Are you interested in catching the cryptocurrency moneymaking wave? If so, you're far from alone. As of the writing of this article, Bitcoin sits at $40,974, a drop-off from recent performance highs of nearly $60,000.
Despite this decline, there's no reason to believe "digital gold" won't continue to perform well over the long haul. As an investor, you want to get in on this asset while it's down so you can hold (or HODL) it until the value increases.
In other words, you want to spot trade via Phemex, Binance, or another platform. With Phemex vs Binance, how do they compare? Asking this vital question will help you find the right exchange to facilitate crypto investing, HODLing, and trading.
We'll consider factors like ease of use, features, fees, and security. Here's everything you need to know to surf the crypto wave and earn BIG.
Spot Trading vs Futures Trading in Cryptos
Before we get into the nitty-gritty of our exchange comparison, let's briefly touch on some of the ways that crypto enthusiasts approach revenue generations. The two primary approaches to investing include spot trading and futures trading.
Investors who want to get in on Bitcoin buy low and HODL until values increase. This practice, known as spot trading, is used by countless investors to make bank on cryptos. It represents a solid approach to investment, whether you HODL Bitcoin or use it to purchase other altcoins that you feel will perform well.
Futures trading involves taking a chance on the price of an asset moving forward. This asset could be anything from Bitcoin to gold, and you can bet on its price going up or down. Returns on futures trading are correlated based on the accuracy of your prediction.
Phemex vs Binance: What to Know About Each Platform
Phemex platform is a crypto exchange based in Singapore. It offers one of the speediest platforms in the business, and its user interface (UI) is streamlined. It's one of the smoothest UIs out there, offering a straightforward and streamlined approach to trading.
But Phemex doesn't boast as significant a market share as other companies. But every indication tells us this company will seize a more significant piece of the market over time. After all, it's hard to beat the ease of use and rapidity of the exchange.
The American arm of Binance launched in 2019 in San Francisco. The company is the largest cryptocurrency exchange in the world by trading volume. Nevertheless, it comes with some limitations that you need to know about.
The US version of Binance doesn't offer all the crypto-to-crypto trading pairs and other digital currency solutions you'll get with its parent company. Yet, its selection of 50+ options outpaces many other digital currency exchanges available in the US today.
Trading fees prove low compared to many other US companies, and the exchange offers users high-speed execution.
Phemex vs Binance: A Comparison of Platforms
When selecting a suitable exchange for your needs, it's vital you feel comfortable with the platform that you choose. You should make sure the platform supports your digital currencies of choice and comes with the features and options you desire.
How do Phemex and Binance stack up in these areas? Here's what you need to know.
Phemex Platform: Ease of Use
How does Phemex exchange rank when it comes to ease of use? Its user interface proves straightforward and streamlined. That said, Phemex's home page greets you with a bright white background that's a pain on the eyes.
Apart from this initial flaw, however, the design of the Phemex website is intuitive and clear-cut. How do trading tools and charts measure up? The company went with a user-oriented modular design.
The platform functions in five different languages and will continue to add more languages as its user base expands worldwide. As for indicators per chart, these numbers prove unlimited, and all of the standard trading tools are available.
Users can adjust the platform based on their desired preferences. They can also take advantage of the demo-trading option, providing an easy inside view of the options available via the platform.
You can't customize some parts of the platform, though. They include the time frames you'll see on the trading view chart.
What's our overall conclusion when it comes to the Phemex UI? It represents an attractive interface solution (apart from the home page). Best of all, the ping monitor located in the bottom left corner of the UI helps if you're dealing with questionable internet speeds.
Phemex Platform: Features
As with many other crypto margin platforms, Phemex offers three types of trading orders. They include:
- Market orders
- Limit orders
- Conditional orders
How do market orders work? They're executed and filled based on the best market price.
As for limit orders, they offer guaranteed execution when prices reach a set value. Methods of execution include ImmediateOrCancel (IOC), GoodTillCanceled (GTC), or FillOrKill (FOK).
Last but not least, you can choose the conditional orders option, which proves similar to limit orders with the caveat that you set a trigger price. This method remains among the most popular among experienced traders.
Unfortunately, American customers can't use Phemex because the platform trades in cryptocurrency derivatives banned in the US. Why are these prohibited? Because of their lack of regulation and their volatile nature.
Phemex Platform: Supported Currencies
Besides Phemex's streamlined and efficient UI, you'll enjoy a wide variety of supported currencies. They include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
These currencies get traded against the tether, USDT. Because there aren't any actual Bitcoin transfers during the selling and buying process, the contracts you see in Phemex are quoted in USDT.
