Coinbase vs. FTX: Here’s How They Stack Up
With all of the talk, excitement, and money being made within the ever-growing realm of a cryptocurrency over the past several years, it’s only natural to consider getting involved yourself. However, there are a lot of critical decisions you’ll need to make before you get started. For example, what kind of coins will you buy and trade? What’s your crypto investment strategy? And, of course, which platform will you use to buy and sell your crypto? We can’t cover all of those topics here, but our crypto experts at Unbanked can help you start exploring your answer to that last question!
Below, we compare two popular cryptocurrency exchanges; Coinbase and FTX (specifically FTX.US). We’ll explore how they relate in terms of their ease of use, fees, and more. Please continue to find out what you need to know about each platform so you can easily select the one that works best for you.
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Coinbase and FTX: What Are They, and How Do They Work?
Coinbase and FTX.US are specialized applications that allow consumers in the United States to buy and sell various virtual cryptocurrencies, like Bitcoin (BTC) and Ethereum (ETH). The only steps users have to take are to register with the exchange, verify their identity through a series of authentication processes, and transfer funds into their account to buy their desired coins.
While each exchange application is excellent for anyone looking to get involved in crypto, they both feature some key characteristics that make them better for some people than others. For example, Coinbase is generally best for beginner crypto traders looking for a more convenient, easy-to-use platform where one type of crypto can be easily converted into another. In contrast, FTX.US is better for more advanced crypto traders who make frequent withdrawals from their accounts and prefer trading with fiat currencies.
However, these are far from the only factors prospective crypto traders should consider before choosing their exchange. Let’s explore some of the other key differences between the two applications that people should note.
We will automatically declare FTX.US the winner for this first category since they typically charge much lower trading fees than Coinbase, Coinbase Pro, and most other crypto exchanges. FTX.US utilizes a unique tiered fee structure where user fees depend on their 30-day trading volume. It also has a maker-taker fee model, where users pay the taker fee on immediately filed orders based on the market price and the maker fee on orders that don’t immediately go through. In contrast, the standard Coinbase platform uses flat and percentage fees depending on order size, and Coinbase Pro uses a more expensive maker-taker fee model.
While both exchanges have various major and minor cryptocurrencies, Coinbase proudly features one of the most comprehensive crypto lineups of any exchange, giving it a clear win over FTX.US. There are currently nearly 100 cryptocurrencies available to buy and sell on Coinbase, while FTX.US has only 24. While FTX.US is the only platform of the two to offer access to the TRON (TRX) cryptocurrency, all other top currencies are available on both platforms.
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Coinbase and FTX.US emphasize security and feature outstanding track records for protecting user money and data, though Coinbase is much older and has gone longer without any hacks or data breaches. Both platforms leverage two-factor authentication for account logins to protect against breaches, and both also offer a range of additional security features that are too detailed to cover in this one article but include;
- Safelisting of trusted wallet IP addresses
- The option to set up separate withdrawal passwords (FTX.US)
- Offline cold storage for customer crypto funds (Coinbase)
The critical point that gives Coinbase the win in this category is that it’s more proven as a safe exchange due to how long it’s operated.
Both Coinbase and FTX.US allow users to utilize their preferred digital wallets, though both also provide platform-specific wallets for those wanting to keep their crypto all in one place. Specifically, each platform offers access to a custodial wallet where people can buy, sell, and transfer coins to and from other wallets. However, a key drawback of custodial wallets is that the exchanges are in complete control over your crypto via private keys, and many traders prefer to have total control of their crypto.
Choibase wins this section because it also offers individuals access to a non-custodial, external wallet called Coinbase Wallet. It’s available as a free app, and it doesn’t even require you to be a Coinbase customer to store your crypto safely. It’s open and available for anyone to use on Apple, Google Play, and the Chrome Web Store.
Concluding Factors for Traders to Keep in Mind
Given the information above, we have to declare the Coinbase platform as the ideal gateway for those looking to enter the crypto realm for themselves, especially as new and inexperienced traders. That said, it’s essential to know that we only covered four of the top factors for consideration between exchanges. There are plenty of other elements- and exchanges- that people should look into before choosing a crypto platform.
Our team of financial experts at Unbanked hope that the above information has helped you take steps toward choosing the best exchange for your various crypto needs. If you want even more access to other critical crypto know-how, please consider exploring our selection of other educational resources. Also, feel free to look through our wide selection of specialized banking, debit card, and crypto services.
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Do you need a safe, secure, and efficient way to buy, sell, and send your cryptocurrency outside a standard exchange platform? Our crypto experts at Unbanked are here to help without saddling you with hidden fees and the needless confusion of complex exchange processes that eat away at your earnings.