Cryptocurrencies are exploding in popularity, and more crypto enthusiasts are looking to put their money into exchange-traded funds (ETFs). The most popular crypto exchange platform is undoubtedly Binance, but there are many other options you should consider as well. In this article, we will be comparing some of the best Binance alternatives so that you can find the perfect platform for your needs.
Before we discuss the best Binance alternatives, let’s consider some of the features and drawbacks of the crypto exchange. This information will make it easy to compare it with its competitors, helping you make an informed decision.
Binance features
Brokerage service
Binance brokerage service allows users to buy cryptocurrencies using several fiat options (Singapore dollars, Japanese yen, US dollars, and euros). Binance didn’t start out supporting these conventional currencies. Integrating these currencies makes it effortless for users to buy and sell cryptocurrencies via payment cards, bank accounts, and third-party channels.
Trading service
Tied with the brokerage service is a crypto-to-crypto platform known as Binance Exchange. This allows users to exchange cryptocurrencies without using fiat currencies like the US or Singapore dollar. The brokerage service and trading service work together in a way that helps investors use the strengths of one to balance out the weaknesses of the other.
Staking & Mining
Staking is the process by which a cryptocurrency holder can validate transactions on the blockchain in exchange for rewards. The rewards come in two forms: transaction fees and newly minted coins.
On the other hand, mining is the process of verifying transactions on the network and adding them to the blockchain. This is done by miners who are rewarded with new coins for each block they mine.
Binance offers staking services for several tokens (eg, NEO, GAS) and mining pools for some of its own tokens, such as BNB and BTT.
Yield farming, savings, lending
These are passive income-earning opportunities on Binance. Saving and lending allow users to borrow and lend among each other at an affordable rate. Read more about Binance crypto loans here.
These features are not conclusive as Binance has many more features that one article can’t cover. However, the above are some of the most popular. Visit Binance crypto exchange for a complete list of products and services available for users.
Binance Drawbacks
Although the largest crypto trading platform, Binance crypto exchange is not perfect. Some drawbacks make it less ideal for some people and institutions. The following are some of the demerits.
Lack of corporate transparency
Binance avoids being transparent about its corporate structure and who actually owns it. This lack of transparency makes Binance look less trustworthy because it can be used for money laundering. As a result, the crypto exchange is banned from operating in certain countries like Malaysia and Singapore.
Non-adherence to regulations
Binance isn’t available in highly regulated regions like the United States and China, where KYC and related policies are stringent. It is also not available to North Korea, Cuba, Syria, and Iran citizens.
Lacks FDIC insurance
Binance’s international exchange platform does not provide FDIC insurance. Instead of using USD as a trading pair, they use the crypto-to-crypto trading pairs of BTC / USDT and ETH / USDT. Since these currencies aren’t actually priced in USD, there is no reason for them to provide FDIC insurance.
Best crypto exchange alternatives
The alternative crypto exchanges discussed in this section perform excellently in some areas Binance comes up short. They also offer some of the popular offerings and services; as such, you won’t be missing out on a whole lot if you opt for them.
Binance Vs. Coinbase
Coinbase was founded in 2012. It is one of the most secure cryptocurrency exchanges available today. The crypto exchange is known for its user-friendly interface, allowing beginners and experts alike to easily trade cryptocurrencies. The platform also supports many fiat currencies, including the US dollar (USD), British pound sterling (GBP), Euro (EUR), and Singaporean dollar (SGD).
Coinbase features
Brokerage services
Coinbase was originally a crypto brokerage service provider that allows users to easily buy, sell, and exchange their assets. It is presently one of the most well-known crypto exchanges in the world. It allows its users to purchase Bitcoin, Ethereum, Cardano, and Solana with fiat currency through credit cards and bank transfers.
Trading services
Coinbase separated its user interface to cater to two different users. On one side is the new Coinbase, which allows anyone to trade cryptocurrencies with a few simple clicks. On the other is Coinbase Pro, which caters to experienced cryptocurrency traders. The main difference between Coinbase and Coinbase Pro is that the former targets retail investors who are new to cryptocurrencies while the latter targets institutional and professional traders.
Staking pool
Staking allows coin holders to contribute to network security by staking their coins on a blockchain network. Coinbase launched a staking pool that allows its customers to participate in staking of Stellar Lumens (XLM), Dogecoin (DOGE), and 0x (ZRX) – three of the most prominent tokens that are based on the Ethereum blockchain.
