Ethereum vs Binance coin is a debate over two of the largest cryptocurrencies in the world. On everyone’s minds following the huge developments and growth in blockchain technology, DeFi and NFTs, the potentials of the two coins are great and complex. However, whilst Ethereum is oft favoured thanks to its higher market cap, we ask whether that comparison is justified and what does that mean for active traders?
This guide will explore the cryptos, comparing similarities and differences in their origins, use and technology, while providing an overview of the two tokens. We have also compiled a list below of the top exchanges and brokers offering trading in Ethereum vs Binance Coin.
Top Ethereum & Binance Coin Trading Brokers
#1 - Kwakol Markets
Why We Chose Kwakol Markets
You can trade cryptos against cryptos, fiat currencies, and even metals like gold. This separates the broker from many alternatives that only offer cryptos paired with the USD. Additionally, with high leverage up to 1:20, Kwakol Markets is a top choice for crypto day traders.
"Kwakol Markets is a good option for newer traders with a dedicated learning academy, copy trading and a choice of reliable charting platforms. New clients can also sign up and start trading in four straightforward steps."
- DayTrading Review Team
- Crypto Spread: From 0.8 pips (Standard Account)
- Crypto Lending: No
- Platforms: MT4, MT5, cTrader, AutoChartist
- Crypto Staking: No
- Minimum Deposit: $1
- Regulator: ASIC, FINTRAC
About Kwakol Markets
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of day trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
Pros
- You can access 1000+ short-term investments, including cryptos and synthetic products
- Kwakol Markets offers a comprehensive charting environment for active day traders, including 70+ pre-installed indicators in cTrader
- There's a wide range of free learning resources for beginners, including an eBook, online courses and a Telegram community channel
Cons
- You must deposit at least $10,000 to access the best trading conditions
- There's a limited range of funding methods, with just bank transfers, card payments, and PayPal available - many top brands like AvaTrade offer 10+ methods
- The only base currency available is USD
#2 - Videforex
Why We Chose Videforex
Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts are also higher than most alternatives climbing to 98%."
- DayTrading Review Team
- Crypto Spread: Floating
- Crypto Lending: No
- Platforms: TradingView
- Crypto Staking: No
- Minimum Deposit: $250
About Videforex
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
Pros
- You can trade every day and through the weekends
- You can enter positions with just ¢0.01
- Withdrawals are usually processed within one hour
Cons
- No MetaTrader 4 integration
- US clients aren’t accepted due to legal restrictions
- The broker isn’t overseen by a trusted regulatory agency
#3 - Nexo
Why We Chose Nexo
Nexo traders can buy and sell 60+ cryptocurrencies using fiat, or trade between 500+ market pairs. The app functions as a crypto wallet, meaning that clients will own their own tokens but Nexo will have custody of them. Crypto assets can be transferred from the Nexo wallet. Fees are low and user security is high.
"Nexo is good for traders who want a straightforward way to access DeFi crypto markets and earn interest on their digital assets."
- DayTrading Review Team
- Crypto Spread: N/A
- Crypto Lending: Yes
- Platforms: Own
- Crypto Staking: Yes
- Minimum Deposit: $10
- Regulator: ASIC, FCEN
About Nexo
Nexo is a crypto trading platform that also acts as a gateway to DeFi crypto functions such as staking, borrowing and lending. The platform supports 60+ crypto tokens, which can be purchased with a fiat on-ramp and traded in 500+ market pairs. The exchange operates a zero-fee policy allowing a set number of completely free withdrawals per month and fee-free trading.
Pros
- Referral program with $25 in BTC
- High-yield interest savings
- Audited by Armanino
Cons
- Relatively small selection of crypto tokens which misses newer altcoins
- Restrictions on using the native tokens for New York and Vermont US residents
- High collateral requirement of 200% of the amount you wish to loan
#4 - Pionex
Why We Chose Pionex
Make spot, future and leveraged trades on 120 cryptocurrencies via Pionex's proprietary platform with built-in trading bots and highly customizable automated trading options. On the negative side, the range of tokens is narrower than many alternatives.
"Pionex is an excellent option for crypto traders with an interest in cutting-edge AI like ChatGPT and automated trading."
- DayTrading Review Team
- Crypto Spread: Market
- Crypto Lending: No
- Platforms: Own
- Crypto Staking: No
- Minimum Deposit: $0
- Regulator: FinCEN
About Pionex
Pionex is a crypto trading platform that specializes in trading robots, offering a variety of ready made bots and strategies to traders as well as integrated AI to help customize a strategy or come up with your own. These can be used on spot crypto markets as well as crypto futures.
Pros
- Excellent and innovative liquidity engines aggregated from Binance and Huobi
- Powerful integrated AI chatbot 'PionexGPT' helps users programme trading bots on Pine script
- Low trading fees compared with other major exchanges at 0.05% maker and taker
Cons
- Withdrawal fees and limits may apply
- Weak regulatory oversight raises safety concerns
- Limited contact options
#5 - Kraken
Why We Chose Kraken
Kraken is a specialized crypto exchange and supports more than 220 cryptocurrencies. These include all of the established tokens like Bitcoin as well as some altcoins. Traders can make trades on spot crypto markets with up to 1:5 leverage or on futures with up to 1:50. Fees are low and the platform is super easy to pick up.
