In 2020, the crypto exchange giant Binance sent out an email to it’s users they assumed were accessing the exchange’s services from the United States, to inform them that they were going to move to Binance.us because of regulatory changes.
Binance.us had already been launched over a year ago, but what does this mean for US users? The new Binance.us has the same looks and logo as the original site, but it’s operation is run by a different company who has simply licensed the logos and software, and though it may appear the same, there are many differences between the two crypto exchanges.
In this post, we will take a look at the difference between the Binance platform and the Binance.us platform that was made specifically for users in the US.
Binance.us was first launched in 2019 and is the official US partner of the main Binance Exchange. It is ran by BAM Trading Services who have licensed the software, logo, and all other relevant aspects of Binance for use in the United States.
Binance.us has over 50 cryptocurrency it supports for investors and also maintaining the low trading fee. Binance.us is a good option for US citizens with easy ways to buy and sell for beginners and the same advanced trading platform options for more experienced traders.
Pros and Cons
Low trading fees
Buy crypto through multiple avenues
Not available in all US states
Selection of cryptos is much lower than main Binance site
Withdrawal fees higher than main Binance site
Binance has the highest trading volume of any crypto exchange and is undoubtedly one of the top cryptocurrency exchanges in the world. It also offers users the most cryptocurrency trading pairs of any trusted exchange.
It was founded in 2017 by Changpeng Zhao and it quickly rose to become a leading cryptocurrency exchange and also has its own cryptocurrency called BNB (Binance Coin). Binance offers users different ways of purchasing cryptocurrencies from using fiat currencies, to using credit/debit cards, and bank transfers.
Pros and Cons
Hundreds of trading pairs and available cryptocurrencies
Low trading fees
Good customer service
Buy crypto through multiple avenues
Mobile app for iOS and Android
Not available to US citizens
High withdrawal fees to external wallets
Binance vs Binance.us at a Glance
1. Beginner Friendliness
Both Binance and Binance.us are relatively intuitive trading platforms thanks to an easy sign-up process and multiple ways to make your initial crypto purchase and begin trading.
They also both have mobile applications which allows users to trade from anywhere. The main Binance site gets an edge here because they have more cryptocurrencies available, but apart from that the two exchanges are essentially the same for beginners.
2. Trust & Security
Both platforms offer the same security for users, with two-factor authentication strongly encouraged and emails sent to you anytime there is a log in to your account. All data is encrypted and both Binance and Binance.us try to keep as much crypto in cold storage as possible in case there is a hack of the exchange.
Speaking of hacks, Binance.us gets a slight nod here because it has never been hacked, whereas $40 million worth of Bitcoin was stolen from the original Binance back in May 2019. While there have been no incidents since, the fact that there have been no hacks on the US site thus far is a great sign.
Trading fees for both Binance and Binance.us are essentially the same, except that to reach the first VIP tier and get lower fees it takes $50k in trading volume on Binance US along with holding 50 or more BNB, whereas on the original Binance you have to trade over 50 BTC equivalent while holding the same 50 or more BNB. Right now, that would mean you have to make over $2 million in trades to get just to the first discount tier. That said, the initial fee of 0.1% for both maker and taker trades is extremely low compared to most other exchanges.
When it comes to deposit and withdrawal fees both exchanges are equal on the deposit front, as there are no fees for deposits, but when it comes to withdrawal fees there are some big differences.
While Binance is already known for having fairly high withdrawal fees, Binance US has even higher ones. For example, on Binance US it will cost you 16 Polygon (MATIC) to withdraw some, whereas on the original Binance it is only 0.15. That is a difference of 15.85 MATIC, or almost $20 USD at current values. There are many examples like this when comparing withdrawal fees, giving Binance a big advantage over its US equivalent.
It should also be noted that the original Binance offers lower withdrawal fees for withdrawing to the Binance Smart Chain (BSC) as a BEP20 token, whereas Binance US has no option to even withdraw to the BSC, only to the Binance Chain as a BEP2 token, meaning you have to withdraw to the Binance Chain and then transfer to the Binance Smart Chain if you want to take advantage of decentralized finance.
4. Sign-up Process
The sign-up process for both Binance and Binance US is the same, the only difference is that you cannot sign up for Binance as a US citizen, and you cannot sign up for Binance US as a non-US citizen. Otherwise, the verification process is essentially the same and is fairly fast.
It should be noted that Binance US is not available to US citizens who live in the following states:
5. Available Cryptocurrencies
There is no competition in this comparison, as Binance US offers just over 50 cryptocurrencies for trading while the original Binance offers hundreds for trading and has over 1000 trading pairs as well.
6. Standout Features
Both Binance and Binance US offer the same general features: direct purchase of crypto with a card or bank wire, mobile applications, basic and advanced trading, staking for some assets and over the counter (OTC) services.
However, because Binance US faces much more regulation than its main counterpart, it is unable to offer as many of the features as Binance Exchange, and for this reason Binance Exchange has better features than Binance US. With derivatives available, and financial services such as the Binance Visa Card, crypto loans, and investment options available, Binance Exchange offers far more features than the US version.
Essentially, if you are a US citizen and want to use Binance you have no choice, you have to use Binance.us, and the same is true if you are not a US citizen, you have to use the original Binance site.
You almost want to be not a US citizen if you like to use Binance, because it is by far superior to its US counterpart, with lower withdrawal fees, more features, and exponentially more trading options, Binance Exchange is a better product than Binance US.