If you’re interested in trading cryptocurrencies, you’ll quickly discover that there are several cryptocurrency exchanges to choose from. And one of the most crucial decisions for any trader is determining which exchange they should use. (Disclaimer: This article is written for informational purposes only and is not to be construed as investment advice.)
In the final part of our series on the best cryptocurrency exchange, we take a look at two exchanges that offer users a more all-encompassing trading experience. Unlike regular exchanges that only offer a small handful of coins to trade, do-it-all exchanges leave nothing to be desired. They offer a wide range of coins to trade, alongside a robust set of features and tools that make trading a hassle-free experience. (If you’ve already read our review of the best cryptocurrency exchange, you’ll remember that placing an order on a regular exchange is often a complicated and time-consuming process. If you’re looking for an exchange that makes trading a breeze, check out our comparison of the two.)
If you’re someone who’s new to the cryptocurrency world and you want to find a cryptocurrency exchange, you might be asking yourself “FTX or Binance?”. Well, that’s what we’ll help answer in this review. Topic Sentences: Topic Sentence #1: Binance has grown to be one of the most popular cryptocurrency exchanges with a large variety of supported coins. Topic Sentence #2: They offer a wide range of trading pairs, including BTC, ETH, USDT, EOS, and their own token, Binance Coin (BNB). Topic Sentence #3: They offer a secure trading platform and have an easy-to-use
Cryptocurrency exchanges have evolved over the years from a simple marketplace where you could buy bitcoin with debit card, to a tectonic shift in design and purpose. They now offer much more than a literal stock market, instead creating new products such as futures, tokenized stocks, leveraged tokens, high margin trading, over-the-counter trades, etc. We will now examine FTX in relation to Binance. FTX and Binance: These are two platforms among the universal exchanges that offer their users almost all trading positions on which they can place their money without having to change tabs. But if you could only choose one, what would it be? …. FTX or Binance? Is it important to you to have a highly liquid and active stock market? Or are you willing to sacrifice that for the privilege of having more tools to play with? Read our comparison between FTX and Binance to learn more.
Comparison chart betweenFTX and Binance
FTX vs. Binance – main differences
While they are both very similar as exchanges offering many services, there are some key differences that we will highlight in our FTX vs Binance guide. For starters, Binance has significantly higher trading volumes than FTX, and a more diverse ecosystem around the exchange. Meanwhile, FTX focuses more on its exchange than its vast network, and in some cases offers more cryptocurrency-focused derivatives and investment products than Binance.
What is FTX?
Like Binance, FTX is a centralized cryptocurrency exchange that offers a very broad and diverse selection of markets to trade, including spots, futures, derivatives, forecasts, stocks, and more. FTX was founded in 2019 by Alameda Research, which manages over $100 million in digital assets and is also actively seeking early-stage investments and funding for many cryptocurrency companies and platforms. FTX currently operates as a subsidiary of Blockfolio. According to CoinMarketCap, FTX’s 24-hour trading volume at the time of this writing was just over $3,400,000, spread across more than 579 different trading pairs. As we will see later in our FTX vs Binance comparison, this is a relatively small amount compared to Binance. Despite its young age, FTX has recently gained popularity and has seen its active trading volume increase rapidly. However, like Binance, FTX cannot offer its usual services to US users, who are referred to its subsidiary FTX.US.
How can you invest and trade with FTX?
We’ve mentioned before that when we look at FTX and Binance, we see that FTX has a much wider variety of markets that users can trade on outside of normal cash trading. Futures betting is now a must. FTX offers flexible, open-ended, fixed-date contracts on a wide range of crypto and traditional (albeit crypto-based) assets. At that point, FTX gained notoriety after Bloomberg reported that the company developed futures contracts based on timber prices. Another important and popular market for FTX is the stock market. In this case, they are partnering with German company CM-Equity to tokenize these stocks – companies like Tesla, Amazon, Uber, Airbnb, Netflix, Google, Apple, Facebook, GameStop, AMC, etc. – so that their underlying value and performance are exposed and traded in cryptocurrencies rather than fiat currency. They can even be broken down into smaller units, allowing the user to actively trade these shares even when the regular markets are closed. FTX uses the idea of tokenization to represent the market rather than a single asset, and allows users to buy and sell leveraged tokens. These are specially designed tokens that replicate the performance of the underlying cryptocurrency with leverage applied to the default value, while having the benefit of offsetting liquidation risk. FTX has a range of these leveraged tokens that allow you to bet on many popular cryptocurrencies with up to 3x leverage for long and short trades.
