FTX Vs Coinbase: Features, Fees and Security

FTX Vs Coinbase

Coinbase Comparison with FTX Which one is better?

FTX Vs Coinbase Coinbase and FTX are two of the most popular crypto exchanges in the world, so often times the question arises: which is better? In short, Coinbase is better for newcomers who are looking for a beginner-friendly interface for simple trades, while FTX is more suited for experienced traders who are into future and margin trading.

Let’s look at the two exchanges and look at how they compare in various aspects.

Also Read: FTX NFT Marketplace Review – How to Make Use Of It (Fees and the Wallet)

Background

Coinbase

FTX Vs Coinbase

Coinbase began in 2012 and has grown to over 56 million users in 100 countries. It has also traded $335,000,000,000 worth of transactions in just one quarter [11. Coinbase is known as a beginner-friendly exchange, and often is the first crypto exchange new users are signed up for.

FTX

FTX Vs Coinbase

The FTX was developed for the trader It is not just for individual traders however, but also for professional firms that trade. In 2020, they exchanged at an average of more than $1,000,000 per day [23 With an increasing user base of more than 100,000 [33.

Experience in trading

Coinbase

Coinbase is geared towards beginners and prepares them for the world of trading crypto with spot trading. On Coinbase, users can buy, sell, hold, transfer and exchange crypto using the in-built Coinbase wallets. Facilitating this process is a simple, user-friendly UI that serves to help users navigate the platform with ease.

FTX

FTX Vs Coinbase

FTX however is a more advanced trading experience that , on in addition to spot trading, also offers options, margins, futures leverages, and much more. This kind of trading requires a more precise user interface, because they present the details needed for making advanced trades. However, this doesn’t mean that the interface for users on FTX is not readable, but it requires a little understanding and experience to fully comprehend and comprehend.

Also Read: How to Transfer Crypto (BTC, ETH, ADA etc.) To Kraken into Crypto.com?

Visit FTX Now Visit Coinbase Now

Coins and contracts available

Coinbase

Available coins: As of writing, Coinbase supports around 62 coins. The list of supported coins frequently changes, and some coins are subject to geographical restrictions. [4]

Contracts that are available that are available on Coinbase can be classified as spot-contracts. This means that users are able to purchase Coins that are supported and store the coins in their wallets. They can also transfer them to their wallets and transfer them to different accounts, or swap them for other coins.[4[4

FTX

FTX Vs Coinbase

Coins available: The quantity of coins that can be traded on FTX is contingent on the type of transaction, however, generally speaking there are more than 100 markets available and more than 60 different options to trade.[2][5[5

Contracts available: Users can trade spot contracts, futures contracts, and the leveraged tokens. [6]

Fees for trading

Coinbase

0.50% spread for cryptocurrency purchases and sales, as well as flat fees that can range from $0.99 to $2.99 depending on the transaction amount. Up to 2% spread margins for crypto conversions, and 25% commissions on staking. [7]

The fees can vary according to region and be subject to conditions and terms. [7]

FTX

FTX Vs Coinbase

Fees range between 0.07 percent to 0% based on the class and nature of the transaction, however, those who hold FTT (the native token of FTX) are able to enjoy fee reductions starting at three percent all the way to 60% based on the amount of FTT held. A further benefit that FTT stakers enjoy is maker reimbursements that can reach 0.0030 percent, and the reduction of fees for makers to 0% after 25, 000 FTT staked. [8]

Another option to lower costs is to become an elite member. This will reduce the maker’s fees to zero, and taker fees as high as 0.0250 percent. [9]

The loans and borrowing that are made in the spot margin include costs for both the borrower as well as the lender. Lenders pay 20 percent of the interest earned by the borrower as fees (see 8). and the borrow rates are calculated based on (see 10).:

Rate of borrowing is (lending rate) * ( 1 + the borrower’s spot margin rate)
Rate of the spot margin loan is min(500 * borrower’s taker fees 1,)

There are no charges on futures settlements or OTC trading. Terms and conditions could apply to all fees listed previously. [8]

Also Read: How do I transfer cryptocurrency (BTC, ETH, ADA etc.) From FTX to Bybit?

Withdrawals and deposits

Coinbase

Deposits: There are no deposit limits for crypto or fiat, and while Coinbase does not charge any fees on incoming crypto, there are certain fees for fiat deposits that are based on location and payment methods. Details can be found here .

withdrawals: The HTML0 withdrawal limits are minimal withdrawal limits for withdrawals and there are no maximum withdrawal limits. There is the conversion fee of 1% for crypto withdrawals that are taken out in fiat and normal transaction fees for withdrawals from crypto are based on the fees for blockchain. [11]

FTX

Deposits: There are no fees or limits of any kind for crypto, and FTX doesn’t charge any fees for fiat deposits either (bank and transfer fees may apply) [12] . In some cases, fiat deposit limits apply and vary, and more details can be found here .

For withdrawals: Bitcoin and Crypto withdraws come with no fees , excluding the cost of blockchain transactions However, FTT stakers can benefit from fee-free withdrawals, based on the amount they stake[13The amount staked is based on the stake. There are fees of $75 USD for withdrawals of less than $10,000 and the fee is 0.3 percent plus R$10 withdrawal fee for withdrawals in BRL (Brazilian Real) There are no fees for different currencies [1212.. Finally, withdrawal limits are based of the accounts KYC verification level. More specifics on this are available here.

Also Read: How do you Stake an Atomic Wallet? Do you think Staking On Atomic Wallet Safe?

