When you want to invest in cryptocurrency, the most common way for trading would be to use a cryptocurrency exchange. As cryptos such as Bitcoin and Ethereum grow in popularity, more and more cryptocurrency exchanges are being set up and incorporated in order to satisfy the demand of investors for trading, selling and buying different types of cryptos using their exchange platforms.
With so many types of platforms available on the market, it is becoming increasingly harder for beginners to select which exchange you are going to utilize for your trading needs. Two of the best exchanges right now that you can try are Bittrex and Binance. This guide will provide a detailed breakdown on the pros and cons of both types of exchanges.
This guide will make comparisons of both Bittrex and Binance from several factors which include security, fees, payment methods, supported coins, customer support as well as how simple their user interfaces are based from an ease of use point of view.
A brief explanation is provided below on why some of these factors are important when taking into account the comparison of Binance vs Bittrex.
Factors We Are Considering When Comparing Binance vs Bittrex
It is important to go through the background of the platform in order to determine if it is a solid choice for your coin investing needs such as how often have they been hacked or were there negative news covering the platform? It is important to deduce how reputable a company is from background information that is readily available on the internet.
Security should be at the foremost of the criterias when you are making comparisons between altcoin platforms. It is of utmost importance for investors to know that whatever investments they deposit into the platform are safe and if either cryptocurrency exchanges provide features such as two factor authentication.
As such we will evaluate the safety features of both Binance and Bittrex and then present it under the section below.
Different altcoin exchanges actually have different fees charged on the different services they have, either on deposit/withdrawal fees, what payment methods you are using, what trading pairs you are selecting, maker and taker charges and possibly other charges due to their pricing models.
There are altcoin exchanges that charge flat charges or a percentage of your trading size, or even just a small fee for extra trading features. Either way we have provided a detailed comparison between both exchanges.
Ease of Use
Some altcoin exchanges offer a more personalized user interface focusing on beginner and novice users while other exchanges provide more comprehensive charting tools for in depth analysis that are tailored to experienced altcoin investors. As such you as the investor should select the exchange that you feel positive and relaxed using and not get confused with some user interfaces that are available.
Another important aspect of a cryptocurrency exchange are the coins that they support on the platform whether which trading pairs of fiat currency and coins are available for trade or what coins that the exchange allows you to send/receive to your wallet, knowing what and how many coins are supported on an exchange is a significant factor when choosing one.
It is very easy to select the list of supported coins on both of these exchanges, just compare and choose the best!
You should also consider the type of payment methods that both Binance and Bittrex are offering as some only offer bank transfers for your trading uses while others only accept debit and credit cards from Visa or Mastercard. Whichever options are available it is important to select whichever payment methods are the best for you.
Although you might find comparing user counts on exchanges quite trivial, it is quite an important aspect. This is because if an exchange is seen to have a high number of users trading on their exchange, it could mean there is a balance of supply and demand being met.
This means you would have reduced waiting time to sell your currencies or experience any buying lag due to fewer buyers available on the exchange.
Customer support is another important factor for users as when you are facing any problems or are unsure of anything on the platform it will be reassuring to have customer support on standby on the exchange to help answer your queries and solve your problems.
Binance vs Bittrex – The Ultimate Comparison
The Bittrex cryptocurrency exchange is based in the US and is a household name in the US with Bill Shihara as its CEO and also co-founded Bittrex with three other shareholders that have once gained experience at Microsoft and Amazon.
It was founded in 2016 and the Bittrex Cryptocurrency exchange aims to provide a high liquidity cryptocurrency exchange for individual investors and also financial institutions.
Bittrex has never been hacked and as such could be considered one of the most secure exchange platforms on the market. However, although free from hacking and theft issues, Bittrex’s users did report some of their funds being frozen back in 2019. This was due to some regulatory uncertainty and Bittrex did give a two week notice for some investors from certain countries to pull their cryptocurrency and investments out of their platform.
There was also one separate incident when one of their users was a victim of a SIM swap hack and Bittrex failed to protect them and is currently being sued by the victim.
However, other than two of these separate incidents, Bittrex is considered to be a reliable exchange platform as it boasts the 10th rank on the CoinmarketCap exchange list as well as owning a regular trading volume of over $50 mil USD
Binance was founded a year later than Bittrex in July 2017 by Zhao Chang Peng using $15 million dollars that was raised via an initial coin offering and is originally based in China. However their HQ moved to Malta later on due to regulatory concerns.
