The crypto sphere has created many digital currencies and wallets to make trading seamless for users. On its creation, Binance has proven to be one of the most successful trading platforms, with a specially tailored platform for US citizens; Binance.US.
Both platforms have the same purpose: they are both exchange platforms for users to trade cryptocurrency. So, what is the difference really if they both serve the same purpose?
What does one have that the other doesn’t? Why doesBinance.US exist in the first place? You’ll find out in this article.
What is Binance?
Binance is not a decentralized system like most cryptocurrency trading platforms, but it is among the few centralized systems. Changpeng Zhao created the centralized system in China in 2017 to satisfy bullish traders. After the launch, the company immediately made 15 million dollars with 20,000 active users on the network. The inventor has also launched other trending financial platforms such as high-frequency trading software. Before these inventions, Changpeng Zhao worked the role of an executive in OkCoin and a member of the crypto sphere.
After the launch in 2017, Binance has skyrocketed to a position of eminence. The investment platform faced tons of challenges before ascertaining its present reputation. Some potholes encountered by the platform include government regulations that have not been fair on the company’s profit. These regulations resulted in conflict between the government and the cutting edge technology many times in many countries over the years.
As of the present, the CEO, Zhao, has declared that the trading company has no structural office after several relocations. The relocation has been done in three different countries, from Japan to Taiwan and Malta. Indeed, most crypto trading platforms have no structure in the real world. Binance offers one of the best transaction services in the visual currency exchange world.
What is Binance.US?
It’s is an exchange platform that operates according to the United States regulations. It was launched in 2019 to avoid conflict with the United States regulators (The US regulator accused Binance of trading on essential securities).
Why Was Binance.US Created?
Securities are financial assets such as stocks, bonds, and derivatives. Getting a license to trade in the United States is tedious and overwhelming. Rather than alter the platform programming to suit the regulations in the US, the company instead created this platform.
The United States has a large number of Binance users which makes it a profitable market for the company. The company went the extra mile to create a different exchange platform prototype for US citizens.
This platform accepts hard currency deposits that are missing on the main Binance platform. Currently, the company has added an extra feature called fiat gateways to its system.
Binance vs Binance.US: Services
The number of crypto and fiat currencies available for trade on these platforms differs. Binance.US has had about 53 trading currencies since the beginning of 2021, while the main platform, Binance, has reached over 200 accepted cryptocurrencies. This has put a significant gap in the trading efficiency of these technologies.
Thus, there are many coins to trade with as a user outside the wall of the US. United States citizens will have to look to other exchange platforms to use limited coins not allowed on their platform.
Both exchanges have the exact charges on transactions which are 0.1%. However, transaction costs are different for both platforms. For instance, people outside the United States can make bank transactions without paying a penny to the bank. But the Americans will have to pay up to 4.5% charges to the bank on the same transactions.
This inequality on transaction fees is beneficial to people outside the United States, especially in countries with favorable Binance regulations.
In both platforms, transaction charges are imposed based on the tier of the user, which brings a bit of confusion in calculating the payments. The limit on the US version means there are fewer levels which makes it easier to understand.
Binance recently started using credit cards by teaming up with third parties like Banxa and Simplex for their services.
Simplex imposes a standard minimum charge of $10 and 3.5% on each transaction. A user can make a transaction of $50,000 in a month and $20,000 each day. Binance also accepts fiat currency via a bank or third party, SEPA. Both payment options are no longer functioning at the moment.
There are no boundaries to crypto to crypto exchange in Binance. However, unverified accounts have a limit of 0.06BTC until the accounts are verified through KYC. On the other hand, Binance.US has limits to higher transactions according to users. The limit for BTC/USD orders is less than 3200 BTC. The upside to this exchange is that it accepts up to 1 million dollars as a deposit or withdrawal. Users can also fund their accounts with more than $30,000 through ACH bank transfers.
Binance.US suffers a hard punch from the size of its liquidity pool and product available on the exchange. The liquidity pool is responsible for fixing the value of a transaction. It predicts how the value of a coin will change by a single trade and consist of all the currencies in the exchange.
The size of a liquidity pool affects transactions. For instance, if the pool is small, then a single transaction will affect the exchange price. This will bring fluctuation to the coin value, making it unpredictable.
Binance has a larger audience than Binance.US. The platform has one of the most enormous liquidity pools running on centralized technology in the world of crypto. Binance had sales of up to $1.5 trillion in May 2021.
