FTX and Coinbase are two of the most popular crypto trading platforms for both beginner and experienced traders.
Hence, if you want a reliable exchange for trading your cryptocurrencies, the two are among the best platforms out there.
FTX vs. Coinbase: Introduction
FTX started in 2019 in Antigua & Barbuda. However, it is now a global exchange with a footprint in almost every county in the world. The company markets itself as a cryptocurrency broker, and it takes pride in being a platform built by traders for traders.
Coinbase is an American digital asset broker founded in San Francisco in 2012, making it one of the oldest trading platforms in the world. Its trade volumes make it the largest crypto trading platform in the USA, and it also ranks highly globally.
This comprehensive comparison should make your choice more straightforward if you often find yourself stuck between these two fantastic trading platforms.
FTX vs. Coinbase: Product Offerings
The product offering should always be one of the main factors you consider when choosing a trading platform. FTX provides more trading products than Coinbase, which offers spot trading only.
With FTX, you can find several tradable products, including futures, options, leveraged tokens, MOVE contracts, and a spot market. Futures are a derivative instrument that comes with leverage.
When trading futures on FTX, you can get a leverage of up to 101x on most of the derivative contracts on the platform, and it supports futures contracts for more than 80 cryptocurrencies. Additionally, FTX allows for perpetual features.
For the options, FTX supports bitcoin options only and allows the trader to create custom contracts and request an offer. Leverage tokens and MOVE contracts are unique products to the platform, while their spot market accommodates almost 70 cryptocurrencies.
Since Coinbase does not offer most of these products you get on the FTX platform, it is impossible to compare them. However, their spot trading market is among the best out there as it supports almost every cryptocurrency available.
FTX vs. Coinbase Trading Fees
Trading fees are one of the essential things many traders want to know before joining a trading platform, and this is rightfully so as they can eat up the slim margins for the low volume traders. The good news is both FTX and Coinbase have quite fair trading fees.
FTX uses a tiered fee structure for both the futures and spot markets. The platform has 6 tiers based on the 30-day trade volumes. Tier 1, which is for traders with zero trade volumes within the month, attracts 0.020% maker fees and 0.070% taker fees.
For tier 6, which represents the highest trading volume (over 50 million USD), the maker fee is 0.000%, while the taker fee is 0.040%. It is also worth mentioning that spot trade fees will be deducted in the original currency you receive. Also, the trading fees increase by 0.02% when using 50x leverage and 0.03% for 100x leverage.
Coinbase charges a 0.5% spread for their spot trading market. However, the rate is not fixed as it can go higher or lower depending on the market fluctuations. Fees also vary significantly for Coinbase Pro account holders. For traders using the Pro account, balances under $10,000 attract a 0.5% taker fee, while those that hold over $2 billion have to pay 0.04% only.
FTX vs. Coinbase Deposit & Withdrawal Fees
FTX will generally not charge any fees for withdrawals or deposits for most transactions. However, some coins like ETH, small bitcoin withdrawals, and ERC-20 attract some fees. Users need to pay the blockchain fees for the ERC-20 tokens and ETH if they do not have FTT staked.
There are no fees when withdrawing over 0.01 BTC, but if the bitcoins are smaller than this, FTX charges a fee if you make more than one withdrawal in a day. For fiat withdrawals, the platforms charge $75 for any amount below $10,000 to cover the bank charges.
Coinbase charges a 1% fee for conversion and withdrawal of your cryptocurrency in fiat. Also, there is an additional network charge to allow for transaction processing via the decentralized cryptocurrency network.
When using Coinbase, deposit fees will depend on the payment method you use and vary from one place to another. For example, if you are in Canada, debit buys attract a 3.99% fee, while deposits through PayPal have a 1% fee.
FTX vs. Coinbase Trading Platform Comparison
The user experience of any trading platform largely depends on factors like the trading tools, user interface, charts, and UI.
FTX provides a simple and intuitive user interface that allows traders to exchange their crypto easily. The interface is super easy to navigate and includes a side navigation bar to easily access the wallet, trading products, and trading history.
The FTX interface’s center is a trading chart integrated with TradingView, which offers advanced trading functionalities that include chart patterns, drawing tools, and indicators.
Coinbase offers a highly intuitive interface that even first-timers will have an easy time figuring out. On the website, trading is just a couple of clicks away as the website is super-easy to navigate with a search bar, and it offers some fantastic speeds. Also, they provide candle charts, variable time frames, and order slips.
Additionally, Coinbase offers some fantastic mobile apps for iOS and Android. They give traders more trading options without compromising security, thanks to 2-step verification.
FTX vs. Coinbase Account Opening Process
The account opening process is reasonably straightforward for these two trading platforms. For both, it only takes a few minutes to set up everything, and you will be ready to deposit to start trading.
How to Open FTX Trading Account
- Click “Register” at the top right of the home page
- Fill in your email and create a password in the registration window that pops up
- Verify you are a person by clicking on the box
- Read and agree to the terms of service
- Click “sign up” to register your account
- Setup 2FA to secure your account
- Deposit to start trading
- Complete KYC verification to increase withdrawal limits
How to Open Coinbase Trading Account
- Enter your names, email and create a password
- Verify the email address
- Enter your mobile number to get a verification code
- Coinbase sends the 2-step verification codes
- You should then enter the codes and key in your identification information
- Prove your identity using state legal documents like social security number
- Lastly, add your bank account credit/debit card info and deposit cash to start trading
FTX vs. Coinbase Customer Support
Customer support seems good enough for both FTX and Coinbase. FTX provides multiple channels for customers to reach their team if they have an issue.
The company is available for support on Facebook, Telegram, and WeChat. Also, customers can leave them an email, and there is always a live chat box for those still not satisfied.
Coinbase has a very professional customer support team. The company even guarantees a 24-hour email response time to ensure traders do not have to wait for ages to resolve their issues. Like FTX, there is also an instant chat box that operates with US business hours. The vibrant community of FTX users is often also beneficial for traders.
FTX vs. Coinbase Security Features
Coinbase has one of the most advanced and robust security systems, and the fact it has never been hacked is a good indication of this. The platform claims that up to 98% of trader funds are kept offline in different places across the globe.
Coinbase requires 2-factors verification when signing in, and biometric fingerprints are necessary for private keys. Since the funds are primarily held in the US, traders get FDIC insurance cover up to $250,000.
Like Coinbase, FTX has also never been hacked. Although they do not fully disclose their security features, the platform uses 2-factor authentication during sign in and their website has full SSL encryption.
FTX has set up an insurance fund that aims to ensure the customers do not suffer losses in case of adverse market movements
FTX and Coinbase are two of the best crypto exchange platforms out there, and they seem to work for beginners and experienced traders. But, each has merits and demerits, which should guide you when deciding which one to use.
Also, what you want to trade matters a lot when picking between these two. Keep in mind that FTX offers several trading products, from futures and options to tailor-made products like leverage tokens.
The best way to choose between these platforms is to give both a try with all that in mind. At the moment, Coinbase only allows for spot trading. You can register on both exchanges and trade with small deposits to get a firsthand experience of what they have to offer.
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