Which one should you choose? – Forbes Advisor

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Binance.US and Coinbase are two of the biggest names for US users when it comes to buying cryptocurrencies. But just because they both have got brand recognition, doesn’t mean you should use one for your crypto investments.

Here’s what you need to know about Binance.US and Coinbase and decide which crypto exchange is better for you.

Binance.US vs Coinbase: Top Similarities

Before going too far in breaking down Binance.US vs Coinbase, there are several important things to keep in mind.

Binance is Not Available For US-based customers instead, US residents should use Binance.US, its spin-off platform compliant with US financial regulations. While the two crypto exchanges are quite similar, Binance.US has a slightly more limited functionality and coin offerings.

Similarly, Coinbase is not as straightforward as it seems.

The name “Coinbase” is often used as a catch-all for all of Coinbase’s (company) offerings: Coinbase (the platform), a beginner-friendly crypto app, and Coinbase Pro, a full-fledged crypto exchange. This distinction is important because Coinbase Pro offers a lot more functionality and significantly lower fees, albeit slightly less intuitive. Coinbase Pro does not accept credit card or debit card purchases.

With that said, here’s how Binance.US and Coinbase are similar.

tradable coins

If you want to stick with the major cryptos – think Bitcoin and Ethereum – you will probably be equally satisfied with Binance.US or Coinbase.

Because both exchanges offer at least 100 cryptocurrencies, you will probably find many lesser-known, so-called altcoins that you want, be it Dogecoin or any other memorable crypto.

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if you in true sense If you want to get off the beaten path with respect to coins, you may have to opt for an exchange like Kucoin, which holds hundreds of cryptos.

However, investing in all forms of crypto is risky. Nevertheless, newer and less popular coins may experience extreme price fluctuations, become more liquid, harder to buy or sell quickly, and may be more vulnerable to fraud.

trading tools

In terms of trading functionality, Coinbase Pro and Binance.US are relatively similar platforms: both enable a wide variety of order types, including market and limit, and both include advanced charting capabilities.

Neither crypto exchange currently allows users access to margin accounts, a risky trading strategy that involves borrowing money to finance trading. Margins can magnify profits – and greatly increase losses.

Margin trading is not currently available on almost all crypto exchanges in the US

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Coinbase and Binance allow users to earn interest by betting their crypto to help them verify transactions on the blockchain of their respective currencies. Interest rates vary by crypto.

KYC Requirements

To access the full breadth of resources available on Binance.US and Coinbase, you will need to prove your identity through the Know Your Customer (KYC) process. This means providing government-issued proof that you are who you say you are, just as you should when opening a bank account.

Doing so helps reduce the risk of using crypto exchanges for illegal money laundering purposes. A section of crypto investors dislikes KYC requirements as they believe it goes against the decentralized ethos of crypto and crypto exchanges.

Binance vs Coinbase: Top Differences

Although Binance.US and Coinbase Pro are broadly similar platforms, they are not the same, and some of their major differences may make one better for you than the other.

geographic availability

Where you live in the US may determine which crypto exchange you use. Binance.US is not available in Hawaii, New York, Texas or Vermont; Coinbase cannot be used in Hawaii. Residents of the Aloha State may then be limited to platforms such as Gemini.

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fees

Fees can often make or break an exchange for traders, although beginners also benefit from more money going into crypto rather than the costs of crypto exchanges. Binance.US beats out almost all exchanges but KuCoin fees about (where it is on par), with its ultralow 0.1% rate.

Coinbase uses a complex (and pricey) fee structure that can eat up a large percentage of beginners’ crypto purchases. This is why it’s best to move to a more advanced trading platform as soon as you feel comfortable. Coinbase offers rates of 0.6% or 0.4% (for pricing tiers of $0 to $10,000), depending on whether you are a buyer or a producer.

The latter creates a new order to be filled on an exchange (this creates liquidity), while the former fills an existing order (it takes away liquidity). While it is important for manufacturers and takers to note rates, the difference is ultimately not that significant because you usually don’t get to choose whether you run as a maker or a taker.

ease of use

Binance.US strives to serve a wide range of customers by providing different user experiences.

Coinbase, on the other hand, is known for its user-friendly dashboard, which makes it easy to trade currencies even without experience. Setting up an account is quick, and Coinbase makes it easy for traders to comply with KYC rules.

Once signed in, the platform lets users connect their bank accounts via Plaid Technologies, and the search bar allows users to search and trade over 150 different cryptos. Users can also set up recurring purchases to streamline their investments.

Rate of interest

One final area where Binance.US and Coinbase have significant differences is the level of their crypto rewards. Out of these two, Coinbase is the only place where we can find the ability to earn rewards.

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In this case, through Coinbase’s learning platform, which offers small rewards in exchange for watching videos and learning about cryptocurrencies.

Coinbase also pays interest on cryptos up to a 5.75% Annual Percentage Yield (APY) that users share. Binance.US, on the other hand, pays a much higher annual return. For example, Binance.US users can earn up to 4.5% APY for their Solana Token (SOL) and up to 6.4% on their Binance Coin (BNB).

Who should choose Binance.US?

Binance.US is best suited for more experienced crypto traders who are not intimidated by the platform’s robust features.

That said, Binance.US offers experiences to suit different types of traders. More experienced investors can take advantage of the OTC trading portal, which offers fast pricing options.

Binance.US Pros

  • Fees are low compared to major competitors.
  • Supports over 100 cryptocurrencies.
  • Offers multiple versions that suit different crypto skills and comfort levels.

Binance.US Cons

  • Not available in four US states including New York.
  • Parent company Binance was subject to a major hack in 2019.

Who should choose Coinbase?

Coinbase is considered one of the most beginner-friendly platforms to buy and sell cryptocurrency.

Coinbase offers super low account minimums and an intuitive trading dashboard, plus users can take advantage of the platform’s integrated wallet to store their crypto on the platform.

coinbase pros

  • Users can trade in over 150 cryptocurrencies.
  • Users can buy or sell currency worth at least $2.
  • Beginner friendly user dashboard.
  • Good user reviews and safety ratings.

Coinbase Cons

  • The fee structure is layered, layered and can be difficult to understand.
  • A more affordable pricing structure is available through the subscription-based Coinbase Pro.

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