When it comes down to daily volume, Binance is the biggest crypto exchange in the world. However, after a regulatory ban in 2019, Binance was not allowed in the US anymore. So, to accommodate US customers, they started Binance US. We’re going to look at the differences between these two exchanges.
It allows US citizens to use the services Binance offers legally. But are Binance and Binance.US the same services? We are about to find out. Brian Shroder in the Tweet below, is the CEO and President of Binance US.
Our team is working around the clock to improve our onboarding process. We've made significant progress already, with more improvements to come, so I encourage your friends to give @BinanceUS another chance!
— Brian Shroder (@BrianShroder) August 12, 2022
Binance Vs Binance US
Binance lists well over 500 cryptocurrencies. And even more trading pairs. On the other hand, Binance US has over 125 cryptocurrencies on offer. This is one of the most significant differences between the two exchanges.
Changpeng Zhao or CZ is the CEO, and he founded Binance in 2017, in China. They moved headquarters to Malta and later to the Cayman Islands. It’s currently not clear where their headquarters are. On the other hand, they offer their services in 180 countries.
In 2019 Binance.US started after regulatory issues. Their headquarters are in Palo Alto, CA. They partnered with BAM Trading Services and are a separate company. With this setup, they gained access to the US market as a carve-out of the original service. They adhere to U.S. regulations. This is how Binance.US works and stays legal. In contrast, Binance has run into a variety of regulatory problems around the world. This has among others resulted in bans for China, the UK, and Italy.
However, four states still won’t allow you to have a Binance US account. These are Hawaii, New York, Texas, and Vermont. Nonetheless, their goal is to get a license in each US state.
The US exchange has a lower trading volume compared to the Global exchange. Binance is closing in on 30 million users. However, we can’t find any user numbers for the US exchange, but it is significantly lower.
Both exchanges offer the same low trading fees. This gives especially Binance US a head start over its US competitors. The fee structure works with tiers. The more you trade, the lower your trading fee will be. Both exchanges start off with a 0.1% fee for both makers and takers. To reach a lower tier, Binance requires you to trade $1 million in 30 days. Here’s their fee structure. In contrast, the US carveout only requires you to trade $50,000 to reach this new tier. Check their fee structure here.
However, Binance US offers free Bitcoin trading in the US. No other exchange offers this in the US. Furthermore, if you use the BNB token to pay for transaction fees, you receive a 25% discount. Both exchanges offer this service.
Trading over $20 million in 30 days will give you free trades on the US exchange. The global exchange has no free trading at all. They have a minimum charge of 0.02%.
Binance offers many trading services. They range from margin trading, futures, to staking, and lending. The US exchange doesn’t offer margin or future trading, or lending. However, they offer staking for seven coins. The APY ranges from 4% on BNB to 14.5% on ATOM.
Both exchanges have an advanced trading option. This includes charting functions. In other words, you can do some technical analysis.
Source: Binance US staking page
Binance US doesn’t offer a credit card service. Since August 16th, SuperRare is available on the US exchange. This is an NFT marketplace. The US exchange also offers a tax portal. This helps you with reporting capital gains on your taxes.
— Binance.US 🇺🇸 (@BinanceUS) August 16, 2022
Both exchanges require a KYC procedure before you can start trading. Two-factor, 2FA, authentication is also on offer. This way, you need to do an extra step when logging in. In turn, this heightens security.
In addition, Binance has a lot of information about its security. This includes this message;
“The vast majority of user funds and assets are safely stored in offline, cold storage facilities.”
However, they don’t mention how much they have in cold storage and how much is available online. On the other hand, the US version has no such information available at all. We assume they have a similar set-up, but we can’t confirm this.
In 2019, Binance got hacked for 7,000 BTC. The exchange refunded all victims of this hack. At that time, this was around $40 million. The US exchange has a better record and saw no hacks yet. It also offers a $250,000 protection for your dollar fiat deposits. This covers theft and exchange failure. It is worth noting that this only covers fiat and not cryptocurrency deposits. This is via the (FDIC). Or the Federal Deposit Insurance Corporation.
Since August 10th, Binance US offers a 24/7 Live Chat support. This is a great improvement on their customer service. The service is available across all web, iOS, and Android devices. The Global exchange had this service already in place.
24/7 Live Chat support is now available on #BinanceUS across all web, iOS, and Android devices.
Need to connect? Click below for the Support Center on the web or find the headset icon in the Account tab of your https://t.co/AZwoBOgsqS app to get started.https://t.co/kw1qU1N42e pic.twitter.com/ktBkSV5GfD
— Binance.US 🇺🇸 (@BinanceUS) August 9, 2022
Both exchanges are well known for their low fees. However, there are some significant differences between them. Binance is for sure the bigger brother, it’s the biggest exchange in the world at the moment. Binance US serves a US audience after Binance withdrew from the US in 2019 after regulatory issues. It’s a serious contender to consider when living in the US. They keep working on improving their service and their US presence.
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