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Using an exchange such as Coinbase Pro or Binance.US could provide advanced cryptocurrency traders with unique opportunities and potentially lower costs. These two crypto exchanges offer access to a wide variety of tools and crypto assets.
This Coinbase Pro vs. Binance.US comparison aims to help you decide which cryptocurrency exchange is likely to provide you with the features you’re most interested in.
Coinbase Pro vs. Binance.US
Coinbase Pro and Binance.US both offer a variety of coins, as well as real-time charting and advanced trading. Either exchange might be a good choice for those who want to learn how to buy cryptocurrency. Here’s a side-by-side overview of both cryptocurrency exchanges.
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| Headquarters | San Francisco | San Francisco |
| Main Features |
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| Fee structure | Tiered fees depending on the size of the trades | Tiered structure with a discount for holding Binance coin (BNB) |
| Supported cryptocurrencies | 170+ including:
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90+ including:
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| Proprietary token | N/A | Binance coin (BNB) |
| Types of supported transactions |
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| Funding methods |
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| Liquidity | $2.78 billion as of April 2022 (for both Coinbase and Coinbase Pro) | $297.86 million as of April 2022 |
| Accessibility (state-wise) | Not available in:
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Not available in:
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| Best for... | Ease of use for beginners | Low fees for trading |
| Visit Coinbase Pro | Visit Binance.US |
How does Coinbase Pro work?
Coinbase Pro is the “advanced” version of the Coinbase exchange. There are some differences between Coinbase versus Coinbase Pro that could be important to be aware of. Coinbase is one of the largest cryptocurrency exchanges and lists on the Nasdaq exchange. CoinMarketCap consistently ranks Coinbase highly based on trading volume, liquidity, and confidence levels.
Originally called GDAX, Coinbase Pro offers crypto traders access to advanced trading tools, including real-time charting and a wider variety of order types compared to Coinbase. In addition to the ability to buy, sell, and trade cryptocurrencies, Coinbase Pro also offers specific cryptocurrency trading pairs. Some pairs of cryptocurrencies and fiat currencies, such as sushiswap (SUSHI) against the U.S. dollar (SUSHI/USD), aren’t available in the state of New York. But you can still trade other eligible pairs.
With Coinbase Pro, you have access to a hot wallet, such as the Coinbase wallet. This is a wallet that is always connected to the internet. Unlike the Coinbase parent platform, the Pro version doesn’t allow you to earn rewards through staking crypto. Coinbase Pro does support cold storage, which allows you to keep your cryptocurrencies completely offline for additional security. The trading platform also uses two-factor authentication to secure your account further.
Additionally, Coinbase Pro offers access to a wide knowledge base of educational articles and other tools that you can use to learn more about trading. One missing element on the exchange is it doesn’t have its own native coin.
How does Binance.US work?
Binance CEO Changpeng Zhao created Binance.US as a separate company and exchange from Binance, its parent exchange. In 2019, Binance restricted its services for U.S. users, claiming regulatory concerns, and launched Binance.US.
While Binance.US offers advanced trading and charting tools to crypto enthusiasts, the list of cryptocurrencies on the exchange is much more limited than what’s available on the main Binance exchange. Binance.US has a much smaller trading volume than Binance, as well.
However, it’s still a reasonably popular cryptocurrency exchange. Binance.US offers spot trading and a variety of order types that experienced traders could use. It’s also possible to keep your cryptocurrencies on the Binance.US exchange as it offers a wallet option.
Binance.US also offers staking, allowing you to earn interest when you hold certain coins. An additional reason advanced traders may enjoy Binance.US is its relatively low fees. These fees could be even lower, as traders are able to get a discount on fees by holding Binance coin (BNB), the exchange’s native coin.
What both cryptocurrency exchanges excel at
If you’re looking to learn how to invest money in cryptocurrencies, both Coinbase Pro and Binance.US offer useful tools, including real-time charts and upgraded trading tools for advanced traders.
You could get a custodial wallet with both exchanges, meaning that your cryptocurrencies are kept on the exchange for ease of use. You could also send your cryptocurrencies to an external non-custodial wallet as well.
