It was founded by Changpeng Zhao. This is not the same as Binance US, as you may tend to think. If you are ignorant of the differences between these two crypto platforms, you are in the right place.
This article will not only let you know about the differences between these two platforms. This is in spite of the fact that both these platforms offer almost a similar experience to their respective user base.
Ideally, these differences are worth knowing because they have a lot of significance to any average crypto investor.
This will help you to choose the best one according to your needs and circumstances. Check out Differences Between Crypto.com and Binance.
Binance is an entirely unregulated crypto platform that has reached to an unprecedented and unforeseen height within the last 4/5 years.
However, due to the growing pressure in the regulatory measures, the main platform Binance.com was compelled to restrict its access for the residents of the United States.
It is due to this reason the company decided to launch a separate platform, Binance US, which is typically a US-focused exchange.
9 Differences Between Binance and Binance US
They were unable to determine which among the two would be a better option for them.
This, quite naturally, is quite a difficult task especially when the differences in features and functionalities of these two platforms are not known to the users. Well, here it is all for your knowledge.
As said earlier, Binance, one of the most popular and largest crypto exchanges in the world, initially originated in China and was founded by Changpeng Zhao.
However, later on, the headquarter of Binance was relocated to the Island of Malta in the EU which is known to be very crypto-friendly.
Known for providing some of the best crypto to crypto exchange services, this company managed to raise about $15 million through an ICO in July 2017 which saw it acquire nearly 20,000 registered users due to that.
This is the result of the crypto craze that the world saw in 2017 and since then this platform has grown exponentially to become the largest crypto exchange in the world.
However, in the summer of 2019, Binance banned its access to the users based in the United States on regulatory grounds. It is then the Binance US was created in the fall of 2019 so that it can continue serving its American customers.
This is a separate but smaller crypto exchange. The unique aspect of it is that it allowed making fiat deposits, a provision found lacking in its main Binance platform at that time, though later on it was added to it.
2. Supported Crypto Coins
The number of crypto coins with which a user can trade and fiat currencies supported by each of these platforms is one of the most significant points of difference between the Binance US and the main Binance platform.
It is quite well known that when it comes to crypto coin listings, Binance reigns supreme and undisputedly, especially when you consider all centralized exchanges.
The main Binance platform supports more than 500 different types of crypto coins. The users of this platform are offered with more than 1200 trading pairs to choose from as well.
Therefore, if your priority is to have access to the largest collection of crypto coins possible like most of the crypto traders, Binance is the right platform for you to go with.
On the other hand, as of April 2021, the number of crypto coins supported by Binance US is just 53. This includes all those stable coins that are available for trading on this platform as well.
This means that if you want an exchange that will offer you an opportunity to buy and trade different types of crypto coins on one platform, you better stay outside the United States.
If you do not then you will have to resort to other crypto exchanges for the same. Though the Binance US platform is growing at a rapid pace, it is still far from the main Binance platform.
However, do not consider it as the failure of the platform. Rather, it is mainly due to the regulatory obstacles that Binance US needs to overcome for total compliance.
3. Trading Fees
When it comes to the trading fees, both these platforms normally follow the same standard rate, which is 0.1%. However, the difference between Binance and the Binance US lies in the variance in the additional fees charged by each.
Once again this will vary depending on whether you stay in the US or not. As for Binance, the standard trading fee charged is 0.1% for both the makers and takers. This is the lowest volume level called the VIP 0.
However, you can reduce this amount significantly even further by 25% using the native coin of Binance, BNB to pay the fees, if the option is available instead of paying for it in the coin you are making your purchase.
As for making any purchase using a credit card, the fees charged for it will be either 3.5% or US $10, whichever is higher. You can also avail the benefit of tiered discounts on the base trading fees if you hold different amounts of Binance coins in your account and by meeting the trading volume requirements.
It can then be as low as 0.02% in maker fee and 0.04% in taker fee. This is the top level called the VIP 9 of the fee structure. The Binance customers can make the best use of the tiered fee structure for trading.
On the other hand, though the same fee structure is followed by the Binance US platform where the trading fees start at 0.1%, it can be lowered to 0% as well.
For those users who invest millions of dollars via this exchange, the fees can be the lowest. However, you will be benefited significantly even if you avail of the mid-tier discounts and for holding Binance coins in your account will make you eligible to get a discount of 25% on the trading fees automatically.
There is also a significant difference in the fee structure of the Binance US in its tiers. It offers 10 VIP levels as opposed to the 9 VIP levels offered by Binance and any other international platforms.
In terms of liquidity, Binance offers more of it to its users. This allows the users to make faster trades and transactions which is an important parameter that has a positive effect on the popularity of this biggest crypto exchange.
Though Binance does not allow depositing and trading with US dollars and most of the volume occurs in stable coins on this exchange, the volume is not more in comparison to other crypto exchanges.
The volume is actually spread across the large and varied pool of cryptocurrencies. Therefore, the liquidity factor depends mostly on the particular assets in the pair chosen for trading.
On the other hand, Binance US does not offer high liquidity. This offers a slower overall experience to its users forcing them to find a suitable alternative to Binance US.
If you look at the top trading pairs of a day in Binance and that of the Binance US which are BTC/USDT and BTC/USD respectively, there is a significant difference in the trading volumes which is in billions for Binance and millions in Binance US respectively. This shows that Binance US has a much lower liquidity than the main Binance platform.
5. Supported Countries
If you simply go by the name, you may tend to think that Binance US is supported in the entire United States. However, this is not entirely true because it is not available in all the states.
As of now, out of the 50 states in the US, this platform is available in just 43 of them. The countries that are excluded are Connecticut, Hawaii, New York, Texas, Idaho, Louisiana, and Vermont. However, the company has plans to extend its services in all the states by the end of this year.
