Binance vs. Coinbase: What Works Better For Canadians?

Security Compliance

Binance offers world-class security meaning your coins are in relatively safe hands. It offers two-factor authentication, so you can prevent unauthorized access to your account.

Keep in mind, Binance has been hacked before. Back in 2019, hackers stole 7,000 Bitcoin along with customers’ 2FA codes and API tokens. The hackers used phishing and viruses to gain access to the exchange. However, because Binance holds most of its digital assets in cold storage, the hackers only got away with what was in the hot wallet – about 2% of Binance’s Bitcoin holdings at the time.

As long as you take precautions, and transfer your crypto off the exchange to an external cryptocurrency wallet, you should be safe.

Coinbase uses its own digital wallet for storing your cryptocurrency.

Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.

Both Binance and Coinbase offer world-class security meaning your coins are in relatively safe hands. Both exchanges offer two-factor authentication, so you can prevent unauthorized access to your account.

While Coinbase uses its own digital wallet for storing your cryptocurrency, Binance does not. Instead, it partners with Trust Wallet, which secures your crypto via biometrics, a 12-word recovery phrase, and a PIN. Coinbase’s digital wallet also has these features. Binance also offers crypto address whitelisting, which means you can select which addresses can withdraw your cryptocurrency. Whitelisting helps prevent your funds from being transferred to an address you don’t recognize.

Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus. However, many Canadians still prefer using Binance, because you save a lot on fees and you can simply transfer all the assets to your own hardware crypto wallet. It is the safest way to keep cryptocurrency.

Regulatory Compliance

Binance has no restrictions for Canadians, except for Ontario residents. You can use it at full capacity whether it’s a simple buy order at market price or a more advanced order type. 

Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.

Coinbase is a US-based cryptocurrency exchange while Binance does not allow customers from the US to use its platform. Instead, US residents must use a watered-down version called Binance.us.

There are, however, no restrictions for Canadians. Canadian residents can use both Binance (except Ontario residents) and Coinbase to their full capacity whether it’s a simple buy order at market price or a more advanced order type. Bear in mind, neither platform allows Interac e-Transfer to deposit Canadian dollars to your account. Instead, you will have to use a debit or credit card or a SWIFT transfer with USD on Binance, or a debit card on Coinbase to purchase cryptocurrency. Both Visa and Mastercard are accepted on Binance. Coinbase no longer allows credit cards to be linked to Canadian accounts due to the number of Canadian banks blocking cryptocurrency transactions.

Customer support

Binance offers 24/7 support and a live chat option. In addition, Binance also has helpful FAQs and online ticketing service for their customers. Binance replied to our concern within a day.

Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.

Both Binance and Coinbase offer helpful FAQs and online ticketing service for their customers. Binance offers 24/7 support and a live chat option. Neither exchange offers a phone support service. Coinbase has received several complaints about its customer support. Binance has had several bad reviews though not as many as Coinbase. For example, Binance replied to our concern within a day, while it took Coinbase 4 days to address our request to a real person. 

Conclusion

Both Coinbase and Binance are great cryptocurrency exchanges for Canadians that offer a wide selection of coins. However, Binance is way popular among Canadians for several reasons (except for the ones who live in Ontario). If you’re mostly interested in trading altcoins then Binance is the clear winner, especially because it has some of the lowest fees of any exchange. If you hold Binance’s own coin Binance coin (BNB) fees are even lower. Once you become more experienced with trading cryptocurrency, you might be tempted by Binance’s advanced trading orders.

Coinbase is one the best exchange there is for beginners looking to buy cryptocurrency. Its simple and clean interface can’t be beaten. However, what you get for simplicity, you pay for in high fees. 

Binance has announced its exit from the Canadian market on 30 September 2023, citing regulatory uncertainties. As a result, we can't recommend Binance over Coinbase.

On top of these two, we would recommend Coinsmart for a number of reasons. Why? Check on our Coinsmart review.