Both exchanges also allow you to send cryptocurrencies into your account to fund your account with coins you already own. Another method of funding your account could be via your bank account, yet neither exchange accepts credit cards. As for withdrawal methods, you can send your profit to a crypto wallet or a bank account via a bank transfer on both exchanges.
It’s also possible to trade digital currencies using iOS and Android mobile apps for both exchanges. For advanced crypto traders looking for additional features and order types, both Coinbase Pro and Binance.US can be good choices.
7 important differences between Coinbase Pro and Binance.US
Before choosing between Binance.US versus Coinbase Pro, it’s important to understand where they differ. Depending on your needs, you might prefer one over the other.
1. Transaction and withdrawal fees
While both Coinbase Pro and Binance.US offer a tiered maker/taker transaction fee model for trades, the transaction fees differ.
A maker is someone who sets a specific price for their trade. It goes in an order book, and when someone else matches the order, the transaction is completed. Makers contribute to the liquidity of the exchange and are often charged a lower transaction fee.
A taker is someone who completes a trade at the market rate without matching anything on the order books. This reduces exchange liquidity, and therefore a higher transaction fee may be charged.
Tiers on both exchanges are determined by the dollar amount of trades you make in a 30-day period, with a higher volume resulting in a higher tier — and lower fees.
Coinbase Pro charges maker fees of up to 0.40% on trades and taker fees of up to 0.60%, with no discounts. Binance.US charges up to 0.10% for both makers and takers, however, if you perform immediate purchases, Binance.US fee is a flat 0.50%.
Binance.US also offers a discount when you hold Binance coin, making your fees even lower. A difference in the fees makers and takers pay on Binances.US only becomes apparent at higher tiers. Makers pay gradually smaller fees than takers as the trading volume in increases.
As for withdrawals, both platforms offer free ACH transfers to your bank account. Normal wire transfers are charged a withdrawal fee of $25 on Coinbase and $15 on Binance.US.
Crypto investors who are mainly after low-cost trades may find that Binance.US has an advantage over Coinbase Pro when it comes to fee structure.
2. Staking
When you stake, you “lock up” your cryptocurrencies and receive an interest payment, in the form of more coins, as a reward.
Though a regular Coinbase account offers staking rewards, Coinbase Pro does not. You can’t earn extra money through staking when you use Coinbase Pro. Instead, you would need to open a regular Coinbase account and keep your coins there if you want to earn rewards.
Binance.US does offer staking on some of its coins, allowing you to easily earn interest on the coins you hold on Binance.US. Additionally, it’s possible to get a discount on fees, as well as receive interest, for those who hold Binance coin.
If you’re looking to store your cryptocurrencies for staking, Binance.US might be your only choice between the two platforms. Coinbase Pro doesn’t offer staking unless you use a regular Coinbase account.
3. Available cryptocurrencies
Another difference between Coinbase Pro vs. Binance.US is the number of available currencies. Coinbase Pro offers more than 170 coins, while Binance.US offers more than 90. As a result, if you want access to more digital assets and trading pairs, Coinbase Pro might be a better choice.
4. Available states
Coinbase Pro is available in 49 U.S. states, with Hawaii as the exception. Binance.US is available in 45 U.S. states. You can’t trade using Binance.US if you live in one of the following states:
- Hawaii
- Idaho
- New York
- Texas
- Vermont
For those who live in a state where Binance.US isn’t available, Coinbase Pro might be the choice between the two. Unless you live in Hawaii, where neither is available.
5. Automated trading
If you’re interested in automated trading, Coinbase Pro offers access to API tools that allow developers to create automated software. This can provide you with a way to tweak your approach on an exchange account.
Binance.US doesn’t offer the same level of developer tools. Instead, if you want to use automated trading, you may need to use a third-party service, such as Cryptohopper. This could be relatively simple, though. So if you want to use automated trading while taking advantage of the lower fees at Binance.US, you could still do so through third-party services.
Traders looking to develop their own tools may find that Coinbase Pro offers the flexibility they need. However, that could be at the expense of higher fees than Binance.US.
