For quite a long time, Coinbase vs Circle are the most popular choices for people who want to buy or sell bitcoin. However, the two platforms are actually designed for different uses, so each of them comes with distinctive advantages and weaknesses. Continue reading below to find out which one is best for you!
After reading this article, you will have a good idea about:
– What Coinbase and Circle are,
– The features and services of Coinbasevs Circle,
– The best place to buy and sell bitcoin.
What is Coinbase?
Coinbase is loved by many people due to the incredibly easy and convenient use. Buying and selling bitcoin on Coinbase can be done with such ease and simplicity. Because of this, Coinbase has become a popular platform for beginners in the world of crypto trading. See also: Bitpay vs Coinbase.
Coinbase can be described as a ‘middleman’ between you and the crypto exchange. Coinbase comes with set prices for buying and selling cryptocurrencies on the platform. Its prices are often very close to the actual ones being traded on the exchange, so you won’t miss a significant amount of money on the difference. This design is very convenient, as you don’t need to deal with the complicated processes associated with the exchange.
On Coinbase, you are given a neat and intuitive interface with separate tabs for buying and selling cryptocurrencies. The prices are clearly listed for the respective cryptocurrencies. Every Coinbase account has an online wallet which holds the funds and crypto money that you want to trade.
Features of Coinbase
As one of the largest crypto trading platform, Coinbase supports all the three mainstream cryptocurrencies: Bitcoin (BTC), LiteCoin (LTC), and Ethereum (ETH). So, this is a great choice if you want to actively trade not only bitcoin but also other types of digital money.
Coinbase is designed for convenience and ease of use. So, unsurprisingly, it comes with multiple transfer options. To make a deposit to your online wallet, you can use a bank transfer, a credit/debit card, or a crypto transfer from a different address. Meanwhile, to withdraw your money from the online wallet, you can use a bank transfer, PayPal, or also a crypto transfer to another address. Having plenty transfer options makes this platform very flexible and adaptable for different needs.
Coinbase also has excellent security measures. So far, it has been attacked multiple times, but it hasn’t ever been broken. Most of its holdings are secured in cold offline storage. So, in the event when it does get breached, the attacker still can’t access most of the money. In addition, it provides an FDIC insurance for up to $250,000 for each account.
When choosing between Coinbase vs Circle, note that Coinbase also has a payment processing service. Its payment processor enables merchants and businesses to receive online bitcoin payments. The payments that you receive through the payment processor are stored in your online wallet. From here, you can trade the bitcoin funds or convert them into a local currency.
Fees on Coinbase
If you use a crypto transfer to make a deposit or withdrawal, there is no additional charge. However, if you use a bank transfer, there is an additional fee of 1.49%. Using a credit/debit card or PayPal to complete a transaction is not recommended due to the high fee, which is 3.99% – consider this as a last resort when you have no other choice.
Coinbase’s payment processor is very interesting for merchants and businesses. If you choose to keep the payments in bitcoin, there is no additional charge. However, if you choose to convert the payments into a local currency, there is a 1% fee for each transaction. This may encourage you to trade the crypto funds to gain higher profits before you withdraw your money.
What is Circle?
When first launched in 2013, Circle was originally designed to be a payment processing platform for bitcoin. One part of the platform was the service for buying and selling bitcoin. For some time, Circle became one of the most popular places for buying and selling bitcoin.
However, Circle has taken a major turn in 2016. It now targets the world of social and mobile payments. As reported by TechCrunch, Circle has completely stopped the service for buying and selling bitcoin. You are no longer able to buy or sell bitcoin on the platform. But don’t worry if you already have crypto funds on your Circle account, as it has partnered with Coinbase to serve the buying and selling of bitcoin. All cryptocurrency transactions on Circle are now redirected to Coinbase.
The Circle app itself now looks like a messaging service. It does have full messaging features, just like WhatsApp and Messenger. But there is one distinction: Circle allows you to send money through conversations.
Features and Services of Circle
As mentioned above, Circle has become a messaging app with the ability to send money through conversations. This may be a great solution for merchants and business users who often need to make mobile transactions. It will eliminate the need to go to the nearest ATM and the need to swap between multiple apps, as you can accomplish the task through a single convenient Circle app.
Nevertheless, Circle hasn’t completely ditched bitcoin. It is kind of unfortunate that you won’t be able to send bitcoin through the conversations directly. However, by using the Spark protocol, Circle can enable digital wallets to exchange values by using blockchains. So, you can transfer crypto money from a connected online wallet to another.
Circle claims that it is completely free to download and use. It has no hidden fees or markups. Even when transferring and converting different currencies, the money will not get cut by anything except the actual exchange rate. To ensure the security, all Circle accounts are double encrypted with the options to set send limits, two-step authentication, and fingerprint verification.
Coinbase vs Circle
|- A crypto trading platform which serves buying and selling||- A messaging app with the ability to transfer money directly|
|- Serves Bitcoin, LiteCoin, and Ethereum||- Supports regular currencies and online wallets|
|- Crypto transfers are free, bank transfers has 1.49% fee, credit/debit cards has 3.99% fee||- Completely free to download and use|
|- Suitable for people who want to trade cryptocurrencies or receive online payments in cryptocurrencies||- Suitable for people who need an easy and practical way for mobile transactions|
Between Coinbase vs Circle, Coinbase is definitely more recommended. It is a full-fledged platform with multiple features and capabilities. On Coinbase, you can easily buy and sell cryptocurrencies. Coinbase is also very flexible with multiple transfer options. For merchants and business users, Coinbase does have a payment processing service which will store bitcoin payments in its online wallet.