Binance Platform: Ease of Use
Like its parent company, Binance's US arm relies on the same platform technology. You can choose from three different trading platforms. They include basic, advanced, and OTC for peer-to-peer trading.
Even if you have experience with cryptocurrency, Binance recommends starting with the basic version. It provides the features and information needed for spot trading, trading volume, and 24-hour price performance. You can always graduate up from there.
That said, crypto newbies could feel overwhelmed, even by the basic platform. For those interested in little more than purchasing some Bitcoin, we suggest circumventing the exchange altogether. Instead, go directly through the site.
Binance Platform: Features
Once you get past the learning curve, you'll find many excellent features available with the Binance platform. These include crypto-to-crypto trading of the exchange's supported currencies.
The OTC portal also permits peer-to-peer trading between buyers and sellers, and there are no transaction fees. Yet, users get charged the spread between the sell and buy price.
Binance also offers users an excellent mobile app, offering live price tracking, customizable features, and the ability to automate recurring buys. Binance is available in 43 states, except for Connecticut, Idaho, Hawaii, Louisiana, Texas, Vermont, and New York.
Binance Platform: Supported Currencies
What do you need to know about Binance's platform? It facilitates more than 50 crypto-to-crypto trading options with Bitcoin as well as eight other altcoins. They include:
- Bitcoin Cash (BCH)
- Binance Coin (BNB)
- Cardano (ADA)
- Chainlink (LINK)
- Ethereum (ETH)
- Uniswap (UNI)
- Litecoin (LTC)
- Tezos (XTZ)
- VeChain (VET)
You can also trade many other digital currencies for stablecoins, including Binance USD and Tether. Binance features its own stablecoin, BUSD, equivalent to the USD in terms of value.
Phemex vs Binance: Fees
What do you need to know about the fees associated with Phemex and Binance? With Phemex, there are no fees on deposits, but you'll need to pay for withdrawals. There's a minimum 0.0005 Bitcoin Network fee based on the blockchain load.
You'll also pay fees to trade. These fees follow the maker-taker model. Makers see a 0.025 percent fee, and takers pay a 0.075 percent fee.
Binance comes with some of the lowest fees among American crypto exchanges. On spot trading, you'll pay a flat rate of 0.1 percent. While other platforms such as eToro and Coinbase might look cheaper on the surface, bear in mind the extra fees, you'll get charged.
With eToro, you'll see a fee of 0.75 percent for Bitcoin. And with Coinbase, you'll get charged trading fees of 0.5 percent with a flat fee of $2.99 per trade. As you can imagine, these fees can add up quickly, making Binance an excellent alternative.
Phemex vs Binance: Security
Phemex and Binance both come with top-of-the-line security systems. Phemex has a robust security architecture to ensure customer safety and security that includes two-factor authentication.
Binance also provides multi-tiered security systems and two-factor authentication. It comes with a combination of cold and hot wallets system. What's more, funds are protected by an insurance fund (SAFU) to cover loss related to system failure or hacking.
|Platform||Interest Rates (APY)|
|Nexo||Up to 8% on BTC|
Up to 17% on Stablecoins
... 34 more coins
|Go to site →|
|AQRU||Up to 1% on BTC|
Up to 3% on Stablecoins
... 5 more coins
|Go to site →|
|CoinLoan||Up to 5.2% on BTC|
Up to 10.3% on Stablecoins
... 28 more coins
|Go to site →|
|YouHodler||Up to 6.58% on BTC|
Up to 11.6% on Stablecoins
... 57 more coins
|Go to site →|
|Celsius||Up to 6.3% on BTC|
Up to 6.86% on Stablecoins
... 56 more coins
|Go to site →|
|Midas.Investments||Up to 9.42% on BTC|
Up to 14.5% on Stablecoins
... 16 more coins
|Go to site →|
|Finblox||Up to 5.75% on BTC|
Up to 15% on Stablecoins
... 25 more coins
|Go to site →|
Phemex vs Binance: The Takeaway
When it comes to Phemex vs Binance, each platform comes with unique pros and cons. For example, Phemex comes with a lower overall fee structure and a simplified trading platform. But Binance stands apart when it comes to leverage, product offerings, and more.
Are you interested in reading Phemex USA reviews? Would you like to explore other comparisons such as Phemex vs Coinbase or Phemex vs FTX?
We've got you covered. Browse our comprehensive cryptocurrency platforms list to get started.