How much does it cost to buy cryptocurrency on binance

Cryptocurrency Exchange PlatformsBinanceCoinbaseMain platform featuresLow fees, comprehensive charting options, and hundreds of cryptocurrenciesIntuitive, beginner-friendly platform offering basic transactions, a digital wallet, and withdrawals to PayPalFees0.10% spot-trading fees, 4.5% debit card purchasesNot disclosedNumber of cryptocurrencies supportedOver 700 for global traders on Binance. Over 100 available for U.S. investors on Binance.US179Security features2FA verification, FDIC-insured USD balances for Binance.US, device management, address whitelisting, cold storage2FA verification, insurance for hot storage if Coinbase is breached, biometric fingerprint logins, cold storage, FDIC-insured USD balances, AES-256 encryption for digital walletsTypes of transactions supportedLimit order, market order, stop-limit order, trailing stop order, post only order, peer-to-peer trading, margin trading, one-cancels-the-other order, and moreBuy, sell, send, receive, and exchangeMaximum trading amountLimits differ based on the cryptocurrency purchasedLimits vary based on your payment method and region

Binance vs. Coinbase: Features

Since the platforms are meant for different types of people, you’ll notice vast differences in their feature sets. However, both provide mobile applications with watch lists or live price tracking. But the similarities stop there. 

With Binance, you’ll get the following:

  • Advanced charting with many different options for adding indicators and overlays
  • Public application programming interface (API) keys for integrating other software tools
  • 7 order types on Binance 
  • The option to use the third-party digital wallet, Trust Wallet                                             
  • Users in over 180 countries can trade on Binance, but only 46 states can use Binance.US, excluding Hawaii, New York, Texas, and Vermont

In comparison to Binance, Coinbase offers more features for U.S. residents but fewer options for international traders. The features include:

  • A secure, standalone digital hot wallet that you can use with Coinbase and other exchanges
  • The ability to withdraw funds to your PayPal account
  • Available for use in over 100 countries and 49 states, with no trading allowed for residents of Hawaii
  • A newsletter showcasing the latest cryptocurrency news
  • The optional Coinbase Pro platform with advanced charting features, including the ability to track exponential moving averages
  • Can earn cryptocurrency by watching short videos 

Binance vs. Coinbase: Supported Currencies

Binance is well-known for its massive altcoin list, with more than 600 choices available to non-U.S. users. However, the Binance.US exchange supports just over 100 coins. Coinbase offers 179 trading currencies.

Coinbase also supports fiat currencies, including USD, British pound sterling (GBP), and euro (EUR), whereas Binance supports many more fiat currencies, such as USD, EUR, Australian dollar (AUD), GBP, Hong Kong dollar (HKD), and Indian rupee (INR). Binance and Coinbase both offer many cryptocurrency pairs, but the number may vary based on your location. 

The currencies each firm offers vary. For example, the following cryptocurrencies are on Binance but not Coinbase: vechain (VET), harmony (ONE), vethor token (VTHO), and qtum (QTUM). However, both platforms support popular and up-and-coming currencies such as:

  • Dash (DASH)
  • Storj (STORJ)
  • Cosmos (ATOM)
  • Compound (COMP)
  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Litecoin (LTC)
  • Cardano (ADA)

Binance vs. Coinbase: Security

Although both platforms are considered secure, Coinbase has a better overall reputation. Founded in 2012, Coinbase is a U.S.-based exchange that went public on April 14, 2021, via a direct listing, and is backed by banks like J.P. Morgan.

Unlike Coinbase, Binance was first established in China before moving to Japan, and the Binance.US platform is headquartered in Palo Alto, California. Binance isn’t consistently regulated around the world, but its Binance.US exchange stays within U.S. regulations. Note that Binance is currently under U.S. regulatory investigation.

Both cryptocurrency exchanges provide two-factor authentication (2FA) via the Google Authenticator app or short message service (SMS), but U.S. users report some problems with the Binance.US and Google authentication process. Both Coinbase and Binance require users to verify identity with a photograph. 

Binance security features also include address whitelisting, device management, and the ability to restrict device access. Like Coinbase, all USD balances are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) and held in custodial bank accounts.

Coinbase security features consist of fingerprint biometric access for its digital wallet, and 98% of cryptocurrency funds are stored in air-gapped cold storage via vaults and safe deposit boxes. Coinbase has an insurance policy to cover the 2% of funds kept in hot storage, but it only covers security breaches on their end, not ones due to a user security problem. 

Binance vs. Coinbase: Fees

Binance fees are some of the lowest in the industry, whereas Coinbase does not disclose its fees online.

