23 September 2020
A cryptocurrency exchange is a platform based on digital currency exchange that enables the users to trade cryptocurrencies with other assets.
But the question that stands is - how to choose the ideal crypto exchange to enhance our cryptocurrency experience?
According to a survey in April 2018,
Some of the biggest problems that cryptocurrency traders see in currently available exchanges are
In this blog we are going to discuss the two biggest cryptocurrency exchanges that will help you grow on your crypto journey:
Getting to Know:
|Coinbase is a cryptocurrency exchange platform that enables its users to buy, sell, and manage cryptocurrency portfolios.||Binance is a cryptocurrency exchange platform that enables its users to buy and sell cryptocurrency.|
|Coinbase was founded in 2012 in San Francisco, California by Brian Armstrong and Fred Ehrsam.||Binance was founded in 2017 by Changpeng Zhao and Yi He. It is based in Malta, however, it also has offices in China, Japan, and Taiwan.|
|Brian Armstrong has also been ranked number 10 on Forbes’ list as the ‘most influential young people in the business’.||Binance has its cryptocurrency called - Binance Coin (BNB).|
|Coinbase is partnered with Dell, Time Inc., and Expedia.||Binance is known for giving away amazing prizes like iPhones, Mercedes-Benz, MacBooks to its top traders.|
|Website: https://www.coinbase.com/||Website: https://www.binance.com/en|
The cryptocurrency exchange platform facilitates two types of currency services through cryptocurrency exchanges:
1. Cryptocurrency Trading: It facilitates the user to trade a cryptocurrency with another cryptocurrency.
For instance, BTC and LTC, ETH and XRP, and so forth.
2. Fiat Trading: It facilitates the user to buy and sell cryptocurrency with fiat currency.
For instance, USD, EUR, or INR with BTC, ETH, XRP or LTC, and so forth.
While through cryptocurrency exchanges, the users can only exchange currencies that are listed as trading pairs on the platform.
As per the present rate,
- Cryptocurrency trading pair: 1 BTC = 189.56 LTC
- Fiat trading pair: 1 USD = 0.84 EUR
- A cryptocurrency / fiat trading pair: 1 ETH = 35,123.94 INR
- Coinbase supports 102 countries in regions of North America, South America, Asia, Europe, Australia, and Africa.
- It offers 86 trading pairs with 30 coins (approx).
- The operation depends on the accessibility of crypto/fiat trading pairs or crypto/crypto trading pairs as per the regulations of the countries.
- Binance offers trading pairs with 4 major cryptocurrencies: BTC, ETH, BNB, and USDT.
- It offers 731 trading pairs with 218 coins (approx).
- The operation on Binance is completely on crypto/crypto while it doesn’t offer fiat trading.
The three types of fees that a trader has to pay for the crypto exchange services are deposit fees, trading fees, and withdrawal fees.
- Coinbase offers Hosted Cryptocurrency Wallet and Wallet Service free of charge.
- They do not charge for transferring crypto from one COinbase wallet to another wallet.
- It incurs and pays the network transaction fees, so for these, they charge its user a fee that is based on the estimated network transaction fees for each transaction.
- The fee differs based on circumstances such as location, payment method, and so forth.
- The fees charges are disclosed at the time of the transaction, however, the user is notified with all the Coinbase fees before confirming each transaction.
- Cryptocurrency conversion charges are spread to a margin of up to 2% (approx).
- Overall approx charges:
- Standard Buy/Sell: 1.49%
- Credit/Debit Card Buys: 3.99%
- Bank Transfers (SEPA) - in/out*: Free/€0.15
- Faster Payments: Free
- Coinbase also facilitates the users to stake the assets, however, the reward is determined by the applicable network’s protocols and they distribute the reward by minus 25% commission.
- Binance does not charge for deposits.
- If the user is not using BNB coin to pay trading fees, then each trade will consist of a standard fee of 0.1%
- The use of BNB for fees transactions avails discount on the trading fee.
- The withdrawal fees are based on the status of the market.
Many exchanges have limits on the amount of currency the trader is allowed to withdraw and deposit.
- Purchase and deposit limits with Coinbase are based on various factors such as verification completed with the account, purchase history, payment type, region, and so forth.
- Coinbase doesn’t limit the amount of crypto that the user can sell on its Coinbase fiat wallet.
- The withdrawal depends on the payment method that the user is going to use for withdrawal.
- With Coinbase, the limit depends on the fiat currency that the trader uses, and on the level the user is at - Level 0,1,2, or 3.
- Binance limited depends if the trader is on Level 1 or 2 verification.
- They do not have a limit on cryptocurrency with deposit.
Also Read, 20 Ways To Protect Your Cryptocurrency
Security is one of the key components in the world of cryptocurrency.
- The use of 2FA - Two-factor authentication and passwords for the user accounts.
- Coinbase also notifies users when a new device or IP address attempts to gain access.
- Coinbase stores 98% of the funds of the user offline and 2% online is to insure against theft by a syndicate of Lloyd’s of London.
- Binance hasn’t provided enough information about how they secure funds.
- The use of 2FA - Two-factor authentication and email verifications for the user accounts.
- In June 2017, the users of Binance had reported missing funds by the following planned system upgrade that led Binance to apologize and offer a 70% discount on the trading fees.
- However, in March 2018, the system of Binance was able to detect and stop the hack. The hacker had stolen the user login details and attempted to rob the exchange. While no funds were lost, the hacker’s funds were donated to charity!
Getting new customers isn’t all enough - it's the constant service you provide to your existing customers and give them the experience to stay loyal to your brand.
- Coinbase communicates with its customers by email and takes about 24-72 hours to reply to the email.
- It offers SupportBot services general inquiries.
- The FAQ and information provided are detailed and useful.
- Coinbase has a telephonic helpline number, however, since the contact number is based in the United States, it is difficult to access for international customers.
- Binance communicates with its customers by email.
- It offers SupportBot services general inquiries.
- Binance’s support facilitates 4 different languages - Chinese, Korean, Japanese, and English.
- It also provides FAQs and articles on its website.
Coinbase and Binance, both provide mobile applications.
The details provided below are based on the present information-
- Google Play Rating: 3.7 out of 5 (195,834 Review)
- iTunes Rating: 4.5 out of 5 (89.9K Review)
- Google Play Rating: 4.7 out of 5 (54,206 Review)
- iTunes Rating: 4.7 out of 5 (3.2K Review)
- Coinbase has an advanced version tailored for experienced traders and consists of a wider range of features called - Coinbase Pro.
- It includes extensive charts, technical indicators, complex order types, margin trading, and so forth.
- With Coinbase Pro, the user can enjoy lower fees and upgradation with their trading experience.
- Binance has two features on its interface: Basic and Advanced.
- It has launched fiat to crypto exchanges consisting of Binance Life Australia for the Australian client base and Binance Jersey for the European client base.
- It has also launched Binance Uganda for the African market.
- In April 2019, it launched the DEX - Decentralized Exchange platform.
Coinbase is easy to learn and thus can be the base for basic and simplistic understanding, while Binance consists of learning on the base for advanced understanding. Hence Coinbase is ideal for the newbie or the novice to experience and Binance is comparatively advanced and needs its user to have a background study on intermediate or expert level catering experienced traders.