Binance vs Bittrex, are two of the biggest cryptocurrency exchanges in the world. It is hard to overstate the importance of exchanges in the crypto ecosystem. As the way things stand right now, with the lack of functional interoperability between the fiat and crypto world, exchanges act as the only legitimate bridge that connects both these worlds. There are two main types of exchanges out there:
- Fiat-to-Crypto: These are the most beginner-friendly exchanges out there. These exchanges will allow you to buy cryptocurrencies in exchange for fiat. Coinbase is an example of a fiat-to-crypto exchange which will let you buy BTC, BCH, LTC, and ETH in exchange for Fiat currency.
- Crypto-to-Crypto: Crypto-to-crypto exchanges will help you exchange certain cryptos like BTC, ETH, BCH, etc. for other cryptocurrencies.
Now that you have some information, let’s get Binance VS Bittrex started.
Binance vs Bittrex: Getting Started
Bittrex is a US-based cryptocurrency exchange headquartered in Seattle, Washington, founded back in 2013 by Bill Shihara and Richi Lai, who were previously security professionals at Microsoft. As per Wikipedia, “Corporate customers based in the U.S. states of Washington, California, New York and Montana may trade using U.S. dollars held in Signature Bank of New York.” Bittrex had around $60 million worth of trading volume over the last 24 hours.
Bill Shihara: The CEO of Bittrex was previously a Security Engineering Manager at Amazon, and he also served as the Manager of Security Threat Analysis and Security Engineering at BlackBerry. Prior to his position at BlackBerry, he spent 11 years at Microsoft working on the Windows Operating System and the Trustworthy Security team.
Richie Lai: Lai is the Chief Information Officer of Bittrex. He previously served as a leader in the Amazon Information Security Team, where he managed a global 24/7 Security Operations Center responsible for Security Operations, Incident Response, External Threat Intelligence, Advanced Monitoring and Analysis, Vulnerability Management, Application Security as well as a development organization that supported all these efforts. Before joining Amazon, Richie spent 12 years at Microsoft building up their security engineering and Internet crimes division.
Rami Kawach: Kawach is the Chief Technology Office of Bittrex. Prior to Bittrex, he served as a Principal Security Engineer at Amazon, managing a wide variety of security issues. Rami also previously served as the Director of Engineering at Qualys, where he was the architect of their next-generation vulnerability management solution and malware detection system. Prior to Qualys, he spent 10 years at Microsoft where he led multiple projects, including Microsoft’s botnet monitoring and mitigation efforts.
Features of Bittrex
On their website, they have listed the following features as the ones that set them apart from the crowd:
- Security: Bittrex uses an elastic, multi-stage wallet strategy to ensure that the majority of funds are kept in cold storage for additional safety. They have also enabled two-factor authentication for all users and a host of additional security features to provide multiple layers of protection.
- Trading Engine: Their trading engine has been custom built and designed to be scalable, to ensure that orders are executed in real-time. They also have easy-to-use APIs which supports third-party trading platforms and algorithmic trading.
- Fast deposits and withdrawals: A highly efficient and automated monitoring platform allows them to provide their users with the quickest transaction and updates on balance, trade, and wallet information.
- Driving Innovation: Bittrex seeks to provide its users with an ever-growing selection of blockchain technologies and digital tokens, and all new digital tokens listed on the trading platform must complete a rigorous review process.
- Commitment to compliance: Bittrex is compliant with all current U.S. regulations that help prevent, detect and remediate unlawful behavior by customers and virtual currency developers.
Creating an Account
When you sign up on Bittrex, you will get the following page:
Create your account by putting in your email address and password. After that, you will receive a verification email in your inbox.
Now, you will be agreeing on the terms of service.
Now, you will have to create your basic profile. Enter the relevant details.
Up next, you will need to verify your identity.
The documents you will need to submit are:
- An ID document, preferably your passport.
- A passport-sized photo.
Both of them should be unedited and must be a JPG or a PNG file. If you have uploaded a clear photo, then verification shouldn’t take much time.
Once you are in, you can interact with Bittrex’s interface.
Once you click on a trading pair, you will be able to interact with the charts and apply technical analysis. The charts are available in the following time periods – 1-day , 7-day, 30-day, 4-hour, 1-hour, 30-mins, 15-mins, 10-mins, 5-mins, and 1-min.
Binance is a Malta-based cryptocurrency exchange that gives users access to a robust set of trading tools, charts and security features. Following a successful initial coin offering (ICO), Binance began live trading in July 2017. Since early 2018, Binance is considered as the biggest cryptocurrency exchange in the world in terms of trading volume. Along with that, Binance has also released a cryptocurrency called Binance Coin and a blockchain platform called Binance Chain. Binance has enjoyed a reported volume of $2,289,072,768 in the last 24 hours.
