The emergence of cryptocurrencies has given rise to many cryptocurrency exchange platforms. These platforms are used by traders to buy and sell the respective cryptocurrency. Binance and Coinbase are two such crypto exchange platforms that have a lot of users around the globe. These platforms ensure the smooth trading of cryptocurrencies and act as an intermediary.
Coinbase vs Binance
The main difference between Coinbase and Binance is that Coinbase was founded in the year June 2012, whereas Binance was founded in the year 2017. Binance has the highest number of cryptocurrencies listed in their exchange when compared with Coinbase. The founder(s) of Coinbase is Brian Armstrong and Fred Ehrsam, whereas the founders of Binance are Changpeng Zhao and Yi He.
Coinbase Global Inc (Popularly known as Coinbase) was founded in the year 2012 and has been known as the second-largest cryptocurrency exchange since then. It is also highly recommended for cryptocurrency beginners. It supports a large number of cryptocurrencies in its platform. It has got a lot of users around the globe.
Binance was originally founded in the year 2017 by Changpeng Zhao and Yi He. Binance is known for its highest number of users. The platform supports almost 500 cryptocurrencies. This exchange also provides different order types, which include futures. This exchange is recommended for beginners as well as advanced traders as they will be benefitted from using charts and as such.
Comparison Table Between Coinbase and Binance
| Parameters of Comparison | Coinbase | Binance |
| Details | Coinbase is an American cryptocurrency exchange that has no physical headquarters. | Binance is a cryptocurrency exchange that is headquartered in the Cayman Islands. |
| Founders | Brian Armstrong and Fred Ehrsam are the founders. | Changpeng Zhao and Yi He is the founders. |
| Founding years | Coinbase Global Inc was founded in the year 2012. | Binance was founded in the year 2017. |
| Cryptocurrencies listed | More than 50. | Around 500 cryptocurrencies. |
| Transactions | Buy, sell, send & receive and exchange. | It has got options like buy, sell, trade, withdraw, margin, futures trade, and as such. |
What is Coinbase?
Coinbase (Coinbase Global Inc) was founded in the year 2012. Brian Armstrong and Fred Ehrsam are the founders of Coinbase Global Inc. One of the interesting features of this company is that they do not have a physical headquarters. The past few years have witnessed a rising awareness of cryptocurrency. This had led to the development of cryptocurrency exchange platforms.
More number of newbies started entering the cryptocurrency market. The existing traders and new traders started trading through these exchanges. It is to be noted that a trader did not limit oneself to one exchange and instead started using several exchanges. This has given rise to several cryptocurrency exchanges. These exchanges ensured a smooth buying and selling of cryptocurrencies. Coinbase is one such cryptocurrency exchange.
It is an American cryptocurrency exchange that has a lot of users around the globe. Compared to Binance, Coinbase has a relatively smaller number of cryptocurrencies listed on it. Though they only support a smaller number of cryptocurrencies, they have some of the very popular cryptocurrencies listed in their exchange. They also provide a free wallet service. Another key feature of this exchange is that they offer rewards if the users learn from their educational materials. Coinbase is criticized only for its high fee. Other than this, the Coinbase exchange is highly recommended for beginners.
What is Binance?
Binance is one of the very popular and go-to cryptocurrency exchanges that was launched in the year 2017. The founders of Binance are Changpeng Zhao and Yi He. The headquarters of Binance is situated in the Cayman Islands. The CEO of Binance is Changpeng Zhao. Being one of the renowned cryptocurrency exchange platforms, Binance supports almost 500 cryptocurrencies.
Apart from trading, buying, and selling of cryptocurrencies, they also provide other options like futures trading, options, margin, and as such. Another feature of Binance is that they provide strong security, which itself fetches a lot of users for them. Just like Coinbase, Binance is also recommended for beginners as well as advanced traders.
The traders can look into the charts, which will be useful for them while trading or investing. The reason why Binance is considered to be the largest cryptocurrency exchange platform is that they have the highest trading volume in their exchange, meaning a lot of transactions are happening through Binance every day. Additionally, Binance extends its services to almost around hundred countries. They provide different types of orders (seven types of orders). Interestingly, they also have their own token, which is known as Binance Coin. Binance only charges during the withdrawal time.
Main Differences Between Coinbase and Binance
- Coinbase is an American-based cryptocurrency exchange with no physical headquarters, whereas Binance has its headquarters in the Cayman Islands.
- The founders of Coinbase include Brian Armstrong and Fred Ehrsam, whereas the founders of Binance are Changpeng Zhao and Yi He.
- Coinbase was originally founded in the year 2012. On the other hand, Binance was founded in the year 2017.
- Binance is said to have almost around 500 cryptocurrencies listed in their exchange, while Coinbase has around 50 cryptocurrencies listed in their exchange.
- Coinbase offers transaction services such as buy, sell, send, receive, exchange, whereas Binance provides advanced options like futures trading, options, margin, deposit, and withdrawal.
Conclusion
The rise in cryptocurrencies has given a surging rise to cryptocurrency exchange platforms. Many investors and laymen are now aware of cryptocurrencies. It is also said that cryptocurrencies currently have a hold of around seven percent of the world’s money. Cryptocurrency exchange platforms are now booming as a greater number of traders steps into the world of cryptocurrencies.
Some of the famous and most-used cryptocurrency exchanges are Binance, Coinbase, FTX3, Huobi, eToro, and Webull. Among these platforms, Binance and Coinbase have a decent number of traders. Binance is said to have a greater number of transactions on a particular day as it charges low fees, listing of the highest number of cryptocurrencies, and also different transactions option. Coinbase is easy to use and is recommended for beginners, supports famous cryptocurrencies like bitcoin, and has a good security feature.
References
- https://arxiv.org/abs/2107.00298
- https://dl.acm.org/doi/abs/10.1145/3121113.3121125