So that our readers can know which centralized exchange to choose, we are going to make a comparison between Binance vs Coinbase Pro. We will see what are the strengths and weaknesses of these centralized exchanges and what are the services they offer to users.
What is Binance
It is a very recently developed centralized exchange, it was created in 2017 by Changpeng Zhao and quickly became very successful. Initially, it had its headquarters in Shanghai, China, but due to government pressure, it was moved to Japan.
The decision to move the headquarters to Japan was not a positive one, as the Japan Financial Services Authority (JFSA) controlled all movements of the exchange. After studying other possible locations, they decided to settle in Malta, a more crypto-friendly country.
Currently, Binance is based on the rules of the Maltese Virtual Financial Assets legislation. This forces the clients of this exchange to completely lose their privacy by having to go through KYC-AML processes.
Note that Binance is no longer a simple centralized exchange and offers a large number of services and options. They currently operate a decentralized exchange, their blockchain, their token, and stablecoin, or their own NFT marketplace.
Let’s see what Binance offers us, beyond the conventional capabilities of a centralized trading platform. These are:
- Supported fiat currencies: Currently this exchange supports the purchase of cryptocurrencies through different types of fiat currencies. This allows users from different countries to acquire their cryptocurrencies more easily.
- Different payment methods: They currently offer a large number of different payment methods. These payment methods may vary depending on the country or the regulation of an area.
- Binance Futures: Select users can trade a cryptocurrency futures market. High-volume traders can access quarterly futures or perpetual contracts to diversify their portfolios.
- DeFi: They have recently added different additional features for decentralized finance. It currently offers farming services, which allow for passive income or decentralized exchange.
- Blockchain: They have not wanted to become just another blockchain, so they have developed their blockchain very similar to Ethereum. The Binance Smart Chain seeks to be more efficient and powerful than Ethereum and to be the platform par excellence to create a DeFi ecosystem.
- Binance Coin (BNB): Additionally, they have created their digital currency that offers significant discounts for its use. It is one of the most important cryptocurrencies today.
- NFT: A few months ago they added the ability to buy, sell and create different collectible non-fungible tokens.
What is Coinbase Pro?
Let’s go now with another of the most important centralized exchange today. Coinbase Pro originates from the Global Digital Asset Exchange or GDAX platform. To simplify the denomination and seek to adopt a more commercial name, it was renamed Coinbase Pro.
Brian Armstrong and Frech Ehrsam founded the Coinbase exchange in 2012 and are based in San Francisco, California. Years later they acquired GDAX, which they would later rename as Coinbase Pro, to offer more and better services. It should be noted that in 2017 it was the first exchange to exceed a valuation of 1,000 million dollars.
Coinbase Pro is a variation of the original exchange intended for experienced users. Access to this platform is limited, but it offers its clients instant transactions and lower transaction costs.
It is currently one of the most important exchanges with the best reputation. They have achieved this based on patience, hard work on very robust security, and adding cryptocurrencies in a very timely manner. In addition, they have specialized in solutions for large investors.
Features of Coinbase Pro
The centralized exchange has several milestones and special features that make it very different from other platforms. These are:
- Coinbase IPO: The exchange launched an Initial Public Offering (IPO) in April 2021 attracting a huge number of investors. With this move, it has become one of the most important companies in terms of market valuation. It currently trades on the NASDAQ under the symbol $COIN.
- Institutional solutions: It has been specialized to offer different institutions simple access to cryptocurrencies. They have created a special division that allows private companies, institutions, and governments to acquire cryptocurrencies more easily.
- Stacking solutions: Despite the move to the institutional market, they are also adding enhancements for retail users. Currently, the exchange offers a stacking platform for users.
What are the differences: Binance vs Coinbase Pro
It is time to see what are the main differences between both centralized exchanges.
How many cryptocurrencies do they support?
The first thing is to know, more or less, how many cryptocurrencies and tokens we can find in each of these exchanges. Binance currently supports nearly 400 different cryptocurrencies and tokens, while Coinbase Pro supports just over 100. CoinMarketCap. Indicate that Binance offers just over 1,400 exchange pairs, while Coinbase Pro barely exceeds 300 pairs.
We must take into account the stablecoins that each of the exchanges supports. Coinbase Pro supports USDC, the proprietary stablecoin that the platform has developed. On the other hand, we have Binance, which accepts stablecoins such as Tether, DAI, and BUSD, the stablecoin developed by the exchange itself.
Supported fiat currencies
One of the most brutal differences in terms of fiat currencies supported by these centralized exchanges. Coinbase Pro currently only supports the US Dollar, Euro, and British Pound. While Binance supports a total of 41 stablecoins, the most important being the Japanese yen, Australian dollar, Canadian dollar, US dollar, British pound, euro, Russian ruble, Mexican peso, or Swiss franc.
What level of security do they offer?
One of the great strengths of Coinbase Pro is the great security they offer. The exchange has always been committed to offering excellent security and that in the event of a security breach, it would have a minimal impact.
To give us an idea, in the hot wallet there is only 2% of the funds of the exchange. This means that in the event of a breach, the amount stolen would be ridiculous. 98% of the funds are in a cold wallet without an internet connection and that requires a special access code.
The two wallets and the private keys have AES-256 encryption, which is military-grade and highly secure. Also, the hot wallet is only accessible via two-factor authentication (2FA). But it is what in addition, the funds of the American users are protected by the FDIC (Federal Deposit Insurance Corporation) which covers up to 250,000 dollars.
Binance, for its part, establishes the obligation for users to implement the 2FA system in their accounts. This implies that any attempt to access a user’s account is highly complicated. Additionally, it offers users a white list of withdrawal addresses.
