It’s no secret that cryptocurrency exchanges have been hacked in the past. In fact, it seems like hardly a week goes by without news of another exchange being hit. So, which is safer: Coinbase or Binance?
The short answer is that both Coinbase and Binance are fairly safe. They have both implemented strong security measures and have insurance in case of hacks.
However, there are some differences between the two exchanges that may make one or the other more appealing to you, depending on your needs.
Coinbase is one of the largest and most well-known cryptocurrency exchanges. It is based in the United States and serves customers in over 30 countries.
Coinbase has built up a large user base due to its ease of use and support for popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
Coinbase has also been working hard to improve its security. In the wake of several high-profile hacks, Coinbase has implemented multiple layers of security, including 2-factor authentication, hardware wallets, and insurance.
Coinbase also keeps most of its coins in “cold storage” offline to prevent them from being hacked.
Binance is another large cryptocurrency exchange that has been gaining popularity due to its low fees and support for a wide range of coins. Binance is based in China but has plans to move to Malta due to Chinese regulations.
Binance does not currently accept fiat currency deposits but plans to add this feature in the future.
Like Coinbase, Binance has also been working to improve its security in recent months. Binance now requires 2-factor authentication for all withdrawals and offers a secure “multisig” withdrawal option that requires multiple signatures from different people before a withdrawal can be made.
Binance also keeps the vast majority of its coins in offline “cold storage”.
So, which exchange is safer? Both Coinbase and Binance have made strides to improve their security and are generally considered to be safe exchanges. However, Coinbase may be a better choice if you are looking for an easy-to-use exchange with support for popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
If you are willing to trade on a less established exchange with lower fees, then Binance may be a better option for you.