- >Best Crypto Exchanges 2024
- >Coinbase vs. Gate.io
Coinbase is one of the most respected crypto exchanges in the world for a reason. To start with, the platform stands as one of the oldest crypto exchanges and boasts of over 40 million verified users across 100 countries. Backed by a team that prioritizes security, not to mention a capable workforce of over 200 full-time employees, it is fitting to categorize Coinbase as a leading entity in the world of cryptocurrencies.
Gate.io on the other hand also holds its own quite well in any comparison contest. Just like Coinbase, Gate.io is one of the earliest crypto exchanges to ever emerge. Even though its platform has suffered several security breaches in the past, Gate.io has managed to make a comeback by rebranding and implementing better security features not to mention compensating its clients.
In this article, we take a deep dive into what these two veteran crypto exchanges have to offer and help you make a choice on which one is a better fit for your crypto trading needs.
Coinbase Quick Overview
For anyone looking for the easiest way to buy or sell cryptocurrencies, Coinbase offers a viable platform. You can trade over 100 cryptocurrencies including the likes of Bitcoin, Ethereum, and Dogecoin to mention just a few.
As the largest crypto exchange in the US, Coinbase offers its users perks such as a low minimum requirement for buying cryptocurrencies. For as little as $25, anyone can get some Bitcoin, and there is also a feature on their platform for setting up recurring buy orders to build up a portfolio.
Overall, any beginner will enjoy using Coinbase. The exchange was founded by Brian Armstrong and Fred Ehrsam in 2012 and has now grown to become a publicly listed company with over $40 billion in market capitalization. Coinbase also boasts an untainted history in terms of security with zero hacks on its platform, unlike most crypto exchanges that have been hacked in the past leading to losses of millions in crypto.
Perhaps some of Coinbase’s dealbreakers include the fact that it charges high fees. The only solution when it comes to fees here is to use the Coinbase Pro alternative.
Also, the platform features support for a limited number of coins on its exchange, and customer service is not the best out there as complaints about their customer support team have emerged despite serious account privacy and control issues from users.
- Beginner-friendly UI make it easy to make quick buys
- One of the oldest and most reliable exchanges
- Earn $200 in free crypto after completing sign-up process. Terms apply.
- Variety of products including exchange, staking, wallet
- Advanced Trading options for experienced traders
Coinbase Pros & Cons
Pros
Intuitive user interface
Top-notch security
Offers the CoinbasePro alternative with lower fees
Secure platform that has been tried and tested
Offers users a debit card for crypto spending
Cons
Pricey fees
Supports only a handful of crypto assets
Customer support could be better
Overly intrusive KYC procedures
Gate.io Quick Overview
Gate.io is one of the biggest crypto exchanges to make a comeback after a catastrophic hack that saw the exchange lose 7,000 Bitcoins from its cold wallet. Founded in 2013 by Lin Han, Gate.io used to be called Bter.com, with its headquarters in mainland China.
After the hack, Bter.com changed its name to Gate.io given increasing bans and restrictions on fiat-to-crypto trading by the Chinese government. The old domain was therefore dropped, and the company shifted focus towards crypto-to-crypto trading with a new name that is Gate.io, and a new headquarters in George Town, Cayman Islands.
Since then, Gate.io experienced another high-profile hack that led to the loss of over $200,000 worth of crypto assets. According to reports, half of the amount was later recovered.
Despite its tainted past in terms of security, Gate.io still offers competitive features such as a larger selection of supported cryptocurrencies, especially when compared to the likes of Coinbase. Gate.io also comes with a native token called GateToken (GT) which entitles users to trading discounts based on the number of GT tokens they hold in their wallet.
- Solid platform for experienced traders looking to put in large amounts of volume
- Competitive fees compared to other exchanges
- Headquartered in Cayman islands
- Huge selection of cryptocurrencies
Gate.io Pros & Cons
Pros
A wide variety of cryptocurrencies supported
Comes with a native token with trading discounts
Offers an intuitive user interface
Charges relatively lower fees
Cons
Novice crypto traders might find its user interface intimidating
Has a history of security breaches on its platform
Largely anonymous team
Beginner Friendliness
Coinbase is by far one of the most beginner-friendly crypto exchange platforms out there. Their user interface is simple and straightforward, making it easy for beginners to navigate the platform and make a trade. On the dashboard of your account upon signing up, you can easily see your balance, access a watchlist of your favorite cryptocurrencies, and easily monitor the prices of coins supported on their platform.
With Coinbase, Beginners also have access to a variety of resources that can help them get familiar with the platform as well as learn about basic terms and concepts in the crypto space.