Binance uses a maker-taker structure with the same fees for both makers and takers. The fee chart can be confusing for beginners but offers vastly lower charges, especially for high-volume traders. Binance users can lower costs by purchasing Binance (BNB) tokens to pay fees with a 25% discount. High-volume traders can also level up for very important person (VIP) discounts

FeesBinanceCoinbaseBank accountFree outside of the U.S.Not disclosedWalletN/ANot disclosedDebit/credit cards4.5%Not disclosedAutomated clearinghouse (ACH) transferFreeNot disclosedWire transferFreeNot disclosedCryptocurrency conversionNot disclosedNot disclosedPurchasesNot disclosedNot disclosedTradesNot disclosedNot disclosedOther fees0.50% instant buy and sell feeNot disclosed

Binance vs. Coinbase: Ease of Use

Binance and Coinbase are geared toward different types of users. Coinbase offers a simple platform for investors new to trading cryptocurrency who want fast, easy, and secure ways to trade. Binance’s platform is easy to use, but the sheer number of choices can be overwhelming to a new user. Binance is a better fit for people familiar with cryptocurrency lingo and investing options, whereas Coinbase is built for convenient, easy trading.

Both exchanges provide mobile apps with varying functionalities.

Binance provides the Binance Academy, similar to Gemini’s Cryptopedia, where users can access tutorials or helpful articles resembling cryptocurrency trading courses. Both platforms offer a blog and knowledge base, but Coinbase also lets users earn cryptocurrency for watching videos for beginners.

Coinbase wins for ease of use, and also has better customer service options, including live chat, phone support, and the option to submit a ticket. In contrast, Binance offers live chat, an option to submit a ticket, or support through a Twitter help account. Binance does not advertise a phone support option.

Frequently Asked Questions

What Are Binance and Coinbase?

Coinbase is a U.S.-regulated cryptocurrency exchange that allows users to buy, sell, send, receive, and exchange altcoins via a web browser or mobile app. Binance is also an exchange, but the version of the exchange available to users in the United States does not include all the features that the full site includes.

Binance supports many more advanced transaction types, such as limit orders, stop-limit orders, market orders, post-only orders, and peer-to-peer trading. However, U.S. residents have fewer options.

How Do Binance and Coinbase Work?

Both platforms function as an online brokerage for cryptocurrencies. Users deposit fiat funds to buy, sell, or trade digital currencies. The signup process is similar for both, each requiring a photo ID verification.

You’ll create an account in both cases, verify your email, and add funds from an acceptable method. Once you’re ready to make a trade, you head to the exchange platform, create an order for the desired altcoin, and follow the on-screen steps. The exchanges store the cryptocurrency until you move it to a digital bitcoin wallet, trade it, or withdraw it.

Is It Safe to Hold Cryptocurrency in the Binance or Coinbase Exchanges?

Although Binance and Coinbase are among the best crypto exchanges, users are encouraged to store funds in a hardware wallet for long-term savings. Any currencies held online may be a target of hackers, and most exchanges have experienced breaches, including Binance in 2019.

Although Coinbase told The New York Times that it’s never been hacked and only 0.004% of its users experienced account takeovers in the year ending April 2021, mistakes can happen on your end, putting your coins at risk. 

Both Binance and Coinbase insure their hot storage, but it may be safer to use your own cold storage via a hardware wallet. A hardware wallet is a device that isn’t connected to the internet, and you’ll need to plug it into your computer to access your digital currency.

Who Should Use Binance or Coinbase?

Coinbase is perfect for beginners who prioritize convenience and security. The user-friendly platform is very easy for nearly anyone to use, and when you open the application, you’ll see a clean interface with minimal options. As a trusted, U.S.-based exchange, it’s a good fit for users wary about buying or trading cryptocurrency. 

Binance is suitable for experienced investors wanting advanced trading options and plenty of analytics to back up their strategy decisions. Novice users will experience a learning curve, but once you learn your way around, it gets easier. With low fees, over 600 cryptocurrencies, and availability in more than 180 countries, Binance is an excellent choice for non-U.S. residents wanting a sophisticated platform.

How We Evaluated Binance vs. Coinbase

We examined Coinbase and Binance by looking at the fee structures, cost, and how easy it is to understand. Although we looked mainly at Binance, we also evaluated Binance.US features applicable to U.S. residents. We considered the website and mobile app functionality, availability of knowledge bases, and access to customer service. Our fee and feature charts give a side-by-side view of security, transaction types, fiat currencies accepted, payment methods, and cryptocurrencies.

