Cryptocurrencies are currently the most popular application of blockchain technology – of course, Blockchain enthusiasts don’t waste time in letting the world know that there’s more to Blockchain than crypto. Nonetheless, the fact remains that the first interaction that most people have with Blockchain technology is often a function of an interest in cryptocurrencies. If you are interested in getting involved in cryptocurrency trading, you probably already know that you’ll need to start by purchasing crypto on an exchange.
You’ll most likely need to first purchase BTC or ETH with which you’ll now buy the other altcoins you want to trade. Unfortunately, most beginners are often overwhelmed by the sheer information overload relating to finding and choosing the best cryptocurrency exchange for trading. This piece attempts to provide objective comparison on two popular cryptocurrency exchanges – Binance and Bittrex – with a view to helping beginner traders make informed decisions on the choice of an exchange.
Binance is a cryptocurrency exchanged incorporated in Malta and it has operational offices in Taiwan and Japan. Learning how to use Binance is pretty simple; you can access the platform via a browser on your computer or through a mobile app on your smartphone. Cryptocurrencies are the only funding method available for funding your trading account on Binance; hence, you’ll need to first buy crypto from another platform such as Coinbase and then send the coins to your Binance wallet. Binance offers the lowest in-class trading fee of 0.10% per trade but if you use Binance BNB native token, the fees could drop to as low as 0.05%.
Binance is also designed to help you get started in your cryptocurrency trading career as soon as possible; hence, there’s no limit on the mount of cryptocurrency that you can deposit into your trading account even before you verify your identity. However, there’s a measure of verification required for withdrawals to protect your funds. Without verifying your account and ID, you’ll be subject to a daily withdrawal limit of 2BTC. Once your account is verified, the limit will be lifted to 50BTC.
Bittrex is a U.S. based cryptocurrency exchange founded in 2014 by the trio of Richie Lai, Bill Shihara, and Rami Kawach – its headquarters is in Seattle Washington. Bittrex doesn’t have a mobile app but its website functions as a web app through which you can conduct your core and ancillary trading activities. Like Binance, cryptocurrencies is the major funding method but you can do a wire transfer if you want to fund your account with more than $100,000. Bittrex charges a flat 0.25% trading fee on all trades.
Bittrex is somewhat more stringent on verifications than Binance. Of course, there’s no limit on the amount of deposits you can make into your trading wallet prior to verification; however, there’s a zero (0) BTC withdrawal limit – you can’t even withdraw a Satoshi from your account until you’ve done the verification. After your basic verification, you’ll have a daily withdraw limit of about 0.4BTC. ID verification without activating 2-factor authentication will raise your daily withdrawal limit to 1BTC. ID Verification with 2FA will raise your withdrawal limit to 100BTC.