Crypto networks and marketplaces have come a long way in a short amount of time.
This is a full rundown, so after reading this guide, you’ll be completely equipped to handle trading and transferring between these two marketplaces.
- 1 Is It Possible to Transfer Money/BTC From Binance to Coinbase?
- 2 How to Get it Done
- 3 Why You Should Avoid Stablecoins (Sometimes)
- 4 Fees You Might Incur
- 5 Better Trading
Is It Possible to Transfer Money/BTC From Binance to Coinbase?
It’s possible to transfer money from Binance to Coinbase, and vice versa.
All it takes is being able to log into the two accounts at the same time, and set up a transfer. Just be ready to pay the fees.
How to Get it Done
Now that Coinbase and Binance have upgraded their services over the past two to three years, it’s easier than ever to transfer your money. To go from Binance to Coinbase, follow these steps:
1. Login to Coinbase
You’re bringing money from Binance to here, so first, we need to know where the money or cryptocurrency is going to land. Access your wallet on Coinbase, and from there, you’ll be given an address code to use when transferring funds.
All you have to do is click on your wallet to open up a menu of adding money, and you’ll be met with a screen that has all the necessary information/
2. Access Your Binance Wallet
Binance has their own way that they store your bitcoin. If you want to transfer that bitcoin, or ETC that you have stored for trading access, you have to first select which currency you want to trade.
Currently, you have to do each currency trade separate, which means repeating these steps one more time per currency.
3. Initiate the Transfer
Now that you’re on the funds page and have access to your wallet, select the option to add currency.
From here, you’ll have to input the code given to you by Coinbase so that you know where this currency is being sent. Place this here, and initiate the transfer. Your funding will be sent over in a short while.
3.1 Extra Safety
We’ve all read horror stories about bitcoin being eaten up in the system by an exchange, or someone sending bitcoin to the wrong address, and then it gets lost forever (because that’s how the blockchain works).
To prevent this happening to you, take screenshots of everything that you do. Take a screenshot of the code that you received from Coinbase, and keep it handy. Manually type it into your Binance wallet when sending the funds, and triple verify everything.
There’s a chance that there’s a wallet code that’s similar to yours, especially with how much trading goes on every day, so you don’t want to mess this up.
Screenshots may act as proof if you ever run into an issue with a transfer taking too long, that way you’ll be able to provide evidence to the support team you’re in contact with.
What Currencies Can I Trade From Binance to Coinbase?
There’s a holy grail of funds that you can transfer. Those are bitcoin, ethereum, litecoin, and bitcoin cash. If it’s a different crypto, it’s not going to fly.
If you have USD stored on Binance that you want to pull out and put into Coinbase, such as if you’re transferring platforms for good, you’re going to have to spend it on a cryptocurrency first before trading it.
Because of the way we can purchase fractured bitcoins, you should be able to spend everything without running into an issue.
A few dollars may get lost on Binance, though based on the recent resting prices of bitcoin that we’ve seen, it wouldn’t be anymore more than about $5.00 at the absolute most. Then again, you could always buy ethereum or litecoin and send those over as well, even if it’s not your preferred cryptocurrency.
Run a Test
It’s scary when you transfer out a big sum of bitcoin from one platform to another.
If you want, there’s no reason why you can’t initiate a test and just send over about $10 USD worth of bitcoin from Binance to Coinbase. Get familiar with the platform, watch the transfer go through, and see how long it takes.
Because these are actual institutions, some manual checking might come into play from time to time. If your transfer takes any longer than twenty-four hours, it’s a good idea to contact support.
So long as you can get access to your bitcoin, it just proves that your new platform is scrutinous, and takes the necessary security steps to ensure no third-party entities have access to your blockchain. Overall, it’s an inconvenience at first, but it’ll help you sleep later.
Know Your Customer Act, and How to Handle It
The Know Your Customer act can make this a bit of an egregious process. Because you have to verify your accounts before you can really have access to anything, you do not want to initiate a transfer of funds before you’re fully ready.
That means you have to verify your account on Coinbase, if that’s where you’re sending your cryptocurrency, and give it a day of resting time to ensure you won’t hit any snags.
Verification processes can take you about two to five business days, since most of them are done manually. In some instances, providing more documentation than is required will speed the process up.
