vs. Coinbase: Which One Should You Use?
Individuals in Canada often turn to Bitbuy when they wish to purchase cryptocurrency. In contrast, Americans prefer Coinbase because it sits among the top crypto exchanges in the United States today. What similarities will investors see between the two options and what differences? With this information, a Canadian find it easier to determine which option better meets their needs.
Bitbuy vs. Coinbase: Which One Should You Use? Most experts feel Canadian’s fare better when they use Bitbuy for several reasons. This site comes with lower fees and it is easy to use. In addition, it allows for FINTRAC registration, and users find it to be the most secure and therefore the most trusted exchange in the country.
The Highlights of Bitbuy
The Canadian dollar serves as the fiat currency of Bitbuy, which offers nine cryptocurrencies for users to purchase. The buy/sell fees come in at 0.2 percent when the person uses Express Trade, and fees decrease for makers when they use Pro Trade. This site allows for Interac e-Transfer and wire transfer payments as well as cryptocurrency payments. Furthermore, users state the site is easy to use and they appreciate the mobile app.
Pros of Bitbuy
Individuals enjoy the Express Trade feature which allows them to complete transactions easily. However, many investors benefit from the advanced charts and tools available for Pro Trade users. They love knowing the crypto exchange is extremely secure and includes BTC insurance. Nevertheless, the site comes with some drawbacks.
Drawbacks of Bitbuy
Only Canadians benefit from Bitbuy. Investors in other countries cannot use the services. Furthermore, the limited number of cryptocurrencies offered turn many people away.
The Highlights of Coinbase
Fiat currencies for Coinbase include the Canadian and American dollar along with the Euro, and investors gain access to more than 70 cryptocurrencies today. Furthermore, the company recently announced an expansion of payment options, including Apple Pay and Google Pay. However, the buy/sell fees vary, so users must pay research the fees before completing a transaction. Payment options at this time remain limited to debit cards and cryptocurrency. Nevertheless, users find the site easy to navigate and enjoy the mobile app.
The Pros of Coinbase
Investors like that Coinbase privately insures its platform. This means their funds remain safe if the site is hacked. The user-friendly interface makes trading simple, and a person finds they can register and begin trading in a matter of minutes. Once registered, they choose from more than 70 cryptocurrencies to purchase, and experts state this platform is extremely secure. They say it is very trustworthy.
The Cons of Coinbase
Investors often become frustrated with Coinbase because they find the fee structure to be complicated and fees are higher than seen with competitors. Furthermore, they dislike the limited payment options. Users must take this into consideration when selecting an exchange.
One thing men and women look at when comparing exchanges is the fees charged by each exchange. When a person deposits CAD into Bitbuy, they pay a 1.50 percent fee if using Interac e-Transfer and 0.5 percent if using the wire transfer option. Coinbase doesn’t require pre-funding of an account but charges a fee of 3.99 percent when the user pays with their debit card.
Express Trade on Bitbuy comes with a 0.2 percent trading fee. For those trading on the market, Pro Trade charges a maker fee of 0.1 percent and a taker fee of 0.2 percent. Coinbase, in contrast, uses a two-part trading fee structure. Users pay a 0.50 percent spread fee and an additional Coinbase fee. This fee is either a flat fee or a variable fee, with the user paying the higher of the two.
The flat fee increases as the transaction value increases. For a transaction amounting to $10 or less, the flat fee comes in at $0.99. For those transactions between $10 and $25, this fee increases to $1.49. Investors completing a transaction between $25 and $50 pay a flat fee of $1.99 and transactions of $50 to $200 come with a fee of $2.99.
When the variable fee is charged, the fee comes in at 3.99 percent of the transaction value. This fee comes into play when the user selects either a debit card or PayPal as the payment or payout method.
Withdrawal fees also vary by exchange. Coinbase users in Canada pay a $1 withdrawal fee. Canadian Bitbuy users pay a 1.50 percent fee when withdrawing funds from their account if they select the Interac e-Transfer option and a 1.0 percent fee if they choose a wire transfer.
Bitbuy allows deposits using cryptocurrency, wire transfer, and Interac e-Transfer while Coinbase only allows users to make deposits with their debit card or cryptocurrency.
What Distinguishes Each Exchange
Bitbuy stores its cryptocurrency offline with the help of BitGo Trust Company. This custodian was created for the purpose of storing digital assets, and all assets held by the customer remain protected by a comprehensive insurance policy.
However, Coinbase allows users to earn cryptocurrency by watching short videos. With each three-minute educational video watched, a person receives crypto rewards. In addition, this exchange offers a Wallet app for Android and iOS mobile devices. The wallet allows the user to store their crypto securely while gaining access to decentralized innovation. They can send crypto worldwide, browse decentralized apps, and more using the wallet.
Investors want to know their cryptocurrency remains secure. Bitbuy ensures it is by maintaining servers across multiple cloud providers as well as disaster recovery locations. These providers remain SOC, FIPS 140-2, and ISO compliant, and the privately maintained codebase maintains closed source core components. This protects a user’s intellectual property. Login security features found with this exchange include biometric and 2FA, and the cryptocurrency remains stored offline with the help of BitGo Trust Company.
Coinbase likewise uses 2-factor authentication, fingerprint and face ID logins, and data encryption. The company stores its paper and USB drive backups in safes and vaults across the globe, and every employee working for the company must undergo a criminal background check. All hard drives remain encrypted, and the majority of its digital assets remain secure offline in cold storage. The company maintains crime insurance to ensure digital assets remain protected if a cybersecurity breach occurs.
Although both companies have things to recommend them, Canadians find Bitbuy remains the preferred choice. The lower fees and ease of use for investors of every skill level make it ideal. Investors love the security features used by this exchange. However, they receive access to only nine cryptocurrencies. For individuals who want more, Coinbase serves as the better option. It all depends on what the investor wants and needs when it comes to their cryptocurrency exchange.
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