Investing in cryptocurrencies and other Initial Coin Offerings (ICOs) is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual’s situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

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BTC Spot Trading Pairs

0% Fee

New

zero fee on selected fiat and stablecoin BTC pairs

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BUSD Spot Trading Pairs

0% Fee

Zero maker fee on BUSD pairs

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BNB Deduction

25% Off

on Spot Trading fee

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BNB Deduction

10% Off

on USDⓈ-M Futures Trading fee

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Fee Rate

Level30d Trade Volume (BUSD)and/orBNB BalanceMaker / TakerBNB 25% off

Maker / Taker

 

 

 

 

 

 

Regular User

< 1,000,000 BUSD

or

≥ 0 BNB

0.1000% / 0.1000%

0.0750% / 0.0750%

VIP 1

≥ 1,000,000 BUSD

and

≥ 25 BNB

0.0900% / 0.1000%

0.0675% / 0.0750%

VIP 2

≥ 5,000,000 BUSD

and

≥ 100 BNB

0.0800% / 0.1000%

0.0600% / 0.0750%

VIP 3

≥ 20,000,000 BUSD

and

≥ 250 BNB

0.0700% / 0.1000%

0.0525% / 0.0750%

VIP 4

≥ 100,000,000 BUSD

and

≥ 500 BNB

0.0200% / 0.0400%

0.0700% / 0.0900%

0.0150% / 0.0300%

0.0525% / 0.0675%

VIP 5

≥ 150,000,000 BUSD

and

≥ 1,000 BNB

0.0200% / 0.0400%

0.0600% / 0.0800%

0.0150% / 0.0300%

0.0450% / 0.0600%

VIP 6

≥ 400,000,000 BUSD

and

≥ 1,750 BNB

0.0200% / 0.0400%

0.0500% / 0.0700%

0.0150% / 0.0300%

0.0375% / 0.0525%

VIP 7

≥ 800,000,000 BUSD

and

≥ 3,000 BNB

0.0200% / 0.0400%

0.0400% / 0.0600%

0.0150% / 0.0300%

0.0300% / 0.0450%

VIP 8

≥ 2,000,000,000 BUSD

and

≥ 4,500 BNB

0.0200% / 0.0400%

0.0300% / 0.0500%

0.0150% / 0.0300%

0.0225% / 0.0375%

VIP 9

≥ 4,000,000,000 BUSD

and

≥ 5,500 BNB

0.0200% / 0.0400%

0.0150% / 0.0300%

“Taker” is an order that trades at a market price, “Maker” is an order that trades at a limited price. Learn more

VIP trade volume levels are measured on the basis of the spot trading volume, or whether the futures trading volume meets the standard (Futures trading volume includes USDS-M futures and COIN-M futures).

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Before You Start

No matter where you buy it, cryptocurrency is a highly volatile, speculative investment. Only invest in crypto what you’re prepared to lose, and make sure you have other financial priorities in place first: save money in an emergency fund, contribute to retirement savings, and pay off any high-interest debt balances.

Binance.US can grab investors’ attention with lower fees than many other cryptocurrency exchanges, but we’d recommend paying a bit more for added transparency. 

Binance.US is an American partner of Binance, the world’s largest cryptocurrency exchange by trading volume, and which was founded in China in 2017. The original platform stopped accepting U.S. users in 2019, and announced it would instead partner with a U.S.-based version of its platform called Binance.US. Binance.US was started under a partnership with the Financial Crimes Enforcement Network (FinCEN)-registered BAM Trading Services as part of its move into the U.S. market.

Since the 2019 introduction of Binance.US, the international Binance has faced regulatory scrutiny. For example, regulators in the U.K. and Italy have banned Binance from operating in their countries, while officials in Hong Kong and Japan have warned investors about the exchange. Binance was also under investigation by the U.S. government for tax fraud, money laundering, and insider trading as recently as September 2021, according to reporting by Bloomberg.

That level of scrutiny was recently extended to Binance.US, which Binance has referred to in the past as a U.S. partner. The Securities and Exchange Commission is currently investigating the relationships between Binance.US and two firms owned by Binance founder Changpeng Zhao, the Wall Street Journal reported.

We reached out to Binance and Binance.US last year and again in February 2022 in an attempt to confirm details about reported regulatory investigations, as well as to better understand the relationship between the international and U.S-based platforms. We didn’t hear back from officials at Binance or Binance.US after we first reached out, though a spokesperson contacted us on behalf of Binance.US after our review originally published in 2021 to provide additional context on the relationship between Binance and Binance.US. They operate as separate companies, the spokesperson said in an email, with Binance.US licensing software, trademarks, and wallet technology from Binance.

