading crypto. Customers can take unintended actions and even lose their funds if they have confusing interfaces. The exchange should make every effort to avoid misinterpretations that could result in the loss of funds.
Coinbase has been focused on simplicity and ease of use as a company. That has been evident since the Coinbase online wallet service was launched, and Coinbase Pro is still an elegant masterpiece. Clear user flows, simple designs, and clear instructions are part of Coinbase Pro. Coinbase Pro is the industry standard for customers who are just starting to get into cryptocurrency. No better place is there to begin your journey as a beginner in crypto.
Coinbase Pro U.I.: 10/10
Binance US is based upon the internationally tested and validated Binance.com exchange design. The beautiful and straightforward interface is one of the main reasons Binance rose quickly to popularity. Binance US makes it easy to deposit funds, execute trades, manage orders and withdraw funds. Binance US is a safe and secure platform.
Binance US UI: 9/10
Binance US vs. Binance review 2022
Binance US is a great place to trade. Binance US is the only option for those located in the United States, and Binance.US is the only option for those not based in the United States. This blog will discuss the main differences between each platform.
In recent years, the cryptocurrency industry has made great strides. Crypto traders now have a wide range of trading options. You can trade on decentralized and centralized exchanges and brokerages like Robinhood.
Binance is the most popular centralized exchange. It’s a great exchange that offers a lot of liquidity, but it is not available to U.S. citizens. This blog will explain the differences between Binance.US and Binance.US so that crypto traders can better understand what to expect when trading on each platform.
Binance US vs. Binance
Binance was founded by Changpeng Zhao, also known as C.Z., in 2017. Zhao has a high-frequency trading software development background and executive work at OKCoin, a cryptocurrency exchange.
Binance quickly became the most popular cryptocurrency exchange worldwide since its inception. Binance has low fees, ample liquidity, and high transaction costs. There are currently more than 500 cryptocurrencies available on the exchange and over 1200 trading pairs. It is a great place to trade crypto assets as investors have the freedom to choose from almost any digital asset.
Binance, despite its fame and size, has faced problems with regulators. Binance moved to Malta in 2017 after it left China. After Binance announced that Binance wasn’t under its jurisdiction in January 2017, the exchange quickly changed its position and declared it didn’t have headquarters. It was because Bitcoin doesn’t have a central headquarter.
C.Z. stated the following at the Ethereal Virtual summit in May 2021. CZ is Binance’s leader, but he does not manage Binance.US. Binance.US had announced in April 2021 that it had hired Brian Brook to be its C.E.O. Brian Brooks also served as Donald Trump’s Acting Comptroller for the Currency.
Binance.US was launched in September 2019 to provide services for customers in the U.S.A. Although it was slow to start, Binance.US is now one of America’s most popular cryptocurrency exchanges. In April, Binance.US celebrated a significant milestone when it announced that its total trading volume had surpassed $28 Billion.
Let’s now get to the core of Binance.US and Binance.
While bitcoin is the most widely used cryptocurrency, many crypto traders wish to have a diverse portfolio that includes projects from many areas of the crypto market. Our team has created an index trader that will allow customers to trade any combination of cryptos that meets their needs. It will be available soon in 2022.
To diversify, customers must be able to trade many altcoins. Binance is the undisputed leader in cryptocurrency listing. How does Binance.US compare?
Binance might not have as many cryptocurrencies available as decentralized exchanges like Uniswap. Still, it is one of the most popular centralized exchanges. Binance offers over 500 cryptocurrencies and has over 1200 trading pairs for customers. That makes Binance an excellent choice for crypto traders who value having the best coins available.
Binance.US is a fast-growing exchange considered one of the most popular in the United States. However, it is not as good as its parent company Binance.
That isn’t due to Binance.US failings but to regulatory hurdles that it must overcome. Binance.US currently offers trading in 53 cryptocurrencies, including stablecoins.
Verdict: Binance.US ranks relatively well with other U.S.-based crypto exchanges like Kraken, Coinbase, and Gemini regarding the number available for trading. It cannot, however, compete with Binance, its parent company.
Binance.US vs. Binance.US: Which exchange charges the lowest trading fees?
When deciding where to trade, trading fees are significant, and Binance has some of the best cryptocurrency trading fees anywhere. U.S. citizens might be wondering if Binance.US can match Binance in this category. Binance has a tiered fee structure that clearly shows what trading fees customers will be charged based on their level.
