Binance vs Binanceus guide – The choice is relatively simple if you want to trade on Binance. If you are based in the United States, Binance.US is your only available option. If you are outside the U.S., you can trade on the main exchange. This blog will explain the major differences between each platform.
The cryptocurrency industry has come a long way in recent years. More than ever, traders have endless options on where they want to trade. They can trade on centralized exchanges, decentralized exchanges, and even brokerages such as Robinhood.
However, when it comes to CEXs, Binance is likely the first name that comes to mind. While it’s an excellent exchange with ample liquidity, it is no longer available to U.S. citizens. Therefore, this blog will help to summarize the differences between Binance and Binance.US so that crypto traders can better understand what to expect when trading on each exchange.
Binance vs BinanceUS: An Introduction
In 2017, Changpeng Zhao (also known as C.Z.) founded Binance. Zhao’s background includes developing high-frequency trading software and working as an executive at another cryptocurrency exchange, OKCoin.
Since its inception, Binance has quickly become the most famous cryptocurrency exchange in the world to buy, sell Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) and other top coins. Binance is primarily known for its low fees and large amounts of liquidity as well as offer many features within its platform such as spot trading, futures trading, crypto wallet and other advanced tradings. The exchange currently offers more than 500 cryptocurrencies and over 1,200 trading pairs.
This certainly makes it an attractive place to trade, as crypto investors can have their pick of almost any digital asset they wish to trade.
Despite its size and name recognition, Binance has had issues with regulators. In 2017, Binance left China and relocated to Japan and Taiwan before eventually moving to Malta.
However, in February 2020, after Malta announced that Binance was not within its jurisdiction, the exchange quickly changed positions. It declared that it doesn’t have a headquarters because Bitcoin doesn’t have a central headquarters.
In May 2021, at the Ethereal Virtual Summit, C.Z. reiterated his stance that Binance had no central headquarters when he said the following:
“Everybody’s definition of a headquarters of a company is different. When you ask how you define a headquarters — is that an office where people sit? I worked from home for the last three and a half years. Our leadership team are not sitting in one office, we don’t have a clear place where we can go, by most people’s normal definitions of a headquarters that we can call a headquarters. So, when people ask me, I don’t want to give them a wrong answer just to satisfy their definition.”
Although CZ is the leader of Binance, he is not in charge of running Binance. In the U.S., in April 2021, Binance.US announced that it hired Brian Brook as its C.E.O. Brian Brooks is a former Coinbase executive who also served as Donald Trump’s Acting Comptroller of the Currency.
Binance.US launched in September 2019 to serve customers from the U.S.A. Although the exchange got off to a reasonably slow start, Binance.US has grown into one of the biggest cryptocurrency exchanges in the United States. April was a milestone month as Binance.US announced its total trading volume surpassed $28 billion.
Now that you’re familiar with the basics of both Binance and Binance.US, let’s cover some specific topics you’re interested in.
Which Exchange Offers the Most Cryptocurrencies?
Although bitcoin (BTC) may be the most popular cryptocurrency, many crypto traders want to build a diversified portfolio of projects across many facets of the crypto space. Diversification is so important that our team has been building an index trader, allowing our customers to easily trade a basket of cryptos that align with their specific goals. This will be released shortly.
Of course, to diversify, a customer needs to be able to trade a wide variety of altcoins. When it comes to cryptocurrency listings, Binance is the undisputed king. But how does Binance.US measure up?
Binance may not offer as many cryptocurrencies as decentralized exchanges such as Uniswap, but when it comes to CEXs, Binance is the leader. With more than 500 cryptocurrencies and over 1,200 trading pairs available for its customers, crypto traders who prioritize having access to the possible coins to buy/sell should strongly consider Binance.
Although Binance.US is growing fast and is now considered one of the top crypto exchanges in the United States, it doesn’t measure up to its parent company, Binance.
In fairness, this is not due to any failing from Binance.US but rather due to the regulatory hurdles it must contend with. That being said, Binance.US currently has 53 cryptocurrencies (including stablecoins) available for trading.
Verdict: When it comes to the number of cryptocurrencies available for trading, Binance.US is relatively in line with other U.S.-based crypto exchanges such as Coinbase, Kraken, and Gemini. However, it certainly cannot compete with its parent company.
Which Exchange Offers the Lowest Trading Fees?
Trading fees are significant when evaluating where to trade. While some exchanges like Coinbase (Coinbase Pro is much cheaper) and Gemini are known for being rather expensive, Binance is known for offering some of the lowest cryptocurrency trading fees in the world. Once again, U.S. citizens are probably wondering whether Binance.US can match Binance in this category.