What else can I do with FTX?
As we saw in the comparison between FTX and Binance, the former offers a wide selection of unique markets and products to trade. Not only that, but much more. They have a volatility index trading that FTX uses to create a specialized index that tracks the price and market volatility of a specific cryptocurrency or asset. You can then trade directly based on this volatility, which is calculated based on a specific time period for the day, week, month, quarter, etc. This allows you to trade the volatility of the market itself, not just the underlying asset. Another market you can get into is the prediction market, where users can bet on future events, such as… B. whether someone will win an election or whether the Olympics will be held this year. You can then earn rewards for correctly predicting events. Moreover, FTX allows its users to trade not only cryptocurrencies but also fiat currencies directly on its platform.
What is an FTX FTT token?
We can’t continue our comparison between FTX and Binance without mentioning FTX’s own crypto currency, the FTT token. Like the Binance BNB, the FTX FTT is a useful token that should encourage more users to join and trade on FTX. This objective will be achieved through incentives such as. B. 3 to 60% off FTX transaction fees just because you have an FTT in your account. Apart from that, there are many additional benefits you can get by betting on FTT. In this case, you can get higher referral fees, an even higher Maker (trade) commission refund, and increase your chances of airdropping new tokens into your FTX account. Additionally, if you bet on FTT, you’ll get additional bonuses, such as extra votes for which tokens are added to the FTX list next, several free daily Ethereum blockchain exit fee waivers, and more tickets to participate in initial exchange offers (IEOs) on FTX.
What are the deposit and withdrawal options at FTX?
As we mentioned in the FTX vs Binance comparison table above, you can see that the deposit and withdrawal options for fiat currencies on FTX are slightly more limited than on Binance and some other exchanges. While bank transfers and international wire transfers are supported, as are simple credit card purchases or the sale of certain cryptocurrencies via VISA and Mastercard, many popular third-party payment services – such as PayPal, Simplex, Banxa, Apple Pay and so on – are not supported.
What are the FTX costs?
Compared to Binance, FTX charges much lower commissions. You can learn more about trading commissions on the FTX website, but we have found that withdrawal and trading commissions are generally cheaper at FTX. Not to mention the additional benefits of owning FTT tokens, which can further reduce transaction costs. This could now become an attractive proposition for many high volume traders. In some cases, you may not pay a fee if you have enough FTT chips on hand and are online.
Overall, we can conclude the first half of our FTX vs Binance review with a sense of admiration for the fact that FTX continues to strive to diversify its products and offers traders many options and markets to choose from. They are even creating Quant Zone – an integrated service that allows traders to program and debug their own automated trading algorithms. Just when you thought they were done, FTX keeps trying to bring as much entertainment to their platform as possible. FTX Pros
- Huge selection of markets available – cryptocurrency, fiat, futures, leveraged tokens, equities, forecasts, volatility, etc.
- Good user interface, very simple to use and easy to navigate.
- Offers many additional benefits, discounts and perks on its exchange with the introduction of the FTT token.
- The transaction costs are very low compared to other stock exchanges.
- A sufficiently large choice of trading pairs and good liquidity as a result of a sufficiently high trading volume.
Drawbacks of FTX
- Fiat’s input and output capabilities are limited to credit or debit cards, with no integration of third-party payment solutions.
What is Binance?
Binance is by far the largest and most popular cryptocurrency exchange in the world, given its more than 13 million users worldwide and its daily trading volume of more than $64,000,000,000 across more than 1,219 trading pairs. Founded in 2017, Binance is now the de facto exchange for many people who will be trading cryptocurrencies. Not only do you trade in chips, but you also deal with an extremely varied, highly lucrative and complex set of markets. As we noted in our comparison of FTX and Binance, this exchange is much better than FTX, which should offer more diversity in the choice of tokens you want – with obscure tokens more likely to be listed on Binance than on FTX – as well as deep pools of liquidity for competitive prices. Binance’s popularity continues to grow, but although the company has its own division in the US to meet the needs of US users, it is under investigation by the Department of Justice and the IRS.
