While everything sounds too complicated and advanced today, you might chuckle at the idea that the crypto industry is only a little over a decade old. Much has changed since 2009, and the most significant changes may have come through cryptocurrency exchanges, especially Binance. As you know, there are two types of Binance platforms, and we’d love to explain everything about them.
So, what is the difference between Binance and Binance US? Generally, these are platforms from the same company, but the latter only operates for the US audience. To answer this question better, let’s look deeper into Binance and understand how we got to two platforms.
What is Binance, and How Did Binance US Come About?
Binance is the world’s leading cryptocurrency exchange. It operates globally but is headquartered in Malta. Binance was launched in 2017 by Changpeng Zhao (CZ), a Chinese-Canadian business executive.
Binance is among the world’s best crypto exchanges, only competing with a few others like Coinbase and Kraken. The platform has a reputation for being secure and user-friendly, while it offers a wide variety of trading pairs. Finally, Binance is known for its low fees and fast transaction processing.
So, Binance operates globally- apart from the US, that is. The short story is that Binance does not fully comply with all US regulations. For the most part, most of Binance’s features and operating terms and conditions are favorable to most countries, but they are different from what the US expects for the company to be legal.
In the US, some of Binance’s features are categorized as securities. Now, securities is an entire category in the country’s financial market, and a company requires extensive licensing to be compliant.
So, to navigate the regulations standoff, Binance founded Binance US in 2019. It is still a subsidiary of the former. Binance US operates only in the US and complies with the country’s stricter regulations.
Even so, are the platforms different?
What Is the Difference Between Binance and Binance US?
Image Source: cryptopolitan.com
As mentioned above, Binance and Binance US are two independent crypto exchange platforms. The main difference between the two is that Binance is not allowed to operate in the United States, while Binance US only operates in the United States. The latter is more compliant with the US’s securities regulations, while the former is not.
While both platforms are from the same company, they both are run independently. Generally, Binance owns Binance US’ name and intellectual property, but Binance US is run independently from the US.
Apart from that, there are other differences between the platforms. These include:
a) Different Trading Fees
While training fees on both platforms start at 0.10%, you can enjoy lower fees as you increase your trade volumes. Both platforms use a tiered maker/taker model but offer different rewards to get you off the base tier.
For instance, with Binance, you can reduce your maker and taker fees by trading more than $ 1 million. The fees will keep reducing after a month’s trading history is recorded and can grow as small as 0.02%.
While Binance US offers the same starting rates for the base tier, you can reduce the fees by trading more each month. Unlike Binance, where you get off the base tier after trading $ 1 million, Binance US upgrades your tire after trading $50 000. In addition, increased trading volumes can see you enjoying zero trading fees, especially when you start trading more than $10 million over 30 days.
A similarity between the two platforms is that you can enjoy a further 25% reduction when you use Binance’s BNB coin to pay the trading fees.
b) Number of Cryptocurrencies
Generally, Binance and Binance US have different numbers of cryptocurrencies. Binance, the older and more accessible worldwide, has more cryptocurrencies than Binance US.
Binance supports over 600 cryptocurrencies, including Bitcoin and Ethereum. In addition to the famous and less-known cryptocurrencies, the platform also offers over 1200 trading pairs. On the other hand, Binance US only supports less than 100 cryptocurrencies and even fewer trading pairs.
c) Availability
As mentioned above, Binance is available globally, while Binance US is only available in the US. Still, the latter is not available in some states in the US, including Texas, New York, and Hawaii.
That said, Americans can access both platforms from the US borders. You can open and trade on a Binance account with a good crypto VPN. Alternatively, you can use a VPN to access Binance US in states where it is unavailable. Remember to carefully choose your crypto VPN to guarantee safety, thus protecting your crypto investment.
d) Liquidity
Liquidity is the ability of an asset, such as a cryptocurrency, to be easily bought or sold in the market without significantly affecting the price. High liquidity means that an asset can be bought or sold quickly and at a price close to its fair market value.
Binance and Binance US have different levels of liquidity for the cryptocurrencies they offer. Binance is one of the world’s largest and most reputable cryptocurrency exchanges, and it has a large user base and high trading volume. This means that Binance typically has high liquidity for its cryptocurrencies, allowing users to buy and sell at ease and fair market prices.
Binance US, on the other hand, is a newer and smaller exchange than Binance. This means that Binance US may not have the same level of liquidity as Binance. That said, Binance US still has decent liquidity for its offered cryptocurrencies, allowing users to buy and sell quickly.
e) Different User Interfaces
Both platforms have a user-friendly and intuitive interface that makes it easy for users to navigate and trade cryptocurrencies. However, the two platforms have some critical differences regarding layout, features, and functionality.
Binance has a more advanced interface that is geared toward experienced traders. It offers a wide range of trading pairs and advanced charting tools, as well as a variety of order types such as limit, market, stop-loss, and more.
Binance US, on the other hand, has a more streamlined and simplified interface geared toward beginner traders. The platform also has various order types and charting tools, but it may have fewer advanced features than Binance.
Conclusion
As you can see, Binance and Binance US are both reputable cryptocurrency exchange platforms that offer crypto trading pairs and other features. However, there are some critical dissimilarities between the two platforms, including the number of cryptocurrencies, global availability, trading fees, ease of use, and liquidity.
If you are in the US or plan to travel to the country, we hope the differences we shared above will help you make an informed choice about where to invest. Remember, you can also use a VPN to access all features of Binance, regardless of where in the US you live.
Featured Image Source: beincrypto.com