Binance used to be initially headquartered at Shanghai, China, but following various regulatory obstacles, they moved their servers and headquarters to Japan. However, in March 2018, they received an official warning from the Japanese financial watchdog Financial Services Authority (JFSA), to shut down their operations in the country. That’s when they moved over to Malta.
Changpeng “CZ” Zhao -The Binance Founder
Changpeng Zhao or “CZ” as he is more popularly known, is the CEO of Binance and one of the most influential and wealthiest figures in the cryptospace. Forbes listed the 41-year old’s personal fortune to be somewhere around a billion dollars. CZ’s story is probably one of the most inspiring one out there and a testament to what one can do with sheer hard work. In a period of 6 months, this man went from establishing Binance to becoming a billionaire.
Early Life and Education
CZ was born in Jiangsu, China to a family of educators. In the late 80’s his family decided to move abroad to Vancouver, Canada after they were temporarily exiled from China. In order to help out his family, CZ started flipping burgers at McDonald’s and working an overnight shift at a local gas station.
He then attended McGill University in Montreal where he studied Computer Science but he also showed an uncanny ability in futures trading and Stock Market.
After finishing up college he traveled the world for a bit, spending some time in Tokyo and New York. After that, he spent a few years sharpening his skills in trading software before ending up at Bloomberg in NYC. Over there he was in charge of designing and developing software solutions for future trading. His growth was so exponential that by the end of his tenure he was responsible for managing teams in different locations such as Tokyo, London, and New Jersey becoming the Bloomberg Tradebook Futures Development Chief. He left the company after 4 years.
After leaving Bloomberg, he found his first company, Fusions Systems. He would give 8 years of his life to Fusion creating a number of rapid high-frequency trading systems that became popular with many brokers.
CZ’s first foray into the blockchain world was working for Blockchain.info aka Blockchain. Over there he worked with some of the most well-known names in the space, Roger Ver and Ben Reeves. CZ played a vital role in transforming the company to become one of the most important Bitcoin storage services in the world. He improved the company’s credibility in Asia and developed a lot of products for the company’s API. He also took part in the acquisition of ZeroBlock, an information service provider.
He left after a year to join OkCoin. CZ said that his departure was amicable and he was still in friendly terms with the Blockchain team.
CZ joined OKCoin, the largest Bitcoin exchange in China at that time, as the Chief Technical Officer in 2014. OKCoin specialized in fiat-to-crypto asset trading. Unfortunately, the working relationship ended in less than a year with the company owing CZ around $10,000. The split was very inamicable and according to CZ, there was a lot of problem with OKCoin, chief among them being a dispute between the company and Roger Ver.
After leaving OKCoin, CZ was keen on starting his own cryptocurrency company. Taking advantage of the 2017 ICO boom, he launched the Binance ICO which would end up raising $15 million. Leveraging all the experience that he had garnered over the years, CZ managed to create a cryptocurrency exchange platform which had inbuilt scalability features right from the beginning of the project
Features of Binance
- Binance Coin: Binance has a native token called Binance Coin aka BNB which was based on the Ethereum blockchain. The coin was eventually ported to their own Binance blockchain.
- Order Matching: Since Binance is an extremely popular exchange, it has a robust matching engine that can 1,400,000 orders/second. This makes Binance one of the fastest cryptocurrency exchanges in the market.
- Liquidity: Liquidity is a massive necessity for exchanges. Binance trades more than 400 cryptocurrencies and has the busiest order book in the crypto market. The cryptos are trading at highly competitive prices, which helps the exchange to process a trading order most quickly.
- Multilingual Support: To make Binance accessible by people from all across the world. It is a multilingual platform and is available in 13 languages which include English, Chinese, Japanese, Spanish, French, Italian, Russian, Korean, German, Dutch, Vietnamese, Portuguese, and Turkish.
- Device Coverage: Staying on the point of Binance accessibility, the platform is also available on multiple platforms. It is available in two modes: a basic mode and an advanced mode for more in-depth analysis of cryptocurrencies. Binance is available on the following platforms: web-based trading client, windows native client, native Android client, HTML5 client on mobile, and REST API.
Creating an Account
Firstly, simply go to binance.com and click on register.
You just need to enter your Email and create a password. Up next, you will be made to prove that you are human by solving a jigsaw puzzle. And no, it is nothing complicated, all that you have to do is to drag your slider towards the right.
After that, you will be sent an email. Just on the click in it to be redirected to Binance. Now, you will have to go through the Safety Risk Notice.
When you have gone through all that you will finally be redirected to your dashboard next:
NOTE: We recommend that you enable Google 2FA as well.
