Benzinga's top picks for the best Binance alternatives include Coinbase, eToro and Robinhood.
Binance has long been a leading player in the cryptocurrency exchange market, offering a robust platform for traders to buy, sell, and trade a wide variety of digital assets. However, recent regulatory hurdles and legal challenges have prompted many users to seek out alternative exchanges. These alternatives cater to diverse needs, including those looking for platforms based in the United States or seeking expedited account approvals. Benzinga has compiled a list of top alternatives to Binance, ensuring that users can find trading options that align with their requirements while navigating the evolving regulatory landscape. This shift highlights the importance of adaptability in the rapidly changing world of cryptocurrency trading and the need for users to stay informed about their choices.
Quick Look at the Best Binance Alternatives:
- Best for Coinbase Learn: Coinbase Pro
- Best for Social Investing: eToro
- Best for New Investors: Gemini
- Best for Buying and Selling Dogecoin: Robinhood
- Best for Mobile Traders: Voyager
Top 5 Best Binance Alternatives
Whether you are seeking better features, lower fees, or just a change of scenery, there are several options available to consider as an alternative to Binance.
1. Best for Coinbase Learn: Coinbase Pro
Coinbase offers two platforms for the retail investor: Coinbase and Coinbase Pro. Coinbase is targeted toward the beginner and has one of the best user experiences of any crypto app on the market. For a slightly more experienced user who is accustomed to spot trades and lower fees, Coinbase Pro is the way to go. Coinbase Pro is slightly more limited when it comes to UX but features more trading pairs and significantly lower fees than its Coinbase counterpart. The best part is, Coinbase Pro is completely free and uses the same login.
Coinbase also offers free off-chain asset transfers from the Pro app to the normal app. So if you want to take advantage of the low fees on Pro and the UX of the regular app, you can do that for free.
Why We Liked It: Coinbase Pro offers a user-friendly interface and a wide range of trading options, making it a good option for beginners and experts alike. Additionally, Coinbase Pro has a strong reputation for security and reliability, giving users peace of mind when trading. While Binance may offer more advanced features and a larger selection of cryptocurrencies, Coinbase Pro is a solid choice for those new to the game.
2. Best for Social Investing: eToro
eToro stands out as an appealing alternative to Coinbase due to its integration of social trading features that cater to both novice and experienced investors. eToro's CopyTrader feature allows users to replicate the trading strategies of successful investors in real time, thereby fostering a collaborative trading environment. This is especially advantageous for beginners who may feel overwhelmed by the complexities of cryptocurrency trading and lack the expertise to navigate the market independently. Furthermore, eToro enhances the user experience by offering a demo account for practicing with virtual funds. This allows users to build their confidence and understanding of trading without the risk of losing real money. This combination of social interaction and risk-free practice makes eToro a compelling platform for those looking to engage with cryptocurrencies.
Why We Liked It: eToro supports a wider range of asset classes, including stocks, ETFs and cryptocurrencies, providing a more diversified investment platform. Plus, its social trading and virtual trading account features can be beneficial for those who are less experienced in trading.
3. Best for New Investors: Gemini
The Gemini exchange is based in New York City and was created by the Winklevoss Twins. Gemini features a solid list of altcoins and has a beginner-friendly user interface.
Gemini also features a staking platform that allows its users to earn passive income by staking their idle currency.
Gemini is a solid pick for beginners and even intermediate users who are just looking for an on-off ramp from fiat.
Why We Liked It: Gemini is known for its strong regulatory compliance and transparency, making it a trustworthy platform for those new to the world of cryptocurrency trading. With features like educational resources and excellent customer support, Gemini provides a supportive environment for beginners to navigate the complexities of investing in digital assets.
3. Best for Buying and Selling Dogecoin: Robinhood
- Best For:Buying & selling DogecoinVIEW PROS & CONS:securely through Robinhood Crypto's website
Robinhood is a brokerage for both stocks and cryptocurrencies, making it a great option for investors that want to invest in a broad range of assets. The platform currently offers fewer cryptocurrencies than dedicated crypto trading platforms. However, Robinhood supports major cryptocurrencies like Bitcoin, Ethereum and Dogecoin, making it a good option for investors looking to buy established, large market cap digital assets.
The brokerage stands out for its fee-free trading platform. Most cryptocurrency platforms will charge you for every buy and sell you make with them, whereas with Robinhood it's all free. The platform has also integrated a cryptocurrency wallet feature which will make sending and receiving crypto coins on Robinhood easy.
Why We Liked It: With its commission-free trading model, users can buy and sell Dogecoin and other cryptos without worrying about fees eating into their profits. While Binance offers a wider range of cryptocurrencies, Robinhood's focus on simplicity and accessibility can make it a preferred choice for some traders.
4. Best for Mobile Traders: Voyager
Voyager is U.S.-based and offers a wide range of cryptocurrencies on its mobile app. Similar to Robinhood, Voyager offers $0 commissions on all crypto orders, making it an excellent choice for traders and accumulators.
Voyager also allows its users to send their assets off of the platform to other crypto wallets and decentralized finance (DeFi) protocols.
Unfortunately, Voyager does not have a desktop platform yet so you’ll be limited to mobile app trading, which may not be a huge deal for some.
Why We Liked It: With a seamless mobile app, Voyager allows traders to easily monitor their portfolio and make trades on the go. This makes it a top choice for mobile traders looking for a reliable and efficient platform.
What Makes Binance Unique?
Binance is popular for its immense variety of trading pairs, including altcoins that most other exchanges deem far 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 over 5,000 active nodes securing the network, the Binance Smart Chain is secured by only 21 community validators. While this is great for scaling, it is incredibly bad for security.
Despite its flaws, the BSC consumed much of the DeFi ecosystem from Ethereum in early 2021, as more and more users became priced out by Ethereum’s gas fees.
Pro Tip: As Ethereum scales via Layer 2 solutions and sidechains, you can expect to see much of the value return to the Ethereum ecosystem.
Why Binance Might Not be Right for You
While Binance is technically not available to U.S. customers, Binance runs a limited-feature arm for U.S. customers, Binance.US. Binance.US provides access to far less altcoins and requires know your customer (KYC) compliance to make an account.
Common Complaint: Untrustworthy
Binance is a centralized exchange run by Changpeng Zhao, more commonly known as CZ. Binance has struggled finding a home, moving its headquarters multiple times only to be kicked out by each government it attempts to court.
Binance does more volume than any other crypto exchange in the world. And, it is also under investigation by the Internal Revenue Service (IRS) and Justice Department as of May 2021.
As previously mentioned, centralized exchanges require trusting the company. For many, Binance has yet to earn their trust. Those users typically opt for U.S.-based or decentralized exchanges instead.
What to Look for in a Binance Alternative
When choosing a centralized cryptocurrency exchange to on and off ramp your fiat to crypto, you’ll want one that you trust.
Generally, your best bet is to select a well-audited, U.S.-based cryptocurrency exchange such as Coinbase, Gemini or Robinhood. A publicly traded exchange is an extra bonus as they are likely to be taking extra security measures for their shareholders' sakes.
Choosing the Best Alternative to Binance
If you are currently a Binance user or someone looking to open an account with Binance, there are a lot of reasons to look elsewhere. Fortunately, there are many great Binance alternatives, and you can still have a Binance account alongside them. There is no reason not to open multiple accounts to take advantage of the unique features and offerings of each one.
If you decide to open an exchange account, make sure to always do your own research on security and insurance policies. It’s also highly advisable to purchase a cryptocurrency wallet like the Ledger Nano X to secure large sums privately.