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13 Coinbase Vs Binance Questions (Quick Answers!)

By: Author Jeremy Davidson

Posted on Last updated:

Categories Investing, Crypto, Financial Apps

Disclaimer: This content is not intended to be financial advice and is for informational purposes only. aTimeforCash is reader-supported. We may earn commissions if you buy through our links at no cost to you.

Many people new to the world of crypto have heard of Coinbase and Binance but it isn’t exactly clear what the differences are between the two exchanges.

The two exchanges are actually different in many ways including the number of trading pairs and the number of users each has; Coinbase has about 25 million while Binance has 200K+.

There are also several differences in fees and the currencies traded at the exchanges.

Binance does not charge a fee for using its platform, while Coinbase costs 0.25% for currency trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

But Binance is typically more difficult to use – especially for beginners.

In this article, we will be comparing Coinbase vs. Binance in terms of fees, supported currencies/trading pairs, and security.

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1) Are Binance Fees Lower than Coinbase?

Unlike Coinbase, Binance has no fees 0% trading commission. Therefore, users trade at the cost of their choosing without any hindrance or reducing their profit.

Binance also offers a 50% discount on trading fees during the ICO launch. It is currently ongoing and is thus subject to change at any time.

The only drawback about being free to use Binance is that it does not have as many coin pairs as Coinbase. It can be a drawback because Coinbase users can buy more expensive coins and with more liquidity than Binance’s pairs.

2) Are Coinbase and Binance the same?

Coinbase and Binance are not the same. In terms of their progress in the ICO industry, they are very different. Binance is now the 4th largest cryptocurrency exchange globally, while Coinbase is sitting at 52nd position.

Binance also has its token, which users can use to pay trading fees and bonuses if it’s traded on Binance.

As for Coinbase, this company does not have an ICO that offers discounts for trading fees or bonuses for using its token as a payment method. However, it is reported that Coinbase may be looking into creating its token in the future.

One of the main differences between Binance and Coinbase is that Coinbase users can only trade using four coins, while Binance users can trade using a combination of 190 coins. It makes it an advantage for Binance users as they get to trade in many cryptocurrencies without going through the registration on other exchanges. The list below shows the different cryptocurrencies supported at each platform:

Coinbase supports Bitcoin, Ethereum, Litecoin, and Ethereum Classic. It also offers USD Wallet, in which its customers buy/sell coins with fiat currency such as USD or EUR. Binance, on the other hand, does not support US dollars. However, it allows customers to trade in 9 fiat currencies, including USD, EURO, JPY, etc.

3) Binance or Coinbase, Which one is better?

Binance and Coinbase are very different platforms. Each has its benefits. In summary, Binance provides more options for users to trade while Coinbase is not as secure and offers lower fees to use it. However, users will have to decide which platform they feel is best for them. It is important to note that both platforms are working tirelessly to improve their user experience.

Coinbase has a very strong security system, while Binance users must use their Binance coins to make transactions on the exchange.

4) Can Coinbase Send to Binance?

Yes, Coinbase can send Bitcoin or Ethereum to Binance. The process of performing this is really simple. If you have a Coinbase account, follow these instructions:

Open Binance account, then transfer from Coinbase to Binance.

It is always recommended that you make a backup of your private keys because if you lose them, you’ll lose access to your coin balance at both exchanges.

5) Can I Send Bitcoin from Binance to Coinbase?

Yes, you can send Bitcoin from Binance to Coinbase. The process is very simple. If you have a Binance account, follow these instructions:

Step 1: Log in to your Binance Account, then go Funds> History from where you can see your Deposit Address.

Step 2:

  • Open Your Coinbase account.
  • Go to the Send/Request section.
  • Click on the Send Bitcoin tab.

Step 3: Input the amount you desire to send in BTC or ETH and click on Send button.

Step 4: A Bitcoin address will be generated where you’ll have to send a confirmation email. After that, click on Confirm button and send Bitcoins(BTC) over it. The process will be complete after some time. If done successfully, you’ll get an email notification.

6) Can I send USDT from Coinbase to Binance?

Yes, you can send USDT from Coinbase to Binance. If you want to do it, follow these instructions:

Step 1: Log in to Binance account, then go Funds> History from where you can see your Tether Address.

Step 2:

  • Open Your Coinbase account.
  • Go to the Send/Request section.
  • Click on the Send USD tab.

Step 3: Input the amount you desire to send in USDT or BTC and click on Send button.

Step 4: A Tether address will be generated, where you’ll have to send a confirmation email. After that, click on Confirm button and send USDT over it. The process will be complete after some time; you’ll get an email notification if done successfully.

7) Can I send XRP from Coinbase to Binance?

Yes, you can send XRP from Coinbase to Binance. If you want to do it, follow these instructions:

Step 1: Log in to Binance account, then go Funds> History from where you can see your XRP Address.

Step 2: Open Your Coinbase account, go to Send/Request section and click on Send XRP tab.

Step 3: Input the amount you desire to send in USD or ETH and click on Send button.

Step 4: A Ripple address will be generated where you’ll have to send a confirmation email. After that, click on Confirm button and send USD or ETH over it. The process will be complete after some time. If done successfully, you’ll get an email notification.

8) Can I use Coinbase Wallet with Binance?

Yes, you can use your Coinbase wallet to send coins to Binance. To do this, follow these instructions:

Step 1: Choose a coin you want to transfer from the Coinbase account to your Binance Account.

Step 2: Send the coin from Coinbase Wallet to Binance address using the “Send / Receive” option in your Binance account.

Step 3: The funds will reflect on your Binance Account and can be seen on “Funds > Balance.”

However, using a Coinbase wallet to add funds on Binance is a lengthy process; therefore, it is easier to buy Bitcoin on Coinbase and then send them to your wallet at Binance using the instructions provided above.

9) Can you Transfer ADA from Binance to Coinbase?

Yes, you can transfer ADA from Binance to Coinbase. Follow these instructions to get it done:

Step 1: Log in to your Binance account, then click on Funds> Deposits, from where you can see your ADA Deposit Address.

Step 2:

  • Open Your Coinbase account.
  • Go to the Send/Request section.
  • Click on the Send ADA tab.

Step 3: Input the amount you desire to send in BTC or ETH and click on Send button.

Step 4: A Cardano address will be generated, where you’ll have to send a confirmation email. After that, click on Confirm button and send ADA over it. The process will be complete after some time. If done successfully, you’ll get an email notification. It is important to note that ADA is not yet available on Coinbase.

10) Can you Transfer Fiat from Coinbase to Binance?

Yes, you can transfer fiat from Coinbase to Binance. If you want to do it, follow these instructions:

Step 1: Log in to your Binance Account, then go Funds> History from where you can see your Deposit Address.

Step 2:

  • Open Your Coinbase account.
  • Go to the Send/Request section.
  • Click on the Send USD tab.

Step 3: Input the amount you desire to send in USD or EUR and click on Send button.

Step 4: A USD or EUR address will be generated, where you’ll have to send a confirmation email. After that, click on Confirm button and send USD or EUR over it. The process will be complete after some time. If done successfully, you’ll get an email notification.

11) Coinbase or Binance, Which is Better for Beginners?

Both Coinbase and Binance are the best for beginners that want to start trading. But, it would be best if you used Coinbase for buying cryptocurrencies other than Trading on Binance. It is because Coinbase is a beginner-friendly exchange that functions as a wallet. It is therefore great for storing cryptocurrencies and not just buying them.

Binance is a good option for those that want to invest and use cryptocurrency for Trading. Binance also has lower transaction fees than Coinbase. However, it has several disadvantages and challenges that make it hard to use if you are a beginner.

Binance has lower transaction fees than Coinbase, and this is one of the greatest advantages of using the platform, but even with lower transaction fees, it still provides low liquidity. Therefore, the trading pairs on Binance have different prices, making it hard for beginners to decide where they will trade.

Another disadvantage is that it is not straightforward to use if you are a beginner because there are too many confusing options in the exchange. You have to take care of too many functions, which can be daunting for beginners.

Challenges of Binance

Binance has been running since mid-2017, and in the beginning, everything seemed great – they had a huge client base and lots of volume in business. But since the start, its popularity has gone down due to several factors:

More than just high trading fees and low liquidity

The lack of fiat payment options, unlike Coinbase.

Binance has decided against adding a fiat payment option, which means that users will have to use the services of a third-party payment processor or use some other cryptocurrency like Bitcoin or Ethereum for making deposits or withdrawals on the platform. In contrast, Coinbase has more options like fiat payment, although you have to pay fees to use them. So as a beginner, it is better to buy your Bitcoin or other coins on Coinbase and send them to your Binance account.

12) Does Coinbase Own Binance?

No, Binance is not owned by Coinbase. Rather, both of these exchanges operate independently and apart from each other. So, yes, you can use Binance to buy Bitcoin and sell it on Coinbase or vice versa. There are no licensing regulations that govern the two exchanges – one is registered in the US and the other in Hong Kong.

The two companies operate independently makes them similar to how eBay used to work before eBay acquired it in 2005.

13) When will Coinbase Support Binance?

Coinbase has a history of integrating new cryptocurrencies on its platform, making them one of the leading cryptocurrency exchanges in the world. The exchange has had a lot of success in this regard, and this is because it is fast to support new cryptocurrencies adopters. It means that if a cryptocurrency becomes popular enough to be integrated with Coinbase, it will become popular enough for other exchanges to integrate it.

Binance cannot wait for Coinbase to integrate Binance (BNB) on its platform – especially since Coinbase charges high transaction fees, which means that users will have to pay more for using BNB.

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Wrapping Up

As you can see both companies have advantages and disadvantages, but these are mainly due to the differences in their services. For example, Coinbase has higher transaction fees than Binance, but this is an advantage if you are a beginner because it provides more options. Therefore, when choosing between Coinbase or Binance, you will have to decide whether you are an expert in cryptocurrency or a beginner.

It is also important to consider that coin base is usually more expensive than Binance, but if you are a beginner, this is an advantage because it will take you time to learn about the cryptocurrency and its different trading platforms.

So get ready to learn and be happy! Then you can buy using Binance, then Coinbase auto buys the best altcoins on Binance.

References

  1. https://blog.coincodecap.com/go/coinbase
  2. https://blog.coincodecap.com/go/binance
  3. https://www.businessinsider.com/personal-finance/binance-vs-coinbase
  4. https://tradersunion.com/interesting-articles/brokerage-fees-definition-and-comparison/