There is no arguing that Binance is at the top regarding cryptocurrency exchanges. Initially founded in China, but swiftly shifted amid China’s crackdown on cryptocurrencies. Since entering the cryptocurrency market in 2017, Binance, in terms of market exposure and volume, has grown to become the leading exchange, right up there with Coinbase and Kraken.
What is Binance?
Binance is a centralized exchange that allows its investors to purchase or exchange their tokens for other cryptocurrencies. Some features include lower fees and commissions; cryptocurrency-backed debit cards powered by Visa; sophisticated trading benefits such as margin and spot; futures; token swapping; and cryptocurrency exchange and fiat services, such as high-risk tokens and other altcoins. Such features are the primary reason it has drawn many users to its platform.
A Few Problems with Binance
While Binance is decent for a cryptocurrency exchange and is still the king of the crypto market, there are a few downsides. For example, one of its fundamental flaws is its restrictions on 29 countries including Singapore and Japan. Such rules can limit how many features, tokens, or trading options one can access. Other problems have complexity as a platform, vulnerability to hacking and other suspicious activities, and limited opportunities for withdrawals and depots. These issues, money laundering accusations, and other controversial deeds have prompted several investors to look for Binance alternatives. Therefore, as far as choices are concerned, you need to look no further, as this article will discuss precisely that.
Top 3 Binance Alternatives
1. Coinbase vs. Binance
Coinbase, unlike Binance, can be easy to get on board with, which is why it is usually considered the best Binance alternative for newcomers. Hence, this Binance alternative simplifies buying and selling its various digital assets. Moreover, it even has an intuitive mobile application for trading. And it is entirely compliant with every law or regulation in the US, which, again, distinguishes it from Binance.
What makes Coinbase special
The standard platform version has a simple user interface that enables users to utilize US dollars to buy cryptocurrency. Coinbase Pro, on the other hand, offers sophisticated charting features and allows its users to incur crypto-to-crypto transactions, limit or stop orders, and place market orders. Coinbase has also recently extended a few of Coinbase Pro’s features and affordability to its original interface through a feature called “Advanced Trade.
Not only that, but the firm has also announced that it will eventually phase out Coinbase Pro completely. Other features that distinguish it from Binance include “Learn to Earn” where users can earn some dollars’ worth of tokens by taking classes about cryptocurrency trading and its instant withdrawals. The only downside of this Binance alternative would be its fees.
2. Gate.io vs. Binance
Gate.io is among the best alternatives for Binance since it offers more than 1,400 cryptocurrencies for trading purposes. Not only that, but it also sticks out as being a cryptocurrency exchange that is among the older generation of blockchains. Released in 2013, this alternative to Binance started in China. However, in 2017, it shifted its base to Virginia, USA.
Why Gate.io is the best Binance Alternative
Various benefits and discounts are available to GateToken holders, which is also the native token of the platform. Another thing that distinguishes it from Binance is the plethora mentioned above of exchangeable tokens and lower fees, all of which make it a viable platform for advanced traders who desire to chase tickets that are not as well-known. Other than that, this Binance alternative also provides Bitcoin lending, margin options, and staking for users. Other notable features include copy trading, which helps traders who are beginners in the cryptocurrency space make better profits.
Another difference from Binance is that the Gate.io team is quite security-savvy. And in terms of cybersecurity, it was placed in one of the top positions by CER. Therefore, there are several ways in which users can safeguard their accounts, with the platform having numerous built-in security mechanisms. That said, the platform could be better, and it has its downsides as well. For one, it can be overwhelming for new investors. Secondly, recent regulatory changes have halted its services for US and Canadian audiences.
3. Bybit vs. Binance
Bybit can be a good platform for experienced cryptocurrency traders. This Binance alternative seeks exchange with enhanced features and an easily navigable interface that supports newcomers to cryptocurrency. Unlike Binance, the platform charges no fees for spot trading and minimal derivative trading fees of just 0.01% for makers while charging 0.06% for takers. Depending on the trading volume each month, this can be lowered even further, which means that if one is a frequent trader, one will be able to enjoy such discounts more. Not only that, but Bybit also provides a variety of tokens on its platform, which implies that users can always find trading pairs they like.
Why Bybit is better than Binance
Similar to Binance, Bybit can also meet the requirements of a selective cryptocurrency trader. This Binance alternative has a lot of trading options, like derivatives trading, spot trading, copy trading, and margin trading as well. Also, the charting interface is advanced and filled with details and features, yet it is easily navigable.Yet, where it differs from Binance is in its margin trading. Consequently, margin trading on Bybit can support up to 100x leverage, which is more than enough for nearly every trader. However, one of the platform’s downsides is that it only supports cryptocurrency withdrawals and its services are unavailable to US citizens.
3 Binance Alternatives Compared
|Binance Alternatives||Supported Fiat Currencies||Transaction Fees||Deposit Methods||No. of Cryptocurrencies Available|
|Coinbase||USD, GBP, EURO, etc.||1.49%-3.99%||Wire Transfer, ACH, Debit Card, PayPal||150+|
|Gate.io||No fiat support||0.155%-0.2%||Credit/Debit Card, Bank Transfer, P2P trading||1400+|
|Bybit||BRL, ARS, EUR, RUB, TRY||0.01%-0.06%||Local E-wallet, Bank Transfer, Advcash, Sepa Transfer||220+|
Why Choose Binance Alternatives?
Each of these alternatives has unique features that place it above Binance in some investors’ lists. Among the standard features offered by these three exchanges are more diverse in the form of cryptocurrencies, trading options, and even more opportunities for earning, such as Bybit’s offering more than 100x leverage in margin trading, not to mention the comparably lower fees offered. Hence, all of these features combined can offer an experience that is an alternative to the top cryptocurrency exchange, called Binance—an experience that might be worth delving into it.
What does the Future Hold for these Binance Alternatives?
The future, while uncertain, can be a great source of speculation regarding what investments will grow in value. While Binance is still at the top when it comes to cryptocurrency exchanges, these alternatives need to catch up when it comes to activeness. And, if they keep on their current route toward growth, we might see one of these overtaking Binance.
The Coinbase exchange is already second regarding volume, with Bybit and Gate.io not far behind. Even if they do not pass Binance in terms of value, they might still solidify their positions in the top 5, which is still a big feat. This feat should not come as a surprise considering the features on offer here, with the possibility of even more being added. If one looks at how far these exchanges have already come, the “possibility” of them going even further in terms of offering features is not far-fetched. Therefore, speculating how these exchanges will perform in the future is nonetheless an exciting endeavor.
How do I select the best Binance alternative for myself?
You must first assess your degree of expertise and your objectives in the realm of cryptocurrency. If you are a beginner, you may have different goals than an advanced user. Even if one has their objectives in mind, finding the proper exchange among the available dozens might take time and effort. This problem is why alternatives like the ones mentioned in this article might make that process more accessible if the top exchanges do not happen to meet your requirements.
What features to look out for while choosing Binance alternatives?
The best features to look out for are the Binance alternatives' overall reputation and affordability. Or it could even include the level of security. However, if you are looking for other specific features, the ones mentioned here might not be as important as others.
Are most of the top Binance alternatives based in the US?
No, they are not. While some of the Binance alternatives are, other popular industry-leading exchanges exist worldwide. There can be several reasons for an exchange to prefer one location over others, with many being business intricacies that do not affect its users.