FTX vs Binance | Comparison & Differences

As cryptocurrency emerges as the new gold mine in the crypto sphere, cryptocurrency traders are looking for the best cryptocurrency exchange to trade cryptocurrency with leverage.

Binance and FTX are two of the world’s most popular crypto derivatives exchanges. Binance is the world’s largest cryptocurrency exchange in terms of spot and derivatives trading volume. FTX, on the other hand, is a pure derivative trading exchange and the fifth-largest crypto assets exchange.

Both exchanges have many similarities and only a few differences. However, those distinctions may be crucial in determining the best derivatives exchange.

Today, we’ll compare FTX and Binance in a variety of categories, including offerings, fees, security, platform capabilities, and more. By the end of this Binance vs. FTX comparison, you’ll know which crypto exchange is the best in the market for trading cryptos.

Important Differences Between FTX and Binance

• Binance introduced live chat as part of a customer service system upgrade in 2021. FTX does not provide a live chat service.
• Binance charges slightly higher fees than FTX. On Binance, users can expect to pay maker/taker fees ranging from 0.02% to 0.10%, while FTX maker/taker fees range from 0.00% to 0.07%.
• Binance accepts just under 400 cryptocurrencies, while FTX accepts over 300.

Futures Contracts and Leverage Offerings: FTX vs. Binance

FTX Pros Explained

Margin and futures trading are supported: FTX provides several advanced features, including margin and futures trading. This may appeal to sophisticated traders who are comfortable with risk.

Access to advanced markets: FTX provides a number of advanced features that are not available on other exchanges. Access to markets such as stocks, leveraged tokens, volatility, and forex is included.

FTX Cons Explained

U.S residents are not permitted to trade on FTX’s global platform: Residents of the United States have limited access to FTX due to strict crypto regulations in the country. The exchange has a partner in the United States, FTX.US, but its offerings are more limited than those of the global platform.

There is no option for live chat support: FTX does not provide live chat support. While it does offer a comprehensive help centre, locating the information you require can be time-consuming.

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Binance Pros Explained

Low fees: Binance’s 0.1% trading fee is lower than that of many other US exchanges.

Execution of Trade: Binance is known for its lightning-fast trade execution. Before founding Binance in China in 2017, company founder Changpeng Zhao created a software system for matching orders for high-speed traders.

Selection of Crypto: While it does not have as many cryptocurrencies and crypto-to-crypto trading pairs as its parent company, the selection of nearly 60 cryptocurrencies at Binance.US still outpaces many other U.S. exchanges.

Binance Cons Explained

Binance Accessibility: The service is not available in all 50 states.

Regulatory issues: Binance, the global parent company, has run into regulatory issues and controversy in some countries, shifting operations from China to Japan; at a May 2020 tech conference, founder Changpeng Zhao claimed the parent company doesn’t have a headquarters because “Bitcoin doesn’t have an office.”

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FTX vs. Binance: Deposit & Withdrawal Fees

Both FTX and Binance accept cryptocurrency deposits for free, with only blockchain fees payable. Furthermore, neither exchange places any restrictions on the amount of cryptocurrency that can be deposited into a trading account.

Binance, on the other hand, charges withdrawal fees, which vary depending on the asset. The Binance withdrawal fee for Bitcoin, for example, is 0.0000058 BTC. FTX, on the other hand, does not charge its users any withdrawal fees.

Based on KYC levels, both FTX and Binance have a take-profit limit and a crypto withdrawal amount limit.

FTX vs. Binance: Account Opening Process

Both FTX and Binance provide a simple account registration process. You can sign up on their website to open an account and begin trading. Please keep in mind that both crypto exchanges have tier-based KYC requirements.

KYC Requirements for FTX

KYC requirements at FTX are divided into three levels. Tier 0 FTX users only need to provide their email addresses and confirm that they are not from a restricted jurisdiction. Tier 0 KYC accounts also have a lifetime withdrawal limit of USD 1000.

KYC Requirements for Binance

You can also open an account with Binance using your email address. Without requiring KYC, you can deposit, trade, and withdraw up to 2 BTC per day. A KYC is required for amounts greater than 2 BTC. Spot trading is also possible without KYC.

Customer Service: FTX vs. Binance

FTX and Binance both have a dedicated customer support team and offer an excellent customer experience.

The FTX customer service team can be reached by phone, email, helpdesk tickets, Medium, Twitter, Facebook, WeChat, Telegram, and YouTube. They provide support documents to help you get started in trading. In addition, FTX has a fantastic community of intermediate and helpful traders.

Binance, like other platforms, provides live chat, Facebook, Twitter, Reddit, Weibo, Instagram, Telegram, VK, and YouTube customer support.

Binance, on the other hand, does not offer phone support. Binance also has a large community and support documentation. FTX’s support documentation, on the other hand, is more comprehensive and well-organized.

Security: FTX vs. Binance

Security is one of the most important factors to consider while selecting an exchange. Binance and FTX are without a doubt two of the most secure exchanges in the world.

Both exchanges use two-factor authentication and keep account funds and data separate from online platforms to prevent hacking. They also insure their funds by setting aside a certain amount of money as insurance fraud.

Both platforms also employ round-the-clock monitoring and analysis, and in the event of a theft, user funds are protected by reserves held in the treasuries of both companies.

While FTX has never been hacked, and Binance has had some hacking incidents in the past, both exchanges adhere to the strictest industry security guidelines, with the majority of funds kept in cold storage. FTX also uses Chainalysis for third-party transaction audits, giving them a slight advantage over Binance.

However, we must consider that Binance has been around for longer and has a much larger trading volume than FTX, making them a more appealing target for hackers. Despite the bear market, Binance has managed to hold its ground and plan for the worst and is still one of the top-performing exchanges.

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Conclusion

Based on their general offerings, Binance and FTX have a lot in common. However, the main distinction is that Binance is more focused on the spot market and offers more cryptocurrencies, whereas FTX is more focused on the derivative and prediction market and offers more volatility products.

Binance has the most cryptocurrencies to trade, as well as new projects like DeFi, NFT, and metaverse gaming. Binance is a better option if you are a beginner or looking for new tokens to trade, or if you are an experienced investor who prefers passive earnings.

If you are an experienced trader who only does day trading or is knowledgeable about volatility products, FTX is the place to go because it provides all of the products traders require at significantly lower fees.

Disclaimer: Please keep in mind that this material does not provide financial or investment advice. This post contains only the author’s opinion and should not be taken as trading or investing advice. We offer no promises about the material’s completeness, trustworthiness, or correctness. The Cryptocurrency market is known for its tremendous volatility and irregular movements. Any investor, trader, or regular crypto user should perform extensive research and get informed of any local regulations before committing to an investment.

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