Coinbase commerce
Coinbase Commerce is an open source JavaScript library for accepting cryptocurrency on websites. It’s free to use and brings the benefits of payment processing, conversion, and fraud prevention to a website in a simple, plug-and-play package.
Coinbase Pros and Cons
Pros
- The crypto exchange supports many payment options, including PayPal.
- It provides support for more cryptos than Binance.US.
- It is available in all Us states.
- Deposits in USD are insured by the FDIC.
- It has intuitive user interphase that makes it beginner-friendly.
Cons
- The crypto exchange supports only a fraction of the coins available on Binance.
- Coinbase offers fewer services to its global clientele.
- It has steep staking and brokerage fees. Compared to Binance, it is costly.
- It offers fewer crypto services compared to Binance.com.
Binance Vs. Uphold
Uphold is not a fully-fledged cryptocurrency trading platform with all the bells and whistles desired by professional crypto investors. Instead, it is a simple, secure platform for everyday transactions, such as buying groceries or a cup of coffee. These are things normal people want to do with cryptocurrency but are still difficult.
The crypto exchange charges 1% to convert from one currency to another and has no fees for transactions within its network. There is also a flat rate of 25p for debit card purchases.
While Uphold isn’t as sophisticated as some other Bitcoin exchanges, it offers a unique mix of traditional banking features and currency conversion services through a cloud wallet.
Uphold features
Uphold members can hold, send, convert and transact in several currencies and commodities. They can also send and receive money worldwide for free via bank transfer, PayPal, or credit card.
Tangible assets can be held, managed, and traded securely and efficiently on Uphold from anywhere in the world. In addition, uphold supports real-time pricing on precious metals like gold, silver, and platinum, as well as 29 fiat currencies, including USD, EURO, GBP, and JPY.
Brokerage services
Tangible assets can be held, managed, and traded securely and efficiently on Uphold from anywhere in the world. Uphold supports real-time pricing on precious metals like gold, silver, and platinum, as well as 29 fiat currencies, including USD, EURO, GBP, and JPY.
Staking
In general, staking means you are putting down a stake of your own tokens to help secure the network. You will be rewarded for doing so with some percentage of the transaction fees that the network generates. Uphold support staking activities for Ethereum 2.0 (ETH2), Polkadot (DOT), Cardano (ADA), and Cosmos (ATOM).
Uphold debit card
The Uphold debit card is a virtual currency debit card that lets you spend your Uphold balance in millions of merchant points and ATMs worldwide. It is a prepaid card that can be used at any store that accepts MasterCard, plus it has the added benefit of allowing you to set up savings goals or individual transaction limits for your protection.
AutoPilot trading
Uphold AutoPilot trading automatically buys and sells the digital assets in your account based on your set preferences. It analyzes real-time prices and indicators to create the most optimized portfolio on any device. The best part is that you get to decide how much risk you want to take, how often you want trades, how many assets you want to hold, and for how long. You can even use AutoPilot for a portion of your portfolio and hand-pick the rest.
Uphold Pros and Cons
Pros
- The crypto exchange has a $1 minimum investment amount due to its unique fractional ownership feature.
- It has easy-to-use user interphase.
- Uphold is protected with robust security processes for the protection of users.
- It also has an automatic trading feature that allows trades desired assets based on set preferences.
- Uphold crypto exchange is highly regulated and complies with FCA’s regulations in the UK and FinCEN r in the United States.
Cons
- The crypto exchange does not have features like the order book and charting tools that professional traders may find disappointing.
- It allows staking on only two assets, and the feature is only enabled for a limited number of users.
- Uphold supports only a fraction of cryptos available on Binance.
- Low liquidity assets on Uphold are charged high spreads; they are expensive to invest in.
Conclusion
In the end, there is no crypto exchange that’s perfect for everyone. Our list is not exhaustive, and we recommend that you do some research and decide based on your trading strategy, goals, and personal preferences.
While Binance is undoubtedly the biggest exchange in terms of daily trading volume, it’s not the only one. There are a lot of other alternatives to Binance. If you look hard enough, you just might find one that fits your geographical location and currency preferences better. Still, when all is said and done, Binance commands the lion’s share of the crypto exchange market, so it will likely remain the most popular choice for many users moving forward.