Coinbase vs Binance

[Abiky]

Now that Binance has business operations in the US (Binance.us), the competition between the country's biggest crypto exchanges will become fierce like never before. For a long time, Coinbase has been the leader of the crypto market in the US. But with Binance joining the game, Coinbase's position could be threatened in the long term. After all, Binance enjoys greater liquidity and adoption than Coinbase (as far as I know). I'm sure most people will prefer Binance on top of Coinbase because of its attractive fees. The latter's fees (Coinbase) are exorbitantly high, compared to most exchanges out there in the crypto/Blockchain world.

What do you think? Will Binance be able to beat Coinbase in the long term? Or will they co-exist for a long time? Do you think that as competition becomes fierce, Coinbase will be able to reduce fees? Your input will be greatly appreciated. Thanks!

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[Beparanf]

Coinbase is now accepting many tokens even the hype tokens only unlike before that they are very strict on listing. They can compete now to Binance since they have a lot of token to offer on there user and also they already get the majority of US user so they have the advantage for being a first license exchange. They will just co-exist unless coinbase can't follow the marketing phase of Binance like launching contests ang giveaways.

[The Sceptical Chymist]

My guess is that most US customers would rather use Binance than Coinbase, as the latter has pretty strict conditions about where you can send your bitcoin to (like gambling sites)--and they do keep track of that.  I'm not sure that Binance does.

I haven't used Coinbase since probably 2015, and back then it was basically just an easy way to purchase bitcoin with fiat.  If they've branched out into altcoins, they'd have to have a ton of them listed in order to compete with Binance.  And even if they have added a lot of alts/tokens, I still think people would much prefer Binance.  Coinbase tends to leave a lot of its customers with a sour taste in their mouths.

[noorman0]

It depends on how interested users are in the US.
Binance has also entered our country while we have a trusted exchange that has been operating for years. Binance is partnering with a new local exchange to operate. As an exchange user who is skeptical of KYC, I am not very interested in the new exchange even though I have a well-known partner, moreover I am also a binance user. And I don't see any changes on the old exchange especially the decline in the number of users.

In essence, whatever Binance has to offer may be that coinbase can offer even more attractive, so that the two companies can compete with each other. But I believe Coinbase has the strengths of a local exchange that no outside exchange has, such as base status or compliance with local policies. That makes coinbase superior to US users.

[Bttzed03]

Funny how the once mighty Bittrex is left out in conversations for top exchanges based in US. The forcing of KYC and locking up accounts sure left a permanent scar on many users.

On the battle between Coinbase and Binance, it will boil down to how good their services are. I mean both are heavily regulated, require KYC, limited coins and tokens to trade with.

[notblox1]

If you are using Coinbase exchange you probably noticed that many times there are issues or exchange is not working during high peak of usage or big price changes in bitcoin.
I don't know if that is intentional or not, but if that continues to happen in future I am sure that BinanceUS can take advantage in that case, but my opinion is that we need to have more people using dex exchanges and p2p trading.
I think that Binance also have lower fees than Coinbase at the moment, and that is important advantage.

[PrimeNumber7]

I would consider the two to have different target markets. CB appears to target smaller, retail traders/users, while binance targets more professional traders.

CB does have Coinbase Pro, which has fees that are more in line with Binance. I also understand that orders on coinbase (retail) are sent as market orders to CB pro, which makes it more likely that limit orders will fill on CB pro that might not normally expect to get filled quickly on other major exchanges.

[Heisenberg_Hunter]

Coinbase has been well established since the early days of bitcoin and probably this might be the only reason for them to still be considered as a not bad competitor to Binance. I would compare the rivalry of Coinbase vs Binance to the processor rivalry of Intel vs AMD. Intel had been a old guy in the processor market and has been bringing some really good inventions in the early days of computing. Then came AMD to kill Intel at every corner and if Intel doesn't come up with the lower lithography or other groundbreaking innovations anytime soon, AMD will kill their market share altogether.

I would very well compare Coinbase with Intel and Binance with AMD. Coinbase still goes down while handling larger volumes during a sudden pump or dump as explained by @notblox1 and the higher tx fees will make them even more worse in the market. On the other hand, Binance has been expanding far more powerful than Coinbase with cheaper - faster transactions and the introduction of DEX has been seen as a welcoming change for the exchange itself. But TBH Coinbase Pro pretends to be a competitor but if they doesn't come up with the fastest tx processing speeds nor with lower fees lesser than Binance they would still lag behind in the game.

What do you think? Will Binance be able to beat Coinbase in the long term? Or will they co-exist for a long time? Do you think that as competition becomes fierce, Coinbase will be able to reduce fees?

Regarding the security measueres, Coinbase takes a lead in this feature. They were always more transparent and secure than Binance and this could be a core reason for their market share. As I have pointed out already, if neither Intel nor Coinbase doesn't come up with lesser processing cost they will probably lag behind companies like Binance and AMD even more than they are currently now.

