From what was once a very simple marketplace for you to buy and sell digital tokens with other people, cryptocurrency exchanges have undergone a tectonic shift in design and purpose over the few years. Now, they provide far more than just literal ‘exchanging' and instead builds upon new products like futures contracts, tokenized stocks, leveraged tokens, high margin trading, over the counter (OTC) trades, and so much more. Now, we're going to take a closer look at FTX vs. Binance.
FTX and Binance: these are two of those platforms among the do-it-all exchanges that offer their users practically every tradeable item that they could bet their money on without ever having to switch tabs. But if you could only pick one, which would it be… FTX, or Binance? Do you value having a very liquid and active exchange? Or, would you willingly sacrifice a bit of that for the privilege of having more instruments to play with? Well, read along our FTX vs. Binance comparison to learn more.
FTX vs Binance Comparison Table
|Available Trading Pairs: 1219+||Available Trading Pairs: 579+|
|24 Hour Trading Volume: $64,000,000,000+||24 Hour Trading Volume: $3,400,000,000+|
|Software Support: Web Browser, Mobile (iOS, Android)||Software Support: Web Browser, Mobile (iOS, Android)|
|Security: Good||Security: Good|
|Fiat Currency Support: Yes - Deposits And Withdrawals||Fiat Currency Support:Yes (Deposits And Withdrawals)|
|Ease-of-Use: Easy||Ease-of-Use: Easy|
FTX vs Binance – Main Differences
Although they are both very similar as exchanges that offer plenty of services within them, there are some key differences that we're going to highlight in our FTX vs Binance guide. For a start, Binance has significantly larger trading volumes than FTX, as well as a more diverse ecosystem around its exchange. Meanwhile, FTX is more honed in as an exchange rather than an expansive network, and in some cases, offers more crypto-focused derivatives and investment products than Binance.
What is FTX?
As with Binance, FTX is a centralized cryptocurrency exchange that brings with it a very large and diverse range of markets to trade with, such as spots, futures, derivatives, predictions, stocks, and more. Formed in 2019, FTX was created by Alameda Research, which manages over $100-million in digital assets, as well as having proactively sought after investments and early funding for many crypto-native companies and platforms. As of now, FTX is being run as a subsidiary of Blockfolio.
At the time of writing, CoinMarketCap puts FTX's 24-hour trading volumes at just over $3,400,000, across more than 579 different trading pairs. As we'll learn later in our FTX vs Binance comparison, this is relatively paltry when put next to Binance. However, FTX is gaining in both popularity recently, as well as rapidly increasing active trade volumes, despite its youth. Just like Binance, however, FTX isn't able to offer its regular services to US-based users, which are routed to its subsidiary, FTX.US.
How Can You Invest and Trade With FTX?
We've mentioned earlier that when looking at FTX vs Binance, we can see that FTX has a much bigger variety of markets that users can trade against the outside of regular spot trading. Betting on futures is a must-have feature today, and FTX offers them flexible perpetual and fixed date contracts on a huge number of crypto and traditional (albeit crypto-backed) assets. It's here that FTX gained publicity after Bloomberg reported that they're building futures based on the price of lumber.
Another staple and popular market for FTX is stocks. In this case, they've partnered with Germany's CM-Equity to tokenize these stocks – from the likes of Tesla, Amazon, Uber, Airbnb, Netflix, Google, Apple, Facebook, GameStop, AMC, and so on – to have their underlying value and performance be exposed and traded with cryptocurrencies instead of fiat. They could even be subdivided into smaller units, as well as allowing users to actively trade these stocks even when regular markets close.
Using the idea of tokenization to represent a market instead of just a single asset, FTX also allows users to buy and sell leveraged tokens. These are specially-designed tokens that track the performance of underlying crypto with leverage applied to its value by default while having the benefit of offsetting the risk of liquidation. FTX has quite a few of these leveraged tokens that you can bet on many of the popular cryptocurrencies with up to 3x leverage for both long and short trades.
What Else Could You Do on FTX?
Just as we've seen thus far in the comparison of FTX vs Binance, the former has a massive variety of unique markets and products for users to trade with. Not only that, they have a lot more on offer, as well. They have volatility index trading, with which FTX has made a specialty index built to track the price and market volatility of a particular cryptocurrency or asset. You can then trade from this volatility directly, which is calculated based on set time frames by the day, week, month, quarter, and so on.
You can thus trade the volatility of the market itself, not just the asset underneath. Another market that you can dabble with is prediction markets, where users can bet on future events, such as whether someone is going to win an election or if the Olympics will continue to be held this year. You can then earn rewards for correctly predicting what's going to happen. Aside from that, FTX allows users to directly trade fiat currencies from its platform, alongside cryptocurrencies.
What is FTX's FTT Token?
We can't move on with our FTX vs Binance comparison without making a mention of FTX's native cryptocurrencies, the FTT token. Just like Binance's BNB, FTX's FTT is a utility token designed to encourage more users to join up and trade on FTX. It does this with incentives such as discounting your trading fees on FTX anywhere from 3% and all the way to 60% just for holding FTT in your account. There are a lot of extra perks aside from that too, which you can earn by staking FTT.
Doing so would expose you to higher referral rate rewards, even further rebates on your maker (trading) fees, and increase your chances of getting an airdrop for newly introduce tokens into your FTX account. Moreover, staking FTT gains you extra bonuses such as additional votes to see which tokens are going to be listed next on FTX, some free daily waivers for your outbound Ethereum blockchain gas fees, and more tickets to take part in initial exchange offerings (IEOs) on FTX.
What Are the Deposit and Withdrawal Options on FTX?
Just as we highlighted in the above FTX vs Binance comparison table, you can see that deposit and withdrawal options for fiat currencies on FTX are somewhat more limited than Binance and some other exchanges. Although bank and international wire transfers are supported, as well as easily buying or selling select cryptocurrencies with a credit card via VISA and Mastercard, many popular third-party payments services – like PayPal, Simplex, Banxa, Apple Pay, and so on – aren't supported.
How Much Are the Fees on FTX?
Compared to Binance, FTX charges much lower fees. You can see the trading fees in greater detail on FTX's webpage, but we've noticed that withdrawal and trading fees are cheaper overall on FTX. That's not to mention all the added benefits of owning FTT tokens, which could lower those trading fees even more. This could now be an attractive proposition to a lot of high-volume traders. In some cases, you might not at all be required to pay any fees if you hold and stake enough FTT tokens.
Overall, we can conclude the first half of our FTX vs Binance with a due sense of admiration for FTX's continued commitment towards the diversity of its products, with plentiful options and markets for traders to choose from. They're even going to build the Quant Zone, which is a built-in service for traders to program and fine-tune their own automated trading algorithms. Just when you thought they're done, FTX never fails in complementing its platform with as much stuff to do as possible.
What is Binance?
Binance is by far the world's biggest and most popular cryptocurrency exchange, both when counting its more than 13-millions user around the world, as well as daily trading volumes of more than $64,000,000,000 spread across over 1,219 trading pairs. Founded in 2017, Binance is now the de facto exchange for many people when getting into cryptocurrency trading, not only with exchanging tokens, but also interacting with an extremely diverse, highly lucrative, and complex set of markets.
As we looked at earlier on in our FTX vs Binance comparison, this is leaps and bounds bigger than FTX, which should offer up more variety in choosing the tokens they'd want – as obscure tokens are more likely to be listed on Binance than FTX – as well as deep pools of liquidity for competitive pricing. Binance is continually growing in popularity, but despite having a specialized Binance, as a US subsidiary that caters to US-based users, they have now come under investigation by the DoJ and IRS.
How Can You Invest and Trade With Binance?
Although we've noted thus far in putting FTX vs Binance side-by-side that Binance lacks the depth and diversity of derivatives products compared to FTX, Binance does offer much riskier and very attractive investments, sometimes akin to decentralized finance. This includes services such as staking to earn safe and passive rewards, taking part in mining pools to create new tokens, instant crypto-backed lending, and borrowing, as well as earning yields upwards of 70% from liquidity pools.
These are quite popular amongst many users and opens up new ways that you can invest your idle assets aside from actively trading the market. But if trading is what you're looking for, then Binance does offer that in spades, too. A large basket of tokens is made available for trading futures contracts with up to 125x leverage through the USD-M and Coin-M futures that are margined with USDT and various cryptos, as well as being able to trade T-type Vanilla Options to go long or short.