V.I.P. 0, the lowest volume level, trading fees are 0.1%. Both takers and makers pay 0.1%. V.I.P. 9 trading fees are charged to customers with enough volume to be eligible for V.I.P. 9. Customers can also reduce fees in several ways. Customers can choose to pay trading fees using Binance’s native token B.N.B. That will reduce the fees by 25%. Referring friends to Binance is another way fees can be cut. Referring friends to Binance is another way to reduce fees. Users who pay fees with B.N.B. will only pay 0.06% per trade. That is one of the most attractive deals in crypto.
Binance.US offers the same low trading fees as Binance.US. The only difference is that Binance.US offers 10 V.I.P. levels, while the international platform has only 9. For most traders, this won’t matter. Binance.US customers will be able to benefit from the same discounts as Binance. Referral bonuses and a deal for holding B.N.B. both are available. Binance has the lowest fees in the industry, even after discounts.
Verdict: This tie is specific. Binance.US has the same low trading fees as Binance. Although Americans won’t have as many cryptocurrencies available on the U.S. platform, they will still pay the lowest trading fees anywhere in the world.
Binance.US vs. Binance: Which Exchange Has More Liquidity
Liquidity is the ability to swap assets for other assets. Traders desire to be able to convert one asset to another without having an impact on the asset’s price. It is more challenging to trade less liquid assets without a significant price impact. Liquidity is an essential consideration before you decide where to change.
Binance has become the largest cryptocurrency exchange in the world. Binance’s spot trading volume was $1.5 trillion in May, 63% more than April. The volume traded on Binance was significantly greater than its closest competitors, Okex and Huobi.
Binance does not allow U.S. Dollar trading or deposits. Most of the volume is against stablecoin pairs like BTC/USDT, BTC/USDC, and BTC/BUSD. BUSD is Binance’s native stablecoin. Another thing to remember is that Binance has more volume than other exchanges. But that volume is spread over a more significant number of cryptocurrencies than other exchanges like Coinbase or Kraken. It is essential to examine the asset you are interested in trading to determine its liquidity (or inability to liquidity).
Binance has evolved from being a non-player in U.S. crypto markets a few quarters back to doing significant volume. Binance.US may be poised for a bright future with the recent hire of Brian Brooks. Brian Brooks certainly has the connections that will allow him to tap into the right areas.
What about right now? Binance.US doesn’t have quite the same liquidity as Binance. The volumes of the top-traded pair on each exchange in the last 24 hours are BTC/USDT (Binance) and BTC/USD (Binance.US).
- BTC/USDT: > $3 Billion
- USD/BTC: $66 Million
Although this is only one example, it highlights the differences between Binance.US and Binance. Although small traders will not impact any exchange, traders would instead trade against the more important book.
Verdict: Binance is the clear winner in liquidity. Binance.US has been around longer and has become the largest cryptocurrency exchange in the world. Binance.US has become one of the most popular U.S. cryptocurrency exchanges in just a few short years. Binance.US looks bright in the future.
Binance.US vs. Binance exchanges
Binance.US and Binance are the two most well-known cryptocurrency exchanges. Binance.US has been around for longer and is the leader in crypto trading. However, Binance.US increased and has hired Brian Brooks as its C.E.O. Binance.US has the advantage in most categories over Binance.US, but Binance is not available to customers living outside the United States. Binance.US is the only account that U.S. citizens can open if they trade with Binance.
Although Binance is the most popular choice for crypto traders around the globe, regulators seem to be growing tired of it. The U.K.’s financial watchdog banned Binance Markets Ltd. from operating in the United Kingdom on June 27, 2021. Binance will likely have to make hard decisions as countries around the globe continue to regulate cryptocurrency.
Coinbase vs. Binance
Binance and Coinbase are the two largest cryptocurrency exchanges online. Coinbase is one of the most established and oldest markets, and it was established in 2012 and trades on the NASDAQ exchange. Binance, initially founded in China in 2017, now has its headquarters in the Cayman Islands, where it can be operated independently. Here are the details about each platform. As you choose a cryptocurrency market, it is worth consulting a financial advisor.
Coinbase: A good option for Mainstream Investors
Although cryptocurrency is new, it has already grown into a complex and confusing field that can be confusing for the uninitiated. There are enormous opportunities for gains with Bitcoin and other cryptocurrencies, seeing extreme price fluctuations. Suppose you’re willing to take the risk. Coinbase is one of the most popular platforms.
There are fewer features, but there is more vetting.
Coinbase is an American cryptocurrency trading site. It offered over 50 currencies for trading at the time of writing, including all major cryptocurrencies like Bitcoin, Ethereum, and X.R.P.
Coinbase’s greatest strength and the weakest point is its selection of tokens to trade. Coinbase offers only a tiny fraction of the many cryptocurrency assets available today, so it does not have all the tokens mainstream investors want to trade. It is generally a positive thing for most investors.