[Abiky]

I believe it's just matter of time before Binance have market share than Coinbase does. Aside from high fee and strict rule, AFAIK Coinbase have more controversy than Binance does, ranging from lack of SegWit support for long time, doesn't utilize batch transaction to privacy problem (all centralized exchange have bad privacy, but some people think privacy on Coinbase is worse than on other exchange).

That's certainly true, mate. Basically, Binance has what it takes to take down Coinbase in the future. It's already one of the most (if not the most) popular crypto exchanges in the world. CZ has done quite well in building a crypto empire that's too big to fail. One of Binance's biggest advantages over Coinbase is international reach. As far as I know, Coinbase only has operations in the US. Binance's international operations will allow it to expand to areas far beyond reach. The low fees, flexible KYC rules, and larger crypto offerings, makes Binance a better option than Coinbase.

Nonetheless, time will tell us if Coinbase will be able to survive for long. People will ultimately determine which crypto exchanges stay and which will fade into oblivion. The more people switch from Coinbase to Binance, the closer Coinbase's demise will be. It's survival of the fittest in this wild and crazy world of crypto. I'd prefer to use Binance.US instead of Coinbase because of its attractive fees. I'm sure most people will do the same, leaving Coinbase in the dust. Just my opinion

[pooya87]

CZ has done quite well in building a crypto empire that's too big to fail.

nothing is ever "too big to fail", specially in crypto market. how big is it anyways? it is not bigger than Mt Gox that were controlling 90% of the entire market!

in any case the biggest problem is that the choice is between bad and worse. both of these services have a lot of negative sides, some of which comes from the fact that they are centralized and some of it comes from their own shadiness. besides certain things that are "flexible" right now in the new Binance will become just as strict as Coinbase as soon as it gains more popularity and is placed on US gov's radar to crack down.

[LordShanken]

Now that Binance has business operations in the US (Binance.us), the competition between the country's biggest crypto exchanges will become fierce like never before. For a long time, Coinbase has been the leader of the crypto market in the US. But with Binance joining the game, Coinbase's position could be threatened in the long term. After all, Binance enjoys greater liquidity and adoption than Coinbase (as far as I know). I'm sure most people will prefer Binance on top of Coinbase because of its attractive fees. The latter's fees (Coinbase) are exorbitantly high, compared to most exchanges out there in the crypto/Blockchain world.

What do you think? Will Binance be able to beat Coinbase in the long term? Or will they co-exist for a long time? Do you think that as competition becomes fierce, Coinbase will be able to reduce fees? Your input will be greatly appreciated. Thanks!

After the recent information that Binance has a rather unclear situation related to paying taxes, I am afraid that it will have problems with its existence soon. Even if these are rumors and everything is fine, I think Coinbase will be a leader for a long time.

[rijaljun]

I think they will co-exist for the mean time but we're not quite sure what will happen after the US slowly accepting the Binance both of them are pretty good exchange in my opinion so I think neither of them will be out of the game. But hearing some humors that the Binance was used by scammers to mix their coins or trade their coins I hope this wouldn't be an issue.

[Harlot]

Just a correction Binance didn't operate in the US just now but they just re-entered the market as they were originally not fully compliant with their operations in the US, so technically Coinbase and Binance has been co-existing in the US market for years now from what I believe. Yeah sure you can say that there is someone who will be favored but I believe that these kinds of competitions that several exchanges are available can co-exist as some traders also take advantage of the price differences these exchanges have.

[Ridwan Fauzi]

The first thing that will look by an investor/trader against an exchange are its reputation. They will not make an account on the exchange if the exchange has a bad reputation although the exchange charge a little fee and many promotion.

After that, if the exchange has a good reputation the investor will chooss an exchange which has a low fee and provide many option to choose an altcoin to trade. In this case, if we compare between coinbase and binance I see binance has a lot of altcoin and give a low fee that will charge. So, there will be many possibilities for the binance exchange to compate the coinbase exchange in US.

[hugeblack]

When we compare Binance with Coinbase, I trust Coinbase. Many simple questions are unable to be answered by this platform, such as headquarters, capital guarantee if a hack occurs, and guarantee that no manipulation occurs.
Therefore, you will face fierce competition from coinbase, and you may not succeed in capturing all the market, but an estimated percentage of them.

Binance's platform seeks to expand into many crypto feilds, something that should be carefully considered.

[Abiky]

nothing is ever "too big to fail", specially in crypto market. how big is it anyways? it is not bigger than Mt Gox that were controlling 90% of the entire market!

in any case the biggest problem is that the choice is between bad and worse. both of these services have a lot of negative sides, some of which comes from the fact that they are centralized and some of it comes from their own shadiness. besides certain things that are "flexible" right now in the new Binance will become just as strict as Coinbase as soon as it gains more popularity and is placed on US gov's radar to crack down.

Good point. Any centralized exchange no matter how big it is, has one thing in common. And that is a single point of failure. Binance may be one of the best crypto exchanges out there, but it's still subject to many risks involved with centralized exchanges like hacks, and theft. Additionally, governments can easily interfere with a centralized exchange (greatly defeating the purpose of crypto/Blockchain tech). At least, there are decentralized alternatives out there which aim to make crypto land a better place. The only problem is that they lack liquidity (unlike their centralized counterparts).