On the other hand, the service of Binance is not available to the users in the United States and is also not available in every country. A surprising omission is the UK.
The primary reason is that the Financial Conduct Authority or FCA has ruled that the UK branch of the company has failed to conduct regulated activities.
However, theoretically, the users in the UK can still use the platform fully but according to the FCA ruling, there are several banks such as HSBC and Barclays that have banned their customers from making any deposits on Binance since the ruling.
Other countries that are yet to crack down on their service include Malaysia, Hong Kong, and Lithuania. However, those countries that allow people to use Binance to its fullest potential present a lot of opportunities for exponential growth in the future.
6. Customer Reviews and Support
If you go through the reviews of the users of the respective platforms you will find that, on average, the reviews of Binance.US are worse than the reviews of the users of the main Binance platform.
They specifically point out the issues in operation which they think is the result of the company rushing to launch this new website.
Though it offers support to the customers through an email ticket system along with exceptionally active social media channels to answer their queries, some significant improvements in customer support are required. This is another reason that the users of this platform have a strong intention to move their accounts to other crypto exchanges.
On the other hand, Binance offers much better customer support as of now and beats Binance US by a significant margin in this aspect. This, experts think, is due to the fact that this platform is used by different users all over the world.
The platform provides such support in seven different languages, though there is no dedicated phone number for Binance support as of now.
However, they do have a dedicated customer support section where the users can submit their requests and get an answer. Usually, their turnaround time here is about 24 hours.
In addition to that, this platform also offers support to their customers through live chat option but that is available only within their operating hours.
There is also a detailed FAQ section on their website. If you go through this section minutely you may not even need to use the other means of support offered by this platform.
7. Reputation and Trust
Though much of the reputation and trust factor depends on the customer support of a crypto platform, there is no reason to believe that customer support is the only factor that may affect the reputation of the crypto platform.
Its functionality as well as the number of outages of the platform also plays a significant part in gaining the trust of its users. Based on these aspects, the reputation of the Binance US is much better than the main Binance platform, in spite of being a comparatively new platform.
In comparison, Binance has experienced a lot more problems in this regard which has seriously and drastically affected its reputation and trust in the countries it is accessible, thereby raising a lot of questions regarding its reliability in comparison to Binance US. Typically, crypto critics think that Binance has got a lot of work to do to regain its lost reputation and trust.
8. Buying and Withdrawal Limits
There is a notable difference in the buying and withdrawal limits of these two exchanges as well. While buying crypto on the Binance exchange with fiat currency, a feature introduced by it last year through their daughter company Binance Jersey, the daily limit is fixed up to $20,000 and the monthly limit is $50,000 for each user.
It uses the Simplex service in order to execute such orders and they charge a service fee of 3.5% on every transaction with a minimum flat fee of $10. However, if you make any crypto to crypto transaction, there are no such buying limits.
As for the withdrawal limit of Binance it is 2 BTC for all unconfirmed accounts. This may be lifted only if you successfully go through the Know Your Customer verification process.
On the other hand, the Binance US exchange enforces limits on trading, which, to most of the traders, may seem to be quite high. For example, if you place a BTC/USD order on this exchange, it cannot be bigger than 3200 BTC.
However, these limits may vary depending on specific situations. On the other hand, Binance US allows its users to deposit or withdraw fiat money of up to $1 million through bank wire. If a user uses ACH bank transfer then the platform allows to deposit up to $30,000.
9. Some Other Notable Differences
Both Binance and the Binance US are separate companies that differ in terms of their operation. The operation of Binance US is controlled by BAM trading services even though it has the same logo.
The CEO of Binance US is Catherine Coley who is known as the former investment banker for Morgan Stanley. On the other hand, the entire operation of the Binance platform is controlled by Changpeng Zhao, commonly known as CZ, a crypto billionaire.
The US regulators are more concerned with Binance than the Binance US and the US Securities and Exchange Commission is far more expected to impose some more regulations on this platform.
The largest crypto coins such as Bitcoin, XRP, Tether, ETH, LTC, LINK, EOS, ADA, XLM, NEO, TRX, IOTA, and lots more are however available on the Binance US and not on Binance even though the choices offered by the Binance US to its users are far less than the parent company, as of now.
In terms of size, Binance US is comparatively much smaller than the main platform as well as other crypto exchanges.
While the daily trading volume of Binance is about $8.2 billion, that of Binance US is just $89 million, according to the latest report of CoinGecko, one of the leading crypto metrics sites. This ideally makes Binance US 90 times smaller than Binance and other major crypto exchanges in the United States.
When it comes to the methods of making any deposit or withdrawal from the Binance exchange, you can do so in any of the hundreds of coins supported by the platform.
You will simply have to put the address on the blockchain of the coin that you wish to withdraw. Since Binance now supports making fiat deposits as well, you can do so through direct wire transfer or with your credit card or debit card, provided the platform supports it.
In comparison, the Binance US exchange allows its users to buy crypto coins with a debit card, bank wire transfer and Automated Clearinghouse or ACH, apart from depositing the funds in any of the crypto coins supported by the exchange.
Binance is quite aggressive in terms of expansion. They are known to keep on adding better and newer features on the platform to provide their customers a better user experience.
Some of these features include OTO options, margin trading and more. In addition to that, the platform also keeps on adding new services apart from their original ones on it.
However, the platform has plans to add more services in the future to it. As of now, they have just added a staking option for their users apart from spot trading, which is their main business. There is no margin trading option in the Binance US though.
The Binance exchange surely has a distinct edge over Binance US in most of the aspects apart from their accessibility. When you know the differences between them, it will be easier for you to choose the most appropriate one for your needs.