United States investors still cannot use the original Binance today, but Binance.US offers over 80 cryptocurrencies for investors to choose from. The biggest draw of Binance.US is its low fees compared to some other exchanges. It also has an easy-to-use buy/sell option for beginners, while more advanced traders can get the benefit of its in-depth “basic” and “advanced” trading platforms. 

Despite those benefits, Binance.US offers limited crypto options and is much less transparent than many competitor exchanges when it comes to security, storage options, and customer assistance. For most long-term, retirement-minded investors, we’d recommend sticking with exchanges such as Coinbase or Gemini, which are much more transparent about these key operations. 

Pros and Cons of Binance.US

Pros

  • Low fees compared to other exchanges

  • 25% trading fee discount if you pay fees using Binance Coin (BNB)

  • Educational resources available

  • Identity verification process

  • Tax statement portal to help prepare crypto taxes

Cons

  • Not available in all states

  • $10 minimum trade

  • Site can be difficult to use

  • Lack of information on security

  • History of regulatory scrutiny

  • Limited customer service options

Binance.US At A Glance

  • 80+ currencies available
  • Not available in Hawaii, Idaho, Louisiana, New York, Texas, or Vermont
  • 0.5% fee for instant buy/sell
  • $10 minimum trade 
  • Option for recurring investments, for dollar-cost averaging

Cryptocurrencies Available on Binance.US

You can buy and sell over 80 cryptocurrencies on Binance.US, including:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • PAX Gold (PAXG)
  • Harmony (ONE)
  • Orchid (OXT)
  • Helium (HNT)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Stellar (XLM)
  • Tether (USDT)

Binance.US also offers a large number of trading pairs. This includes options to trade two cryptocurrencies without the need to cash out one for USD, as well as options to trade between crypto and a fiat currency like USD. Trading pairs vary between exchanges depending on the various cryptocurrencies offered.

Binance.US Fees

Binance.US has an option to automatically buy and sell crypto using U.S. dollars, using a simple interface that’s similar to what you’ll find on Coinbase and other competitors. Each of these buy/sell transactions charge a 0.5% fee.  

Up until recently, Binance.US was charging a flat 0.1% fee on spot trades, a type of trading and fee structure typically used in more advanced platform options. But the crypto exchange announced it is eliminating its spot trading fees on bitcoin, allowing users to make spot bitcoin trades for the U.S. dollar and stablecoins tether, USD Coin, and Binance USD for free. The flat 0.1% spot trade fee still applies to other tokens, but Binance.US said it has plans to eliminate the charges for more tokens in the future.

Spot trading means you’re not technically “buying” the cryptocurrency, but instead trading your USD for it through either a market or a limit order. A market order means you agree to trade for the currency at the current market price. A limit order lets you put in a designated price at which you want the trade to occur, and when the currency reaches that price, the trade happens automatically. These orders then incur “maker” (for limit orders) or “taker” (for market orders) fees — though on Binance.US, there’s now no fee for bitcoin.

That can mean serious savings for investors, especially compared to some other exchanges. For example, if you want to buy $100 worth of Bitcoin on Coinbase, you’d actually end up with about $96.51 in Bitcoin, after fees. If you want to spend $100 to buy Bitcoin using this option, you’d end up trading the same amount since there are no fees to purchase it. Keep in mind if you outright buy Bitcoin with USD, you will still pay a 0.5% fee on Binance.US.

There is also a 25% discount if you use Binance Coin (BNB) to pay your transaction fee. To do this, you just have to hold Binance Coin in your Binance.US account, and your trading fee will be automatically deducted from your Binance Coin balance. 

If you use a dollar cost averaging method to regularly invest, these savings can be significant in the long run. But while it’s important to pay attention to an exchange’s fee structure, experts say that it may be worth it to pay more in fees for more advanced security, usability, or other features.

Deposit and Withdrawal Fees

Before you trade money for crypto, you’ll need to deposit — and when you sell, withdraw —  U.S. dollars into and out of your Binance.US account. The fees for this are minimal, especially if you transfer from your bank account using ACH. 

MethodMinimum WithdrawalDeposit FeeWithdrawal FeeACH (automated clearing house)$1$00Wire transfer$100$0$15 domestic, $35 internationalDebit cardN/A4.5%N/A

There are also individual withdrawal fees for moving your crypto holdings from your Binance.US account into your own crypto wallet. These fees vary based on the type of cryptocurrency.

Binance.US Security

We found limited information from Binance.US about its security measures and protections, and the company did not respond to a request for comment. Binance.US says the following statement on its homepage: “We use state-of-the-art storage technology to protect your cryptocurrency and USD assets.”

