Cryptocurrency is taking the world by storm – and has been for some time now. As a result, both retail investors and institutional players are interested in investing in it, which has resulted in a sizzling market scene. However, before you start investing in cryptocurrency, specific factors to consider, such as the other platforms you can use to buy and trade various cryptocurrencies. In this article, we’ll be looking at the main differences between Binance and Coinbase – two of the biggest cryptocurrency trading platforms out there.
1. Learning Curve
One of the main differences between Binance and Coinbase is the level of difficulty when it comes to trading there. Coinbase is far more user-friendly. The interface is easy to manage, even for beginners, and you can even find a coinbase referral here and there to help you get started. On the other hand, Bitcoin is targeted towards experienced investors as it requires a much higher level of technical knowledge. As such, you might want to go to Coinbase first – if you’re starting, and then explore everything Binance has to offer as well, once you get your feet off the ground.
2. Trading Options
Perhaps a point for Binance on this one, as it offers a wider variety of coins, you can trade with. That’s not to say Coinbase will hold you down. However – with over 40 cryptocurrencies available for trading, it can only seem like a small pool compared to the 500 Binance offers. In that sense, you might want to consider which currency you want to trade in specifically and go to the platform that offers that option. Of course, they both support all the leading coins, so you don’t have to worry about that. As for the trading types – you can buy, sell, exchange, send and receive on both platforms. That said, Binance offers additional features such as margin trading and stop-limit orders.
3. Trade Volume
Trade volume is something both platforms guide through their respective fees. The way it’s set up currently, Coinbase might be the best option for those that want to buy a coin and hold on to it for a longer period. On the other hand, the low fees on Binance are stimulative to high volume trades that are made regularly. Of course, the price depends on several factors, such as the facility you use to fund your account, whether or not it’s a maker or taker order, and so on. It is recommended that you check the fee before each trade to ensure you’re not losing too much money. Of course, Coinbase also offers a buy and hold option, which can be more advantageous for those that don’t want to trade actively.
4. Access
Around 100 countries have access to Coinbase, whereas Binance is available in more than 150. Coinbase’s platform is fully functional in the USA, while Binance’s is still missing many of their regular offer in that market. However, there isn’t that much of a difference for most other countries – of course, there are restrictions to keep in mind, but that has less to do with the platforms and more with politics. That said, they are both still expanding – Binance has announced they are planning to open an office in Malta, for instance, while the US SEC is currently deciding whether or not it will approve Coinbase’s acquisition of Keystone Capital. That would mean that even more locations will trade on Coinbase.
So, which platform should you choose? The answer to that question depends on your individual needs and preferences. If you’re starting, Coinbase is probably the best option for you, but if you’re looking for a more difficult choice, you might prefer Binance. It’s essential to note that both platforms have very high-security standards, so that’s not something you have to worry about, no matter which one catches your interest better.