As far as centralized exchange comparison goes, I think that Binance is ten times better than Coinbase. You get lesser fees per trade, better customer service, and a wide number of crypto assets to trade. Despite Coinbase's established presence over the years, Binance has grown into a massive empire in just a few years since its inception. If the trend continues, Binance may be able to defeat Coinbase sometime in the future. After all, anything can happen in this strange and bizarre world of crypto. Just my thoughts

[figmentofmyass]

I believe it's just matter of time before Binance have market share than Coinbase does. Aside from high fee and strict rule, AFAIK Coinbase have more controversy than Binance does, ranging from lack of SegWit support for long time, doesn't utilize batch transaction to privacy problem (all centralized exchange have bad privacy, but some people think privacy on Coinbase is worse than on other exchange).

noobs, casual users, pro traders/market makers who don't pay high fees, etc don't care about any of that. it's only a small but vocal minority of users who regularly criticize coinbase. also, they have been batching transactions for a while now.

what many customers and large traders do care about is branding and compliance---and coinbase has a much more "legit" brand. binance is very mysterious, the brand is operated by chinese nationals, USA users are forced onto a .us domain, they have had customer funds compromised, they have had customer KYC documents hacked, etc. all of that may be off putting for new users. furthermore, coinbase has much better spreads/liquidity for their traders.

the main advantage binance has is the ability/willingness to list more shitcoins, faster. i dunno if that's a sustainable way to overtake the regulated USA fiat market. they have lower fees for the lowest tier casual traders but tbh i don't think that tips the scales much in terms of total volume.

[pugman]

noobs, casual users, pro traders/market makers who don't pay high fees, etc don't care about any of that. it's only a small but vocal minority of users who regularly criticize coinbase. also, they have been batching transactions for a while now.

what many customers and large traders do care about is branding and compliance---and coinbase has a much more "legit" brand. binance is very mysterious, the brand is operated by chinese nationals, USA users are forced onto a .us domain, they have had customer funds compromised, they have had customer KYC documents hacked, etc. all of that may be off putting for new users. furthermore, coinbase has much better spreads/liquidity for their traders.

the main advantage binance has is the ability/willingness to list more shitcoins, faster. i dunno if that's a sustainable way to overtake the regulated USA fiat market. they have lower fees for the lowest tier casual traders but tbh i don't think that tips the scales much in terms of total volume.

I like your point, and part of me agrees with you on this. A lot of people refer/seek out to coinbase as their first wallet or as a more reliable means of purchasing bitcoin. People look at coinbase as a wallet/, or as a place to purchase bitcoin. While OTOH, people look at binance as an exchange, where you buy and sell shitcoins for cheaper fees. That is the difference, coinbase feels more legit, binance is more for day-traders.

So, when it comes to a stand off between Binance vs Coinbase, considering the US market, coinbase might win now. However, I do feel like more competitors are headed towards US soon, so who knows?

[Abiky]

I like your point, and part of me agrees with you on this. A lot of people refer/seek out to coinbase as their first wallet or as a more reliable means of purchasing bitcoin. People look at coinbase as a wallet/, or as a place to purchase bitcoin. While OTOH, people look at binance as an exchange, where you buy and sell shitcoins for cheaper fees. That is the difference, coinbase feels more legit, binance is more for day-traders.

So, when it comes to a stand off between Binance vs Coinbase, considering the US market, coinbase might win now. However, I do feel like more competitors are headed towards US soon, so who knows?

Coinbase is the go-to platform for buying and selling crypto in the US, due to its ease of use and regulatory compliance. Unlike Binance, Coinbase has been on the scene since crypto's early days. This makes the company a pioneer in the industry, giving it some sort of leverage when it comes to mainstream adoption. As much as I like Binance, I think it'll never overcome Coinbase anytime soon. More competition may be needed in order to topple Coinbase's position on the crypto market. At least, customers in the US have a choice to either buy or sell crypto with Fiat. There are many US-based crypto exchanges that are worth mentioning due to their level of success over the years. Such exchanges are Kraken, Bittrex, Coinbase, and now, Binance.US. The more popular crypto becomes in the mainstream world, the more exchanges will establish their operations in the US. Everything will depend on the government's stance on crypto, for the industry to grow towards new heights.

Nonetheless, both exchanges (Coinbase and Binance) are quite good. Choosing one from the other will totally depend on your specific needs. If you want to have a wide selection of cryptocurrencies available to trade, while getting the lowest fees possible, then Binance will be the exchange of choice. But if you want a safer and more reliable way to trade and store your crypto, then look no further as Coinbase proves to be the winner (except for the high fees, of course). Just my opinion

[Renampun]

I'm pretty sure Binance will beat Coinbase in a few years...
Apart from low fees, many features offered by Binance are very attractive to users, such as flexible savings, liquid swaps, launch pool, and staking DeFi.