Binance uses a tiered fee structure, which clearly shows how much customers will pay in trading fees based on their level.
Source: Binance Fees
At the lowest volume level, V.I.P. 0, trading fees are 0.1% for both makers and takers. For those customers who generate enough volume to qualify for the top level, V.I.P. 9, trading fees are 0.02% for makers and 0.04% for takers.
Additionally, there are a few ways in which customers can reduce the number of fees they pay when they sell/buy crypto. If customers pay trading fees with Binance’s native token, B.N.B., the fees will be reduced by 25%. The second-way fees can be reduced by referring friends to Binance. If a user pays fees with B.N.B. and refers a friend, the most they will end up paying in trading fees is 0.06% for each trade. That is one of the best deals in all of crypto.
The good news for U.S. customers is that Binance.US does offer the same low trading fees that Binance does. The only slight difference is that the U.S. exchange offers 10 V.I.P. levels, whereas the international platform only has 9 V.I.P. levels. However, for almost all traders, that won’t make a difference.
Source: Binance.US Fees
Binance.US users will also take advantage of the same discount opportunities available on Binance. The referral bonuses, as well as the discount for holding B.N.B., are available. As a reminder, Binance’s fees are the lowest in the industry, even before factoring in the discounts.
Verdict: This is a tie. Binance.US offers the same low trading fees that Binance does. Therefore, while Americans may not have access to as many cryptocurrencies on the U.S. platform, they will at least pay the lowest fees in the world.
Which Exchange has More Liquidity?
Liquidity measures how easy (or difficult) it is to swap one asset for another. Traders want to be able to convert one asset for another asset while having a minimal impact on the price. The more illiquid an asset is, the harder it will be to trade it without causing a major price change. Therefore, liquidity is extremely important to consider before deciding where to trade.
Binance has grown into the world’s largest cryptocurrency exchange. During May, Binance had a spot trading volume of approximately $1.5 trillion, a 63% increase from April. As you can see in the image below, the volume traded on Binance is significantly higher than its closest competitors, Huobi and Okex.
Since Binance doesn’t allow for U.S. Dollar deposits and trading, most of the volume on the exchange occurs against stablecoin pairs such as ETH/USDT and BTC/BUSD (BUSD is Binance’s native stablecoin).
Another factor to note is that although Binance has more volume than any other exchange, that volume is spread across a much larger pool of cryptocurrencies than other exchanges such as Coinbase and Kraken. Therefore, it’s always important to look at the specific asset you’re interested in trading to determine its liquid (or illiquid).
Earlier, we presented a chart indicating how Binance has gone from essentially a non-player in the U.S. crypto market a few quarters ago to now doing significant volume. With the recent hiring of Brian Brooks, who certainly has the connections to tap into the right areas, Binance.US could be set up for a bright future.
But what about now? Binance.US certainly doesn’t have the same level of liquidity as Binance. If we look at the top traded pair on each exchange over the last 24 hours, BTC/USDT for Binance, and BTC/USD for Binance.US, the volumes are as follows:
- BTC/USDT: > $3 Billion
- BTC/USD: $66 million
This is just one example, but it highlights the difference between trading on Binance and Binance. The U.S. Although small traders won’t make much of an impact on either exchange, all else being equal, most traders would prefer to trade against the larger book rather than, the smaller one.
Verdict: Binance is the obvious winner when it comes to liquidity. It has been around for longer and has grown into the most well-known cryptocurrency exchange. However, over a few years, Binance.US has grown into one of the top U.S. crypto exchanges. The future certainly looks bright for Binance. The U.S.
Some relevant posts:
- Binance Review: A Cryptocurrency Trader’s Complete Guide
- Crypto Vs Stocks: Is It Better To Buy Crypto Or Stock? Full Guide 2022
Both Binance and Binance.US are two of the most popular cryptocurrency exchanges on the planet. Although Binance has been around longer and established itself as the king of crypto trading, Binance.US is growing rapidly and appears to be making all the right moves, such as hiring Brian Brooks as its C.E.O.
Although Binance has the edge over Binance.US in most categories, Binance is only available to customers who live outside the United States. U.S. citizens that still wish to trade with Binance are only permitted to open an account with Binance. The U.S.
Binance may be the top choice for cryptocurrency traders across the world, but it appears regulators are getting fed up. On June 27, 2021, the Financial Conduct Authority (the U.K.’s financial watchdog) banned Binance Markets Ltd, an affiliate of Binance, from operating in the United Kingdom. As countries worldwide continue to take steps toward further regulating cryptocurrency, Binance may have to make some hard choices.