FTX vs. Binance: Which Crypto Exchange Is Right For You?
FTX and Binance are two of the top cryptocurrency exchanges in the world. While they both have their advantages, one key feature that they both enjoy is their unbelievably cheap trading fees, which make them accessible markets for buying and selling cryptocurrencies.
Each of them also has a unique platform designed to adhere to American regulations. In addition to cryptocurrency trading, the flexible trading platform FTX.US also provides stock trading and a market for non-fungible tokens (NFTs). A wide variety of digital currencies are available on Binance.US, and users may also earn interest by staking their coins.
This article will cover FTX because U.S. investors are required to use such platforms.
Binance vs. FTX.US. US: Costs
Even when compared to other leading crypto exchanges, the trading costs at FTX.US and Binance.US are some of the lowest we’ve seen. Binance.US has the advantage of the two. It offers zero-fee trading on several cryptocurrencies, including Bitcoin, and its trading fees range from 0% to 0.10%. (BTC).
You will be charged a different amount for each trade on each exchange due to their various fee tiers. They also apply the maker-taker paradigm. A maker fee applies to orders that create liquidity (those that aren’t completed right away). There is a taker cost on liquidity-taking orders or orders that are instantly filled by another order.
The fee tiers at Binance.US are distinct in that they are based on both your 30-day trading volume and your BNB (BNB) balance. BNB is the native cryptocurrency of the exchange. Also, if you pay your trading expenses using BNB, you’ll receive a 25% discount.
FTX.US vs. Binance.US: Available cryptos
In terms of cryptocurrency choices, Binance.US is the undisputed champion. In comparison to the more than 20 coins offered on FTX.US, it offers significantly more than 100.
A respectable selection of cryptocurrencies is available on FTX.US, including both popular options and less well-known ones. Nonetheless, it has a more limited supply than some of its rivals. Many significant cryptocurrencies that are available on Binance.US are absent from it, including:
- BNB (BNB)
- Cardano (ADA)
- Polkadot (DOT)
- Stellar (XLM)
Nonetheless, Binance.US has a really impressive lineup. Wrapped Bitcoin is the only significant cryptocurrency you’ll discover on FTX.US, but not on Binance.US (WBTC).
Both the US keep users’ cryptocurrency in custody-based wallets. A custodial wallet is a type of cryptocurrency storage that is managed by a third party, in this case, the exchange. Both exchanges provide transfers to external wallets, so you can move your cryptocurrency to your personal storage if you wish to.
In 2018, Binance purchased Trust Wallet, one of the more well-known digital wallets. Although FTX.US doesn’t have a dedicated wallet, you can still move cryptocurrency from that exchange to any other wallet of your choosing.
Binance vs. FTX.US: Security
Although FTX.US performs better in this area, both of these exchanges offer reliable security measures. It offers more information about how it safeguards your cryptocurrency than Binance.US and has a number of excellent safeguards in place.
The US begins with its cryptocurrency storage methods. The exchange makes use of a personalized hot and cold wallet system. Cold storage is not online, whereas hot storage is, making the latter much less susceptible to hackers. Both of these are present in FTX.US, and all hot wallet funds are fully externally backed.
How Binance.US stores cryptocurrency funds is unknown. Most user cash and assets are kept in cold storage on the main Binance platform. It makes sense that Binance.US would operate in a similar manner, yet the exchange is silent on this matter.
Both FTX.US and Binance.US provide the basic safeguards for account security that we have come to expect from high-quality crypto exchanges. They are the most crucial:
Both of them have two-factor authentication (2FA), which makes it considerably more difficult for anyone to access your account without your permission.
In order to stop unlawful withdrawals to wallet addresses that you haven’t allowed, they enable you to build up a whitelist of authorized wallet addresses.
Also, you can whitelist the IP addresses that have access to your account on FTX.US.
Regarding security, it’s also important to bring out Binance’s earlier regulatory problems. The exchange is known for providing services that are innovative and cutting edge. Legal issues as a result have arisen in several nations, including the United States.
Since Binance.US is intended to adhere to American laws, it is less likely to experience problems than the main Binance platform. Yet there are undoubtedly certain cryptocurrency exchanges, like FTX.US, that have demonstrated a stronger dedication to compliance.
The characteristics you value more will eventually determine whether you choose FTX.US or Binance.US.
FTX.US is the best option if security and transparency are your top priorities. Not to say Binance, though. It’s hazardous to acquire cryptocurrency in the US, yet FTX.US performs better there. As it also offers stocks, it’s an excellent option if you want to use one platform for many investment types.
For individuals who place a high priority on cryptocurrency selection, Binance.US is the obvious choice. It features a significantly wider selection of different cryptocurrencies. Both exchanges charge competitive fees, but Binance.US has lower trading costs, particularly given that it offers zero-fee trading on a few cryptos.
You can’t go wrong with either of these trades because they are both of high quality. Simply choose the option that best suits your requirements.