Table of Contents
1. Binance VS Coinbase: The Crypto Platform Introduction
2. Binance VS Coinbase: Brief History
3. Binance VS Coinbase: User Experience
4. Binance VS Coinbase: A Crypto Platform User Analysis
Binance is the world's largest cryptocurrency exchange platform that enables its users to buy, sell, hold and exchange different cryptocurrency tokens. Founded in 2017 by co-founders: Changpeng Zhao and Yi He before being banned from use in the US, the platform has had regulatory concerns in some countries: however, Binance remains the major cryptocurrency exchange platform and the organization with the famous Binance Coin(BNB) as its native currency.
Coinbase is a US-based cryptocurrency platform that enables users to buy, sell and store cryptocurrency like Bitcoin, Ethereum, etc. The platform is owned by Coinbase Inc, a remote-based organization that was founded in 2012 by Brain Armstrong and Fred Ehrsam.
Unlike its counterpart, Coinbase has fewer regulatory concerns, and it is the biggest cryptocurrency exchange platform in America.
As a user who has used both platforms, I will be weighing Binance and Coinbase side by side: Today, I will give you a detailed analysis of their history, user experience, popularity and tell you what I think of both platforms at the end of this article.
Binance was founded in 2017 by Changpeng Zhiao and Yi He, former executives at Ok Coin. They created Binance as a cryptocurrency platform based in China. Subsequently, a fundraiser was organized to set Binance running, and 15 million USD was raised from the investors.
In the first three months, Binance was raking in a whopping daily transaction volume of $500 million. Just a week before the Chinese government announced stricter regulations on cryptocurrency, the Binance team moved its servers to a Hong Kong office. The organization has had its challenges, but over the years with the addition of new cryptocurrencies on the platform and good knowledge of the target market, Binance has maintained its position as the biggest cryptocurrency platform in the globe.
In July 2011, a former Airbnb engineer by the name of Brian Armstrong created the concept of Coinbase. In 2012, co-founder Fred Ehrsam and former Goldman Sachs trader joined the organization: subsequently, the platform launched its bitcoin trading and storage service.
2012 saw the debut of Coinbase as a platform where users could buy and sell Bitcoin with the aid of bank transfers. Cryptocurrency users were delighted, and Coinbase became one of the biggest Bitcoin providers.
Coinbase does not struggle with many country regulations: however, there have been multiple complaints about the site and the organization's customer service. On the 27th of October 2021, Coinbase went offline, leaving many users unable to trade: perhaps this is one of the reasons why the organization is not taking a larger share of the crypto market.
As someone who has used both Binance and Coinbase platforms, I must say that both platforms are designed to make the process of buying, selling, and storing crypto easier. However, Coinbase is generally easier to use than Binance, which provides a three-level usage experience. Although there are guides on how to use the Binance website and app, navigating both as a beginner can be quite stressful.
Binance has two-factor authentication, which makes it secure: you will need to solve a puzzle and send verification codes from your phone and email respectively. Coinbase is also secure, having two-factor authentication, biometric fingerprint log-ins, and accepting the most secure cryptocurrencies for its users. It is no wonder why Binance supports over 500 cryptocurrencies for non-US users, and Coinbase supports a little over a 100. If you are a user who wants a variety of coins, Coinbase may be a better option for you.
In terms of fees, Binance is the cheaper option. The app and website offer 0.015 to 0.10% purchase and trading fees, as compared to Coinbase's 0.50% trade fees and 1.49% Coinbase wallet or bank account purchase fees. Coinbase offers a $10 gift for registering a new account, which is amazing, as well as learn and earn crypto giveaways.
Binance organizes its airdrops, but in most cases, they are for KYC verified users and users who have traded or are willing to stake coin on the platform. Binance is cheaper for non-US users, but the regulations for US users make it difficult for them to use. Coinbase is less restricted in the United States. I believe that for US users, the user experience may be different for Binance, even though the fees are generally cheaper.
Binance and Coinbase are two large forces in the cryptocurrency market: Bitdegree reported that there were up to 13.5 million Binance users and 13.3 Coinbase users. Both organizations have taken a large share of the market because of the services they provide: the ease of buying, holding, and selling crypto with your card or via a bank transfer makes all the difference.
As a crypto platform user, I worry about Binance. The different country regulations and the reports about profiteering from investors, money laundering, and tax fraud are bothersome: however, the cheap fees, the variation in cryptocurrencies, and the peer-to-peer trading platform available in my home country keep me stuck to the platform. Despite all of these, I would advise my family, colleagues, and friends in the US to use Coinbase. This is because of the limited number of cryptocurrencies available on Binance US, and the fact that its security is a controversial topic.