How to trade with Binance
While we already noted when comparing FTX and Binance that Binance lacks the depth and variety of derivatives compared to FTX, Binance offers much riskier and very attractive investments that sometimes resemble decentralized finance. These include services such as betting for secure and passive rewards, participating in mining pools to create new tokens, instant loans and credits in cryptocurrency, and earning returns of up to 70% through liquidity pools. They are very popular with many users and offer new opportunities to invest money for free in addition to active market trading. But if it’s the trade you’re looking for, Binance offers that too. A large basket of tokens is available to trade leveraged futures up to 125x through USD-M and Coin-M futures margined with USDT and various cryptocurrencies, as well as to trade vanilla T options on a long or short position. As with FTX, we will see some familiar products, such as leveraged tokens that can be placed in long and short positions with up to 4x leverage without liquidation risk. A new addition to Binance is token trading, similar to FTX. Common stocks that you can trade with cryptocurrencies are shares of companies like Tesla, Microsoft, Apple, Coinbase, and MicroStrategy. In other words, leveraged tokens and shares traded on Binance have less asset diversity than FTX.
What else can I do on Binance?
Binance is rapidly evolving from a simple stock exchange to a very diverse ecosystem. So there are many benefits to joining a Binance exchange if it means seamless access. One example is Binance’s Trust Wallet, which has become one of the most popular cryptocurrency wallets in the world. It has over 5,000,000 users and offers extensive functionality, including support for over 160,000 different assets, including NFT and more. With a simple touch, you can bid on tokens with Trust Wallet to earn more rewards, or turn yourself into a web browser3. Moreover, with the Binance VISA card, Binance becomes a financial giant in its own right. Here you can use your cryptocurrencies stored securely on the Binance exchange to easily make payments to over 60 million merchants worldwide. There is no cost to use it and you can get up to 8% cashback on your purchases.
What is a Binance NBB token?
Following up on the previous point in our comparison of FTX and Binance, Binance has quickly expanded its reach by becoming the creator of not one, but two blockchains of its own – the Binance Chain and Binance Smart Chain (BSC) smart contracts. The latter supports many of the DeFi protocols and powerful non-Ethereum based dApps today. Given the popularity of BSC, it’s impossible not to mention Binance’s own cryptocurrencies – BNB and BUSD. The stable BUSD currency offers a safe and unstable transfer of value within Binance. Meanwhile, BNB is behaving similarly to FTX’s FTT tokens. The BNB token, which is ranked among the most valuable cryptocurrencies, was created to encourage users to trade more actively on the Binance exchange. In addition to the incredibly high value thanks to Binance’s aggressive redemption and burn campaigns, if you keep BNB in your account, you can get 25% off trading commissions and an additional 20% kickback for referrals.
What are the deposit and withdrawal options at FTX?
Compared to the previous FTX vs Binance study, Binance offers its users much more convenient deposit and withdrawal options for fiat currencies and supports US dollars, euros, British pounds, Australian dollars, Canadian dollars and over 40 other currencies. This extends to a wide range of options you can use to deposit or withdraw your money, such as a standard bank transfer or instant credit or debit card purchase, as well as third-party options such as PayPal, Western Union, and many others.
What are the commissions on Binance?
Using our FTX vs Binance comparison chart, we can clearly see that Binance charges much higher commissions than FTX, sometimes up to 5 times more. Like Binance, Binance uses a tiered commission structure that calculates your trading volume to determine an appropriate transaction fee. Fortunately, there are many things you can do to lower these costs by getting a discount from BNB. Although Binance’s commissions seem high compared to FTX, they are actually quite low compared to other major exchanges.
To conclude the second part of our comparison between FTX and Binance : There is a good reason why many people stay with Binance. Ease of use and a highly liquid exchange with a huge choice of chips are the main attractions. For traders, Binance may not be as diverse in terms of unique markets, but what it is – like Binance’s futures and margin trading – has proven to give some of the most competitive prices, as well as offer a large portion of DeFi for additional returns. The benefits of Binance
- Wide range of investment services – futures, options, margin trading, leveraged tokens, stocks, etc.
- Good user interface, very simple to use and easy to navigate.
- Users can invest in profitable DeFi-like services such as betting, participating in mining pools, borrowing and lending, liquidity pools, etc.
