Binance is one of the biggest cryptocurrency exchanges today. The exchange first launched its services in 2017 as an unregulated one. With increasing regulatory pressures in the crypto world, they were restricted access in the United States. However, this means that traders in the U.S couldn’t access the main Binance platform (Binance.com). Binance then launched a different platform for U.S traders known as Binance US.
Segregating the two platforms raised lots of eyebrows and questions among cryptocurrency investors. However, this guide aims to answer those questions. Without further ado, let’s jump in.
A financial software developer, known as Changpeng Zhao, launched the global Binance cryptocurrency exchange platform in 2017. Binance is the largest cryptocurrency exchange that began in China before shifting its offices from the crypto-savvy island of Malta to the UK. Binance mainly uses cryptocurrencies to create and sell crypto-related exchanges. The company raised $25 million at its initial public offering last week.
The firm quickly grew by generating 220,000 registered customers. Binance jumped into the crypto world as it dominated the mania of 2017 year – becoming the world’s most important exchange. Binance started in 2017. The government banned US users from the global exchange on the grounds that the regulators were not satisfied with its performance. Due to regulatory concerns, the company’s access to the U.S was restricted in 2019. Immediately after, the company stated its partnership with BAM Trading Services, a U.S. Treasury Financial Crimes Enforcement Network (FinCEN)-registered company, to launch Binance U.S. It is essential to know that Binance U.S has its headquarters in California.
Binance platform has hundreds of cryptocurrencies, but its U.S partner platform is a bit limited. It offers just 64 available cryptocurrencies and is unavailable to Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. Despite these drawbacks, the U.S platform’s low trading fees, trading tools, educational resources, trading volume still make it a valuable option for some traders.
Binance vs Binance.US: Trading fees
The standard trading fee on Binance is 0.1%, but by using BNB (Binance coin/ native token), you can get a reduction in trading fees, currently, 25% less if you check the option to pay with BNB.
On Binance U.S, it is somewhat lower, and the low fees range from 0% to 0.01%. Instant buying fees are 0.50%. It is also essential to know that Binance.US charges a relatively high fee of 4.5% for debit card deposits despite the low trading fees. Users would be better off depositing money via ACH or wire transfer, both free. ACH withdrawals are also free, though wire transfer withdrawals cost $15 for domestic and $35.00 for international transfers. deposit and withdrawal fees
Here is a look at the tiered fee structure on Binance U.S:
Level 30d Trade Volume (USD) & BNB Balance Maker/Taker Maker/Taker BNB 25% off
VIP 0 < 50 USD or ≥ 0 BNB 0.1000%/0.1000% 0.0750%/0.0750%
VIP 1 ≥ 50 USD & ≥ 50 BND 0.0900/0.0900% 0.0675%/0.0675%
VIP 2 ≥ 100 USD & ≥ 100 BNB 0.0800%/0.0900% 0.0600%/0.0675%
VIP 3 ≥ 500 & ≥ 200 BNB 0.0700%/0.0800% 0.0525%/0.0600%
VIP 4 ≥ 1,000 & ≥ 400 BNB 0.0500%/0.0700% 0.0375%/0.0525%
VIP 5 ≥ 5,000 & ≥ 800 BNB 0.0400%/0.0600% 0.0300%/0.0450%
VIP 6 ≥ 10,000 & ≥ 1500 BNB 0.0000%/0.0600% 0.0000%/0.0450%
VIP 7 ≥ 25,000 & ≥ 2500 BNB 0.0000%/0.0500% 0.0000%/0.0375%
VIP 8 ≥ 100,000 & ≥ 4000 BNB 0.0000%/0.0400% 0.0000%/0.0300%
VIP 9 ≥ 250,000 & ≥ 6000 BNB 0.0000%/0.0300% 0.0000%/0.0225%
VIP 10 ≥ 500,000 & ≥ 6000 BNB 0.0000%/0.0200% 0.0000%/0.0150%
The same fee structure is also the same as the global Binance site. Binance.US offers its lowest fees to users who invest millions of dollars.
Binance crypto exchange security
Binance offers high-end security measures and features for its users. However, it also affirmed that it had been awarded an information security accreditation after meeting standards set out by the International Organization for Standardization (ISO). The platform was examined on 114 criteria across 14 categories, including security policy, asset management, operational security, and information systems.
