Binance US vs Coinbase • Which is Better for Crypto? • Benzinga

Want to jump straight to the answer? is better for traders that want advanced trading features and low fees. Coinbase is better for investors that want vast educational resources and industry-leading security.

Binance Exchange is the largest cryptocurrency exchange in the world by a mile in terms of trading volume. Unfortunately, investors in many countries including the United States, United Kingdom and Ontario, Canada, can’t use the Malta-based platform because of their governments’ regulatory concerns. 

Soon after users in the U.S. were barred from trading on Binance, the company announced they would be partnering with a money services business already registered in California to build

Coinbase, which has amassed an astonishing 56 million users, has been the dominant cryptocurrency exchange in the U.S. for years. It is one of the most secure, transparent and easy-to-use trading platforms in the world. Now that Binance has established a new exchange for U.S. investors and hundreds of other exchanges have opened, it may be difficult to pick the best one for you. Read on to find out the benefits and disadvantages of both massive platforms to make an informed decision.

What is a Cryptocurrency Exchange?

Cryptocurrency exchanges offer investments, not unlike those on stock exchanges and national currency markets. However, they aren’t just the crypto version of stock exchanges. Most cryptocurrencies including Bitcoin and Ethereum aren’t even considered securities by the SEC (for now at least). 

Crypto exchanges have noticeable benefits over stock brokerages, especially for smaller traders. The pattern day trading rule, which punishes traders with less than $25,000 principle making 4-day trades or more over 5 business days on stock exchanges, doesn’t affect crypto exchanges whatsoever. Also, crypto exchanges are open for business 24/7 (excluding rare platform maintenance) so you can trade assets whenever you want. 

Crypto exchanges still have some benefits that stock exchanges and banks are allowed such as pass-through FDIC insurance, but they can’t offer Securities Investor Protection Corporation (SIPC) backing. SIPC protects investors from brokerage failure, theft or unauthorized trading of cash and securities up to $500,000. 

SIPC protection would have been a god-send for cryptocurrency investors over the years who have lost their entire portfolios to hackers and exchange failures. Luckily, most of the top modern exchanges today, including and Coinbase, ensure the safety of user cryptos with cold storage, insurance and other security measures. 

Important Cryptocurrency Exchange Features

Modern cryptocurrency exchanges need to provide a multitude of features to compete in the quickly growing market. Some of the most important features are security, a long list of supported cryptos and regions, low fees, trading features and educational resources. Simple access to the platform is the most basic need for users.

Coinbase is available to more Americans than It provides its services in Canada, the U.K., Europe and all U.S. states other than Hawaii. doesn’t offer its trading services in New York, Texas, Louisiana, Connecticut, Vermont, Hawaii or Idaho. If you live in one of these states or another region without support you may have to choose Coinbase over by default. If either exchange doesn’t support the cryptos you want to trade, you may have to find one that does.

Trading features can also be vital for more advanced traders that want to use technical analysis and anything other than market orders. Most beginner traders won’t need anything other than market orders, but that doesn’t cut it for many investors. In the end, security is probably the most important feature of all in choosing an exchange because of how much money has been lost to hacks over the years. You should always make sure the platform keeps your funds safe before investing with them.