Binance vs. Coinbase: What Works Better For Canadians?

Oleg Galeev

5 months ago

Coinbase VS Binance with Canadian flag background

Binance and Coinbase are two of the world’s biggest and well-known cryptocurrency exchanges available for Canadians, but how do they fare for Canadians looking to buy crypto? The OCryptoCanada team did some extensive research to see how these two crypto giants compare.

Description

Binance was founded in 2017 and is based in Malta. It averages $2 billion in daily volume and executes 1.4 million transactions per second. Canadians can purchase and trade hundreds of different coins with advanced order types.

Founded in 2012, Coinbase is a US-based cryptocurrency exchange with a simple interface making it a popular choice for Canadians looking to start their crypto journey. However, more Canadians are starting using local exchanges e.g. BitBuy or NDAX. Coinbase has 56 million users and became the first cryptocurrency exchange to have an Initial Public Offering.

Coins

400+ including BTC, ETH, XRP, DOGE

50+ including BTC, ETH, XRP, LTC

Fees

Low
0.1% to 0.02% buy fee depending on VIP level

Extremely High
3.99% buy fee
0.50% fee per trade

Pros

  • Good for Canadians looking to buy and trade altcoins
  • DEX/P2P trading
  • Advanced order types
  • Margin trading
  • Derivatives and futures trading
  • Stock token trading
  • 400+ coins
  • Low fees
  • Simple or advanced interface
  • Simple and easy interface
  • Good for beginners
  • Secure exchange with cold storage
  • The most popular coins offered
  • Users can set up automatic recurring buys
  • Learn to earn crypto program

Cons

  • No Interac e-Transfer
  • High fees
  • Fewer coins than Binance
  • Complaints of bad customer support
  • No Interac e-Transfer

Account Limits

N/A

High limit. Purchase limit depends on account age and other factors

Methods to buy

Credit/debit, SWIFT bank transfer with USD

Debit

Security

2FA, crypto address whitelisting, Trust Wallet partnership, KYC verification process

2FA, coins held in cold storage with multi-signature wallets, KYC verification process

Mobile and Desktop Trading

Binance and Coinbase have well-designed desktop platforms and mobile apps that make it easy to trade on the go. Coinbase offers a clean white background with simple text. Both desktop and mobile versions are easy to navigate.

Coinbases’s app is almost identical to its desktop platform making it easy to trade crypto wherever you are. Safely store your debit card information and you can buy and sell top cryptocurrencies such as Bitcoin and Ether in just a few clicks. On the Apple App Store, Coinbase has a 4.7-star rating with 1.3 million ratings. On Google Play it has a 4.3-star rating with 453,000 ratings.

 

Coinbase

Coinbase desktop interface

 

Coinbase app interface

Coinbase app interface while trading

 

 

Binance

Binance has a rating of 4.6 stars on the Apple App Store with 22,000 ratings. On Google Play, it has 4.5 stars with 271,000 ratings.

Binance’s app allows its users to switch between the Lite and Pro interfaces making it suitable for both beginners and experienced traders.

 

Binance Lite App for begginer users

Binance App for advanced users

 

Binance’s app interface also closely resembles its desktop counterpart, though, at first glance, it does not seem as user-friendly and intuitive as Coinbase. Binance offers its users multiple ways to purchase crypto depending on the type of trade you want. On its desktop platform, you can select “Convert” for a quick debit or credit purchase, or “Classic” or “Advanced” for more trading types.

 

Binance Convert

 

Binance Classic

 

Binance Advanced

Security

Both Binance and Coinbase offer world-class security meaning your coins are in relatively safe hands. Both exchanges offer two-factor authentication, so you can prevent unauthorized access to your account.

While Coinbase uses its own digital wallet for storing your cryptocurrency, Binance does not. Instead, it partners with Trust Wallet, which secures your crypto via biometrics, a 12-word recovery phrase, and a PIN. Coinbase’s digital wallet also has these features. Binance also offers crypto address whitelisting, which means you can select which addresses can withdraw your cryptocurrency. Whitelisting helps prevent your funds from being transferred to an address you don’t recognize.

Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus. However, many Canadians still prefer using Binance, because you save a lot on fees and you can simply transfer all the assets to your own hardware crypto wallet. It is the safest way to keep cryptocurrency.

Regulatory Compliance in Canada

Coinbase is a US-based cryptocurrency exchange while Binance does not allow customers from the US to use its platform. Instead, US residents must use a watered-down version called Binance.us.

There are, however, no restrictions for Canadians except for Ontario residents who want to use Binance. Canadian residents can use both Binance (except Ontario residents) and Coinbase to their full capacity whether it’s a simple buy order at market price or a more advanced order type. Bear in mind, neither platform allows Interac e-Transfer to deposit Canadian dollars to your account. Instead, you will have to use a debit or credit card or a SWIFT transfer with USD on Binance, or a debit card on Coinbase to purchase cryptocurrency. Both Visa and Mastercard are accepted on Binance. Coinbase no longer allows credit cards to be linked to Canadian accounts due to the number of Canadian banks blocking cryptocurrency transactions.

Customer support

Both Binance and Coinbase offer helpful FAQs and online ticketing service for their customers. Binance offers 24/7 support and a live chat option. Neither exchange offers a phone support service. Coinbase has received several complaints about its customer support. Binance has had several bad reviews though not as many as Coinbase. For example, Binance replied to our concern within a day, while it took Coinbase 4 days to address our request to a real person

Conclusion

Both Coinbase and Binance are great cryptocurrency exchanges for Canadians that offer a wide selection of coins. However, Binance is way popular among Canadians for several reasons (except for the ones who live in Ontario). If you’re mostly interested in trading altcoins then Binance is the clear winner, especially because it has some of the lowest fees of any exchange. If you hold Binance’s own coin Binance coin (BNB) fees are even lower. Once you become more experienced with trading cryptocurrency, you might be tempted by Binance’s advanced trading orders.

Coinbase is one the best exchange there is for beginners looking to buy cryptocurrency. Its simple and clean interface can’t be beaten. However, what you get for simplicity, you pay for in high fees. This is why we would recommend Binance (visit website) over Coinbase.

In this round, Binance is the winner. While neither exchange allows Canadians to deposit funds into a fiat wallet via Interac e-Transfer, if you’re looking for a quick purchase using a credit or debit card, then you can’t go wrong with either Coinbase or Binance (visit website). Both exchanges allow you to withdraw your crypto off the exchange for safekeeping.