Ethereum Vs Binance Coin

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 - Pepperstone

Why We Chose Pepperstone

Pepperstone continues to prove itself as one of the most trusted crypto brokers. Although its selection of digital tokens is average, you can trade popular cryptos like Bitcoin and altcoins like Ripple with up to 1:10 leverage, while its crypto indices provide a holistic view of the digital currency markets not found on most day trading platforms.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Coins: BCH, BTC, ETH, LTC, DASH, ADA, LINK, DOGE, EOS, DOT, XRP, XLM, XTZ, UNI, BNB
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 30, ETH 0
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB

About Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

Pros

  • Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
  • There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
  • Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.

Cons

  • Pepperstone’s demo accounts are active for only 30 days, which may not be not long enough to familiarize yourself with the different platforms and test trading strategies.
  • Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
  • Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.

#2 - IC Markets

Why We Chose IC Markets

IC Markets offers 20+ cryptocurrencies which are tradable via CFDs, including lesser-known tokens such as Avalanche, Kusama and Uniswap. Commission-free trading is available, and experienced crypto traders can access high leverage up to 1:200 in the MetaTrader platforms.

"IC Markets offers superior pricing, exceptionally fast execution and seamless deposits. The introduction of advanced charting platforms, notably TradingView, and the Raw Trader Plus account, ensures it remains a top choice for intermediate to advanced day traders."

- DayTrading Review Team
  • Coins: BTC, BCH, DOT, DSH, EMC, EOS, ETH, LNK, LTC, NMC, PPC, XLM, XRP, ADA, BNB, DOG, UNI, XTZ
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 42.036
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade
  • Minimum Deposit: $200
  • Regulator: ASIC, CySEC, FSA

About IC Markets

IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.

Pros

  • You have access to over 2,250 CFDs across various markets, including forex, commodities, indices, stocks, bonds, and cryptocurrencies, allowing for diversified trading strategies.
  • IC Markets offers among the tightest spreads in the industry, with 0.0-pip spreads on major currency pairs, making it especially cost-effective for day traders.
  • IC Markets offers fast and dependable 24/5 support based on firsthand experience, particularly when it comes to accounts and funding issues.

Cons

  • There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
  • The breadth and depth of tutorials, webinars and educational resources still need work, trailing alternatives like CMC Markets and reducing its suitability for beginners.
  • Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.

#3 - Eightcap

Why We Chose Eightcap

Eightcap’s crypto offering is best-in-class with 250+ crypto derivatives, surpassing that of almost every alternative. Testing also reveals Bitcoin spreads of 12 pips, coming in lower than most competitors, while it offers real-time trading ideas through the Crypto Crusher market scanner. Add in convenient deposits and withdrawals in digital currencies, and Eightcap offers the complete package for serious crypto traders.

"Eightcap delivers in every area for day traders with a growing selection of charting platforms and AI-powered tools. Now sporting 250+ crypto CFDs and the Crypto Crusher market scanner, it's also become a stand-out choice for crypto trading, winning our 'Best Crypto Broker' award two years in a row."

- DayTrading Review Team
  • Coins: BTC, ETH, LTC, BCH, XRP, XMR, DSH, EOS, XLM, ADA, TRX, DOGE, BNB, DOT, MATIC, VET, AXS, NEO, SOL, UNI, AAVE, KSM, THETA, CAKE, SUSHI, ATOM, XTZ, SNX, COMP, FLOW, EGLD, PUNDIX, RAY, ZIL, QTUM, BAND, OMG, FIDA, BADGER, NEAR and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: $12 (BTC)
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: MT4, MT5, TradingView
  • Minimum Deposit: $100
  • Regulator: ASIC, FCA, xCySEC, SCB

Pros

  • With tight spreads from 0 pips, low commission fees, and high leverage up to 1:500 for certain clients, Eightcap provides cost-effective and flexible trading conditions that can accommodate an array of strategies, including day trading and scalping.
  • After bolstering its roster in 2021, Eightcap offers one of the most extensive selections of cryptocurrency CFDs in the market, with crypto/fiat pairs, crypto/crypto pairs, plus crypto indices for broader exposure to the market.
  • Eightcap stands out with a selection of powerful trading tools, including MT4 and MT5, the innovative algorithmic trading platform Capitalise.ai, and more recently the 50-million strong social trading network TradingView.

