Are you a crypto beginner trying to figure out the best crypto exchange to use? Or an experienced trader looking for an alternative to Coinbase? Whether you are just getting started in the crypto space or a seasoned trader, it can be difficult to find the right exchange for your needs. Whom can you trust to manage your funds amidst the crypto market’s many risks?
Globally, there are close to 600 cryptocurrency exchanges where investors can trade bitcoin, Ethereum, and other digital assets. However, costs, quality, and safety might vary greatly. Trust has always been the primary issue with crypto exchanges and a fine line separates the centralized from the decentralized crypto exchanges.
Coinbase is a centralized exchange, meaning it monitors transactions and secures assets on your behalf. Voyager is the opposite, described as a decentralized blockchain-based broker that allows users to connect to different exchange platforms and markets. It’s not an exchange itself but uses a proprietary technology called the Voyager Smart Order Router to give customers access to dozens of currencies across multiple exchanges.
Comparing Voyager vs. Coinbase, which is the better option?
Coinbase stands as the go-to cryptocurrency platform, eclipsing Voyager in light of its bankruptcy filing in July 2022. Subsequently, Voyager’s withdrawal and trading services had to be halted– rendering it an inconvenient choice for digital currency users. Coinbase has held a steadier financial standing than its competition, making it a reliable option for crypto traders around the world.
Despite the Voyager app’s current status and the team’s optimism for a revival, it is difficult to think that it would be able to bounce back. Contrastingly, Coinbase stands strong as one of the most sought-after cryptocurrency exchanges around. In this breakdown between Voyager vs. Coinbase, we will assess how these platforms differ from each other.
Coinbase Pros and Cons
Pros
Coinbase offers a cutting-edge user experience with easy buy/sell buttons and straightforward prices. There is an extensive array of coins that are frequently updated, plus Coinbase features exchanges, wallets, staking services, and more! Additionally, newcomers can get ahold of free crypto through coinbase.com/learn – it’s the perfect way for any novice to step into the world of cryptocurrency.
Cons
Coinbase fees are in line with other industry players, but some customers have reported issues relating to customer service. Additionally, Coinbase requires a comprehensive identity verification process for users.
What Needs Improvement
Matching the inherent advantages offered by web3 with the Coinbase Cloud Node, Pay SDK and Wallet SDK gives developers an easy path to creating games, tools, and experiences that will bring web3 to the lives of millions of new users. Coinbase will soon make these improvements accessible.
Voyager Pros and Cons
Pros
Users can earn up to 10% APR on stablecoins or 7.25% on Bitcoin when trading any of more than 50 different digital assets. What’s even better? Voyageur is a publicly traded company in Canada with FDIC insurance (not applicable to crypto holdings).
Cons
Unfortunately, the revolutionary Voyager app is not available in New York City. A major requirement of using this innovative tool is its high-interest rates that require users to possess proprietary VGX tokens. Many customers overlook the fees associated with buy and sell orders embedded within a spread between transactions. Additionally, one area where Voyager falls short is its slow verification process, as well as being only accessible on mobile platforms.
What Needs improvement
Liquidity concerns
Voyager is undergoing bankruptcy proceedings. Accordingly, there is a chance that client funds and/or trading capabilities could be at risk.
No coin-to-coin trades
You can only trade coins to U.S. dollars for now, though Voyager is working on adding coin-to-coin trading. To buy on the app, you fund your account with USD from an external bank account. You sell crypto in the app for USD, and the proceeds are deposited into your Voyager account until you make a withdrawal to an external account.
Long verification process
Voyager isn’t keeping up with growth right now, so new customers are put on a waitlist and granted access to the platform on a rolling basis. It doesn’t offer an exact timeline for account approval, so you may have to wait a while before you can trade on the app.
Voyager vs Coinbase Comparison
Voyager vs Coinbase: Crypto Breakdown
Voyager has listed over 100 cryptocurrencies and a handful of fiat deposit options. This includes Bitcoin, Ethereum, XRP, Dogecoin, and Litecoin.
Meanwhile, Coinbase has over 200 different digital coins listed on its platform.
Although the numbers may be misleading, there are two major cryptocurrencies that Voyager offers, but Coinbase does not: Tron (TRX) and Monero (XMR). However, trading is no longer available on Voyager.
Coinbase, on the other hand, offers to trade major cryptocurrencies trading, such as Tezos (XTZ), Dash (DASH), and Ethereum Classic (ETC).
Voyager vs Coinbase: Fees
Prior to suspending its services, Voyager had no commission fees on crypto trading and conducted price comparisons across multiple platforms. However, an order could come with a spread fee if the quoted rate was lower than what they offered. Though it may have been technically free of charge, their spread cost more than Coinbase’s exchange fees in some cases.
