Binance Fees Vs Coinbase - Who Wins The Price War For Beginners?

Coinbase and Binance are the two most popular and secure crypto exchanges used all over the globe. Both of these exchanges have built-in crypto wallets that allow users to safely secure their cryptocurrencies. 

Transactions and other fees associated with the platform are the most significant factors of any crypto platform. It is one of the key elements that attract the users. 

So, who has the best crypto fees when it comes to choosing between Binance and Coinbase? This blog post will give you a complete overview of Binance fees vs Coinbase so that you can make a good decision based on these preferences. 

When it comes to determining which crypto exchange has the lowest fee structure, Binance takes the lead among all other crypto exchanges. Plus, it usually runs promotions for the user, providing huge discounts on the fees. 

There are no fees associated with the deposits, however, you might find some withdrawal fees charged on every transaction. Binance Coin (BNB) is a native coin of the Binance exchange, and the best part is that BNB holders can save fees by making transactions using BNB on the platform. 

Compared to the Binance fees, the Coinbase fee structure is relatively high, specifically its maker-taker fees for routine transactions by the traders. However, there are ways to avoid the high fee structure of Coinbase, and these are to either use Coinbase Advanced or get a monthly subscription to Coinbase One for  $29.99. 

The following table will clear all your doubts about how much Coinbase fees are in comparison to Binance.

Binance does not have a set minimum deposit for all users. The minimum amount depends on how you deposit and the currency you use. If you deposit cryptocurrency, there is usually no minimum limit. 

However, if you use a bank transfer or card payment with your local currency, the minimum can be between $1 and $10 or more, depending on your country and payment method. For the exact minimum for your region, check Binance’s website or app.

Coinbase fees can feel high due to a few reasons:

• They take a cut of each trade: This is called a spread fee, and it's around 0.50% of the transaction.
• They charge a flat fee: This fee changes based on how much you are buying or selling.
• Instant buys are pricey: Using your debit or credit card for quick buys comes with fees between 1.49% and 3.99%.
• Staking has a commission: Coinbase takes up to 25% of your staking rewards.
• The basic app has higher fees: If you're using the regular Coinbase app, fees are generally higher than on Coinbase Advanced.

Note: Coinbase Advanced and Coinbase One usually have lower fees.

Binance has many features and lower fees, but it can be confusing for people who are new to crypto. Its interface and advanced options might be too much at first. Coinbase is usually a better choice for beginners because it has a simpler design and an easy trading process.

As we have discussed earlier, the layout and complex trading options of Binance may confuse new users. Learning to navigate the site and understand its functions can take a lot of time, which might lead to frustration for those just starting in cryptocurrency. This is the only disadvantage of using Binance, and it's just for beginners. 

Binance often highlights that its fees are lower than those of Coinbase. This includes trading fees, maker/taker fees, and withdrawal fees for cryptocurrency. Binance also offers discounts with its BNB token and VIP tiers, making it more cost-effective. In contrast, Coinbase’s fees can be high due to spread fees, flat fees, instant buy fees, and staking commissions. 

Although Coinbase Advanced may have some lower fees than the basic Coinbase app, Binance still has a better fee structure. For more comparison, refer to the fee structure mentioned above in the blog post. 

As crypto exchanges change, so does the technology that supports them. One interesting development is BlockDAG (Directed Acyclic Graph), which is a different approach compared to traditional blockchain design. 

In a standard blockchain, transactions happen one after another in a straight line. However, with BlockDAG, many transactions can be confirmed at the same time. This leads to faster processing and less congestion on the network.

What does this mean for users? It could mean lower transaction fees and quicker confirmations, especially as more exchanges start to use this new technology. While Binance and Coinbase still rely on traditional blockchain methods, platforms using BlockDAG might encourage them to innovate and possibly lower fees in the future.

The price of BDAG increased from $0.001 to $0.0248 across 27 presale phases, a 2,380% jump in under a year. Over $212.5 million has been raised, with 19.1 billion BDAG tokens sold, all funded by individual investors, not venture capitalists. This shows strong public belief in the project.

This cryptocurrency has strong potential for returns because it is more than just a popular token; it is an active network. The beta testing network is already up and running. Users can create tokens without coding, thanks to working tools. Additionally, over 1 million people are mining BlockDAG on their phones using the X1 miner app.