6. Trading limits
If you’re looking to trade high volumes of cryptocurrency coins, Coinbase Pro might be a better choice than Binance.US. Coinbase Pro doesn’t place trade limits and balance limits on your account. Binance.US, however, does impose order limit sizes. These limits are based on the coin in question.
7. Liquidity
While Coinbase Pro doesn’t report its volume as separate from Coinbase, Cryptowatch does keep track of liquidity and volume for exchanges.
These metrics change daily, but as of April 22, 2022, the entire Coinbase exchange, including Coinbase Pro, was estimated to have higher liquidity at $2.78 billion. Meanwhile, Binance.US had liquidity of just under $300 million.
Exchanges with higher liquidity may offer quicker trades and a higher level of activity. However, since Coinbase Pro liquidity isn’t reported separately from Coinbase, it might be difficult to tell which platform offers more liquidity.
Which cryptocurrency exchange should you choose?
With Coinbase Pro vs. Binance.US, it comes down to ease of use versus fees. The two exchanges might be fairly evenly matched in many ways — at least for U.S. cryptocurrency traders.
However, Coinbase Pro might be a bit easier to use, with a more friendly interface and access to a high number of trading pairs and crypto assets. Binance.US, on the other hand, has lower fees and the ability to earn through staking.
When deciding between these exchange platforms, it’s important to consider functionality and costs. If you’re a frequent trader, know you will have a large volume of trades each month, and want to save money on fees, it might make sense to use Binance.US and hold some Binance coin to get a discount.
On the other hand, if you’re a more casual trader and need access to an account in one of the states that Binance.US doesn’t operate in, or if you want access to coins that aren’t available on Binance.US, Coinbase Pro might make sense for you.
Carefully consider what makes sense for your situation before moving forward. Understanding your own goals and preferences could help you make the best choice for your trading needs.
FAQs
Is Binance.US more popular than Coinbase Pro?
It might be difficult to tell whether Binance.US is more popular than Coinbase Pro when considering trading volumes, as Coinbase Pro and Coinbase don’t report separately.
That being said, Binance.US often has a lower 24-hour trading volume than the total volume of Coinbase Pro and Coinbase. This indicates that Binance.US is less popular than the two Coinbase platforms combined.
How can I move from Coinbase Pro to Binance.US?
If you want to transfer from Coinbase to Binance.US, it is fairly straightforward. Simply open a Binance.US account and get your exchange wallet address. You might have to go through some identity verification steps to remove deposit and withdrawal limits.
Once you’ve gone through the verification process on Binance.US, you can send your cryptocurrency coins from Coinbase Pro to the wallet address you have on Binance.US.
Is Binance.US different from Binance?
Yes, Binance.US is a separate exchange and is different from Binance. Due to regulatory concerns, Binance isn’t available in the United States.
Instead, Binance.US is a subsidiary company designed for the U.S. market. Binance.US has fewer cryptocurrency coins available than Binance, as well as fewer trading features and products.
Is Coinbase Pro different from Coinbase?
Yes, Coinbase Pro is different from Coinbase. While Coinbase charges higher flat fees, you can participate in tiered trading with lower fees on Coinbase Pro. However, Coinbase offers other perks, such as staking, that aren’t available on Coinbase Pro.
However, it’s worth noting that Coinbase might be moving to consolidate the offerings of Coinbase Pro onto the Coinbase platform. This might take the form of the advanced trading options currently available only on the web version of the Coinbase exchange.
Do Coinbase Pro and Binance.US report to the IRS?
Yes, both exchanges report to the IRS. Coinbase offers a tax center for all its accounts, including Pro. You can see what forms are available — as well as what forms Coinbase sent to the IRS to report on your applicable transactions.
Likewise, Binance.US offers a transaction history that you can use to report cryptocurrency gains on your taxes. Binance.US also sends a 1099-MISC to the IRS reporting staking rewards that exceed $600 in a year.
Bottom line
Which cryptocurrency exchange you choose depends on your individual preferences, goals, and needs. Carefully compare different exchanges to see what works best for you. If Coinbase Pro and Binance.US don’t offer what you’re looking for, explore the list of best cryptocurrency exchanges to see what might work better for you.
FinanceBuzz is not an investment advisor. This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice.