When it comes to cryptocurrency exchanges, there are a thousand and one options to choose from. According to CoinMarketCap, there are over 300 spot exchanges. With a number as high as 300, picking a crypto exchange can quickly become a herculean task.
In this article, I will review two popular exchanges – Binance and Bittrex – to help you decide which is best for you. I will be comparing Binance vs. Binance based on security, ease-of-use, transaction fees, and the number of supported coins.
With that said, let’s get it on…
Considering the number of hacks that have happened in the crypto exchange space, security is undoubtedly one of the first features to look out for before choosing an exchange. So far, Binance and Bittrex have maintained a relatively clean sheet when it comes to security breaches. In 2019 though, hackers were able to steal $40 million in Bitcoin from Binance.
Different exchanges employ different techniques to protect the assets of their users. The same is true for the Binance vs. Bittrex comparison.
For a start, both exchanges allow users to enable two-factor authentication (2FA). This generally adds an extra layer of security.
As per how user funds are stored, Bittrex claims to hold 80% - 90% of all its crypto assets in cold storage devices. Early in 2020, it was also announced that the exchange insured digital assets held in its cold storage up to $300 million. Binance, on the other hand, does not have an exact figure, although it claims that a large percentage of user funds are secured in cold storage. And just like Bittrex, Binance has a Secure Asset Fund for its users.
With a large percentage of user funds stored in cold storage, it is almost impossible for hackers to breach and steal your digital assets. Overall, both exchanges are great when it comes to security.
Ease of Use
Usability and interface is another important factor to consider when choosing an exchange. To an average user, this generally revolves around how easy it is to deposit funds, make withdrawals, or complete trades. It is also worth noting that “ease-of-use” differs across the board. What a professional crypto trader might find easy may be rather difficult for a complete newbie.
Comparing Binance vs. Bittrex based on “ease-of-use” is a tough one. Both exchanges have a simple-to-use interface with straightforward designs. Registration is easy, and all the necessary features that you need to complete a trade are on both platforms.
While Bittrex charges a flat 0.25% on all trades, Binance users enjoy one of the lowest fees in the market. Binance charges a 0.1% fee on all transactions. This is in addition to a 50% discount on fees for trades made using Binance Coin.
A fee of 0.25% may not mean much if you make a profit of 10% on each trade. However, depending on how frequently you trade and the amount involved, this can quickly add up to something significant. Binance is the winner of this one.
Number of Supported Coins
Early on in my crypto journey, I had to open several accounts on different exchanges, particularly, Poloniex, Kucoin, and a host of others. The reason behind this decision was because some exchanges didn’t have the digital asset I wanted to trade on.
If you are looking to exchange or trade any of the popular cryptocurrencies like Bitcoin, Ether, Ripple, or Litecoin, you can be sure to find them on either Binance or Bittrex. However, if you want to get in early on some new projects, then the number of supported coins becomes important.
Bittrex has around 200 coins listed on its exchange. Binance, on the other hand, supports fewer coins – around 150.
As far as the Binance vs. Bittrex comparison is concerned, I can't firmly say one exchange trumps over the other. Bittrex has been in the crypto exchange space since 2014, while Binance is relatively a newcomer than joined the scenes in July 2017. But in less than four years, Binance has grown to become the largest crypto exchange in the world.
Binance has close to 14 million users, while Bittrex has over 500,000 active users. The difference is quite significant but is also a testament that Binance is doing something right.
Binance boasts of a significant user base and enjoys one of the best fees in the entire industry. Bittrex is more receptive to new crypto projects and therefore has more supported coins.