Coinbase Pro Vs. Binance US – Which One Should You Choose?

Coinbase Pro and Binance US are operated by the most popular and leading cryptocurrency exchanges in the world, and they have a huge US presence. Coinbase Pro’s parent company, Coinbase, was well-established and was initially founded as a trading platform. Later it developed into an exchange in 2015 in the US. Binance US has a parent company Binance, the most popular cryptocurrency exchange in the world. Due to regulatory restrictions, Binance was not able to serve its American customers; it opened a separate exchange called Binance US recently.

Trading Fees at Coinbase Pro & Binance US

Binance US offers very low fees for the services that are offered to its customers. Moreover, a 0.1% fee is charged on all the trades at the exchange; it does not charge any fees for withdrawals and deposits. On the contrary, Coinbase Pro charges very low fees that range from 0.1% to 0.25% as taker fees and zero fees as maker fees. Both Coinbase Pro and Binance US offer notable fee discounts for market orders, and they also offer lower fees for high volume traders. The trading fees charged on Binance US start at 0.1 %, while the trading fees on Coinbase Pro start at 0.5 %.

Coinbase Pro & Binance US: a Comparison

History

Founded in 2012, Coinbase is a well-established company that started as a trading platform. Later, it launched a cryptocurrency exchange, which was initially known as  GDAX, and in 2018, it was renamed Coinbase Pro. Binance launched in 2017 but was restricted from serving its American customers due to regulatory restrictions; consequently, it opened a smaller exchange known today as Binance US.

Exchange Liquidity

Binance US has exchange liquidity of $4 million, and Coinbase Pro has exchange liquidity of $15 million. Even though Binance US has low liquidity, both the exchanges are well equipped and have the required amount of activity to support their exchange.

Trading Volumes

Coinbase constantly ranks within the 5 largest cryptocurrency exchanges by trading volume as per market cap. Further, Coinbase Pro handles more than $100 to $200 million of trading volume per day. Binance US ranks among the top 15 exchanges in the US regularly,  and it handles $5 to $10 million trading volume per day.

Deposits and Withdrawal Limits

High liquidity exchanges offer their users higher trading limits, and this is what Coinbase Pro gives. It provides unlimited trading to users, while Binance US charges limits on trading. Coinbase Pro accepts unlimited deposits from users who also can withdraw $10,000 a day, while Binance US allows deposit or withdrawal of up to $1 million through Bank wire and deposit of $30,000 through ACH bank transfers.

Security

Coinbase Pro and Binance US, just like centralized exchanges, manage their user keys, which means they are fully responsible for their user funds. Among other features, both exchanges follow highly secured measures like FDIC insurance and two-factor authentication for the safety of their users.

Supported Countries

Coinbase Pro has a license to operate in 45 US states, which excludes Hawaii.  Binance US operates in 13 States, and it is expanding its services. As mentioned in the review by CryptoNewsZ, Coinbase offers its services to more than 100 countries, and Binance serves more than 190 countries around the world.

Which Exchange Is Better for American Investors?

Both Coinbase Pro and Binance US report authentic trading volume, and they have considerable liquidity, even though Binance US and Coinbase Pro serve different types of markets. Coinbase Pro is a more experienced cryptocurrency exchange and serves more US states and provides high trading limits for their users. Binance US has a larger parent company that offers high bank transfer limits and lower fees for their customers. Based on their needs, American investors can choose either Coinbase Pro or Binance US. 

Bottom Line

Cryptocurrency trading for beginners can be expensive and a bit frustrating; they should be very careful with choosing the right exchange. Coinbase Pro and Binance US are the best choices for or all types of traders. If the user is more experienced, they should choose an exchange that offers higher liquidity and take advantage of lower trading fees, faster trading, and the overall service. They should look for an exchange that has authentic trading volumes and a good reputation. Coinbase Pro has long been the default exchange for US customers since 2015, and it is easily the best cryptocurrency exchange for US customers.