The liquidity of Binance.US is significantly smaller because of the number of people using it (Only US citizens). Even though the United States has a large number of Binance traders, that cannot be compared to the Binance, which is worldwide.
Moreover, the liquidity pool isn’t necessarily small if we are judging by its users. Binance US has recorded more than $28 billion in April 2021.
Although Binance.US is made specifically for citizens of the United States, the platform is not available in all regions of the country. The exchange is only available for users in 43 countries out of the 50 states in the country. Though the company has placed plans to further spread, they are yet to.
The saying that Binance is available worldwide is not wholly accurate. Surprisingly, the exchange is not entirely functional in the UK. The UK exchange regulating body called Financial Conduct Authority FCA, in the middle of 2021, ruled out the platform. The exchange no longer conducts complete activities in the UK, which had a toll on UK Binance users.
Even though UK citizens can still patronize the platform, they can’t enjoy all its services. The ruling has chased away several partners such as Barclays and HSBC. These partners have made it hard for customers to fund their Binance accounts via the bank. Other countries that have ruled out some Binance activities include Malaysia, Lithuania, and Hong Kong.
Binance is among exchanges with the highest number of accepted cryptocurrencies in the crypto world. It presently has over 750 official coins to trade in over 1000 markets, more coins and tokens get approved day-in-and-day-out.
Meanwhile, Binance.US has 56 coins approved on its platform. Making only 123 trading markets available to its users. Some major coins used in the platform for exchange include BTC, NEO, LTC, ETH, etc.
Binance vs Binance.US: Customer Support
Customer support on Binance is better than its US counterpart. Most problems faced by Binance.US users are a result of how the platform was set up: the platform was set up as a quick fix.
Notwithstanding, both exchange platforms need to improve on their customer support by clearing the clutter of complaints by users. The restrictions by the US regulators also affect the customer experience of Biannce.US users.
Trust and Reputation
Trust and reputation are driven by customer support and functionality. So far, both platforms are performing poorly in the functionality area but Binance US users aren’t getting the worst of this poor service. It has faced fewer outages compared to the main system, Binance.
However, both systems are affected if there’s a system issue. If there is a downtime in the Binance system, it will affect Binance US users in some way. Even though both exchanges have their issues, Binance US is more reliable than Binance.
As earlier motioned, Binance US was launched in the United States to satisfy the country’s regulation. These regulations contradict the external policies of the exchange system.
For instance, Singapore banned Binance recently. This ban resulted from the strict laws imposed by the Singapore government on the trading platform.
Binance is accepted worldwide, which makes it the better of the two, but this can change at any time if newly imposed regulations are not profitable for the Binance business. However, Binance still comes out top in this category.
Which Is More Secure?
Binance has been accredited by the information security officer for adhering to standards put in place by International Organization for Standardization (ISO). It was audited 114 times in 14 categories such as security policy, asset management, operational cost, and information systems.
When Binance was hacked, more than 60,000 KYC verification data of their customers were shared. The blame was placed on the third-party responsible for those services. The system also lost about 40 million dollars to hackers in May 2019. Even though the affected users were compensated, this is a big blow to their security.
Bianace.US also went through the same procedures and rules to be legitimate in their businesses. This makes the exchange the same as the leading platform, Binance.
Binance has done a lot after its launch in expanding its territories. The exchange has added extra features such as margin trade, OTO options, and others. The platform introduces new services to improve on the existing features. Other services added to the update include lending, staking, saving, educational section, etc.
Binance.US main purpose is trading, there are plans to expand the platform like Binance. Currently, Binance.US only has the primary business option for its users but not the staking service.
Binance vs. Binance.US: Final Thought
Although the contention between Binance and Bianance.US is quite fierce, these are the main highlights:
- The fee structure is the same for both platforms regarding charges.
- When we talk about supported currencies, Binance seems to accept more currencies than Bianance.US.
- On the subject of regulation and licensing, Bianance.US stands out as it is registered with FinCEN and adheres to existing laws of the US.
- Both platform have frequent downtime and less than sterling customer support.
- In terms of deposit and withdrawal, Bianance.US has a better ground on accepting fiat currency while Binance only accepts cryptocurrencies.
- The security on both platforms needs extensive work; Binance lost more than $40 million to hackers.