Binance requires that users verify their identities to trade cryptocurrencies for security measures. The verification process might be a long one, but it helps prevent hackers from accessing users’ funds.
Users must also set up multi-factor authentication, and facial recognition is an option for mobile. The same process and rules apply to Binance U.S.
Note: In May 2019, the global Binance site reported a funds loss worth $40 million. Even though Binance replaced users’ funds, its sister platform Binance U.S platform, hasn’t been hacked yet. It is important to note that security breaches are a risk with cryptocurrency exchanges.
Binance introduced the option of purchasing cryptocurrencies with credit cards in 2019. The platform enabled this option via third parties. However, third-party platforms like Banxa and Simplex were used to execute orders. trading platform trading platforms
There is a 3.5% charge on any transaction made on Simplex with a $10 minimum (flat fee). The daily limit is $20,000 per user, while the monthly max is $50,000 per user. Those third-party platforms were suspended for a couple of months after the Binance launch. largest crypto exchanges
At the moment, there is no buying limit to buying cryptocurrencies on Binance. Although, there is a withdrawal limit of 0.06 BTC for unverified accounts, which gets lifted once you go through the KYC procedure.
For Binance U.S., there are buying limits. However, the platform allows users to withdraw and deposit up to $1 million via bank wire, and it also allows users to deposit up to $30,000 via ACH bank transfers.
Deposit and withdrawal method
Binance used to be a crypto-only platform to make deposits through supported coins; the same goes for withdrawals. Nowadays, the platform supports $1 million via bank wire, and it also allows users to deposit up to $30,000 via ACH bank transfers.
On the other hand, Binance U.S allows its users to buy cryptocurrencies with a debit card, the automated clearinghouse (ACH), and bank wire. Also, you can always deposit funds in any of the supported cryptocurrencies on Binance U.S.
Binance crypto exchange does not specify which countries are supported and which ones aren’t. As for traders in the U.S., Binance made a separate platform, Binance.US, to serve only US-based traders and restricts them from using their main platform.
As the name implies, Binance.US is focused only on the United States of America citizens. However, the launch of Binance.US is currently restricted to only 12 states (including New York, Texas, and Florida). There is a high probability that the Binance.US might expand its reach to other areas in the United States.
Binance has a wide range of supported coins. However, the number of cryptocurrencies keeps increasing week by week, and it exceeds 750 coins and more than a thousand markets at the time of writing.
On the other hand, Binance.US offers 123 trading pairs for 56 coins, including BTC, ETH, LTC, ADA, etc.
Binance has a top-notch customer support system if you compare it to other exchanges. It is necessary to note that the platform provides customer support in seven languages. As for now, Binance doesn’t have an official phone number for its customer support system, but they have a section for customer support where users can send their questions and queries. Usually, users get answers to their queries within 24 hours. Furthermore, users can also use the live chat support option to chat with customer service personnel from Binance. Besides that, the Binance site has a FAQ section where users can get detailed answers to their queries. buy crypto withdrawal methods pay fees completely unregulated platform investment advice USD assets parent company multiple countries popular cryptocurrency exchange protects investors
Similar to Binance, Binance.US offers customer support options through their email ticket system plus very active social media channels where you can get answers. Besides that, Binance.US also has a FAQ section on its site, and it is very detailed. Going through it, users can find answers to their questions without contacting support.
Binance keeps adding new features and services for its users. However, these features and services include margin trading, OTO (One-Triggers-the-Other) options for traders, staking, custody, lending and savings, academy and education portal, etc.
Also, Binance.US is focused on exchange business and adding more services to its platform, like Binance.com. Currently, Binance U.S has a staking option available for its customers, aside from spot trading.
One of the most recent features in Binance is margin trading. Users have the opportunity to perform margin trading once they transfer BNB coins to their regular exchange wallet to their Margin Wallet. They can be able to use those coins as collateral to borrow funds. However, your Margin Wallet balance determines the number of funds you can borrow, following a fixed rate of 5:1 (5x). So if you have 1 BTC, you can borrow four more. In this example, we will borrow 0.02 BTC. Binance announced lower fees other cryptocurrency exchanges supported currencies experienced traders
The interest fee on borrowed coins varies depending on your account level and the type of coin you borrowed.