- Tokens are booming, thanks to native BUSD and BNB tokens, with the latter offering significant discounts and benefits in addition to strong price growth.
- Huge selection of trading pairs and deep liquidity to find the best market prices to trade.
- Expanded ecosystem beyond exchanges – DeFi protocols and dApps enabled on BSC, Trust Wallet, VISA debit card and more.
- Excellent fiat currency import and export facilities, with around 50 currencies supported worldwide.
The disadvantages of Binance
- The diversity of the market is not comparable to that of FTX, as leveraged token and tokenized stock exchanges do not have asset diversity.
FTX vs Binance – Conclusion
So, now that we’ve completed our comparison between FTX and Binance, have we found a winner? What is the best crypto-currency exchange that can do just about anything you ask…. FTX or Binance? It is clear that Binance has an edge over not only FTX, but most of the other exchanges in the wide world that they have created. At Binance, you have a marketplace full of opportunities and markets where you can trade with your heart. Beyond Binance, it offers users everything from an extremely powerful blockchain to wallets to a card that can actually be used. However, Binance cannot cover all bases, so we are still making recommendations for FTX. It may not have the same reach as Binance, but the depth of its trading platform is truly incredible. One thing is for sure, whichever one you choose, they are both very functional and versatile exchanges for your cryptocurrency tokens.The cryptocurrency market is in a constant state of flux. For new traders, keeping up with all of the moving pieces can be incredibly difficult—especially if you are trying to invest in and track a diversified portfolio. (If you aren’t, you should be!) As a result, many people have turned to a do-it-all exchange like Coinbase to handle all of their trading needs: buy, sell, store, and spend their crypto, as well as handle their taxes. Coinbase is certainly a convenient option, but is it the best option? The recently released exchange FlexTrade (FTX) certainly makes a compelling case that it’s not.. Read more about ftx vs binance futures and let us know what you think.
Frequently Asked Questions
Is Binance or FTX better?
Binance and FTX are the two biggest cryptocurrency exchanges in the world. It’s no surprise that you’re wondering which is better. Both exchanges have pros and cons, and for the most part, they are very similar. However, there are some key differences that you should consider before deciding which platform is best for you. Let’s take a closer look at how these two exchanges stack up against each other. It might look easy for a newcomer to cryptocurrency exchanges to pick one among the many options available today. The truth is, however, that the available exchanges can differ significantly depending on the type of exchange you want, market niche, and your personal preferences. This article compares two popular exchanges, Binance and FTX, to help you make up your mind about where to trade in the future. (SUMMARY: Binance is better than FTX because it has more trading pairs, a better mobile app, higher fees, and better security. On July 14, 2018, the following articles were published:
Which crypto exchange is best?
Which crypto exchange is best? There are a number of exchanges that you can use to buy and sell cryptocurrencies, but not all of them are created equal. It is important to choose one that has all the features you want to use, and also makes it easy for you to deposit and withdraw your cryptocurrency. https://www.techradar.com/news/best-cryptocurrency-exchange https://cryptoslate.com/crypto-exchanges/ https://www.cryptocompare.com/exchanges/ https://www.theblockcrypto.com/crypto-exchanges/ FTX vs Binance. This is the eternal debate for cryptocurrency traders. As with most binary choices, both exchanges have their pros and cons. The decision ultimately comes down to the trader’s preferences. If a user is only looking to trade cryptocurrency, one option will be best; conversely, if the user wants to do everything, then the opposite is true. Binance advantages: FTX advantages:
Which crypto exchange is the safest?
As the crypto market becomes more and more massive, we have seen a large influx of new investors join in the frenzy. With the influx of new investors, we have seen a rise in the number of scams. Because of this, a lot of us are looking for the safest crypto exchanges to trade on. There are a number of factors that we will be looking at when researching the “safest crypto exchanges”. We are going to start by looking at factors like the security of the exchange, the reputation of the exchange, and how long the exchange has been around. It is no secret that the crypto industry is filled with corruption and scams of all kind. The crypto community has been struggling with the issue of exchange security for years now. These days, a cryptocurrency exchange is a service that is prone to hacks and security breaches. That is why crypto traders are increasingly turning to cold wallets as a means of storage. They offer a way to keep the assets safe from online threats.
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