Tuesday, 05 June 2018 19:56

Binance vs Coinbase: Battle of the Exchanges is Coming

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Binance

Binance has taken the world of cryptocurrency by storm since coming online less than one year ago. In the first quarter of 2018 it registered a profit of over $200 million dollars and is now more profitable

than Deutsche Bank, a company 147 years its senior. It took just 3 months to realize $7.5 million in profit and the company's current value is estimated to be between $1.5 Billion and $3 Billion with a user base surpassing 7 million. It can process over 1.4 million transactions per second and unlike normal stock markets and trading houses, is open 24 hours a day, 7 days a week. The Binance mobile app is very user friendly and offers a myriad of features that make trading easy and efficient.

It’s CEO Changpeng Zhao, who sold his house in 2014 to buy bitcoin, has a wealth of experience in the crypto world having “founded Fusion Systems in 2005 in Shanghai; the company built high-frequency trading systems for brokers. In 2013 he joined Blockchain.info as the third member of the cryptocurrency wallet’s team….” Source: Wikipedia https://en.wikipedia.org/wiki/Binance 

Binance currently lists 342 coin pairs(24 May 2018) with a combined value of $1,703,547,178.

Binance also created its own cryptocurrency called Binance Coin (BNB) which gives users 50% discount on trading fees and can also be used as a trading pair for other altcoins. Binance was established in China but recently announced their intention to relocate to Malta, which has become the crypto capital of the world, with relaxed regulation and an openness to crypto that most countries don’t share.

Coinbase

Sparring up against which we have Coinbase, arguably the biggest exchange in the world and estimated to be valued at $8 Billion. Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam and is based in the US. 

The company is very selective about the coins that it lists and only Bitcoin, Bitcoin Cash, Ethereum and Litecoin is currently available on the exchange. It is also a bit limited in the number of countries that it operates in with only 34 countries able to trade on the platform.

One of the biggest differences with Coinbase is that you are able to buy bitcoin with dollars which you are not currently able to do at Binance and many other exchanges.

Although the selection of coins on Coinbase is limited it does offer an extensive range of coin pairings on one of its main products called, GDax(Global Digital Asset Exchange).

Both Exchanges Making Big Moves While Market is Down

While the market may have been on a significant slump over the past few months, Coinbase has been busy. Buying up various companies incl Earn.com for $100 million, bringing on various high profile individuals, such as Emilie Choi from LinkedIn and also in the past few weeks acquiring Paradex, a decentralized relay exchange that allows people to exchange a varied amount of cryptocurrencies. Coinbase will be rebranding GDAX to Coinbase Pro on the 29 June 2018. It has also been reported that they are in the process of applying for a banking license.

Decentralized exchanges allows users to exchange assets without a controlling authority, but rather through the use of smart contracts. They plan to only offer this new service outside of the USA at first.

Coinbase further announced on the 4th June that it was opening up an office in Japan, one of the biggest crypto markets in the world.

Binace also has a decentralized exchange in the works and should be rolling out the future in the coming months. Their are rumours that it will use it's own coin, BNB, as the main currency on that exchange. 

Both exchanges are buying up talent at a frenetic pace, acquiring new startups and expanding its user base at a equally heady speed.

Binance is now the largest Altcoin centralized exchange in the world. This would not have gone unnoticed by Coinbase. Reading between the lines of all the recent accusations, appointments and developments, one can easily see this “war” between the exchanges increasing over the coming months. The battle for market share will only hot up and more competition should mean increased features, decreased fees and more options for consumers and we might all be the beneficiaries through it all.

If you are interested to learn how to start trading on Binance click here

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