Best Cryptocurrency Exchange Fees

4 Best Binance Alternatives for 2022 • Benzinga

4 Best Binance Alternatives for 2022 • Benzinga
Written by publisher team

Want to jump straight to the answer? The best Binance alternatives are Gemini, Coinbase, and Robinhood.

Getting approved for a Binance account can take weeks or months, which sounds like years in the crypto space.

Whether you are looking for a US-based exchange or one that will approve your account faster, we have what you need. Below is a list of the best Binance alternatives.

What is cryptocurrency exchange?

A cryptocurrency exchange is similar to the fiat exchanges you see at the airport when visiting another country. They stack large amounts of multiple currencies and provide users with the ability to swap between them for a small fee.

There are two main types of cryptocurrency exchanges: centralized and decentralized.

Centralized exchanges like Binance, Coinbase, and Gemini offer more services but they should be trusted.

Decentralized exchanges (DEXs) are based on the blockchain and are therefore decentralized. The most popular DEX on the Ethereum blockchain is called Uniswap. Liquidity on Uniswap is provided by other users who are known as liquidity providers, who earn trading fees rather than an individual company.

Decentralized exchanges require trust in open source smart contracts rather than human bankers, which is their main selling point.

What makes Binance unique?

Binance is known for its huge variety of trading pairs, including cryptocurrencies that most other exchanges consider to be too speculative for their investors.

Binance also differentiates itself from competitors with its own smart contract blockchain, the Binance Smart Chain (BSC).

While the Ethereum network currently has more than 5,000 active nodes securing the network, the Binance Smart Chain is secured by only 21 validators. While this is great for scalability, it is also very bad for security.

Despite its shortcomings, BSC consumed much of the Ethereum DeFi ecosystem in early 2021, as more and more users were pricing in Ethereum’s gas fees.

Pro tip: As Ethereum scales through Layer 2 and sidechain solutions, you can expect to see a lot of value coming back into the Ethereum ecosystem.

Why Binance Might Not Be Right for You

While Binance is technically not available to US clients, Binance operates a feature-limited arm for US clients, Binance.US. Binance.US offers access to much fewer cryptocurrencies and requires Know Your Customer (KYC) compliance to create an account.

General Complaint: Unreliable

Binance is a centralized exchange operated by Changpeng Zhao, more commonly known as CZ. Binance has struggled to find a home, moving its headquarters multiple times only to be ousted by every government trying to prosecute.

Binance does more volume than any other crypto exchange in the world. It is also under investigation by the IRS and the Department of Justice as of May 2021.

As mentioned earlier, centralized exchanges require the company to be trusted. For many, Binance has yet to earn their trust. These users usually choose US-based or decentralized exchanges instead.

What to look for in a cryptocurrency exchange

When choosing a centralized cryptocurrency exchange to turn your cryptocurrency on and off, you want one that you trust.

In general, your best bet is to choose a well-vetted US-based exchange like Coinbase, Gemini, or Robinhood. A publicly traded exchange is an added bonus as they are likely to take extra security measures for the benefit of their shareholders.

Best Alternatives to Binance

Consider these good alternatives: