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Binance vs. Coinbase: a comparison on buying crypto in Europe
Binance vs. Coinbase: a comparison on buying crypto in Europe
Crypto

Binance vs. Coinbase: a comparison on buying crypto in Europe

By Guest post - 10 Sep 2020

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Binance vs. Coinbase: who wins? Those are two of the most well-known brands in crypto trading in the world. With millions of users in 180+ countries and territories worldwide, including Europe and the U.K.,  both platforms provide people with convenient ways to buy cryptocurrencies using local currencies such as the British pound (GBP) and the Euro (EUR). 

Coinbase was created in 2012, five years ahead of Binance. During this time, Coinbase has built its brand mainly in the U.S. before expanding worldwide. It offers mainly cryptocurrency storage and trading services, with some ancillary features. The company is currently valued at $8 billion and it is preparing for an IPO in the near future.

Binance was established in 2017 after an initial coin offering (ICO). It went on to become the world’s biggest exchange by trading volume just six months after it was launched. Since then, Binance has expanded into many services, such as crypto mining, crypto financial services, blockchain platforms, and even decentralized finance (DeFi). 

In this article, we provide a comparison between Binance and Coinbase. We will mainly focus on the characteristics of their platforms for buying cryptocurrencies using local currencies. We do this by answering seven questions about these platforms, and then scoring both platforms along the way. 

A comparison between Binance and Coinbase 

  1. Does this platform have many options for depositing cash?

Both Binance and Coinbase support the use of bank transfers, as well as credit cards, debit cards, and even Sofort local banking

SCORE – Binance: 1, Coinbase: 1

  1. Can you buy crypto on this platform using your credit card? 

On Binance, you can buy cryptocurrencies using your credit or debit card, no strings attached. Coinbase also supports the use of credit cards, but only if they support 3D Secure, which you have to confirm with your bank.

SCORE – Binance: 2, Coinbase: 1.5

  1. What’s your credit card limit for buying crypto on this platform? 

You can buy up to €70,000 or £62,000 worth of crypto on Binance per week. In comparison, Coinbase has a weekly limit of just £3,000.

SCORE – Binance: 3, Coinbase: 1.5

  1. How much are the credit card fees? 

Binance charges a 1% spread and a 2% fee for every transaction. Coinbase features a 0.5% spread on crypto purchases, which is half the spread rate on Binance, but it also charges a 3.99% fee, which is almost twice Binance’s rate.

SCORE – Binance: 3.5, Coinbase: 2

  1. What withdrawal options are available to you on this platform?

One thing that’s nice to have with your crypto platform is access to many options for withdrawing your crypto earnings into cash. On both Binance and Coinbase, you can withdraw via bank transfer. What differentiates the two is their second option for withdrawals: Binance uses Advcash, while Coinbase uses PayPal. Each service has its pros and cons, so it looks like a tie for both exchanges.

SCORE – Binance: 4.5, Coinbase: 4,5

  1. Up to how much can I withdraw?

On Binance, users can withdraw up to €200,000 (or the equivalent amount in GBP) per day via bank transfer. On Coinbase, the daily withdrawal limit to PayPal is £20,000. Coinbase also offers a bank transfer option for withdrawals, and while it does not explicitly state the limit for this option, it said that all of Coinbase Pro users can withdraw up to $25,000 per day. Either way, Binance’s withdrawal limit dwarfs Coinbase.

SCORE – Binance: 5.5, Coinbase: 3

  1. What can you do with your crypto when you buy on this platform?

In just a short time, Binance has created a sprawling ecosystem of services through which you can use the crypto you bought. You can trade them in spot, margin, peer-to-peer, and futures markets. You can also use your crypto on Binance’s staking and savings services for earning opportunities even if you don’t trade.

While Coinbase is mostly a crypto buying and selling platform, it also offers the Coinbase Pro trading platform, as well as a crypto wallet for spending your crypto. 

FINAL SCORE – Binance: 6.5, Coinbase: 4,5

Based on our assessment, Binance offers more advantages than Coinbase when it comes to buying crypto using your local currency. Results may vary depending on what you intend to do on these platforms, but signs point out to Binance being a superior platform when it comes to your crypto needs

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