My Moon Coin .com

"to the moon!"

Date: 2018-12-10

Transferring Funds from Coinbase to Binanace

Coinbase is the world's largest "fiat/crypto" exchange; Binance is the world's largest "crypto/crypto" exchange. Together, they're used to buy some of the most in-demand "coins" that the "crypto" world has to offer...

The most important thing to realize is that Coinbase is NOT the same as Binance. They work in similar ways, but are worlds apart.

  • Coinbase is designed specifically to facilitate the transaction of "fiat" currency into the likes of Bitcoin or Ethereum. The service basically operates as a "retailer" of Bitcoin - buying in bulk from the likes of BitStamp and selling on to the retail market for a profit. The most important thing to realize with CoinBase is that it's not able to facilitate transactions to coins that it does not support.
  • Binance is a "crypto/crypto" exchange, designed to provide access to the large number of extremely rare "coins" that typically don't have much of a following, or are so new that they're not covered by the majority of other "exchanges" out on the market. This is based in Hong Kong and is actually almost as popular as CoinBase.

Whilst CB is one of the few systems designed to provide users with the ability to "enter" the "crypto" market, it's extremely limited in the sense that it only provides market access to a handful of the most valuable "coins". This limited access means that if you're looking at the system from the perspective of trying to turn USD into the likes of DeepOnion or Verge, you will have to use both Coinbase and Binance.

Most people find out about CoinBase when they see that it's the only way to convert their "fiat" currencies into "crypto" tokens. This works - as described - by CoinBase taking the role of a "reseller" / "retailer". This reseller basically buys the BTC at a discounted price from the myriad of "mining" operators that are eager to profit from them. It does this through the "BitStamp" wholesaler.

By doing this, Coinbase provides a valid and versatile entry-point into the "crypto" landscape. It means that you have a real business through which you're able to raise any concerns etc if anything goes wrong.

Binance works in a similar vein - most people discover it due to the way in which it's the only exchange which allows you to exchange the likes of BTC for such "coins" as Verge or DeepOnion. The important thing to realize with it is that the system is basically designed to only accept "crypto" tokens for transactions. This makes its scope somewhat limited.

Based in Hong Kong, the company now has over 6,000,000 users - and has handled over $10bn worth of transactions in its life. It's one of the most trusted exchanges in the "crypto" market...

Trade USD for BTC

In order to understand how this works, you need to appreciate the first step - trading USD (or whichever fiat currency you have) for BTC.

This is done through Coinbase (or any of the other "exchange" services) - you basically have to download the Coinbase app, or use their online website, and then set up a trade whereby you need to "deposit" money. This will take fiat money from your credit card, allowing you to basically put it into your account.

Once your account has money deposited within it, you'll be able to use that money to buy BTC or whichever supported "crypto" currency you wish to purchase. As mentioned, this goes straight to the Coinbase company, and you will not be trading with any individual traders in this regard.

Trade BTC for Altcoin

Once you have BTC in your CoinBase "wallet", you basically have to be able to trade it for one of the "alt" coins of choice. This is done by getting a Binance account, and "depositing" your BTC into it by way of their website or application.

Once you've deposited your BTC (or whichever coins you're looking to use), you'll then be able to trade them for the alt coin of choice. In this case, you're trading "indirectly" with other traders, making it important that you are able to time your trades properly etc.

Again, this can only be done through the "crypto/crypto" exchange of Binance - or even the likes of Kucoin.