Binance Exchange: Things to Know
Among all the Chinese cryptocurrency exchanges, Binance is the most popular. There are many reasons for the exchange’s growing popularity.
Trading Pairs: The exchange has over 260 crypto-to-crypto trading pairs.
Low Transaction Fees: Though the company charges a 0.1% fee for each transaction. Traders using Binance’s native token, Binance Coin (BNB), get a 50% discount on the fee during their first year, irrespective of volume.
Transaction Limit: An individual trader can deposit any amount as there is no deposit limit. The withdrawal limit depends on the verification tier. Users with Level 1 verification can only withdraw currency worth 2BTC per day. However, users with Level 2 verification can withdraw currency worth up to 100BTC per day.
Security Support: Binance has managed to gain immense trust as it is very focused on security. Thanks to the exchange’s multi-tier architecture and the availability of two-factor authentication (2FA), the exchange has been able to maintain a very high-security rating.
Customer Support: Binance has a professional and highly responsive support team who give timely support via e-mail.
ICO: Binance is creating a decentralized exchange with the help of BNB, which can be used as a medium to pay fees and become one of the future’s best base currencies.
Coinbase Exchange: Things to Know
Coinbase is a popular digital asset exchange company with a global footprint. It accepts fiat currencies for trading in 32 countries and facilitates Bitcoin transactions and storage in 190 countries across the globe.
Coinbase is one of the most reputable platforms for trading (buying and selling) and storing digital currencies, thanks to its high security, low fees, high transaction volume, and support for various cryptocurrency-to-cryptocurrency trading. Read complete coinbase review here.
Headquartered in San Francisco, California, Coinbase is the official exchange for Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and other cryptocurrencies.
Binance vs Coinbase
The Coinbase vs Binance comparison is an interesting one as they are both popular and highly reputable in the cryptocurrency ecosystem. The table below gives you a feature-to-feature comparison between these two heavyweight exchanges.
|Fee||0.1%||Up to four percent|
|Minimum Initial Deposit||Undisclosed||Equivalent of 325 Euros|
|Native Token||Binance Coin (BNB)||No|
|Trading Instruments||A substantial number of coins including but not limited to BTC, ETH, LTC, BCC, OMG, IOTA, ICN, MCO, SALT, KNC, CTRm SNLS, FUN, BQX, XVG, ZRX, and BQX.||Only a few coins are available but this includes BTC, ETH, and LTC.|
|Trading Platform||Web-based with two distinct trading layouts: simple and professional.||No platform. Uses an interface similar to an online banking application|
|Method of Payment||Cryptocurrencies||Cryptocurrencies, fiat currencies, bank transfers, credit/debit cards, PayPal (U.S. only)|
|Pros||Founded by industry veterans, some altcoins included, more assets added constantly, low fees, user-friendly trading platform||NewYork BitLicense, no major hacks, accepts bank transfers and credit cards, user-friendly interface|
|Cons||Does not accept fiat currency, relatively new, based in China||Few altcoins available, high trading fees.|
(Source: “Binance vs. Coinbase,” Forex Brokerz, last accessed February 16, 2018.)
Given Coinbase’s high fees and the fact that it supports only a few altcoins, many people are interested in knowing how to transfer from Coinbase to Binance. This can be easily done, but it’s important to note that when you transfer Bitcoin Cash or Litecoin from Coinbase, you’ll then have to convert them into Bitcoin, Ether (Ethereum), or Binance Coin to trade the coins on Binance.
How to Transfer from Coinbase to Binance
Transferring your altcoins from Coinbase to Binance can be done in five simple steps.
Step 1: Open your Coinbase web page and select “Accounts” at the top of your screen (at the bottom, if you’re on a mobile device).
Step 2: Next, select the cryptocurrency that you want to transfer from your Coinbase wallet to Binance.
Step 3: Find the Binance deposit address. To do this, open your Binance account, select “Funds” at the top (at the bottom for mobile devices). Click on “Deposits Withdrawals.” Then tap on “Deposit” on the cryptocurrency you’re transferring to get the deposit address.
Step 4: Enter the Binance deposit address under “Recipient” in your Coinbase account. Then, just choose the amount you want to send.
Step 5: Click on “Continue.” Check all the details of the transaction and then complete by clicking “Send.”
Within 15-30 minutes, your cryptocurrency will be transferred from your Coinbase account to your Binance account. Check both your Coinbase and Binance accounts to ensure that the transaction is completed satisfactorily.
(Source: “5 SIMPLE STEPS TO TRANSFER FROM COINBASE TO BINANCE,” Saint Inc, January 13, 2018.)
Best Exchange to Trade Cryptocurrencies
OK, now that you know how to transfer your cryptocurrencies, let me ask you this: Should you consider Binance or Coinbase for trading?
Here are my two cents on the subject.
If I were looking for the best exchange for trading cryptocurrencies, I’d prefer Coinbase over Binance. Don’t get me wrong, if I were asked to rate the two exchanges, I’d probably give them both 4 out of 5 stars.
But here’s the thing, having studied many of these exchanges and seeing how government policies are changing the rules of the game, I would rather be with an exchange that follows or is guided by the NewYork BitLicense than by a currency that is under the Chinese Government’s purview. Also, the fact that Coinbase accepts fiat currency and thereby bank transfers and credit card payments is a huge plus point.
I understand that the high fees could be a deterrent, but hey! Every silver lining has a cloud somewhere.