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 emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
- 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 does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
- There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
- 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.
#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.
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- As a tightly regulated and widely respected broker, IC Markets prioritizes client security and transparency, helping to ensure a reliable trading experience globally.
Cons
- Interest isn't paid on unused cash, an increasingly popular feature found at alternatives like Interactive Brokers.
- While IC Markets offers a selection of metals and cryptos for trading via CFDs, the range is not as extensive as brokers like eToro, limiting opportunities for traders interested in these asset classes.
- Despite four industry-leading third-party platforms, there is no proprietary software or trading app built with new traders in mind.
#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
- 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.
- 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.
- Having excelled across all key areas for day traders, Eightcap outperformed more than 490 competitors to win our 'Best Overall Broker' award for 2024, also securing our 'Best Crypto Broker' title.
Cons
- Eightcap needs to continue bolstering its suite of instruments to match category leaders like Blackbull Markets with its 26,000+ assets, featuring a particularly weak selection of commodities.
- 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.
- 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.
#4 - 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
- Unlike many other brands, Exness doesn't charge any account maintenance or inactivity fees
- Top-tier licensing with the FCA and CySEC and a strong reputation with over 10 years in business
- There's a strong range of account types for all experience levels and requirements, including Cent, Pro and Raw spread solutions
Cons
- There are several regional restrictions for retail traders including the USA, Europe and the UK
- Unlike most competitors, Exness doesn't provide its own education section
- There are no promotional deals or loyalty schemes for high-volume day traders
#5 - 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
- There's a comprehensive online training academy with accessible resources, from bitesize articles to comprehensive courses
- The web platform and mobile app perform better in user reviews and app rankings than top competitors, including AvaTrade
- The broker's services are great for beginners, with commission-free stock trading, a low minimum deposit and an unlimited demo
Cons
- There is a $30 minimum withdrawal amount and a $5 fee, which will affect novices with low capital
- There are no guaranteed stop loss orders which would be a useful risk management feature for beginners
- Traders will face currency conversion fees for account denominations other than USD
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.