Which should you choose? – Forbes Advisor

When it comes to buying cryptocurrencies, Binance.US and Coinbase are two of the biggest names out there for US users. But just because they both have brand recognition, does not automatically mean you should use one for your crypto investment.

Here’s all you need to know about Binance.US and Coinbase and how to decide which cryptocurrency is best for you.

Binance.US vs. Coinbase: Top similarities

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

Binance is not available for US-based customers Instead, US residents must use Binance.US, the spin-off platform in accordance with US financial regulations. While the two crypto exchanges are quite similar, Binance.US has slightly more limited functionality and coin offerings.

Coinbase is also not quite as simple as it seems.

The name “Coinbase” is often used as a listing for all Coinbase (company) offerings: Coinbase (the platform), a beginner-friendly crypto app, and Coinbase Pro, a full-fledged crypto exchange. This difference is important because Coinbase Pro offers much greater functionality and significantly lower fees, although it is a little less intuitive. Coinbase Pro does not accept credit or debit card purchases.

With that out of the way, here’s how Binance.US and Coinbase are similar.

Negotiable coins

If you want to stick to the most important cryptocurrencies – think Bitcoin and Ethereum – you will probably be just as happy with either Binance.US or Coinbase.

Because both exchanges offer at least 100 cryptocurrencies, you will probably find many of the lesser-known, so-called altcoins you want, whether it is Dogecoin or another memorable crypto.

If you really want to go off the beaten track when it comes to coins, you may need to choose a stock exchange like Kucoin, which has hundreds of cryptocurrencies.

However, investing in all forms of crypto is risky. Nevertheless, newer and less popular coins may experience wild price fluctuations, be more illiquid, be more difficult to buy or sell quickly, and be more prone to fraud.

Trading tools

From a trading functionality standpoint, Coinbase Pro and Binance.US are relatively similar platforms: Both enable a variety of order types, including market and limit, and both include advanced charting features.

None of the crypto exchanges currently give users access to margin accounts, a more risky trading strategy that involves borrowing money to finance trades. Margin can increase profits – and greatly increase losses.

Margin trading is currently unavailable on almost all crypto exchanges in the United States

Strike

Coinbase and Binance allow users to earn interest by betting crypto to help verify transactions on their respective currency blockchains. Interest rates vary by crypto.

KYC requirements

To access the full range of resources available on Binance.US and Coinbase, you must prove your identity through a Know Your Customer (KYC) process. This means giving publicly issued proof that you are who you say you are, just as you must be when opening a bank account.

Doing so helps reduce the risk of using crypto exchanges for illegal money laundering purposes. A segment of crypto investors dislike KYC requirements as they believe it is contrary to the decentralized ethos of crypto and crypto exchanges.

Binance vs. Coinbase: Top differences

Although Binance.US and Coinbase Pro are largely similar platforms, they are not identical, and some of their key differences may make one more suitable for you than the other.

Geographical availability

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

Fees

Fees can make or break an exchange for frequent traders, although even beginners benefit from more money going to crypto instead of the cost of crypto exchanges. Binance.US outperforms almost all exchanges except KuCoin in terms of fees (where it is equal), with its ultra-low rate of 0.1%.

Coinbase uses a convoluted (and expensive) fee structure that can eat up huge percentages of beginners’ cryptocurrencies. This is why it is best to switch to the more advanced trading platform as soon as you feel comfortable. Coinbase offers rates of 0.6% or 0.4% (for the price range of $ 0 to $ 10,000), depending on whether you are a taker or a producer.

The latter creates a new order to be filled on a stock exchange (it creates liquidity), while the former fills an existing order (it removes liquidity). Although the prices for makers and takers are important to keep in mind, the distinction is ultimately not so important as you are usually not allowed to choose whether to pose as a maker or taker.

Ease of use

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

Coinbase, on the other hand, is known for its easy-to-use dashboard that 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 regulations.

Once logged in, the platform allows users to connect their bank accounts through Plaid Technologies, and the search box allows users to find and trade more than 150 different cryptocurrencies. Users can also set up recurring purchases to streamline their investments.

Interest

One last area where Binance.US and Coinbase have important differences is the level of crypto rewards. Among the two, Coinbase is the only one where we could find the opportunity to earn rewards.

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

Coinbase also pays interest of up to 5.75% annual percentage (APY) on crypto that users bet. Binance.US, on the other hand, pays much higher annual returns. For example, Binance.US users can earn up to 4.5% APY for their Solana tokens (SOL) and up to 6.4% on 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 tailored to different types of traders. More experienced investors can take advantage of the OTC Trading Portal, which provides a faster pricing option.

Binance.US Pros

• The fees are low compared to major competitors.
• Supports more than 100 cryptocurrencies.
• Offers multiple versions tailored to different crypto skills and comfort levels.

Binance.US Cons

• Not available in four states in the United States, including New York.
• The parent company Binance was subjected to a major hack in 2019.

Who should choose Coinbase?

Coinbase is considered one of the most beginner-friendly platforms for buying and selling cryptocurrencies.

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 directly on the platform.

Coinbase proffer

• Users can trade in over 150 cryptocurrencies.
• Users can buy or sell as little as $ 2 in currency.
• Beginner-friendly user dashboard.
• Good user reviews and security ratings.

Coinbase Cons

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