Binance provides a very simple and easy to use interface. You can use the following guides to get an in-depth knowledge of how trading in Binance works:
Binance Coin and Binance Chain
We can’t really talk about Binance without bringing up Binance Coin and Binance Chain. Binance coin is used by users to pay the fees charged by Binance exchange for using the services. These fees include, but are not limited to trading fees, exchange fees, and listing fees. Along with being used as a payment token, BNB is also used for collecting revenue on the platform.
Binance has created a total of 200 million BNB tokens. The exchange held its ICO between July 14 – 27, 2017. The total allocation of the token is as follows:
- 50% of the BNB tokens (100 million) are reserved for the ICO.
- 40% of the BNB tokens (80 million) are allocated to the founding team.
- 10% of the BNB tokens (20 million) are reserved for the Angel investors.
Utility of BNB Coins
Binance divides user properties into BNB tokens in 3 categories, useBNB, buyBNB, and storeBNB. Binance mostly uses BNB to collect various fees levied for using the platform, such as trading, withdrawing, listing, etc. Binance usually charges a trading fee of 0.1%, but if users pay these using BNB, then they can claim a discount. The discount rates are predetermined every year. The discount is halved every year, which means:
- July 2017: 50%.
- July 2018: 25%.
- July 2019: 12.5%.
- July 2020: 6.75%.
- July 2021: 3.375%.
- After the fifth year, the discount ceases.
BNB Burning Mechanism
“Burning” is a mechanism, wherein tokens are burnt from the ecosystem to manage the supply and demand of the ecosystem. Binance has a repurchase program of Binance Coin which means that they use 20 percent of the profit to buy back BNB tokens. Binance burns the repurchased coins until the maximum number of tokens are repurchased, which is 50% or 100 million tokens. The result of the quarterly burning is as follows:
- 1st quarter: 986,000
- 2nd quarter: 1,821,586
- 3rd quarter: 2,222,314
- 4th quarter: 2,528,767
- 5th quarter: 1,643,986
- 6th quarter: 1,623,818
Since BNB has already been premined, there is no mining in the BNB ecosystem. Users who wish to possess BNB can acquire it by exchanging on a cryptocurrency exchange. Trust Wallet, a mobile wallet for Ethereum-based tokens, was acquired by Binance and acts as its official wallet.
Binance Coin Price Chart
Let’s look at the price progress of BNB coin. The chart above is the monthly price of BNB/USD. From July 2018 to July 2019, BNB/USD has gone up from $13.70 to $33, charting a 140.87% increase in price.
Binance developed its blockchain platform called Binance Chain. Unlike Ethereum, Binance Chain is not a DApp platform and doesn’t support smart contracts. The sole purpose of the chain is to be an efficient platform for issuing tokens and trading them. The token standard used by Binance Chain tokens is called BEP2. On top of the Binance Chain runs the Binance DEX, which allows users to place orders to trade between different assets issued on Binance Chain.
Bittrex VS Binance Comparison
Now that we have some background information on both Bittrex and Binance, let’s go through some comparisons.
#1 Trading Fees
Once you’ve deposited some crypto on an exchange, you need to pay attention to its trading fees. All these exchanges take a percentage of each trade you make.
Bittrex: Bittrex charges a flat trading fee of 0.25%.
Binance: Binance charges a flat trading fee of 0.1%, which can decrease even more if you use BNB tokens (as has been discussed above).
When it comes to trading fees, Binance is the clear winner.
#2 Binance VS Bittrex: Security of the Exchange
Exchanges are a popular attack target for hackers since they are centralized and deal with lots of money.
Bittrex: Offers email confirmations for transfers and two-factor authentication for logging in. Every time you make a trade, you’ll receive an email with a confirmation link each time you submit a transfer from your Bittrex wallet to any other wallet. Bittrex is four years older than Binance and hasn’t been hacked yet.
Binance: It also offers two-factor authentication and email confirmations.
Even though they are both secure, you should never store your coins in an exchange. You should always store them in a cold wallet like hardware and paper wallet. Read more about these cold wallets here.
#3 Binance VS Bittrex: Ease of use
We have already gone through the setup process above. You need to verify your accounts with a photo ID. Once registered and verified, you will receive a confirmation email that tells you that you can start trading. When it comes to actual usage, they are not easy for beginners. Both of the interfaces will need some getting used to before you can get comfortable with them.
#4 Binance VS Bittrex: Customer support
Bittrex: When compared to Binance, Bittrex doesn’t match up when it comes to customer support. Bittrex has received complaints to be a little slow in responding to customer queries.
Binance: Binance has a high-level of customer support and they are pretty prompt in responding to the customers via email and social media.
#5 Binance VS Bittrex: Mobile Trading
Bittrex: They don’t have a mobile app.
Binance: They have a mobile app for both Android and iOS users.