Binance Alternatives - See Which Crypto Exchanges Are Better

Binance controls a sizable portion of the cryptocurrency exchange market, with roughly 28 million users and growing. The site is so popular that it had to temporarily block new user registrations to improve its infrastructure to handle the increased load.

Countries such as Italy and the UK are cracking down on bitcoin exchanges as a result of new rules on cryptocurrency marketplaces. The new laws include stringent identity verification, and anyone who does not follow them will face harsh penalties.

Why is Binance Usually a Popular Choice?

Binance is a crypto market that was founded barely four years ago and now dominates the digital currency industry. Binance conducts more trades for cryptocurrencies like bitcoin and ether each day, totaling $7.7 trillion in 2021’s annual crypto exchange volume than its four top competitors combined. For more information. about the platform, check out our Binance review.

So if you have ever wondered why Binance is a lot more popular than many of its competitors, here are the top reasons.

Service

It's one thing to run a business, it's another to retain the customers you have attracted to your organization.

Before Binance, submitting a support request on an exchange took such a long time that it wasn't uncommon to wait two months just to get a response. This doesn't happen with Binance. They specified a maximum response time of 24 hours and so have great customer service.

Speed

Binance is much faster than many alternatives and competitors. Binance's APIs are the fastest and most stable in the industry when it comes to performance.

Depending on the specific mechanism you employ, P2P transactions might take anywhere from 20 minutes to 3 days. Online wallet transactions are typically rapid and simple; however, certain local banks may take up to one day to process the transfer, and International Swift transfers may take up to three days.

Fees

Binance charges fewer fees than other exchanges including alternatives and competitors. They are still the world's lowest fee exchange today. Many other exchanges invest significantly more in marketing. They attract new customers, sure enough, but eventually, the users learn the ropes and return to Binance to trade. Binance has also promised further reductions in fees in the future.

How to Pick An Alternative

Binance is undoubtedly one of the biggest crypto trading platforms, with a daily trading volume of about $60 billion. Regardless of this, Binance is still being shut down and restricted in some countries.

One major reason for this is that, in comparison to other exchanges, Binance has a very lenient KYC (Know Your Customer) policy —a policy supposed to ensure that transactions are not used for money laundering or terrorist financing.

Even though Binance has updated its KYC policy in response, it is still insufficient for most countries, including Japan, Singapore, Malaysia, and parts of the United States such as Hawaii, Idaho, and New York.

Binance has also been under fire from various nations due to regulatory difficulties. After some back and forth, Binance informed its users in Malaysia and Singapore that it will no longer serve them, leaving many users looking for alternatives to Binance.

If you are one of those users experiencing this, follow these steps to pick a suitable Binance alternative.

Security

As a buyer of any marketplace, the first and most crucial item to examine is their security policy.

You need to examine the makeup of their security policy. Things to look out for are whether or not they are storing a larger percentage of their funds in cold storage i.e., offline.

Is there insurance available for the funds held in exchange? Is there any history of a security breach in their system that allowed hackers to flee with their money?

If it looks like your potential alternative does not tick the security boxes, then it's better to flee.

Country Regulations

As mentioned earlier, some countries have restricted the use of Binance or placed limitations on trading in the marketplace. So, it's very important to know whether an alternative is also allowed in the country you live in. Are they friendly to the platform? Are there any limitations? You need to consider these things before you find yourself and your money stranded.

Reliability

When choosing another trading platform, you need to ensure that it does not frequently crash or freeze, particularly during times of worldwide economic issues that are happening when traders require steadiness. The dependability of a platform should be the main priority.

If you are a trader who prefers to make large, frequent deals, it will be best to look for a reliable platform that never or hardly collapsed.

Best Binance Alternatives

1. Gemini

The Winklevoss Twins founded the Gemini exchange, which is situated in New York City. Gemini boasts a decent selection of altcoins with a user interface that is suitable for beginners.

Gemini also has a staking feature where users may make passive revenue by staking their idle cash. Gemini is an excellent choice for beginners and even experienced users searching for a simple on-off ramp.

Gemini vs Binance

With Binance, fees are low, and there is a reduction in trading fees. They however do have an Identity verification process and a Tax statement portal. Gemini has up to 100 different cryptocurrencies, a wide range of financial products, and sophisticated security measures. It is also available in all 50 US states, making it a good alternative to Binance for US residents.

Both Binance.US and Gemini have the option of using a hot wallet to keep coins on the exchange. But Gemini has a cold wallet and custody solution just in case you want other options. With Gemini, you'll have more access to in-house alternatives.

For more information, read our in-depth Gemini vs Binance comparison.

2. Kraken

Kraken is a minor cryptocurrency exchange situated in the United States. While it has been around since 2011, it is significantly smaller than large competitors like Binance.

With a client base of 6 million and a quarterly transaction volume of $2 billion, these figures are by far lower than top exchange markets like Coinbase and Binance.

While Kraken is not the largest crypto exchange on the market, it does have a long track record that makes it a powerhouse too.

Kraken vs Binance

Even though Binance subsequently became more popular, Kraken was founded first. Kraken is available in all states of the US, except New York and Washington while inhabitants of Idaho, Connecticut, Hawaii, Texas, Vermont, New York, or Louisiana don't have access to Binance.

Binance has been vague about its security measures and there is little to no information about how they keep its defense up. The 2019 security breach which led to the theft of more than $40 million in cryptocurrency does not do them any favors or paint them in a good light.

Kraken, on the other hand, takes security measures to protect and has included numerous safeguards. They maintain the proper security protocols by keeping a large number of the deposits in cold storage and doing security checks from time to time. It is admirable to keep in mind that Kraken's crypto marketplace has never been breached. 

Read out Kraken vs Binance comparison for more information.

3. Nexo

Nexo was founded in 2018 and is slowly gaining ground in the crypto market.  The company's slogan is "Banking on Crypto." They aim to replace traditional bank services by using cryptocurrency as an asset.

It can be to your benefit to note that Nexo is working on a project where users loan out their coins and receive loans too. By doing this, you as a user can earn interest and have primary access to fiat currencies without depending on their credit scores.

Nexo VS Binance

With Nexo, anyone who wants to borrow bitcoin or deposit cryptocurrency to earn interest can access the marketplace. This is unlike Binance where the main audiences are crypto traders and holders.

Compared to Binance, Nexo is more user-friendly, offers a $100 million insurance policy on each wallet, and has much higher interest rates.

The overall system is set up to secure assets in a more automated and flexible manner than a traditional bank. Users can acquire fiat when they want it, and still keep control of their digital funds, thanks to the network.

Other Binance Alternatives to Consider

Besides the 3 platforms we mentioned above, there are a lot more crypto exchanges that you could try instead of Binance. However, these might not be the best possible Binance alternatives.

Crypto.com is a popular Binance alternative that you can try. Before you sign up, read our Crypto.com vs Binance comparison to find out more useful information. Another good choice is Coinbase, a popular cryptocurrency exchange that also went public in 2021.

While not a true crypto exchange, eToro is another popular place where you can invest in cryptos. However, eToro does not have all the features Binance does.

Other than these, you can also try FTX, Bittrex, or Kucoin.

Conclusion

Hopefully, the information in this article aids you in deciding which cryptocurrency trading platforms will be your best alternatives for Binance. Always remember to choose what works best for you and to do your research before transferring your assets. Make sure the security checks out, their features are favorable, and if it's available in the country you live in.