Crypto

Coinbase vs Binance — Best Place to Buy Crypto? [Lowest Fees, Highest Bonuses]

We’ve seen the surge in the interest of both retail and instritutional investors in Crypto. In 2021, a post about Crypto surfaces on social media every 3 seconds. You’d ask, who will want to miss out?

That’s why we’ve pitched two of the most popular crypto exchanges; Coinbase and Binance.

Coinbase is one of the most popular cryptocurrency exchanges in the world. It also has an easy-to-use interface, low fees, and good customer support.

Binance, founded in 2017, is currently growing fast and is reported to have 5 million users at its peak in 2018. The exchange doesn’t require sign-ups to open an account; instead, it uses two-factor authentication (2FA) for login security. Another key difference is that Binance allows users to withdraw their funds directly into a bank account while Coinbase requires you to transfer your cryptocurrency back into Coinbase first before finally withdrawing your funds into your bank account

What is a Crypto Exchange?

If you’re new to the world of cryptocurrency, you might be wondering what a crypto exchange is. Crypto exchanges are websites or applications where people can exchange digital currency. You can also do this on so-called “keep it real” marketplaces — places where actors and models sell products for Bitcoin.

A crypto exchange is usually more secure than the average website because of the number of encryption protocols used to keep personal information safe and increase cybersecurity overall. Additionally, some exchanges have strict Know Your Customer (KYC) guidelines that require users to prove their identities before making transactions through their site. As of June 2017, some of the most popular exchanges are PoloniexBittrexBitfinex, Binance, and Coinbase.

Crypto exchange companies also act as middlemen who trade currencies with one another. While this may seem at odds with the decentralized nature of some cryptocurrencies, it is essential to remember that crypto exchanges are still just websites or applications. They do not control any assets themselves; they allow users to trade with one another on their site. However, note that you will likely not be able to convert fiat currency (USD) into cryptocurrency on these sites; you’ll first need to purchase Crypto elsewhere and transfer it over.

What Are The Various Types Of Cryptocurrency Exchanges?

One way to classify crypto exchanges is by dividing them into two broad categories, according to their concept. First, there are centralized exchanges, where the company owns the software that controls everything. This category is often called a bitcoin exchange — for instance, Coinbase is one of these types, as are ShapeShift and Poloniex.

The other type is decentralized exchanges (also called DEX), which rely on peer-to-peer technology for security purposes. You can think of these types as cryptocurrency marketplaces where users make deals with each other via an encrypted messaging system. In other words, these types of exchanges are as close as you can get to a decentralized marketplace.

What To Look For When Buying Crypto From An Exchange?

Here are some tips when buying Crypto from exchange to help give you the best chance of success in this volatile market!

1. Know What Level Of Security Is Needed For Your Account

Basic security is usually satisfactory, but if you have significant assets or investments, be sure to select accounts with extra layers for protection.

2. Understand The Difference Between Trading And Margin Trading

Trading enables one person to buy and sell currencies with another person at a current price by “pairing” them together. The price of the currency does not change for both parties until the trade is complete. A margin trade differs in this sense because orders are placed with entities like exchanges to buy or sell coins on their terms. This type of trading generally only occurs on larger exchanges.

3. Understand How Your Funds Will Be Handled

Most trading platforms provide you with the option to link your bank account, but others may rely on cryptocurrencies as a form of payment. If you’re sending funds into an exchange, understand that there is no guarantee that it will be returned to you once they are transferred. Make sure you are comfortable with this risk before trading either way.

4. Understand The Difference Between “Buying” And “Selling.”

It is essential to understand what you are doing when sending funds to an exchange for trading because it could mean the difference between your investment’s success or failure. Buying is placing a spot order for a currency, while selling is required if you want to trade your current holdings for another currency.

What Is The Sign-Up Bonus For Binance?

Binance’s sign-up bonus can vary depending on what time of year you are signing up. For example, the first half of the year will usually offer a $100 bonus for your first deposit, which means doubling your money to invest double after sign up. The second half of the year, however, usually offers much lower bonuses, around 25%. These promotions are just an example, and many other factors could affect how much money you would receive for this promotion.

Signing up with a referral link and using it for all of your trades – This is the quickest and most effective way to receive extra money from your trades.

What Is The Sign-Up Bonus For Coinbase?

The Coinbase sign-up bonus is worth $10 in Bitcoin. It’s deposited into your wallet when you send or receive your first transaction to and from a cryptocurrency address, and the funds will automatically be transferred to your bank account.

Not all countries are eligible for the $10 sign-up bonus. To see if you’re eligible, enter your address on Coinbase’s homepage.

The $10 sign-up bonus is simply a means of attracting more people to their platform. So it’s an excellent way to get a few dollars into a cryptocurrency wallet that you control. This allows you to experiment with trading cryptocurrencies more safely.

