Coinbase and Binance are two of the largest cryptocurrency exchanges in the world. Both platforms offer hundreds of crypto assets, low trading fees, crypto staking, NFT Marketplaces and other award-winning features. That said, there are some key differences which provide unique advantages and disadvantages for certain types of users.
If you are looking for a quick summary, Binance is generally the better option for all users that are not based in the United States. Alternatively, if you are US-based, Coinbase is the best exchange for you because they offer better USA-banking support.
Coinbase currently supports over 180 of the top cryptocurrencies on their retail and institutional platforms. They are relatively quick to list new tokens that pass a certain threshold of volume from decentralized exchanges, meaning that they pay attention and respond to customer demand for new assets.
Binance on the other hand offers the widest selection of cryptos in the world, with over 600 assets listed on their global platform. It is important to note however, that the Binance US trading platform offers less assets than their global platform for regulatory reasons. As at time of writing, Binance US currently offers over 100 tokens, which is less that Coinbase for US investors.
Coinbase is one of the most expensive exchanges in the world, with a based fee of 1.99% charged on their retail platform. It gets even more expensive if you are looking to buy crypto with a Debit or Credit Card on Coinbase, with a rate of 2.99% charged per transaction. With respect to deposit fees, Coinbase does not charge anything for ACH Transfers from local banks.
Binance is a significantly cheaper platform to buy and sell cryptocurrencies compared to Coinbase, with a base trading fee of 0.1%. This makes Coinbase nearly 20x more expensive than Binance. Fortunately for users, Binance also does not charge any deposit fees for Bank Transfers and has a higher fee for Debit/Credit Card deposits at 1.5%.
Cryptocurrency Staking Features
Coinbase Earn is Coinbase's native staking product that allows investors to earn up to 5.75% APY on crypto deposited on the platform. As at time of writing, Coinbase only supports 6 coins to stake which include Algorand (ALGO), Cardano (ADA), Cosmos (ATOM), Ethereum (ETH), Solana (SOL) and Tezos (XTZ).
Binance Earn is Binance's staking product which offers a significantly higher amount of stakeable coins with over 50 tokens on the platform. The Binance staking app also offers significantly higher yields that can get up to 82% APY on high market capitalization assets like Axie Infinity (AXS).
Coinbase is one of the most secure exchanges in the world and has been in operation since 2012. In that time, they have NEVER been hacked or had any major security breaches. This is a testament to their commitment to security, which includes features like 2-factor authentication, cold storage for user funds and insurance coverage.
Binance has also been in operation since 2017 and has never been hacked. They utilize a similar security protocol to Coinbase, which includes features like 2-factor authentication and cold storage for user funds. One key difference is that Binance does not offer insurance coverage for their users, meaning that you are solely responsible for the security of your Binance account.
Coinbase recently released Coinbase NFT which had huge excitement leading up to its official rollout. It has however since greatly disappointed, trading as little as 20 ETH in volume over 24 hours. The Coinbase NFT Marketplace offers a few collections that are available on OpenSea for lower trading fees, which means that this does not really add any value.
Binance has also recently launched an NFT marketplace that allows users to buy, sell and trade a variety of digital assets including art, music, games and more. The Binance NFT marketplace is still in its early stages, but it already has several exclusive high-profile partners including NBA Top Shot, WAX, Decentraland and Upland.
Coinbase vs Binance: Final Thoughts
Binance is the better overall crypto platform for investors that are based in any country that is not the United States. Their platform offers significantly more assets, lower fees and a better all-round user experience. That said, Coinbase is better for users in the USA because the Binance US platform offers a downgraded service due to regulatory constraints.