The evolution of cryptocurrency in recent years has paved various roads for crypto traders. From centralized, such as Kraken, Binance, and Coinbase, and decentralized exchanges, like Uniswap, to brokerages such as Robinhood- the list is endless. In this unending list of crypto exchanges, Binance is the most famous name in terms of centralized exchanges. Even though Binance became a part of the crypto world in 2017, it has reached unforeseen heights in just a few years.
But due to the increase in regulatory compliance, they had to restrict access for the traders in the United States. Following this, Binance.US launched in 2019 and though slow, it has been on the growth curve since then and is the largest cryptocurrency exchange in the United States.
The separation of Binance.com and Binance.US raised many questions in the heads of crypto traders and enthusiasts such as what's the difference between Binance and Binance.US and hence in this article on Binance vs Binance.US, we aim to answer all those questions!
Binance, founded by Changpeng Zhao in 2017, has been gaining popularity for its crypto to crypto exchanges. Though it initially started in China, it later shifted its headquarters to Malta in the EU. When Binance raised about $15 million in July 2017, it instantly earned 20,000 registered users.
Since its inception in the crypto space in 2017, Binance has been going up to become the world’s largest cryptocurrency exchange by trading volume. At present, Binance is offering its users 500+ cryptocurrencies and more than 12,000 trading pairs.
Pros Of Binance
- More than 65 tradable cryptocurrencies
- Low fees
- Large selection of order types and trading options
- Advanced trading tools
Cons of Binance
- Not very user friendly
- In-built digital wallet absent
- Regulatory issues
Binance Pros Explained
- More than 65 tradable cryptocurrencies: U.S. customers can trade in more than 65 tradable cryptocurrencies, giving crypto investors and traders a lot of options to choose from. For investors outside of the U.S., the platform offers even more options.
- Low fees: The exchange charges low fees, which means investors and traders can buy/sell with peace of mind and get to keep more of their earnings.
- Large selection of order types and trading options: With Binance, traders and investors can choose from spot trading, peer-to-peer trading, margin trading. Moreover, the exchange also offers order types such as market order, limit order, one-cancels-the-order, stop-limit order, trailing stop order, and stop market order.
- Advanced trading tools: It is easy with Binance to buy/sell crypto at a specific rate or set a limit order. For its beginner users, Binance offers a “convert” function whereas, for seasoned users, it offers an advanced trading interface with charting tools. The Bitcoin Futures section on the platform allows its users to predict the price of Bitcoin.
Binance Cons Explained
- Not very user-friendly: The wide range of tools and trading options may sound great, but it can be overwhelming even for seasoned traders.
- In-built digital wallet absent: While Binance is a large crypto exchange, it doesn’t offer an in-built digital wallet. Instead, it recommends Trust Wallet, which is quite popular but doesn’t offer much support if an issue occurs with Binance transfers.
- Regulatory issues: The crypto exchange has faced multiple legal and regulator issues in several countries.
Despite its name and fame, Binance faced issues with its regulators. In 2019, Binance.US, the U.S.-based wing of Binance, came into existence. According to a study by CoinMarketCap, Binance.US is among the top 10 cryptocurrency exchanges in the world, by trading volume.
Even though Binance lacks many features compared to its parent company, it is still best known for peer-to-peer trading and crypto-to-crypto trading. Additionally, its 0.1% trading fee is lower than many other U.S. cryptocurrency exchanges.
Pros Of Binance.US
- Low Fees
- Educational content available
- Discounts on trading fees
Cons of Binance.US
- Arduous verification process
- The poor regulatory history of the partner company
- Fewer assets
Binance.US Pros Explained
- Low fees: The exchange has low fees compared to other exchanges. The maker/taker fees range from 0 to 0.1 percent and instant buy/sell fees are 0.50 percent.
- Educational content available: Investors eager to learn about blockchain and crypto can access Binance Academy and watch education videos and read articles on these topics.
- Discounts on trading fees: Traders/investors who are holding Binance Coin (BNB) are eligible for a 25 percent trading fee discount
Binance.US Cons Explained
- Arduous verification process: To buy, sell, or trade on the exchange, you have to go through a long KYC process, which could take days.
- The poor regulatory history of partner company: Its partner company, Binance, has faced a lot of compliance and regulatory issues.
- Fewer assets: On Binance.US, only 64 tokens are available for trading.
Now that we’ve touched upon the pros and cons of both platforms, let’s see the differences between Binance and Binance.US.
Binance vs Binance.US: Comparison
Both Binance and Binance.US are among the best crypto exchanges in the world. Even though the former is considered a parent company of Binance, there are a few differences. These differences make the two exchanges unique in their way. The security protocols of both Binance and Binance.US are similar and so is their customer support. But they have different trading fees, deposit and withdrawal methods, and liquidity.
Let's compare the features of both Binance and Binance.US.