A year later after it was founded, Binance found itself as the cryptocurrency exchange that boasts the world’s largest cryptocurrency exchange traded by volume. It has an estimated $2 billion in trading size with active transactions processed of about 1.4 million transactions a second.
Even Though Binance has achieved such an incredible feat, it has continued to focus on expanding its currently available services, such as adding a debit card to its payment methods, being more involved in charity as well as research labs and startup accelerators.
Binance does employ several safeguarding protocols to ensure their user’s assets are safe however since cybersecurity threats still exist, about $40 million was stolen from the exchange back in 2019.
Although both exchanges seem to be very secure in terms of providing safety for its customers, with some scratches to their reputation, we would give Binance as having the better reputation and background supported by their large trading volume (almost 20 times that of Bittrex) and vast transactions being processed
As mentioned earlier in this article, trading fees should be one of the more important aspects when you’re comparing cryptocurrency platforms and are not left out on this Binance vs Bittrex comparison.
The trading fees of the exchange are an important aspect to pay attention to if you want to make some sort of gains or profit from trading coins. Although it should not be the final determining factor – as some exchanges do provide a more premium fee to make up for the trading fees they charge but you as the investor will have to reconsider this – everytime you make a transaction you will need to incur some sort of fee using the exchange, this could range from once or twice a day to several times a week. In the long run, the costs will definitely stack up.
As such, Bittrex is still a decent choice when it comes to trading fees as this exchange charges a flat fee of 0.25% for all transactions.. Although comparatively higher than other exchanges, it is a fixed amount so will still be able to help you save some money in the long run.
On the other hand, with Binance, they would charge a 0.1% fee on all of your transactions which is significantly better compared to Bittrex. Binance also offers one of the lowest fees charged in the cryptocurrency market. However you need to take note that this fee only applies to transactions and not withdrawal charges
For transaction fees point of view, Binance is clearly the better choice
One of the ways a cryptocurrency platform protects its users’ funds from being hacked and stolen are the different protective measures being employed by that specific platform. In the case of security, both Bittrex and Binance employ top of the line safeguarding protocols such as two factor authentication which increases safety for cryptocurrency assets of their users.
Both Bittrex and Binance recommend their users to keep and secure their coin assets and holdings on a platform that does not hold custody to their keys, a personal digital wallet or even better, a hardware wallet.
Bittrex does however provide a slight edge over Binance over this regard as Bittrex offers a very unique feature to its investors, which is that the exchange actually holds 80%-90% of all assets invested on their platform on cold storage devices – which are physical wallets that store and secure coins.
They are not connected to the internet and will need to be physically accessed to get a hold of the stored coins. What this means is that it is technically impossible for any hackers to access and steal your crypto coins.
For two factor authentication on Bittrex, you will need to navigate to select Two factor authentication on their site settings. To accomplish this, you will also require the Google Authenticator application which is available for both iPhone and Android.
As such Bittrex is commonly referred to as one of the safest platforms in the world. With that note in mind, Bittrex is a slightly better choice in terms of security.
Ease of Use
How an investor would describe a user interface of an exchange platform to be easy to use would actually depend on a variety of factors, since what might be easy to use to a veteran coin investor might be completely difficult o a newbie.
On this aspect however, both Binance and Bittrex are actually very simple to use and aim to provide a straightforward design to their user interfaces. On top of that, both Binance and Bittrex do however provide additional specific features that you might need out of a high-end crypto trading site. Examples of these would be the necessary charting graphs, prediction tools & buttons, etc.
Both sites also overall provide FAQ sections on helpful tips for trading beginners and users will be able to go through their content to see how it would benefit trading on the exchange in the process of buying and selling coins.
Another plus is that registration processes can be done fairly quickly compared to platforms that are heavily regulated and would require more personal details for registration. As such both platforms are going to provide you with satisfying features for your trading needs. So it would be an even deal for both platforms on this feature.
While comparing Binance vs Bittrex you should expect both of them to support all of the main coins such as Bitcoin, Ether, Litecoin and etc. In this case, both Binance and Bittrex actually support a rather significant amount of coins.
Bittrex supports over 200 different types of coins on their exchange while trading with Binance you can expect fewer coins to about 150.
Although based on the number of coins supported in this Binance vs Bittrex comparison, it is obvious that Bittrex is in favor, however, most investors are not even going to utilise all of the coins available for trading on the exchange and mostly focus on a couple of their trusted coins. When you are trading on an exchange with hundreds of different types of coins available, it might be more relevant only if you are a professional trader rather than newcomers or investors looking for some side income.
The number of users on either platform allows you to tell how well either trading platform is performing from a trading perspective and also what sentiments there are surrounding the trading platform within the community.
