Coinbase vs. Binance (November 2024)

Coinbase and Binance are two of the most popular crypto platforms in the world — but which exchange is the right choice for you? In this guide, we’ll break down the key differences between the two platforms — including fees, features, and user interface. 

Which should I choose - Coinbase or Binance?

Here are the advantages of Coinbase and Binance. 

• Coinbase: Ideal for beginners due to its user-friendly interface and educational materials. 
• Binance: Offers a more comprehensive set of tools and lower fees, making it a solid choice for experienced traders. However, Binance.US, the American version of the exchange, has limited options compared to the global platform.

Coinbase is recommended for most investors due to its commitment to following regulatory guidelines around the world.

What’s the difference between Binance and Binance.US? 

Before we go further in the article, let’s explain the difference between Binance and Binance.US. 

Currently, the Binance platform is not available in the US due to regulatory restrictions. To serve American customers, Binance launched Binance.US in 2019. 

Because of regulatory restrictions, Binance.US has limited features compared to its global counterpart. For example, Binance.US has a smaller selection of cryptocurrencies and no futures and margin trading. 

Coinbase vs. Binance: User Friendliness 

Winner: Coinbase

Coinbase is considered the most user-friendly cryptocurrency exchange on the market.

• Coinbase: Coinbase is considered one of the most beginner-friendly platforms on the market. With educational materials and an easy-to-use platform, Coinbase is the perfect exchange for beginner investors! ‍
• Binance: While user-friendly, Binance has a vast array of features that can be overwhelming for beginners.

Coinbase vs. Binance: Regulatory Issues 

Winner: Coinbase 

Coinbase is considered one of the most trustworthy exchanges in the world. While the company has had issues with regulators in the past, Coinbase is a regulated financial institution that takes steps to comply with the law in all the jurisdictions it operates in.

• Binance: Binance has left countries like the UK and Canada due to regulatory scrutiny. While Binance.US was designed for American customers, it is not available in 14 US states — including New York, Texas, North Carolina, and Georgia. ‍
• Coinbase: Coinbase is available in all 50 states — including states with strict crypto laws like Hawaii and New York.

Coinbase vs. Binance: Fees 

Winner: Binance 

The Binance platform is one of the best exchanges for users looking for low fees. Currently, users can find 0.1% spot trading fees on Binance and zero-fee Bitcoin trading on Binance.US.

• Binance: Binance has some of the lowest fees in the industry — with spot trading fees at 0.1% and lower! Meanwhile, Binance.US has trading fees ranging from 0-0.38% with zero fees on Bitcoin trading! ‍
• Coinbase: Fees on Coinbase Advanced are relatively low — ranging from 0-0.60%. However, Coinbase is not fully transparent about fees. The company’s website says that fees ‘are calculated at the time you place your order and may be determined by a combination of factors, including the selected payment method, the size of the order, and market conditions such as volatility and liquidity’.

Coinbase vs. Binance: Features

Winner: Binance 

While Coinbase is geared towards crypto beginners, Binance has features for beginner and advanced traders alike.

• Coinbase: Coinbase is well-known for its beginner-friendly features. The platform provides a secure, standalone digital wallet, withdrawals to PayPal, and an educational platform where users can earn cryptocurrency. However, the platform is notably lacking in features for experienced traders — such as margin and derivative trading. 
• Binance: Binance has a range of features for beginner and advanced investors. Like Coinbase, Binance has Learn and Earn available. While Binance.US does not have margin and futures trading, it still offers advanced charting for traders and a wide range of order types for experienced investors. 

Coinbase vs. Binance: Cryptocurrency Selection

Winner: Binance 

While Binance’s global platform supports more cryptocurrencies, Coinbase has a wider crypto selection than Binance.US. 

• Binance: Offers a massive selection of over 350 cryptocurrencies for global traders and over 150 for U.S. investors on Binance.US.
• Coinbase: Supports over 260 cryptocurrencies.

Coinbase vs. Binance: Staking

Winner: Binance 

Currently, Binance allows users to stake more than 60 cryptocurrencies, while Coinbase only offers 9.

• Coinbase: Coinbase offers the opportunity to stake 9 different cryptocurrencies — including Ethereum, Avalanche, and Solana. Staking is restricted in Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin.
• Binance: Binance DeFi Staking offers access to stake 60+ cryptocurrencies. Binance.US (for American customers) currently offers the opportunity to stake 21 different cryptocurrencies.

Coinbase vs. Binance: Security

Winner: Coinbase 

Coinbase has a stellar reputation for security, storing all customer funds 1:1 offline.  

In 2019, hackers stole $40 million from Binance. However, the company upgraded its security measures in the following years. 

• Coinbase: Coinbase is known for its robust security measures, including cold storage, biometric access, and insurance for digital assets.
• Binance: Binance provides strong security features but has experienced hacks in the past. However, it’s important to note that Binance has since enhanced its security protocols and keeps a fund to fully compensate users in the case of a hack. 

Coinbase vs. Binance: Customer Service 

Winner: Tie 

While Coinbase and Binance both offer customer service on email and live chat, both companies have faced criticism for slow response times. 

• Binance: Binance offers customer support on email and live chat. However, customers have complained about waiting weeks for responses to queries. 
• Coinbase: Coinbase offers customer service on phone, email, and chat. However, customers have criticized Coinbase for being slow to respond to support queries. 

Coinbase vs. Binance: Tax

Winner: Tie 

Both Coinbase and Binance report to the IRS and provide tax forms provide reports that help users report crypto taxes. 

However, it’s important to remember that crypto tax forms from centralized exchanges can be inaccurate — especially if you’ve transferred crypto into or out of your wallet. That’s why many investors use third-party crypto tax software to handle tax reporting. 

Coinbase: Coinbase provides a gain/loss report — which provides a record of your gains and losses from your transactions, alongside the cost basis of your cryptocurrency. Coinbase issues Form 1099-MISC and Form 1099-B to customers and the IRS. 

Binance: Binance allows you to download a csv file that details your capital gains and losses. In addition, Binance.US issues Form 1099-MISC to customers and the IRS.