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If you've been interested in the cryptocurrency world for any length of time, you've likely heard about two of the industry's most popular exchanges, Binance and Bitfinex. Both rank consistently in the top ten exchanges by trading volume.
So, how do you make a decision when it comes to dominant exchanges like Bitfinex vs Binance? It depends on a variety of factors. For example, Bitfinex recently discontinued service to the US. While a temporary situation, the company has yet to announce when they'll re-establish a stateside presence.
Fortunately, Binance consistently outranks even Bitfinex in crypto rankings, so users in America will still enjoy stellar service. But there's much more to a final decision than these considerations.
Keep reading for our full review of Bitfinex vs Binance.
What Is Bitfinex?
One of the most popular platforms worldwide, Bitfinex consistently boasts the highest or second-highest daily trading volume of any digital currency exchange. When you read a good Bitfinex review, you'll learn that it offers a wide selection of coins and numerous trading pairs, a robust interface, and low fees.
That said, Americans don't currently have access to the exchange. After discontinuing service to the states temporarily, Bitfinex has yet to make an announcement regarding its return.
Advantages of Bitfinex
Bitfinex is owned and operated by iFinex, Inc. Founded in 2012, it's headquartered in Hong Kong. There are many compelling reasons that consumers continue to turn to Bitfinex to handle their crypto-financial needs.
Which coins are supported by the platform? They include a wide variety of cryptos from Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH) to NEO and QTUM. Bitfinex's website provides inexperienced traders with an overview of each coin as well as reviews.
Unlike many other exchanges, Bitfinex offers impressive customer service. The company boasts an entire help center, which provides answers to commonly asked questions. There, you'll find everything you need to know about order types, currency overviews, getting started, and much more.
Bitfinex fees vary by each trade based on a fee schedule. Among the two top factors impacting trading fees are maker/taker status and trading volume over the previous 30 days.
Maker fees range from 0.0 to 0.1 percent, and taker fees fall between 0.1 to 0.2 percent. All deposits to the exchange are free, although you'll pay a 0.1 percent fee for deposits via bank wire.
One of the most compelling features of working with Bitfinex is its heavy focus on security. These security measures protect both your account information and your funds.
What are some of the security measures Bitfinex provides? They include two-factor authentication (2FA). Bitfinex also uses verification tools such as alerts for malicious activity and IP address detection to ensure you're the only person logging into your account.
Another safety factor worth remembering with Bitfinex is that 99.5 percent of all funds get held in cold wallets. The other 0.5 percent helps Bitfinex maintain daily operations. These cold wallets require manual authentication by several management team members to render them accessible.
What Is Binance?
Binance represents another leading crypto trading platform. It offers among the most competitive rates worldwide. The platform is streamlined and easy-to-use, which makes it ideal for both beginners and seasoned traders.
The company partners with third-party companies such as Simplex, supporting credit cards and wire transfer purchases of cryptos. Just know that these transactions come at a premium.
Based in Hong Kong, Binance was developed in 2017 by Changpeng Zhao (a.k.a. CZ). CZ's company, Beijie Technology, launched Binance with a successful initial coin offering (ICO) of $15 million.
Those who invested in the ICO obtained Binance Coin (BNB), usable to trade cryptos and pay for fees on Binance. The initial value for BNB hovered around $0.1, but prices have appreciated as the coin's popularity has increased.
Advantages of Binance
You'll enjoy a variety of services with Binance. They include access to:
Peer-to-peer (P2P) trading
The platform permits users to exchange fiat for Bitcoin and other cryptocurrencies. There are many different ways you can buy assets via Binance, including a peer-to-peer (P2P) trading service, which connects crypto sellers and buyers directly.
Through its partnership with Simplex, Binance now offers users a brokerage service that accepts debit and credit cards. This service provides access to 31 cryptos for purchase. That said, be aware that it comes with a premium that can go as high as 3.5 percent on USD purchases.
The platform now offers SEPA/wire transfer services, too. These services permit Binance to buy crypto directly with fiat using bank and SEPA transfers. You won't be charged any transaction fees with this service, making it especially compelling to users.
What do customers pay when it comes to Binance? It doesn't charge fees for withdrawals and deposits.
How does the exchange get away with this? Because it only offers crypto trading, which proves much cheaper than handling fiat currency trades.
You'll pay a fee of 0.1 percent on all trades, but you'll enjoy a 50 percent discount on all transactions made using Binance Coin. This simple approach to fees places Binance head and shoulders above the competition.
Binance provides multiple layers of security for consumers' funds. The platform offers two-factor authentication (2FA) in two forms: Google Authenticator and SMS.
The company also offers Level 2 Verification for Binance accounts. Level 2 Verification grants users a higher withdrawal limit and better protects them from hackers claiming ownership of their accounts.
Bitfinex vs Binance: The Takeaway
What's the final word when it comes to Bitfinex vs Binance? As you can see, there are many compelling advantages that come with using Bitfinex and Binance.
Both platforms rank in the top ten among popular crypto platforms. They come with rave reviews and large trading volumes. But if you live in the United States, you won't have access to Bitfinex at the moment. Fortunately, Binance provides a stellar alternative.
Are you interested in exploring other cryptocurrency platforms on the market today? Check out our comprehensive listings of some of the most popular companies in the industry today.