In a blog post, Binance said the “vast majority” of its user funds and assets are stored in offline, cold storage facilities. Though it’s unclear exactly what percentage of assets held by the exchange are kept in secure, offline cold storage vs. online hot wallets. You must have a Binance.US account to send queries to the help desk, so we were unable to get more information that way.

Binance.US does not provide information on an internal wallet offering, but you can keep your coins within your account on the exchange. It also partners with Trust Wallet, a third-party hot wallet option. You can withdraw your coins from your account onto your own hot or cold storage option at any time (for a fee). 

There have been previous reports that Binance.US keeps users’ USD in FDIC-insured accounts, but posts on the Binance.US site containing that information have since been deleted. While it doesn’t guarantee the same in case of a Binance.US hack, the international version of the exchange, Binance, covered all consumer losses after a $40 million hack in 2019. 

We reached out to Binance.US for more information about its security measures and received no response. We’ll update the review if Binance.US gets back to us.

Additional Details

Earn Rewards

You can earn rewards through the exchange by holding certain coins in your Binance.US account — a strategy called “staking.” According to Binance.US, staking helps support the operations of these coins’ blockchains.

Coins supported currently are: VET, XTZ, ATOM, and ALGO. You can earn up to 6.5% annually through staking with Binance.US, and you may still make trades while taking part.

Binance Academy

Binance Academy is Binance’s education platform featuring hundreds of hours of content on blockchain, cryptocurrency, cryptoeconomics, security, and more. It essentially serves as a one-stop-shop for all things crypto and can be a helpful resource for beginner investors.

Tax Portal

Binance.US launched a new free tax portal to help customers prepare their crypto taxes. According to its site, the portal allows users to access their transaction history and sync their crypto activity to “most” third-party, though it doesn’t specify which platforms it is compatible with except for TaxBit. The portal offers two tools to help customers generate, export, and download their Binance.US transaction history: a tax API key tool and an export statement tool. The Tax API Key tool directly shares crypto transaction data, while the export statement tool allows users to  generate and download their own transaction history.

Who Is Binance.US Best For?

Binance.US is not available in Hawaii, Idaho, Louisiana, New York, Texas, or Vermont. For people outside of those states looking to invest in crypto, Binance.US offers both an easy buy/sell interface and more advanced trading views. It has low fees, and further fee discounts for using its native currency, Binance Coin, and does offer some educational content through its on-site blog.

Despite its low fees, we do not recommend Binance.US, especially for beginners. Binance.US doesn’t offer any information about how your investment will be secured, stored, or protected by the firm, unlike other cryptocurrency exchanges. Plus, there are many other active exchanges that offer simple buy/sell interfaces for long-term investors. We believe that transparency about the safety of your investment is worth paying a bit more in fees. 

Binance.US Compared to Others

Binance.USGeminiCoinbaseCoins80+ cryptocurrencies70+ cryptocurrencies150+ cryptocurrenciesFees0.1% trading fee; Can get a 25% discount on your fee if you hold Binance coin0.50% convenience fee; $0.99 to $2.99 transaction fee; 1.49% transaction fee for trades over $2000.50% spread; Trading fee between 1.49% and 3.99% (or $0.99 to $2.99 flat fee)Wallet storageKeep coins in Binance.US account or transfer to your own walletKeep coins on Gemini account, Gemini Wallet option, or transfer to your own walletKeep coins on Coinbase account, Coinbase Wallet option, or transfer to your own walletMinimum Trade$10Equal to the smallest amount of each coin that can be traded (0.00001 BTC)$2

Frequently Asked Questions

Are Binance and Binance.US the same?

Binance.US formed in 2019 after Binance stopped accepting U.S. investors. The interface and many features are the same, but there are differences such as the amount of cryptocurrencies available to trade in the U.S. vs. elsewhere, as well as which states Binance.US is allowed to operate in. United States users cannot buy crypto using the international Binance platform.

Is Binance legal in the US?

In 2019, Binance was banned in the United States on regulatory grounds and is no longer accessible for U.S. citizens. In response, Binance partnered with a U.S. branch called Binance.US, which the company says is a separate exchange. Binance.US is legal, but it is not available in all U.S. states. 

Is Binance.US safe?

There have been no reported breaches at Binance.US, but hackers stole $40 million worth of Bitcoin in 2019 from the global Binance exchange. The company said it paid the losses in full to affected users. Though Binance.US promotes itself as a secure exchange, it lacks full transparency on its security and user protection measures compared to its competitors.

Written by Jane