Security and Trustworthiness

Coinbase

98% of customer funds are stored offline, as well as sensitive data which are encrypted and backed up, and stored in vaults around the world. All accounts require strong passwords which are also encrypted, and are protected with 2-factor authentication. [14]

The site runs on secured SSL and utilizes SQL injection protection to ward off CSRF attacks. The website has a range of security measures used to detect suspicious activities. [14]

Coinbase employees must pass background screening and must protect their hard drives with encryption use strong passwords, and allow security on the screen. [14]

As one of the largest exchanges around the globe, Coinbase has to have an extremely high level of security and reliability to keep its place in the market and, in that regard they’re doing pretty well. They’re open regarding their charges and, since Coinbase is a simple platform and is a beginner-friendly platform, there’s nothing to keep an eye on.

More details on transparency are available here..

FTX

Accounts require strong passwords for creation, and every single important action, from logging in to transacting, requires 2-factor authentication to ensure it is being done intentionally and by the user. Withdrawals require 2-factor authentication as well, and can use a separate password for an extra layer of security. Users are notified of suspicious activities and withdrawals are locked for 24 hours after password changes. [15]

FTX have also collaborated with Chainalysis to track suspicious crypto activity[15] and use Blockchain Consilium’s services Blockchain Consilium for the security verification of various tokens[16the 16th.

FTX has a number of rules and practices that provide fair trading experience [1717 and is an extremely reliable platform. Additional information about transparency are available on this page or on this page.

Also Read: FTX and FTX.US Charges, ftx-vs-ftx-us Coins Supported Withdrawals and Deposits

FTX Vs Coinbase The insurance fund

Coinbase

US customer balances are pooled in either: USD custodial accounts at U.S. banks, or USD denominated money market funds, or liquid U.S. Treasuries. These funds are insured by the FDIC for $250,000 per individual. Non-US customer funds are held as cash in dedicated custodial accounts. [18]

FTX

FTX has backstop funds of around $200,000,000 (as of 5/24/2021) in case of losses or clawbacks [15] , and have various protocols in place to aid accounts in danger of bankruptsy [19] .

Also Read: 5 Top Bitcoin Exchanges In the USA

KYC terms

Coinbase

Coinbase requires KYC documents to operate, and they require the following [20] :

  • Name
  • Birth date
  • Physical address
  • Social Security identification number, also known as ID
  • The source of the funds
  • Information on income and employment (US only)
  • Explanation of the activity (US only)
  • Document of identification (ID or passport, or driving license) (US Only)
  • Live-streamed selfie (US only)

People living in the EU or other countries could need different forms of documentation or processes to verify their identity.

Also Read: How to Buy Rocket Bunny Crypto

FTX

FTX has 3 different levels of KYC verification, and as the level increases, so do the requirements. Here are the total KYC requirements for individual accounts [21] :

  • Email
  • Full legal name
  • Country of residence
  • Birth date and location
  • Address and the proof to prove Address and proof of address (utility invoices, bills from banks, statements or rental agreement)
  • Description of the assets that are source
  • Other passports with similar identification issued by the government
  • Photo of the user holding their ID along with an unwritten piece of paper with the date of the day and the word “FTX”
  • A recent account statement issued by the bank they’ll be depositing and withdrawing from.

Also Read: 15 Doubts You Should Clarify About The Crypto Winter Is Coming.

Is it available in the US?

Coinbase

Yes, Coinbase is available in the US [22] .

FTX

No, main FTX platform is not available in the US [23] . They have a separate FTX.us to cater the need of US crypto traders.

Native tokens and its benefits

Coinbase

Currently, Coinbase does not have a native coin.

FTX

The FTT is the native token of FTX , and staking them unlocks benefits for users. There are a total of 350,000,000 FTT tokens in existence, and 175,000,000 of those will unlock over the next 3 years [24] .

Benefits: At present, those who participate in FTT get discounts on trading charges[24] and certain transfer fees[13].

Also Read: 10 Reasons You Should Fall In Love With How El Salvador Is Mining Bitcoins With Volcanoes 2022

Support for customers and education

Coinbase

Users who require assistance can visit the Coinbase Help Centre to troubleshoot their issues, and for personal assistance, can contact them directly here . Coinbase do not answer immediately, especially during times of market volatility.

The Coinbase Learn offers beginner-friendly guides on everything related to crypto including topics from basics to current developments and news. These articles are very helpful for anyone who is new to cryptocurrency and wants to understand more about cryptocurrency.

FTX

FTX has an all-in-one help section where users can read articles on various crypto related topics. Here, users may find the causes for common problems and solve them on their own, but if the need arises to contact their support personally, they can submit a request here , or, choose one of the contact options found here .

Please note the fact that neither Coinbase or FTX supports will ever require for personal information.

Also Read: How do you finance new equipment? Marquette equipment finance

References & Resources:

[1] Coinbase.com/about

[2] Blog.ftx.com/blog/end-of-year

[3] Institutionalassetmanager.co.uk

[4] Help.coinbase.com/supported-cryptocurrencies

[5] Ftx.com

[6] Ftx.com/markets

[7] Help.coinbase.com/fees

[8] Help.ftx.com/fees

[9] Help.ftx.com/vip

[10] Help.ftx.com/spot-margin-trading

[11] Help.coinbase.com/withdrawals

[12] Help.ftx.com/depositing-withdrawing-fiat

[13] Help.ftx.com/blockchain-deposits-and-withdrawals

[14] Coinbase.com/security

[15] Help.ftx.com/security

[16] Help.ftx.com/security-policy

[17] Help.ftx.com/jurisdiction-regulations-practices

[18] Help.coinbase.com/insurance

[19] Help.ftx.com/liquidations

[20] Coinbase.com/user-agreement

[21] Ftx.global/individual-account-kyc

[22] Coinbase.com/places

[23] Help.ftx.com/location-restrictions

[24] Help.ftx.com/FTT

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