As of February 2021, Bitcoin enjoyed a market capitalization of $1072.21 billion, and the highest number of global daily transactions in this digital currency reached 367,536 in Q1 2021. Impressive numbers, indeed!
But to get a fuller picture of how cryptos have exploded in recent years, we need to consider Bitcoin's trajectory. From 2012 to 2020, it gained a whopping 193,639.36%. What's more, market analysts predict it'll hit $1087.7 million by 2026.
With stats like these, it's little wonder so many investors want to get in on the digital trading action when it comes to leverage and margin. But how do margin platforms compare? Let's take a closer look at PrimeXBT vs Binance.
What Is PrimeXBT?
A margin trading platform in operation since 2018, the PrimeXBT platform offers customers the option of trading more than 30 assets. The platform permits you to do this across three industries:
- Traditional stocks
- Foreign exchange (forex) markets
What makes PrimeXBT particularly attractive to investors? Its number one unique selling proposition (USP) remains 100x leverage across all markets. What's more, the platform boasts a super-efficient trading engine that makes margin trading speedy.
Whether you wish to go short or long, you'll have access to a wide selection of popular cryptocurrencies, and the platform offers some of the lowest trading fees in the industry.
That said, you must understand that PrimeXBT operates more as a contract of differences (CFD). Nevertheless, it still provides users with high liquidity and the same leverage options as futures contracts.
What Is Binance?
If you know anything about cryptocurrency, you've likely heard about the Binance platform. One of the biggest cryptocurrency companies on the planet, it has provided consumers with crypto investment solutions since 2016.
That said, the exchange didn't start dealing in margin or futures trading until 2019. This fact puts it behind the curve when compared to PrimeXBT. What's more, Binance only recently began offering its features for a wide variety of popular cryptocurrencies.
What else do you need to know about this platform? On spot trading, it only offers leverage up to 5x. As for the futures, this skyrockets to 125x.
Does the exchange have any drawbacks or limitations? Absolutely.
With Binance, you can't go short or long on stocks or the forex. And you must deal in cryptos.
PrimeXBT vs Binance: Trading Platforms
Now that you have a better understanding of what PrimeXBT and Binance are, it's time to dive into the meat of comparing them. The obvious place to start is with a discussion of each company's trading platform.
When it comes to different platforms, what separates the best ones from the competition? Features such as intuitive design and user interface.
PrimeXBT Takes the Cake
PrimeXBT still has the overall advantage. Why? Because it features a trading window that's cleaner and more compact than that of Binance.
Better yet, users can customize this window to fit their current needs, financial objectives, and level of expertise. For example, you can adjust the window based on whether you're a beginner or more advanced.
What's more, you can take advantage of PrimeXBT's multiple windows for experienced traders. These window variations will help the pros better focus on personalized technical analysis strategies.
Binance Could Overwhelm
How does Binance exchange fit into this mix? While we don't want to make Binance out to be terrible in this area, it simply doesn't compare to PrimeXBT.
For derivatives trading, we've found Binance's user interface to be relatively simple and navigable. After all, the platform also offers a clean and compact user interface. But we feel that the platform could benefit from customization.
When it's all said and done, Binance offers too many features and information in a single window. It's far too much for most investors (particularly beginners) to navigate and use to their advantage.
If you don't mind a learning curve, Binance could be right for you. But all of its bells and whistles can prove overwhelming for some traders, especially newbies. They can also get you into trouble if you're not 100% certain about what you're doing.
Binance vs PrimeXBT: Technical Analysis Tools and Indicators
Besides the user interface, another vital area of comparison remains technical analysis. Which tools and indicators are available to you with each exchange? Again, this is an area where PrimeXBT comes out on top.
When it comes to chart tools and trading indicators, PrimeXBT proves hard to beat. Why? Because it offers the ideal amount of indicators and tools for basic technical analysis.
That said, Binance's tools and indicators have also been in place and helping users for a long time. If you're a trader interested in maximizing yields (and who isn't?), Binance offers very focused solutions.
Comparing Leverage and Trading Pairs
What's another area that provides clarity about which exchange is suitable for your needs? Comparing leverage and trading pairs. Let's start with Binance.
Binance's Advantages and Limitations
We've already mentioned that massive leverage up to 125x with Binance. If it's still stuck in your mind, we can't blame you. That said, it involves limitations besides the futures stipulation. Namely, you can only take advantage of it with the following trading pairs:
How about other trading pairs? Such as EOS, BCH, TRX, IOST, XMR, XLM, and LTC? Leverage for these digital currencies hovers in the 50x to 75x range.
Binance also supports more than 20 altcoin futures contracts. This last feature can help investors take advantage of cryptocurrency's infamous volatility.
PrimeXBT's Take on Leverage and Trading Pairs
PrimeXBT exchange supports the following currencies on margin:
The exchange offers leverage of up to 100x to investors interested in going the long or short route. While this is a bit lower than Binance's top leverage figure, PrimeXBT makes up for this in other ways.
You see, its promise of 100x leverage is available on all pairs. That means no limitations on leverage.
What if you're a fan of other commodities? PrimeXBT has you covered there, too. Besides supporting popular crypto trading pairs, it also deals in forex, stock indices, and other commodities.
How Trading Fees Compare
Understanding trading fees and what you'll pay with each platform also represents another vital area worth consideration. After all, the higher the fees, the less wealth you'll walk away with.
Binance provides consumers with a better deal. It charges a maker fee of 0.02% and a taker fee of 0.04% for futures contracts trading. You'll also find daily funding fees cheaper than those with PrimeXBT.
That said, PrimeXBT does offer one of the lowest margin trading fees in the industry, a flat fee of 0.05%. Nevertheless, Binance has it cornered slightly in this area, too.
Let's Talk Security
What other points should we contrast when it comes to PrimeXBT vs Binance? We'd be remiss if we didn't tackle the issue of security. Security represents a vital issue considering the potential for scams and hacking.
Fortunately, both PrimeXBT and Binance have ultra-high security standards. These include protections against distributed denial-of-service (DDOS) attacks. You'll also enjoy two-factor authentication and a variety of other protocols.
Binance Hacking Incident: What to Know
Binance survived a hacking incident in 2019, resulting in $40 million in funds stolen. The exchange used money from the secure asset fund for users (SAFU) to cover these missing assets.
Reflecting on the attack, Binance has noted phishing represented a major component of the incident. Binance has since fixed systemic vulnerabilities that hackers used to further exploit the platform after gaining entry via phishing.
That said, cryptocurrency users should note that the implementation of new software and security measures isn't impervious to attack. After all, hackers have become increasingly sophisticated over the last handful of years.
PrimeXBT, Binance, and Know Your Customer (KYC) Requirements
Unlike Binance, PrimeXBT doesn't secure user funds with SAFU funds. But the platform hasn't witnessed any security issues of note. To date, you don't have to fill out any Know Your Customer (KYC) forms. All you need to register is an email ID, and there are no trading limits.
If such a laidback policy gives you pause, consider Binance instead. The company adheres to KYC requirements on higher fiat deposits and trades.
The detailed information provided via KYC forms offers an added layer of protection for those working with Binance. How? By providing data about each client's risk tolerance, financial position, and investment knowledge.
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PrimeXBT vs Binance: The Takeaway
In a comparison of PrimeXBT vs Binance, the strengths and weaknesses of each platform clearly emerge. For example, you'll generally enjoy more investment options with PrimeXBT.
But if you're a huge proponent of security protocols such as KYC requirements, you may ultimately feel more comfortable with Binance. You'll also get a better deal on trading fees with Binance, but Binance comes with fewer overall investment options than PrimeXBT.
Are you interested in how other cryptocurrency exchanges compare to PrimeXBT and Binance? If so, we've got you covered with some of the most comprehensive comparisons and reviews in the crypto-sphere. Check out our comprehensive listing of the best crypto exchanges of 2021.