Comparing the fees of regular Coinbase to those of Voyager, we can see that the former has substantially higher charges; however, its Pro version offers significantly reduced costs in comparison.
Despite the costly fees associated with the basic Coinbase platform, one major advantage of using it over Voyager is that you can exchange assets without having first to convert them into USD. With Voyager, however, this step is mandated before any investment or purchase takes place.
With Coinbase, fees vary depending on the trading tool you select. If convenience is your top priority, then we suggest utilizing their Simple Trade feature, though note that this option does come with higher transaction costs than Advanced Trades (ranging from 0% to a mere 0.60%). That said, by using Advanced Trading tools, one can enjoy an array of features and more affordable rates – making it the ideal choice for those looking for quality service at reasonable prices.
When you make an advanced trade, the fee is determined based on your trading volume. Coinbase uses a maker-taker model for these trades, meaning orders that create liquidity incur maker fees, and orders that take advantage of existing liquidity incur taker fees. So if your order isn’t filled right away, it will be subject to a lower fee than those that are immediately filled by another order.
Trading on Coinbase can range from a flat fee to a percentage-based rate, which almost always amounts to 1.5%. This applies when the order is larger than $205; otherwise, here are the set fees for smaller transactions:
Up to $10: $0.99
Above $10 to $25: $1.49
Above $25 to $50: $1.99
Up to $205: $2.99
To demonstrate the range of fees on Coinbase, let’s consider a $1,000 cryptocurrency purchase: with its advanced trade feature, you could pay as little as no fee and up to an estimated $6 in charges. But if you use the platform’s simpler tool for trading, that same transaction would average at around a whopping $14.68.
Voyager vs Coinbase: Wallets
Voyager offers a custodial wallet, so they have full control of their customers’ crypto funds. This has become the benchmark illustration of why numerous crypto adherents warn that “if you don’t own your keys, you don’t control your coins” when it comes to these wallets. In July 2022, before declaring bankruptcy Voyager halted all withdrawals, which effectively made users lose access to their cryptocurrency forever.
Unlike many other wallets, Coinbase offers a secure and advanced hardware wallet from Ledger. By using this physical device to store your private keys offline, it provides an extra layer of protection compared to solely relying on online solutions. As if that wasn’t enough, the convenience of having access to your funds anywhere is something you wouldn’t want to miss out on with the web-based wallet provided by Coinbase.
Voyager vs Coinbase: Security
When it comes to crypto exchange security, Coinbase has the clear upper hand. They use industry-leading encryption along with multi-factor authentication and other measures to protect their customers’ data and funds. Additionally, all of the coins listed on Coinbase are backed by a financial guarantee that is secured through an insurance policy.
Coinbase Safety Procedures
Insurance: Coinbase provides crime insurance to defend a portion of digital resources from being stolen or affected by cyber breaches. Please be advised that this type of coverage doesn’t cover unauthorized access caused by the loss of your login credentials. Additionally, all cash balances are kept in banks with FDIC protection for extra security and peace of mind.
Two-factor authentication (2FA) is an imperative tool that requires two forms of identification to gain entry into your account, typically a password coupled with a code forwarded to your phone.
Secure crypto storage: Coinbase takes security to the highest level by keeping more than 98% of your funds offline in cold storage facilities that are guarded 24/7. This ensures maximum protection since these secure and monitored vaults aren’t connected to the internet – making them arguably one of the safest places you can keep your money.
Approved withdrawal addresses: When you activate the whitelisting option, crypto withdrawals can only be accepted from approved wallet addresses. This way, you have complete control of your cryptocurrency and ensure that it is securely stored.
Coinbase and Voyager are both secure platforms with FDIC insurance for US users that offer two-factor authentication. However, Coinbase stores the majority of its user funds in cold storage, whereas many believe this is not the case for Voyager – suggesting that their wallets are more often than not stored as hot wallets. Furthermore, Coinbase’s high level of insurance and security measures make it a more attractive option for those who are looking to keep their assets safe.
Voyager’s Safety Procedures
Voyager is a U.S.-based and U.S.-regulated, publicly traded company. Up to $250,000 USD held in your Voyager account is FDIC-insured through partner banks.
Your personal and financial information on the platform is protected using industry-standard security protocols, including encrypted storage and secure data transmission. Plaid, which connects your bank account to the platform, uses bank-level security and is trusted and used by more than 2,000 financial institutions in North America.
Voyager has limited trading and withdrawals while undergoing bankruptcy proceedings. So, there is some safety with your cash that’s uninvested, but FDIC insurance doesn’t cover invested cryptocurrency holdings.
Voyager vs. Coinbase: Usability
Coinbase is considered one of the most user-friendly exchanges in the crypto industry – its intuitive design and simple steps make it easy for anyone to get started buying and selling cryptocurrency. In addition, the mobile app makes it easy to check your account balance and transaction history and buy/sell cryptocurrencies on the go.