"Kraken will suit traders looking for a diverse list of cryptos including Bitcoin and a good security track record."
- DayTrading Review Team
- Crypto Spread: 0-0.26% average
- Crypto Lending: No
- Platforms: AlgoTrader
- Crypto Staking: Yes
- Minimum Deposit: $10
- Regulator: FCA, FinCEN, FINTRAC, AUSTRAC, FSA
About Kraken
Kraken is a leading cryptocurrency exchange with a proprietary trading terminal and a list of 220+ tradeable crypto tokens. Up to 1:5 leverage is available with stable rollover fees on spot crypto trading and up to 1:50 on futures. The exchange also supports crypto staking and has an interactive NFT marketplace.
Pros
- Very good security track record with no hacks in a decade since launch
- Mobile investing
- Great trading platform and mobile app
Cons
- Slow verification process on Pro account
- Slow verification times
- Does not support many newer altcoins
What Is Ethereum?
Before we get into comparing Ethereum vs Binance Coin, let’s first take a look at the two as standalone instruments. Ethereum was launched in 2015 by a team of blockchain enthusiasts. The team included the founder of ConsenSys, Joe Lubin and programmer, Vitalik Buterin. Buterin, credited with originating the Ethereum concept, continues to serve as the company’s CEO today.
Ethereum itself is not technically a cryptocurrency, it is more a software platform. Specifically, the Ethereum blockchain the world’s largest, decentralised public ledger. It was developed to enable users to create, share and use applications (DApps), without interference from third parties. The software hosts a wide range of financial and entertainment applications and many other cryptocurrencies are built and run using Ethereum smart contract technology.
Ethereum is second only to Bitcoin in terms of relative market value with an estimated market cap of $500 billion. Ethereum implements a proof of work system to verify and record transactions. This is energy-intensive and costly, requiring participants or miners to solve complex mathematical puzzles using hash algorithms. The process verifies existing transactions and generates new coins. Ethereum and Ether are often used interchangeably but the latter refers to the name of the software’s native coin. Ether, traded under the symbol (ETH), was initially designed to be used within the framework but increasingly its use extends beyond. Today, Ether is accepted as payment on sites such as Shopify, with more set to follow suit. The Ethereum blockchain’s native language is called Solidity.
What Is Binance Coin?
Next up in the Ethereum vs Binance Coin comparison, BNB is the cryptocurrency issued by Binance, the world’s largest crypto exchange, supporting more than 1.4 million transactions per second (TPS). Binance Coin has a market cap of $56 billion, the fourth largest behind Bitcoin, Ethereum and Tether. Binance Coin trades under the symbol BNB and was originally launched on the Ethereum network. Today, it operates on Binance’s own blockchain, the Binance smart chain (BSC). BNB is a utility token that allows users to pay less in fees if they are used for transactions.
The currency is primarily used to pay transaction and trading fees on the Binance exchange but it can also be used to make credit card payments, charity donations, loans, transfers and investments. Initially, there were 100 million Binance Coin tokens offered in the ICO, though today the supply is lower. Each quarter, Binance “burns” one-fifth of the coins held. The most recent burn event took place on April 15 2021, the equivalent of $595, 314,380 in BNB was burnt.
Pros Of Ethereum For Traders
First in the Ethereum vs Binance Coin debate, Ether has a lot to offer traders, not least:
- Cost – Trading Ethereum is relatively low cost if you pick your exchange wisely. If you do not have a ton of capital, day trading Ethereum could be a good place to start.
- Accessibility – Ethereum trading operates 24 hours a day, 365 days a year from anywhere with an internet connection. It doesn’t get much more accessible than that.
- Potential – Second only to Bitcoin in terms of market value, Ethereum is often touted as the next big thing. If it can overcome environmental concerns, which it looks set to do with ETH2, the technology has huge potential to be widely adopted. The speculation and buzz that surrounds Ethereum have resulted in price volatility that presents a real opportunity for hungry day traders willing to take a risk.
- High Value & Market Cap – Ethereum has the second-largest crypto market capitalisation and is in the top five most valuable tokens.
Pros Of Binance Coin For Traders
The latter in Ethereum vs Binance Coin, BNB also presents lots of opportunities for traders looking to play the long game:
- Transaction Speed – Binance Coin is much faster and more efficient than Ethereum.
- Scarcity – Regular burns increase coin scarcity and ensure that prices remain high.
- Cost – Holding Binance Coin reduces transaction fees on the exchange. If you frequently trade on Binance, it could be a real money saver.
Ethereum Vs Binance Coin Similarities
Ethereum vs Binance Coin have many similarities:
- Use Cases – The key similarity between Ethereum vs Binance Coin is the way that they are used; the primary function of each is to facilitate transactions. On the ground they may operate in distinct spheres, the principles are consistent.
- System Structures -The DApps and tokens built on both Ethereum and the Binance smart chain are very similar. Those built on BSC are actually compatible with the Ethereum system and there are even some projects that operate across both networks. The public wallet addresses are also the same on both blockchains.