On the other hand, Binance.US has no margin trading option yet.
Binance vs Binance.US
BINANCEBINANCE.USProsProsEasy to useVery easy to useLow feesLow feesRemarkable supportGood supportMany listingsGood trading interfaceGood trading interfaceConsConsDoesn’t offer phone supportDoesn’t offer phone support Limited number of supported coinsSuitable for U.S. traders only
Both Binance.US and Binance.com allows users to earn rewards in the exchange just by holding certain coins in their wallet. According to Binance, staking helps support these coins’ operation in the crypto market.
You also need to know that users can earn up to 10% annually through staking coins.
Both Binance and Binance.US offer an online dashboard and mobile apps to manage their accounts. Both their desktop and mobile experience look similar. If you log into your account, you can view your balance, purchase history, and so on. You also have the opportunity to deposit and withdraw funds and trade cryptocurrencies.
Binance.US receives negative feedback from users on third-party sites and has an average of 1.3 out of five stars across 263 Trustpilot reviews. However, reviewers report deposits, withdrawals, trades, and identity verification processes. Despite all these reviews, the platform also receives a handful of positive reviews, with users praising its low fees.
On the other hand, Binance.com has an average of 2.0 reviews out of five stars across 3,150 Trustpilot reviews. Reviewers on Trustpilot complain about slow support, trades, and funds transfer.
It is essential to note that cryptocurrency exchanges often receive negative reviews from customers. Hence, the number of reviews on Binance.US and Binance.com is unsurprising. So if you want to invest or trade cryptocurrency, it is advisable to compare user feedback across exchanges before opening an account.
Binance.US is the United States partner company of Binance, a major global crypto exchange. It’s worth noting that U.S. authorities are currently investigating Binance for money laundering and insider trading.
So who wins between the both of them? Both of them are on the same par when it comes to trading fees, so we can call it a draw. But Binance offers so much more than Binance.US.
Furthermore, suppose we are to look at regulatory compliance and licensing. In that case, Binance U.S holds an upper hand because it is registered with FinCEN and complies with the local rules and regulations for specific states in the United States.
When it comes to customer support and security, it is a tie because both of them are the same company. When it comes to trading features, Binance is better than Binance.US.
FAQs about Binance
Do I need to switch from Binance to Binance US crypto exchange?
Yes, if you are a U.S. resident. Otherwise, you might get banned on Binance.com.
How do I get my money out of Binance.US?
You can convert your funds into crypto and then send them to your wallet or other exchange where you have an account. Or you can use ACH or bank wire to send cash to your bank account.
Which states can use Binance.US?
Binance.US accounts are available to users in the U.S. in all states except Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont. If you don’t live in the U.S., you can use its general platform.
Is my Binance account the same as Binance.US?
No, as Binance and Binance.US are entirely different legal entities. So, you need to open a new Binance US account to use it. And to close your Binance.com account (if you are from the U.S.).
How long does it take for Binance.US to verify?
Binance.US verification is quick and straightforward. However, the review process can take up to 15 days as Binance.US is chronically understaffed. Potential alternatives to these two exchanges are Coinbase, Cex.io, Coinmama, Changelly, Bitpanda, Bitfinex, Kraken, Bittrex, Bitstamp.
In case you want to compare Binance with other exchanges, have a look at our guides where we do just that
How do I use Binance coin?
BNB or Binance coin is the cryptocurrency coin that powers the Binance ecosystem. As one of the world’s most popular utility tokens, not only can you buy or sell BNB like any other cryptocurrency, but BNB comes with a wide range of applications and benefits.
Use BNB to pay for goods and services, settle transaction fees on Binance Smart Chain, participate in exclusive token sales, and more. You can hold a Binance coin and earn. Earn a flexible percentage yield by depositing BNB on select Binance Smart Chain projects. Stake BNB to earn rewards and help secure the Binance Smart Chain ecosystem.
Increasing regulatory pressure in other countries limits what the exchanges offer and some countries may restrict access as an advanced security measure. The only logical thing you can do is find crypto exchanges that give you the freedom over your dedicated fund.
There is no self-explanatory answer but research trading fee and fee discounts for the particular trading platform, the trading pairs you need, and whether the fees are automatically deducted.