Just like FTX, we're going to see some familiar products here, such as leveraged tokens that can expose you either long or short with up to 4x leverage without the risk of liquidation. A new addition to Binance is stock tokens, once again mirroring FTX. Regular stocks that are tradeable with cryptos, you can buy shares of companies that include Tesla, Microsoft, Apple, Coinbase, and MicroStrategy. That said, both leveraged tokens and stock trading on Binance have a fewer variety of assets than FTX.
What Else Could You Do on Binance?
Binance is rapidly growing beyond just an exchange, as it now has developed into a very diverse ecosystem. Thus, there are a lot of perks to joining the Binance exchange if it means being able to seamlessly have access to them. One such example is Binance's Trust Wallet, which is now one of the most popular cryptocurrency wallets worldwide. It has more than 5,000,000 users and is jampacked with features including support for over 160,000 different assets, including NFTs and more.
With a single tap, the Trust Wallet allows you to natively stake tokens to earn more rewards or turn itself into a Web3 browser. Moreover, Binance is becoming a financial giant on its own, thanks to the Binance VISA Card. Here, you can use your cryptocurrencies stored safely on the Binance exchange to very easily swipe and pay with more than 60-million merchants around the world. There aren't any fees attached to using it, and you could be eligible to earn up to 8% cashback on your purchases.
What is Binance's BNB Token?
A continuation of the previous point we made in our FTX vs, Binance comparison, Binance has rapidly stretched its reach into becoming the creator of not one but two in-house developed blockchains – the Binance Chain and smart contracts capable Binance Smart Chain (BSC). The latter underpins a huge portion of the DeFi protocols and powerful dApps today that aren't Ethereum-based. With BSC's popularity, we have to mention Binance's own native cryptocurrencies, the BNB and BUSD.
The BUSD stablecoin adds a safe and involatile transfer of value within Binance. Meanwhile, BNB behaves just like FTX's FTT tokens. As one of the most valuable cryptocurrencies, the BNB token was created to incentivize users to trade more on the Binance exchange. Aside from its mind-bogglingly appreciative value owing to Binance's aggressive buyback and burn campaigns, holding BNB in your account can net you a 25% discount on trading fees and an extra 20% kickback for referrals.
What Are the Deposit and Withdrawal Options on FTX?
Compared to earlier on in our FTX vs Binance review, Binance affords its users a far easier on- and off-ramp for fiat currencies, with support for US Dollar, Euro, British Pounds, Australian Dollars, Canadian dollars, and over 40 more. This is spread across a wide array of options that you can deposit or withdraw your assets with, such as a standard bank transfer or instant purchase using your credit or debit card, as well as third-party options such as PayPal, Western Union, and a lot more.
How Much Are the Fees on Binance?
Based on our FTX vs Binance comparison table, we can see quite clearly that Binance charges far higher fees in relation to FTX, sometimes up to 5x as much. Just like the latter, Binance uses a tiered fee structure that calculates your trading volumes to set trading fees accordingly. Thankfully, you can do a lot to reduce these fees by getting discounts using BNB. Nonetheless, while Binance's fees might seem high in comparison to FTX, they are actually rather low compared to other large exchanges.
Ending the latter half of our FTX vs Binance comparison, there's a good reason why a lot of people continue to stay loyal to Binance. Its ease of use and highly liquid exchange with a massive selection of tokens are the main attractions. For traders, Binance may not show as much variety in terms of unique markets, but what's there – like Binance's futures market and margin trading – has proven to give some of the most competitive prices, as well as offering a big slice of DeFi to earn extra yields.
FTX vs Binance – Conclusion
So then, now that we're wrapping up our FTX vs Binance comparison have we decided on a winner? Which is the best cryptocurrency exchange that can practically do anything you ask it to… FTX, or Binance? Quite clearly, Binance has taken a big lead over not just FTX but pretty much every other exchange in the extensive world that they've built. Within the Binance exchange, you have a marketplace that is teeming with possibilities and markets that you can trade your heart out.
Outside of Binance, it gives the users everything from an immensely powerful blockchain to wallets and a card that you could realistically use. However, Binance can't have covered every single base, and that's why we're still giving a hearty recommendation for FTX. It may not have the same reach as Binance, but the sheer depth of its trading platform is truly incredible. One thing is for certain; regardless of which one you pick, they're both very featureful and versatile exchanges for your crypto tokens.