- Fees – Both Ethereum vs Binance Coin adopt a gas model for transaction fees. This measures the complexity of a transaction and calculates a fee relative to the amount of energy or “gas” it required. At the time of writing, Ethereum’s fees are higher than those on BSC, though the gap has been closing in recent years.
- Bitcoin Influence – As with all major cryptocurrencies, both Ethereumvs Binance Coin are heavily influenced by the price movements of Bitcoin. If Bitcoin surges, Binance Coin and Ethereum are likely to increase. Likewise, if Bitcoin takes a hit, repercussions are likely to be felt for both Binance Coin and Ethereum.
Ethereum Vs Binance Coin Differences
Whilst the two cryptocurrencies are similar, there are some key differences, which in turn present unique opportunities:
- Utility – Almost any system can be run on the Ethereum blockchain. It is this diversity that can be attributed to Ethereum’s staggering growth, particularly within the area of decentralised apps (DApps) and DeFi. BNB’s tokens, however, were developed for more specific uses.
- Public Chain – Ethereum operates a proof of work (PoW) consensus model that uses mining to validate transactions. This is in contrast to the Binance Coin blockchain, which implements a more modern take, the proof of stake (PoS) method. PoS is not nearly as data-heavy or energy-intensive, though this difference will not be here for long as Ethereum is set to integrate a PoS mechanism shortly.
- Ecosystems– The Ethereum community totals more than 140 million unique addresses. These are made up of thousands of everyday traders, developers and crypto enthusiasts. The network is used by a variety of sectors; foremostly gamers, gamblers and finance and consists of many different projects. ETH wallets tend to be large scale projects with significant capital backing them. The Binance community differs somewhat. The majority of BNB tokens are held in Binance-owned wallets in unaffiliated addresses. The community is also much smaller but arguably more democratic in its structure, owing to a more equal distribution of wealth.
- Speed – One of the primary benefits of BSC is its speed, it is much faster and more efficient than Ethereum. ETH transactions tend to range between 30 seconds and 16 minutes, whilst BSC’s average block time is 3 seconds (that is 4.3X faster).
Drawbacks Ethereum Vs Binance Coin
It’s easy to get caught up in the buzz and excitement that surround cryptocurrencies but it’s not all sunshine and rainbows. There are a number of drawbacks to trading Ethereum vs Binance Coin that you should be aware of:
- Environmental Impact – Blockchain technology is an extremely energy-intensive, not to mention costly, process. Ethereum’s PoW consensus to validate transactions requires mining, which is hugely resource-intensive. Whilst we are seeing newer coins moving away from this, the technology has a long way to go. The hunt for energy, generated by the growing demand for cryptos, has even led to groups stealing energy.
- Pricing – The prices of both Ethereum vs Binance Coin, alongside all other cryptocurrencies, mirror the price of Bitcoin. If Bitcoin suddenly drops, Ethereum and Binance Coin follow suit. The reverse is also true. As a result, cryptocurrencies operate in a very interconnected sphere and remain highly volatile, speculative instruments.
- Security Concerns – Binance Coin has been subject to a federal investigation following claims of money laundering. Regulation is a hot topic of debate in crypto technology. Given that that they’re relatively new instruments, there is still some way to go in terms of policing.
Ethereum Vs Binance Coin Verdict
Overall, whilst Ethereum vs Binance Coin have some obvious similarities, they differ in a number of ways, notably utility, community and the process of transaction verification. Ethereum might be considered the obvious choice but the speed and efficiency of the Binance Coin blockchain offers real potential. Both coins have their advantages and disadvantages and could be considered good investments for the right trader. Although, as with all crypto trading, risks are high, so ensure you are mitigating losses and only staking what you can afford to lose.
FAQs
What is Binance Coin Vs Ethereum?
Binance Coin is the native token of the Binance cryptocurrency exchange, while Ethereum is a separate cryptocurrency. The two draw regular comparison owing to their similarities.
Should I Trade Ethereum Vs Binance Coin?
Both Ethereum vs Binance Coin have their pros and cons, with better conditions for different types of traders. Binance coin is a much quicker blockchain with lower fees and is likely suitable for those who trade on Binance a lot or believe the exchange will continue to grow. Ethereum, on the other hand, is larger, more diverse and soon to make the jump to PoS and become more eco-friendly, so other investors may prefer Ether.
Is Ethereum Vs Binance Coin Legal In The US?
Both Ethereum vs Binance Coin are legal to trade in the US. The Binance exchange did, however, undergo a federal investigation following claims of money laundering.
What Is ETH?
ETH is the abbreviation for Ether, which is the coin native to the Ethereum blockchain. ETH is widely traded on exchanges all over the world.
Who Created Ethereum Vs Binance Coin?
Ethereum was created by a team of cryptocurrency enthusiasts but the idea of the Ethereum blockchain is attributed to founder and current CEO, Vitalik Buterin. Contrastingly, Binance Coin was created on the Ethereum blockchain as a native transactional currency for the Binance exchange.