Indicate that Binance established in 2018 a security method called Secure Asset Fund for Users (SAFU). It would be like a big jackpot where 10% of the transaction fees charged during a trading day are added. This serves to replenish user funds in the event of a security breach.
We have to point out that Binance was hacked in May 2019, although this gap has already been fixed. The attacker or attackers stole about 7,000 BTC, which was worth about $40 billion at the time. Through the SAFU system, funds were reimbursed to users who had been affected.
What commissions do both exchanges charge?
Another aspect that we must take into account is the commissions charged by both exchanges. Let’s see them:
Commissions on Binance
- Regular trading (Spot): 0.1% maximum (the more BNB we have in our account, the lower the commissions will be)
- Futures trading: 0.04% maximum (the more BNB we have in our account, the lower the fees)
- Convert: no commission
- Deposits: no commission
- Cryptocurrency purchases with card: 2% maximum
- Fiat deposits by bank transfer: 0.5%
- Fiat deposits by Advcash : 0%
- Fiat deposits for Etana: 0.1%
Commissions in Coinbase Pro
Buy and sell commissions
|Pricing Tier||taker fee||maker fee|
|$0 – 10K||0.50%||0.50%|
|$10K – 50K||0.35%||0.35%|
|$50K – 100K||0.25%||0.15%|
|$100K – 1M||0.20%||0.10%|
|$1M – 10M||0.18%||0.08%|
|$10M – 20M||0.18%||0.08%|
|$20M – 50M||0.15%||0.05%|
|$50M – 100M||0.15%||0.05%|
|$100M – 300M||0.10%||0.02%|
|$300M – 500M||0.08%||0.00%|
|$500M – 750M||0.06%||0.00%|
|$750M – 1B||0.05%||0.00%|
|$1B – 2B||0.04%||0.00%|
Fees for trading stablecoins or fiat
|Stable Pairs||taker fee||maker fee|
|DAI – USDC
DAI – USD
PAX – USD
PAX – USDT
USDC – EUR
USDC – GBP
USDT – EUR
USDT – GBP
USDT – USDC
USDT – USD
WBTC – BTC
Deposit or withdrawal fees
|Deposit (Add Cash) Fee||Withdrawal (Cash Out) Fee|
|Wire (USD)||USD 10||$25USD|
|Swift (GBP)||Free||GBP 1|
What is the degree of usability
Getting started with an exchange requires some exploration of the interface and menus. There is always a period of adaptation and learning since not all exchanges have the same operation. Although it should be noted that they are all based on the same premises and/or parameters.
Binance offers a simpler interface and allows you to choose between a simplified view of an advanced view. This is intended for users with basic or more advanced knowledge. While Coinbase Pro has a purely trading-focused interface, it is much more sober with trading and charting tools.
How is the customer service?
Without a doubt, one of the big gaps in centralized exchanges is customer support. Despite being very large services, they still lack a robust user service system that usually leaves a lot to be desired.
Binance and Coinbase Pro seek to offer users the best experience to keep customers (users) happy. Both exchanges distance themselves from the poor customer service reviews of other platforms. Both have pretty good reviews in this respect, although it is always difficult to please everyone.
Both platforms have a support service embedded in their website. Tickets can be started that receive a response by mail with a response time of between 24-72 hours.
These two exchanges have a complete section of frequently asked questions where the most common doubts are clarified. Binance additionally has an Academy where they give users information about cryptocurrencies and the underlying technologies.
Coinbase Pro additionally has an always-on live chat service and a support system for urgent queries. Binance has a lot of presence on Twitter and its CEO also often gives out a lot of information on his account.
Do they have a smartphone app?
Both Binance and Coinbase Pro have Android and iOS apps currently available. These two applications are quite simple to use and useful.
Pros and Cons of Binance vs Coinbase Pro
|Focused on experienced users and institutions||The number of cryptocurrencies listed is limited|
|It has 2FA, AES-256 encryption and cold storage of 98% of the funds||Supports very few fiat currencies|
|FDIC insured for US users||It is mandatory to pass the KYC-AML process|
|Commissions are quite low||Does not offer additional services such as NFT, stacking, DEX and others|
|It has a very good customer service|
|App available for Android and iOS|
|They have many cryptocurrencies and tokens listed||has been hacked|
|Has margin trading||It is a centralized exchange that requires passing the KYC-AML processes|
|Commissions for buyers are low|
|Using the BNB token means reducing transaction fees|
|It has a fund in case they suffer theft of funds and thus be able to reimburse all the money stolen|
|They are quite transparent|
|Very active and communicative in social networks|
|It is designed to be used by any type of user|
|Supports more than 40 different types of fiat currencies|
|It has its blockchain, stacking, yield farming, NFT, and other services|
Final Words on Binance vs Coinbase Pro
We have two very powerful centralized exchanges but they have taken quite different paths. Binance has become the “people’s” exchange for its ease of use, offers rewards for token leverage and other solutions such as DEX, NFT, and its blockchain, among others.
Coinbase Pro, on the other hand, is a centralized exchange that has targeted trade specialists, large investors, companies, and institutions. They have chosen to offer a much more specialized service. Additionally, Coinbase is listed on the NASDAQ after the launch of the IPO, so it is subject to scrutiny from regulators.
Therefore, the comparison of Binance vs Coinbase Pro is very difficult to do, since each one offers different things. Both platforms were born as a “simple” exchange, but over time they have moved to different paths.
After this comparison Binance vs Coinbase Pro, with which of these two centralized exchanges would you stay?
Image Source: Profesionalreview