When it comes to cryptocurrency exchanges, there are too many options available out there. However, there are only a few of the names that most people talk about. Two such names are FTX and Binance. Both of the exchanges are extremely popular and known for their offerings. But what if you have to choose only one?
Well, to help you make the decision, I am going to share a FTX vs Binance comparison with you. So you can find the right crypto exchange as per your crypto trading needs.
So let’s get into the topic right away:
FTX Overview
FTX is one of the popular cryptocurrency exchanges out there. It is centralized in nature, and it separates itself from its competitors by offering innovative trading products.
Using FTX, you can trade in options, derivatives, and leveraged tokens. Plus, it allows you to trade in more than 300 cryptocurrencies, and the number of coins is continuously increasing with time.
Also, FTX.US, which is the USA platform of the exchange, is said to be the world’s largest crypto exchange. FTX is a great option for active traders, and it has competitive trading fees. You can also buy and sell NFTs and much more.
Binance Overview
Binance is another popular cryptocurrency exchange out there. This one is designed for experienced crypto investors. But if you are a newbie, you wouldn’t really have trouble using the exchange.
Binance is known for offering low trading fees and a wide selection of cryptocurrencies to trade globally. However, its trading options are limited in the USA.
Apart from crypto, you can also trade in other trading products on Binance. Such as perpetual futures contracts, leveraged tokens, and derivatives. Plus, you get to enjoy the leverage of up to 125x.Â
FTX vs Binance: Supported Coins
FTX and Binance are undoubtedly two of the biggest crypto exchanges out there. Both of them offer you hundreds of cryptocurrencies to trade.
On one hand, FTX supports more than 300 digital assets on its international trading platform. Also, you get to enjoy different trading pairs.
However, if you compare FTX vs. Binance with the number of tokens and coins available, Binance is the clear winner. It supports all the major cryptocurrencies and has more than 500 digital assets on its global trading platform.
Also, both of the exchange’s US platforms have a limited number of cryptocurrencies.
FTX vs Binance: Trading Fees
Both the exchanges have the lowest trading fees in the industry. On one hand, FTX doesn’t really charge you any fee for depositing or withdrawing. Also, there are no further settlement fees.
On leveraged tokens, you can enjoy a fee of 0.10% for creation and redemption and a daily management fee of 0.03%.
Furthermore, for the futures and options market, FTX has a tiered fee structure based on 30 days trading volume.
Also, for Level 1, the maker fee is 0.02% and the taker fee is 0.07%. However, if you trade in a higher volume of more than 1 million over a 30 days period, the fee will get reduced.
Furthermore, when you use leverage trading of up to 50x, the trading fee stands at 0.02% and if you use 100x leverage, then the trading fee would be 0.03%. To reduce the trading fee, you can use FTT token for all your fee payments and enjoy a discount ranging between 3 to 60 percent.
On the other hand, Binance doesn’t have a complicated fee structure. But instead it follows a simple tiered fee structure which is based on 30 day trading volume. Traders at level 1 or VIP 0 having a trading volume of less than 50 Bitcoin, will have to pay 0.1% as the trading fee.
Also, you can reduce the trading fee when you pay using a BNB token. By paying using BNB which is Binance’s native coin, you will enjoy a discount of 25%. But still, the overall maker and taker fee on Binance is a bit higher than what FTX charges.
FTX vs Binance: Security
Security is another important factor to consider. After all, you don’t want your assets to be stolen. Luckily, both the exchanges have best in class security features in place.
On one side, FTX follows regular security checks to prevent any unauthorized access. It offers mandatory password strength and 2FA. Also, it has 2FA for placing withdrawal requests and changing the withdrawal password.
FTX also tracks and monitors website traffic and user activity to prevent any suspicious activity. Plus, it has additional security protocols like whitelisting IP addresses and so on.
Similarly, Binance also has multi tiered security features and ensures that the exchange is always safe. To secure users’ accounts, it offers two factor authentication to prevent any unauthorized account access.
To secure your funds, Binance uses cold and hot wallet combinations, and it keeps most of the exchange assets in cold storage, which is discounted from the internet. So the assets cannot be stolen.
On top of that, Binance also has an insurance fund. The insurance fund helps traders with an extra layer of security.
If the market does not go their way and their positions are forced into liquidation, traders are guaranteed never to lose more than they invested. However, Binance has a history of a hacking attack.
FTX vs Binance: User interface
Both of the exchanges offer a similar trading interface. However, FTX offers a few features that allow active traders to execute trades quickly. One such feature is the position calculator.
Using this tool, you can set take profit and stop loss levels. So you can calculate your risk and reward factors pretty easily. The tool is suitable for both beginners and advanced traders.
In the same way, Binance also offers you some unique trading features. Like there is an earn tab that allows users to access savings programs like Ethereum staking, DeFi, and launch pool for new tokens.
This way, you will get to know about newer projects in the crypto industry and be an early investor in something big.
FTX vs Binance: Customer Support
Now let’s talk about customer support. Both the exchanges are great when it comes to providing services to their customers.
To reach out to FTX, you directly write to their email address, and they will get back to you at the earliest.
They also offer an FTX telegram community that can be used to receive service. There is also a special group chat for trading talks, or you can ask questions and other FTX can assist you.
Binance, on the other hand, offers a virtual chatbot feature that directs you to their commonly faced issues on the platform. You can go through the existing knowledge base to find answers to your queries.
But if you need further help, then you can raise a support ticket via an online form on the website. The support team responds to queries pretty quickly.
Overall, getting support from any of these two platforms won’t be hard. As they do have an active support team and a few resources which help you solve all your queries.
Final Words
So that was all for FTX vs Binance. I hope this comparison helped you to figure out the right exchange for your needs. In case you have additional questions, feel free to drop a comment below.
Also Read: How Crypto Futures Trading Differs From Spot Crypto Trading?
