One of the most important factors in selecting an exchange to use is the fees they charge. Every exchange has its own fee structure and some are higher than others. In this review, we will compare fees for Binance vs Coinbase, two of the top crypto exchanges in the world.
Binance is the largest cryptocurrency exchange by trading volume. It is a global exchange that serves customers from every country except the U.S which has its own Binance exchange.
Coinbase is also a high ranking crypto exchange headquartered in California, United States. It is also a global exchange with presence in most countries of the world. Coinbase has the honour of being the first ever crypto exchange to go public.
The table below provides a high-level overview of the fees on Binance vs Coinbase and Coinbase Pro. This pricing information is based on users transacting crypto from the United States.
There are no deposit fees for any cryptocurrency on Binance, while withdrawal fees vary very widely for different cryptocurrencies. For stablecoins for instance, the withdrawal fee is $1 flat. While the fees for other cryptocurrencies run into thousands of units of the cryptocurrency, the USD value is usually roughly the same as that charged for stablecoins.
For Coinbase fees, the only free transactions are transfers between Coinbase wallets. This is however restricted to only USD wallets and hosted cryptocurrency wallets. Transaction fees are only charged by the cryptocurrency network.
The fees to trade on Coinbase Pro start at 0.5% per trade. This is still 5x more expensive than Binance's basic fee tier, which starts at 0.1% per trade. You can reduce Coinbase Pro fees depending on how much volume you trade. You can learn more about their fee reduction rules here.
Binance generally charges lower fees if Binance Coin (BNB) is used to pay for such fees. To use BNB to pay for fees, just hold BNB in your Binance account. Fees for any transaction you complete will be charged from this balance. This is lower than the usual 0.1% charged on transactions on the exchange.
The system automatically charges transaction fees from the BNB balance. Using BNB to pay for fees guarantees a 25% discount on spot and margin trading fees and 10% on futures trading fees.
The discounts are even greater for VIP users. This discount keeps reducing though and by the 5th year from Binance’s creation, the discounts will be removed completely.
Binance has always been recognised for its low fees. This comparison between the exchange and Coinbase clearly shows that the fees are much better on Binance than on Coinbase. Coinbase, though a prestigious exchange and the first to go public, is notorious for high fees and this comparison also clearly shows that. Therefore if you are looking for an exchange with better fees between the two, Binance is the way to go.
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