Cons

  • In spite of an increasing variety of tools, Eightcap doesn't offer industry favorites like Autochartist or Trading Central, which offer cutting-edge charting analytics, live news, and market insights for short-term traders.
  • Despite a useful library of educational guides and e-books, Eightcap still trails IG’s comprehensive toolkit for aspiring traders with its dedicated IG Academy app and 18 course categories.
  • The demo account expires after 30 days and can only be extended upon request - a notable inconvenience compared to the likes of XM with its unlimited demo mode.

#4 - eToro

Why We Chose eToro

eToro leads the way in cryptocurrency trading, offering competitive spreads and a fixed 1% commission, plus their own wallet service. The broker offers a vast list of 95+ tokens which is continually being updated. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

"eToro's social trading platform leads the pack with a terrific user experience and active community chat that can help beginners find opportunities. There are also competitive fees on thousands of CFDs and real stocks, plus excellent rewards for experienced strategy providers."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, XRP, DASH, LTC, ETC, API3, CRO, SKL, IMX, ADA, MIOTA, XLM, EOS, NEO, TRX, ZEC, BNB, XTZ, DOT, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, FIL, ALGO, ATOM, MANA, APE, LRC, ENJ, BICO, BAT, BNT, OGN, MATIC and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 1%
  • Crypto Lending: No
  • Crypto Staking: Yes
  • Platforms: eToro Web, CopyTrader, TradingCentral
  • Minimum Deposit: $50
  • Regulator: FCA, ASIC, CySEC, FSA, FSRA, MFSA

About eToro

eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail accounts lose money.

Pros

  • eToro has bolstered its investment offering, most recently with new crypto assets, now offering over 90 digital currencies
  • The copy trading app facilitates a best-in-class social environment, with an engaging social feed and community chat
  • eToro is a world-renowned brand with top-tier global regulation and a 25M+ user community

Cons

  • There are limited contact methods aside from the in-platform live chat
  • Traders will face currency conversion fees for account denominations other than USD
  • There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital

#5 - Exness

Why We Chose Exness

There is a small range of popular crypto tokens paired with fiat currencies available, with zero swap fees and no commissions in the Standard account. Trading is available via desktop or mobile apps, and deposits via crypto are also available in some countries.

"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."

- DayTrading Review Team
  • Coins: BTC, LTC, ETH, XRP, BCH, SOL, SNX, UNI, BAT, DOT, XTZ, ADA, BNB, ENJ, FIL, DOGE, COMP, THETA, AAVE, LINK, IOST, CAKE, MATIC, HT, MANA, HBAR, INCH
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Floating
  • Crypto Lending: No
  • Crypto Staking: No
  • Platforms: Exness Trade App, MT4, MT5, TradingCentral
  • Minimum Deposit: $10
  • Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS

About Exness

Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.

Pros

  • Experienced strategy providers can open social trading accounts, with monthly commissions up to 50%
  • The broker offers fast execution speeds for short-term traders, averaging under 25ms
  • Exness is the first brokerage to pass the $1 trillion and $2 trillion marks in monthly trading volumes

Cons

  • Unlike most competitors, Exness doesn't provide its own education section
  • There are no promotional deals or loyalty schemes for high-volume day traders
  • There are several regional restrictions for retail traders including the USA, Europe and the UK

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 vs binance coin, which cryptocurrency to trade

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.binance coin vs ethereum reddit

Pros Of Ethereum For Traders

First in the Ethereum vs Binance Coin debate, Ether has a lot to offer traders, not least:

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:

Ethereum Vs Binance Coin Similarities

Ethereum vs Binance Coin have many similarities:

Ethereum Vs Binance Coin Differences

Whilst the two cryptocurrencies are similar, there are some key differences, which in turn present unique opportunities:

Ethereum vs Binance Coin trading differences and similarities

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:

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.

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.