Binance vs Binance.US: Fee Structure
Binance’s standard trading fee is 0.10%, which is cheaper than that of Coinbase. But if using BNB- their native token- you can pay about 25% less. In the case of credit card purchases, you'll have to pay 3.5% or US$10, whichever is higher.
The trading fees of Binance.US begin at 0.1% but can go as low as 0%. It also offers the same discount, and referral bonuses just like its parent company. Apart from the low fees and discounts, the trading fees of BNB holders of both Binance and Binance.US will get automatically deducted and they'll get an additional 25% discount.
Binance vs Binance.US: Supported Currencies
Binance has a good listing of 50+ cryptocurrencies and over 1,200 trading pairs available for its users. If having access to the most possible coins is a priority for your crypto trading strategy should strongly consider Binance. Binance.US on the other hand has 53 cryptocurrencies (including stablecoins) available for trading.
Binance vs Binance.US: Security
Both Binance and Binance.US have the same security protocols. Binance has been examined across 14 categories, including security policy, asset management, operational security, and information systems. It is also awarded an information security accreditation for meeting the ISO (International Organization for Standardization) standards.
Binance vs Binance.US: Customer Support
The customer service in the Binance platform is outstanding. It provides customer service in 7 different languages. Having said this, Binance has no phone support yet. It relies on a live chat support option and an FAQ section. Similarly, Binance.US supports an email ticket support system and active social media channels where you can get answers.
Binance vs Binance.US: Margin Trading
One of the latest features of the Binance platform is margin trading. You can transfer your BNB coins from your crypto exchange wallet to your margin trading wallet. These coins can now be used as collateral to borrow more funds. The number of funds that you can borrow will depend on your margin wallet and follows a fixed rate of 5:1.
Binance.US does not have a margin trading interface and option as of yet.
Binance vs Binance.US: Liquidity
The more liquid an asset is, the easier it will be to trade it without causing a major price change. Binance has evolved into the world's largest cryptocurrency exchange by trading volume. But it doesn't allow US dollar deposits and trading. So, most of the volume on the exchange occurs against stable coin pairs such as BTC-USDT, BTC-USDC, and BTC-BUSD (Binance.USD (BUSD) is a USD-denominated stable coin). Binance's volume is spread across a much larger pool of cryptocurrencies than other exchanges such as Coinbase and Kraken.
After covering the differences between Binance and Binance.US, let’s check out what aspects these platforms can improve.
What Could be Improved in Binance
Just as every crypto exchange in the market, Binance is far from perfect. But, if the exchange could iron out the bugs mentioned below, it could get far ahead of its competition.
Not available in the U.S.
As we already know, Binance has a different platform in the U.S., which goes by the name of Binance.US. It has fewer features, fewer tokens, and does not offer leveraged tokens or futures trading. Additionally, it is not present in some U.S states such as Hawaii, Connecticut. New York, Vermont, Louisiana, and Texas.
Binance has faced strong headwinds in several countries regarding its regulatory issues such as the U.K., Thailand, Japan, Canada, Singapore. It can be hard for users in these countries to deposit funds or carry out a trade, but the exchange claims to beef up its compliance team.
Not for Beginners
If you just started investing in crypto then its complex platform with in-depth dashboards can be overwhelming to new users. However, the platform has a ton of educational content and a simpler interface for new users.
What could be improved in Binance.US
Its partner company has loads of features and tools and if Binance.US can figure out a way to integrate the below-mentioned points in the exchange, it could get miles ahead of its competition.
Binance.US pales in comparison when compared to its main site, Binance, which is a behemoth offering hundreds of tokens and advanced trading tools.
Binance.US’ partner company, Binance has had many compliance and regulatory issues in many countries such as the U.K., Thailand, Japan, Canada, Singapore. Until last year, Binance overlooked regulatory concerns to enhance user experience and the exchange claims that they have enhanced their compliance team by 500 percent.
Credit Card Deposits
The crypto exchange doesn’t accept credit card payments as you are taking your best to invest in a high-risk investment. Nonetheless, it is negative for the exchange as a lot of exchanges offer this service.
Even though the exchange offers an automated live chat function, it can only help with basic issues. For a more specific query, the user has to fill up a form and wait for the team to contact them via email. Also, Binance.US has no telephone customer support line.
Final Verdict- Binance.US Vs Binance?
Both Binance and Binance.US are the two of the most popular cryptocurrency exchanges in the world. International users acknowledge the vast list of cryptocurrencies available with Binance but U.S. residents will be deprived. Binance.US is a clear winner when it comes to regulatory compliance and licensing. When it comes to trading features, Binance.US focuses on spot trading whereas Binance offers lending and margin trading.
Thus, it can be concluded that your choice of crypto exchange should depend entirely on your trading strategy, your trading goals, and your location as well.