Simply said, the more user an exchange has, the more trustworthy and reliable it is going to be.
Bittrex has over half a million active users, which although is an impressive visitor count, is actually slightly lower than other major crypto platforms on the market. Binance on the other hand has over 13 million users which is a significant difference when you are comparing Binance vs Bittrex.
As such, if comparing user counts per day, Binance would be the better alternative unless one day Bittrex suddenly explodes with users.
For Bittrex you are able to deposit fiat currencies into the platform using a SEPA credit transfer, a debit/credit card or an international bank transfer. You can choose to deposit either USD Or EURO but depositing EURO will be the option with less hassle as depositing USD required more steps.
Binance also offers similar payment methods which include the international bank transfer, credit or debit card and also additional cash deposits as payment options. They also accept a variety of stablecoins to buy cryptos such as Binance USD, COinbase USD Coin, PAXOS, Tether and True USD.
Binance has a dedicated page for customer support which provides an extensive FAQ section to answer any questions its users may have. Binance also features a beginner guide on how to get started with investing on Binance’s platform. They also do have a 24/7 online chat available which you will only need to enter your email and question before being connected to a representative. An alternative would be to submit a request through email and wait for Binance’s representative to reply.
Bittrex however does not provide an online chat service and only features some basic FAQ. questions on two factor authentication, sit, coin and mobile app information. The only way to contact them would be to submit a request support ticket by logging into the site.
Binance Trading Features
After going through both features of both Bittrex and Binance, Binace actually offers other platforms and services of which we would provide a short overview below.
Binance offers margin trading that definitely boosts an investor’s profitability potential. Binance’s margin trading service allows quicker traders and make use of management through a simple interface.
Futures Trading option offered by Binance is a fantastic way for risk management and profit generation and they work by enabling both parties to be obligated to transact specific assets at a predetermined date and price. Binance offers a wonderful leverage of 125 times margin which in turn creates a competitive market. Binance allows its users to take advantage of their risk management system.
Both Binance or Bittrex can be considered as great cryptocurrency exchanges. As such when making comparisons of Binance and Bittrex you can see that both cryptocurrency exchangesare actually quite impressive in terms of the features provided as well as their reputation.
However, taking into account all the pros and cons of both platforms, Binance is clearly the better alternative unless safety is of your most important factor. This is because Binance has a higher user count, is secure and has one of the best charges offered on the market.
Although Bittrex offers plenty of exceptional qualities in terms of safeguarding features, it however does lack in some aspects when you are comparing it with Binance.
Frequently Asked Questions
Q: Which is the better alternative between Binance and Bittrex?
Online reviews will tell you that when comparing Binance and Bittrex, Binance is the better alternative as they have an exceptionally large user base and one of the most competitive charges Binance has compared to other platforms
Q: Which altcoin platform is the best for beginners?
If you did some research on the different types of platforms out there, you will find out there one thing they all have in common is that they are all convenient to use although some platforms are more beginner friendly than others, it would be unlikely that any problems will be encountered when trading on a top-rated platform.
Q: What are the main differences between both these platforms?
The main difference would be that Bittrex stores most of its assets on physical hardware wallets (cold storage) in secured locations why Binance does not do this. However, Binance has smaller trading fees at 0.1% while Bittrex offers its users a flat fee at 0.25%. Binance also has a higher user count than Bittrex at over 13 million users with Bittrex having only around 500,000. Bittrex does however offer more altcoins for investment compared to Binance.
Q: What is the difference between a crypto platformand a brokerage?
In simple terms, a traditional crypto exchange is where investors meet to exchange cryptocurrencies with another person. A crypto exchange such as Binance or Bittrex acts as a middleman and connects you with the other person buying or selling coins.
A brokerage on the other hand exchanges your crypto coins for fiat money and vice versa. There are not much distinct differences other than that as both crypto exchange and a brokerage usually fall under the term of exchange for the sake of simplicity
Q: How do I select the best crypto exchange?
In order to select the best crypto platform, you should first find out the main features all the top platforms are currently offering that are specifically important to you. For example, a good platform that you want to trade on such as Binance or Bittrex should have the best security features, or if you are mainly looking to trade on the main cryptocurrencies, the number of currencies should not matter too much for you.
In short, list out your requirements and select the best crypto that suits or meets those requirements.
With over 10 years of experience working as a financial analyst, Eric is highly aware of the potential of cryptocurrency, particularly Bitcoin, and the impact it will bring towards the global economy. He is committed to share everything he knows about crypto here at Crypto Digest News.