The level of fraud and mismanagement of digital assets is one of the biggest problems in the cryptocurrency industry. Scams are typically operations that attempt to steal investors’ money by promising a product that is not there. There are many others in a legally dubious area. Investors could lose their money if they crack down on any cryptocurrency asset. Investors can be exposed to significant risks due to fraud and legal issues.
Coinbase only offers assets that have been generally vetted. It also imposes KYC protocols to help reduce fraud incidents. The result is that sophisticated traders might not find new or emerging assets that the broader market has yet discovered. Investors will not be exposed to the risk of being scammed or harmed by the loose legality associated with cryptocurrency markets.
It’s easier to use
Coinbase was designed to appeal to the retail market. The trading interface is easy to use and display. It is easy for investors to find prices, volumes, and other pertinent data. Executing trades is also very simple. This design feature is precious because cryptocurrency, as all currency markets, allows investors to swap any currency within their portfolio. That can lead to complex needs, and Coinbase’s simplicity of use makes it worth the effort.
Investors can also find valuable and significant resources in this market to help them learn more about cryptocurrency. Coinbase provides educational resources and articles that will help traders understand the market.
This ease-of-use comes at the expense of sophistication. Because the market’s trading screens don’t have all the technical data an investor might need, they are simpler to understand. The same goes for its tools for executing trades. For most investors, this will not be an issue. Still, Coinbase may prove too complicated for those looking for more sophisticated trading.
Coinbase is expensive. The platform charges 0.5% for all trades below $10,000. There is a sliding scale for reduced fees for trades above that amount. It charges 1.49% on all bank transfers and 3.99% for credit and debit card transactions. It is more expensive than Binance, as will be shown below.
Binance: Potential value, potential risk
Binance’s strengths and weaknesses may not be the most important. However, due to a lack of regulatory compliance, U.S. investors could not access it as of mid-2021. Binance U.S.’s platform is a sub-brand of Binance, and however, it offers fewer products and has higher rates.
Higher risks equal more opportunities.
The binance U.S. advertised over 500 cryptocurrency assets that could be traded at the time of writing. It makes Binance U.S. a better marketplace for investors to search for undervalued or emerging assets than Coinbase. However, Binance U.S. offers only 50 cryptocurrencies to trade. Binance is also free from most regulations and doesn’t have the Know Your Customer process like Coinbase to add more assets faster.
That would make Binance a better place for speculators if the assets were secure. It is a giant leap in cryptocurrency.
As mentioned above, the cryptocurrency market is rife today with fraudulent and illegal assets. These assets will be listed on Binance side-by-side alongside legitimate cryptocurrency assets. Investors are exposed to considerable risk by this. They cannot tell the difference between undervalued tokens or ones that the market is trying to avoid because they’re scams.
Binance’s easy-to-use approach to investing in undervalued assets would be a better option in a different market. This approach is primarily dangerous in cryptocurrency because it can be a minefield of investments and could disappear at any time. This approach may be attractive to some investors. Still, it is essential to remember that even the most sophisticated investors can lose their investments.
A complete toolkit
You can use this phrase to determine if Binance’s trading platform is right for you: “Binance provides custom API keys and custom-charting options for investors.” Binance might not be suitable for you if that is the case.
Binance has a more excellent range of trading data than Coinbase. Binance can access more data and provide more advanced data to allow you to create charting options that are not available on the other platform. That is also true for trading positions, and Binance will enable investors to make more complex trades than Coinbase. Access to API keys also means that advanced users can develop third-party services and link them with Binance.
However, all this depth comes at the cost of simplicity. Binance’s toolkit may be overwhelming for retail investors. It’s easy for retail investors to lose themselves in Binance’s toolkit if they only want to buy low and sell higher.
Simpleness and sophistication can sometimes conflict with trading platforms. Binance provides the complexity that sophisticated traders (as opposed to retail investors) may require, but at the expense of the simplicity that Coinbase offers retail investors.
Binance has lower rates than Coinbase. Most trades are subject to a 0.10% fee, and the platform charges 0.1% for bank transactions and 2.10% on all credit/debit card purchases. These fees are much lower than Coinbase’s, and they will be precious to high-volume traders, who could see much of their margins being eaten up by Coinbase’s higher fees.
Which one is the best depends on what you need from crypto trading? We have tried to present the best review of the best crypto wallet in 2022 between Binance US vs. Binance vs. Coinbase vs. Coinbase Pro. You might have a different opinion. However, every wallet has its pros and cons. Remember, investing in crypto is a business risk. Invest sensibly.