Gate.io also features a relatively intuitive user interface, however, for traders who are just getting started, Gate.io might appear a bit intimidating. Their user interface is somewhat cluttered compared to Coinbase’s minimalist design. There is a steep learning curve for traders as the platform offers sophisticated features such as perpetual contracts, a spot, margin, and ETF trading market, and a trading view that requires some getting used to.
One of the features built into Gate.io that beginners will enjoy is their copy trading feature that beginner traders can use to copy the strategies of top earners on the leaderboard. This can help beginners jump-start their crypto trading journey.
Trust & Security
For trust to be established over an exchange platform, the security of the platform’s wallet is simply a must-have. Coinbase does a great job of giving its users peace of mind. The platform has never been hacked since its inception in 2012. Traders on Coinbase get to enjoy 98% cold storage protection. Add that to the basic 2-Factor Authentication feature enabled for all accounts and up to $250,000 insurance covered by the Federal Deposit Insurance Corporation (FDIC) and you have one of the most trusted crypto exchanges out there.
The only deal-breaker with Coinbase when it comes to trust and security is the platform’s intrusive KYC process. In 2019 March, Coinbase allegedly bought a controversial blockchain intelligence startup and has been reported to use that startup to sell blockchain analysis data to the U.S. government. This could be a turn-off for users who prioritize privacy and anonymity.
Gate.io is not much of an alternative in terms of security given its tainted past of several security breaches on its cold storage. In 2019, Gate.io was hacked. Soon after the hack, the funds were restored using unknown methods, and the exchange platform claims that it has since upgraded its security feature to include multiple signatures. Gate.io also holds some of its client’s assets in cold storage though it’s not clear what percentage of the client’s assets are held in cold storage.
Fee Structure
Coinbase might be the king of providing convenience when it comes to making crypto purchases, however, the platform charges some of the highest fees. Making a bitcoin purchase comes with a fee that ranges from 1.49% to 3.99% compared to Gate.io’s standard 0.15% to 0.2% fee.
What’s more, Gate.io offers generous discounts to traders who use its GT token to pay for transaction fees. At the topmost tier of the fee structure, market makers who use the GT token pay a standard fee in the range of 0.055% and 0.03% while market takers pay 0.065% and as low as 0.036% with GT token discounts.
Coinbase on the other hand features a pricey fee structure even on its cheaper Coinbase Pro alternative, where market makers and takers are charged about 0.5%. If you include Coinbase’s 0.5% spread markup as well as a debit card purchase fee of 3.99% or a bank account payment fee of 1.49%, you can end up paying hefty fees with each trade.
Supported Cryptocurrencies
Gate.io takes the win when it comes to supported cryptocurrencies. This exchange features the support of over 1300 coins which is the highest number of coins you can trade under one exchange.
Here is a list of some of the coins they support:
- Bitcoin
- Solana
- Zilliqa
- Ethereum
- Avalanche
- Tron
- XRP
- Cardano
- Polygon
- Decentraland
- Filecoin
- Terra
- EOS
- Chainlink
- Axie Infinity
- Enjin Coin
Coinbase on the other hand supports only a handful of coins amounting to 169 coins. Here is a brief list of some popular coins you can trade on Coinbase:
- Bitcoin
- Ethereum
- Avalanche
- Solana
- Shiba Inu
- Cardano
- Tether
- Cosmos
- Chainlink
- Aave
- Stellar
- Litecoin
Supported Payment Methods
Compared to Gate.io, Coinbase offers a variety of payment methods on its platform. You can make payments using the following avenues with Coinbase:
- Wire Transfer
- PayPal
- Credit or Debit card
- ACH Bank Transfer
Gate.io on the other hand only supports crypto deposits on its platform.
Standout Features
Both Coinbase and Gate.io have unique strengths and weaknesses depending on what you are looking for as a trader. With Coinbase, most users will enjoy the convenience of an intuitive and straightforward user interface, not to mention the backing of a U.S-regulated company that offers cold storage of its assets. However, for the level of convenience and security you receive on Coinbase, you will have to compromise privacy and control over your crypto assets.
Gate.io offers reliability albeit with a tainted past in terms of security. The Gate.io exchange gives traders access to a wide variety of coins to trade which is more than you can find on any crypto exchange. The platform also comes with sophisticated trading tools that most expert traders will appreciate.
CryptoVantage Verdict: Coinbase Better for Beginners, Gate.io Cheaper
When it’s all said and done, choosing the best crypto exchange for your needs comes down to your personal preferences. In the comparison battle between Coinbase and Gate.io, it is obvious that Coinbase comes on top given its robust security features that are capable of standing the test of time.
While you will be required to go through an intrusive KYC process on Coinbase, you get to enjoy a secure crypto exchange with intuitive features. However, if you don’t need hand holding, Gate.io can be a good choice. We’d suggest moving your coins to a hardware wallet you control after making your trade.
