Both Binance US and Coinbase Pro are two of the top crypto exchanges in the world. Each one of them offers a wide variety of crypto coins to invest in. With that being said they are also quite different in terms of fee’s and reputation. So lets get this party started.
Why Get Involved In Cryptocurrency?
Whether you’re just a beginning investor or someone who has a diverse portfolio, there’s a chance that you might be interested in cryptocurrency. There are massive potential benefits using and investing in cryptocurrency that even expert investors can admit to.
Investing in cryptocurrency has a wide array of benefits. Selling at a huge profit is just the most obvious. You can also invest long-term which would be a finance-savvy move to make. Also we are now seeing Bitcoin as well as other crypto’s as a legitimate way to make payments. Bottom line is that their are lots of uses for cryptocurrency, and it is getting more popular and more used every day.
Who Is Binance US?
Since we are taking a look at Binance US vs Coinbase lets start with the bigger exchange. Binance US is a website and mobile app that’s used for buying, selling, and trading cryptocurrency. If you’re already interested in cryptocurrency, you’ve probably heard of it. Binance US considers itself a ‘digital asset marketplace’, and an online platform which users can use to invest, sell, buy, trade, and monitor cryptocurrency values.
They currently offer over fifty kinds of cryptocurrencies that you can invest in. It was founded in September 2019, and operates out of San Francisco, California.
Who Is Coinbase?
Coinbase is another popular online platform for cryptocurrency. It’s been around a bit longer and was created in 2012. I would have to say Coinbase is recognized by most people as the first real popular cryptocurrency exchange. It is similar to Binance US in that users can buy a variety of different cryptocurrencies and sell, trade, and oversee their investments. Just like Binance US, it offers an online wallet, tons of different kinds of cryptocurrencies, and a plethora of features.
Coins Available On Binance US
Over 60 kinds of cryptocurrencies are available on Binance US. Those include coins like Bitcoin, Maker, PAX Gold, Ethereum, Compound, Litecoin, BNB, Chainlink, VeChain, and more. There are also a variety of smaller coins that have far less value but are available for trading. Most of the popular, most frequently traded cryptocurrencies are available on Binance US.
Coins Available On Coinbase Pro
Coinbase Pro has a similar number of currencies available, and many of them are the same, because they’re the most frequently traded cryptocurrencies. Currencies like Bitcoin, Ethereum, Maker, and Litecoin are found here. Other currencies are available on Coinbase Pro too, however: like Band, Graph, and NuCypher, even if they’re not as well-known or as valuable as something like Bitcoin.
Binance US Fees
When comparing Binance US vs Coinbase Pro in 2022 fee’s taking a look at fee’s is a must. Binance US utilizes a spot fee and instant sell/buy trading fee that any investor should be aware of. Binance US charges a 0.1% spot fee–which is a fee for when an investor buys cryptocurrency that will be available at a specified date. An instant sell/buy trading fee is then noticeably higher, at 0.5% instead of 0.1%. With instant trade, your currency is available almost immediately. There is no waiting for business days to pass or the transaction to process beyond that.
Binance US will lower your trading fees if you hold enough BNB in your account. This is its own cryptocurrency. By holding a certain amount, you get your fees reduced significantly at specific thresholds. Most people will never go beyond the immediate few levels. However the fees get reduced to almost nothing if you hold enough in your account.
Your maker and taker fees will be reduced to a far more acceptable margin. This is important depending on the kind of trading that you do. To keep it simple, taker trades are usually nearly instant or done almost immediately. They take liquidity from maker trades, which are trades set up with a specific purpose, amount, or date behind them, usually delayed in some way (e.g., buy 2 Bitcoin once it reaches a value of $10,000 would be considered a maker trade).
Overall, Binance US offers some of the best fees in the crypto world. How does Coinbase Pro stack up against it?
Coinbase Pro Fees
Coinbase Pro uses a system of fees that’s not quite as complex as Binance US. The only fees that Coinbase Pro charges are trading fees, taker fees, mining fees, and (certain) withdrawal and deposit fees. Coinbase Pro takes a certain percentage of taker and maker orders–and then past $1M, maker orders become free. Taker orders always have a certain fee attached to them. Coinbase Pro also takes mining fees to make processing a ‘smooth experience’ and to offer ‘reasonable times’, according to its website.
Taker and Maker fees start at both 0.50%, but rapidly scale down depending on the size of the transaction and which kind of transaction it is. Most people will never reach a 0% maker fee rate, because it needs at least $1M of value in the order to cause no fee to be taken. Taker fees can be reduced, however, by a decent amount, depending on how valuable the trade is.
For most people, it won’t dip below 0.25%–the bracket that falls in the realm of $50k-$100k. Any trade less than $10k is 0.50% for makers and takers, and $10k-$50k is 0.35% for makers and takers.
Benefits To Both Exchanges
Just judging by some basic math, Binance US has a far better fee structure. While Coinbase Pro’s fees may seem initially simpler, the figures are actually stacked deeply against the average trader. The fees are simply too high. The same person would have a much better time with Binance US’ fees.
On the other hand, Coinbase Pro is also an older company with a better domestic spread across the U.S. Not only that, but it has better liquidity with its currencies: which is important when you’re dealing with something like cryptocurrencies.
Things like liquidity and availability in the U.S. are supremely important when dealing with something like cryptocurrency. You want to be sure that what you’re trading can be turned and liquidated out into a form of money that everyone accepts. While it would be cool to pay with Bitcoin everywhere, we aren’t quite there yet. Coinbase Pro has Binance US beaten there.
If you’re one who hates fees, though, Binance US blows Coinbase Pro out of the water. Coinbase Pro charges far too much for fees compared to Binance US, and Binance US’ fee structures are just great for the average trader. We hope you enjoyed this comparison on Binance US vs Coinbase Pro for 2022. If you would like to get started trading click here.