In my opinion, just give the bare minimum amount of information that you need to, and wait it out while you trade on Binance in the meantime. After all, it’s still a good platform that you can trust at the end of the day/
How to Trade BNB From Binance to Coinbase
BNB is the local coin that Binance created. It’s basically a stablecoin that you can use to trade for other cryptos without having to wait for a bank transfer to come through, or if you don’t want to rack up fees on your credit cards when you want to make an instant sale or purchase.
Since this is Binance’s local coin, it’s not available on other platforms. Coinbase is a competitor of theirs, so putting their own coins on their competitor’s exchange would be odd.
In order to take your pre-existing BNB and transfer it, you have to swap it out for one of those three coins that we talked about earlier, or bitcoin cash.
To do this, simply go through a purchase on any cryptocurrency on Binance like you normally would. When it comes time to select which funding will be used, select BNB, and wait for the transaction to be completed.
Transfer that currency out of Binance. It’s recommended to do this before you move from Binance to Coinbase to avoid the extra fee.
Why You Should Avoid Stablecoins (Sometimes)
Ever heard of stablecoins?
These have a one-to-one ratio trading value, meaning you can spend your BTC on stablecoins, and then exchange those stablecoins for cash.
Similarly, you can just transfer your cash into stablecoins to allow for easier, faster trading to purchase bitcoin. It’s a way for you to keep your head in the game, no matter what. These are like training wheel crypto coins.
Stablecoins also have very low transaction fees compared to exchanging your USD to BTC.
While you might spend up to 3.99% on Coinbase for USD-BTC transactions, you might be able to get away with less than a 2% exchange rate with tether, a stablecoin that’s been in the game for quite some time. You can essentially get away with spending less money in transaction fees.
Stablecoins allow you to invest, say, $50.00 per week into crypto without having to keep it in cold hard cash, and granting immediate access to purchasing BTC without having to take it out of your paycheck if you really wanted to.
Some investors advise against stablecoin, and would rather just put their money straight into BTC or LTC.
These reasons are usually backed by long-term, high-profit goals, such as if they’re dropping $100K+ in a single transaction. Most of us aren’t spitting out those high-volume numbers, though, which is what makes stablecoins a decent option.
If you were to trade your USD for a stablecoin, which is supposed to stay flat, then you would just go from having $10K USD to $10K tether, for example. However, some stablecoins have dropped in value, which is basically against their entire reason for existing.
If they start to reach their market caps, it can lower the overall price per coin. That $10K USD can take a hit of $200 if your stablecoin drops to $0.98 per coin, which has happened in the past.
I’m not demonizing stablecoins, mind you. I’m simply stating that you shouldn’t put all your eggs in one basket.
They’re very low-risk, and designed to prevent the volatile swing of the market. In some cases, stablecoins have actually gained value of up to 9%+, making that proverbial $10K we were throwing around worth $10,900. It’s all about how you play the game.
Fees You Might Incur
Binance has a pretty upfront fee schedule, so depending on your VIP level, you will incur different fees. As a general rule, the more BTC you trade in a single go, the less fees you are going to incur.
A simple 50 BTC trade will run you a 0.1% fee of your BTC in order to complete the trade. Many people have made the mistake of selling BTC, transferring cash to their Coinbase USD wallet, and then buying bitcoin through there.
That’s just not a good idea. You can get around the fees if you go to your Coinbase wallet, like we mentioned before, and receive funds.
If you’re trying to play both platforms, I commend you, but it’s trickier than it seems. For instance, on Coinbase, if you wanted to spend your money to purchase bitcoin through their standard USD wallet, it’s going to run you up to $2.99 in fees.
Thankfully, they don’t have anything over that. The thing is, you then have bitcoin on your Coinbase cryptocurrency wallet instead of on Binance. If you are only looking to go from Binance to Coinbase, then this is perfect, but if you want things to be versatile, the trail ends here.
Crypto marketplaces are evolving at an alarming rate, and there’s new ones popping up every single day.
That being said, Coinbase and Binance are both fantastic options to start on, granting simple solutions and minimal fees across the board. We’re just thankful that it’s easier than ever to transfer between the two of them.
Last Updated on June 16, 2020 by Eito