Voyager’s user interface is slightly more difficult to navigate than Coinbase’s; however, Voyager does offer some advanced trading features that are not available on Coinbase. For example, their “Smart Order” feature allows users to set up order types, like stop-loss orders, to help manage their trading portfolio and maximize potential profits.
Voyager Digital vs Coinbase Pro
Coinbase also offers its more experienced traders a powerful platform called Coinbase Pro, which provides advanced tools for technical analysis and charting. The interface is sleek and intuitive, making it easy to navigate the depths of multiple markets. Coinbase Pro also offers a wide range of order types, such as limit orders, conditional orders, and trailing stops.
Voyager Digital, on the other hand, is focused more on long-term investments. Unlike Coinbase Pro, which has a range of tools for technical analysis and charting, Voyager Digital does not offer any such features. However, it does have a mobile app that allows users to track their portfolios and purchase/sell cryptocurrency with ease.
Voyager is widely acclaimed for its competitive fees and 0% commission. By scouring different exchanges to give the best prices, Voyager has become an attractive option for those looking to decrease costs while trading cryptoassets.
With Voyager Token (VGX) being the native currency of the Voyager app, its investors can currently gain 3% APY when it’s held on this platform. Although some exclusive benefits are expected to be introduced in the future,, such as cash-back rewards, these prospects have not yet materialized, and so VGX has limited advantages for now. The VGX token can be obtained instantly from the app, while Coinbase has yet to add its own native tokens.
Voyager vs Coinbase: How to Choose the Right Service for You
Both Coinbase and Voyager are outstanding selections for anyone just starting out in the world of cryptocurrency. Each has a distinct edge over one another, so it all depends on what your objectives are when using crypto as to which is best suited for you.
If you’re hoping to trade crypto, Coinbase is the better option as it provides direct swaps without the risk of mid-trade spreads changing when converting back and forth between USD. However, if you prefer holding your crypto while also earning interest on them, Voyager should be your go-to choice!
Voyager Is Right For Whom?
If you’re a mobile crypto trader who wants to take advantage of low fees and multiple account funding options, Voyager is the perfect choice for you. Although it doesn’t boast as many features or products as Coinbase, its staking capabilities are noteworthy: You can earn up to 12% interest on your investments – almost double what’s offered with Coinbase.
Voyager is the ideal choice for investors looking to get involved in long-term cryptocurrency investments. With its competitive fees and 0% commission, a secure platform for buying/selling cryptocurrencies, and the addition of Voyager Token (VGX) bonus rewards, it offers users an attractive platform with potential benefits.
Voyager stands out as a unique platform for new crypto investors – earn interest on your digital assets without having to lock up your funds. With monthly changing rates, you can even get higher returns by holding their native VGX token. All of this is available with no commitments or fees.
Coinbase Is Right For Whom?
Coinbase provides an array of services and products to both individuals and institutional traders. These encompass crypto-backed loans, educational materials, wallet amenities, rewards in cryptocurrency form as well as card services, among others. Henceforth this exchange is a much better choice for novices looking to get into the space.
Coinbase is ideal for those who want to buy, sell and trade cryptocurrencies without a lot of fuss. Its easy-to-use platform makes it simple for anyone to get started, and its wide range of features gives more experienced traders an edge when trading on the open market.
Coinbase Pro provides advanced tools for technical analysis, charting, and order types, making it an ideal choice for those who want to take their trading to the next level. With a clean interface, low fees, and deposit/withdrawal options, Coinbase is one of the most popular exchanges in the world.
Our Final Thoughts On Voyager vs Coinbase
When it comes to selecting a cryptocurrency exchange, several factors must be taken into consideration. These include fees, security, usability, and the types of coins offered. Depending on your needs, one exchange may be more suitable than another. For example, if you are looking for a platform with low fees but also high liquidity and a wide selection of coins, Voyager may be a good option. If you are looking for an exchange with high levels of security and insurance, Coinbase could be the better choice.
When it comes to crypto trading, Voyager should be a platform you steer clear from. The company’s decision of offering an enormous loan without any security is enough for one to question their trustworthiness – and the people who put their faith in them ended up paying dearly for it. On the other hand, Coinbase is an exchange you can trust. While its fees may be higher than Voyager’s, it offers top-notch security, a variety of trading tools, and a clean interface.
Choosing Coinbase as your cryptocurrency exchange isn’t only the obvious choice, but it’s also dynamic — providing a wealth of features inviting both beginners and experienced traders alike. It stands out from its competitors not just for being easy to get started with but also offering educational modules that reward you in crypto. The exchange is an excellent choice for experienced crypto investors, offering a full suite of advanced trade options.