Pros of Binance

  1. Binance is the world’s No. 1 crypto exchange
  2. It has over 100 crypto pairs to trade
  3. As it is based in China, it’s one of the few exchanges that allow you to trade BTC with CNY
  4. You can also use Binance to withdraw fiat currency which you can withdraw physically in cash
  5. Binance is easy to trade-in with all the coins available for trading
  6. It has an affiliate program for users of the platform
  7. Binance has its coin called BNB, which is used to pay trading fees
  8. Binance offers high liquidity on trading pairs
  9. You can deposit different coins into your wallet and withdraw them after trading is over
  10. There are many experts available on the platform to help you trade better

Pros of Coinbase

  1. The world’s largest crypto exchange
  2. Over $1 billion in daily volume
  3. Supports 100+ cryptocurrencies
  4. Sells U.S. dollars and euros for Crypto (with a credit card)
  5. Simple interface means anyone can use it
  6. Free cryptocurrency to learn about the space

Cons of Binance

  1. As it is based in China, there are rumors of the platform getting shut down or tracking of personal data
  2. Chinese authorities have banned ICOs on Chinese soil, so be wary of this factor as well if you’re starting with cryptocurrencies
  3. The fees are very high
  4. Customer support can be slow
  5. The exchange has been hacked before; it can still get hacked
  6. The exchange has been involved in scams before; trade only if you’re aware of the risks

Cons of Coinbase

  1. Limits are relatively low (e.g., $5k/week) for each individual transaction; much less than competing services like Circle Invest or Robinhood.
  2. You can’t send money to other people (using Coinbase) as you would with Venmo or Square Cash.
  3. The app has been known to be buggy at times.
  4. Fees (e.g., to sell or buy Bitcoin) are much higher than other exchanges.
  5. There is no instant buy/sell functionality like Robinhood.
  6. The company has very little in terms of user experience metrics to back up the product’s security claims.
  7. It’s hard to move coins around between accounts.
  8. Not all coins are listed on Coinbase, about 96 coins to trade.

Binance Vs Coinbase: Which Is The Best Cryptocurrency Exchange For You?

The coinbase app can easily find all your favorite cryptocurrencies, but it may not offer the lowest fees and bonuses. Binance may be more than enough to satiate any crypto enthusiast’s thirst, but it does so at a high cost. Which should you choose? Get ready to discover your ideal exchange in this comparison of Coinbase vs Binance!

Features Binance Coinbase
Fee High fee structure Well known for their low fee structure
Method of Purchase Allow users to use either fiat currency or cryptocurrency to purchase coins Allow users to use either fiat currency or cryptocurrency to purchase coins
Trading Options Allows you to trade your coins against others. Allows you to buy and sell cryptocurrency,
User Interface and Experience The interface is intuitive and the support team is great App rarely crashes and the interface is quite easy to navigate
3rd Party Payments Uses platforms such as Coinpayments or Changelly to facilitate your transactions Uses 3rd party providers such as Bitpay for its payments

Coinbase Vs Binance: Buying Cryptocurrency

Both exchanges allow users to use either fiat currency or cryptocurrency to purchase coins. In the case of Coinbase, the two options are easy to find on their homepage. From there, you can use a credit card or bank transfer to load funds from your bank account. The only downside of this process is that it can take up to 5 business days to receive your coins (this is because withdrawals are manually verified).

With Binance, however, users can use both fiat and Crypto to purchase their first coin. This procedure is much faster and simpler than using a credit card on Coinbase, and it only takes a few minutes! You will also likely be able to buy more coins on Binance than on Coinbase.

Coinbase Vs Binance: Coin Selection

Here is where the comparison deviates depending on which exchange you choose. Coinbase offers some of the best resources for getting started with Bitcoin (which will likely be the first cryptocurrency you decide to purchase) as well as Ethereum (which you can use to buy Bitcoin or other altcoins).

Binance, on the other hand, provides cryptocurrency at varying prices, and you can eliminate quite a bit of cost by using different cryptocurrencies as opposed to just trading them via coinbase.  It is also just as simple as buying tokens via Coinbase, but without the 5 business day wait time.

Coinbase Vs Binance: User Experience

This is where it gets really interesting. Coinbase has provided a user experience that, while quite plain and simple, is not too bad. The app rarely crashes, and the interface is relatively easy to navigate. No extra fees are charged, and no unnecessary ads take over your screen. However, Coinbase’s limited selection makes the coinbase app a bit redundant for those who already own Bitcoins or Ethereum; you can use this pair to purchase other cryptocurrencies on Binance instead.

 

 

Emmanuel O

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Emmanuel O

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