Litecoin Vs Binance Coin
Litecoin vs Binance Coin, two of the largest cryptocurrencies around by market capitalisation. While Litecoin has made a real name for itself in recent years, Binance Coin has demonstrated its strength as the utility token of one of the leading centralised crypto exchanges, Binance. The two coins have very different beginnings but have both made their name in the DeFi world for different reasons. Read on to learn about both Litecoin vs Binance Coin, their similarities and differences and the advantages to trading either one of them or both! We have also produced a list of our top recommended Litecoin and Binance Coin brokers and exchanges below.
Top Litecoin & 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.
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
- Pepperstone boasts impressive execution speeds, averaging around 30ms, facilitating fast order processing and execution that’s ideal for day trading.
Cons
- 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.
- 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’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
- With ultra-fast execution speeds averaging 35 milliseconds and deep liquidity, IC Markets provides an optimal trading environment for scalpers, hedgers, and algorithmic traders.
- 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.
Cons
- There are fees for certain withdrawal methods, including a $20 wire charge, which can eat into profits, especially for frequent withdrawals.
- 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
- 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.
- 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
- 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.
- 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
- Exness is the first brokerage to pass the $1 trillion and $2 trillion marks in monthly trading volumes
- Experienced strategy providers can open social trading accounts, with monthly commissions up to 50%
- Local payments are available, plus deposits in BTC and USDT
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
#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
- The broker's services are great for beginners, with commission-free stock trading, a low minimum deposit and an unlimited demo
- Exciting investment portfolios are available covering traditional market trends as well as tech, crypto and more
- eToro has bolstered its investment offering, most recently with new crypto assets, now offering over 90 digital currencies
Cons
- The lack of additional charting platforms like MT4 will reduce the appeal for seasoned day traders accustomed to using third-party software
- 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 Litecoin?
Litecoin (LTC) is a decentralized, peer-to-peer cryptocurrency and consistently ranks in the top 15 cryptos by market capitalisation. Litecoin is widely traded on most major crypto exchanges, making it one of the more liquid global DeFi markets. Litecoin’s network offers instant, near-zero cost payments that can be used by individuals and institutions anywhere in the world without an intermediary, like a bank or credit card company, having to process the transaction. It can be used to purchase goods and services and to transfer funds between accounts.
Litecoin: Brief History
To properly compare Litecoin vs Binance Coin, you should first understand the history of each. LTC was founded by former Google engineer, Charlie Lee, in 2011, two years after Bitcoin. It was widely considered as the first successful alternative cryptocurrency or “altcoin” to Bitcoin. However, since the early days when Litecoin was a strong competitor to Bitcoin, its popularity has diminished as more cryptos have entered the market. The supply of Litecoins is high and fixed, meaning there will never be more than 84 million LTC in circulation. The Litecoin Foundation estimates that it will be around 2142 when the maximum of 84m Litecoins will be reached.
How Litecoin Works
Like many other decentralised cryptocurrencies, Litecoin is not issued by a government and is not regulated by a central bank. LTC are created by mining, an elaborate procedure that consists of processing a list of LTC transactions. It uses blockchain technology to record a decentralised, public ledger of all transactions. Every 2.5 minutes, a new block (a ledger entry of recent global LTC transactions) is created by the Litecoin network. The block is verified by mining software and made visible to system participants (miners). Once verified by a miner, the next block enters the chain, which is a record of every Litecoin transaction ever made.
Litecoin uses a form of proof-of-work mining to enable anyone who dedicates computing hardware to add new blocks to the blockchain with a Scrypt algorithm to make the process more democratic. Scrypt demands that calculations for mining are carried out sequentially. The first miner to successfully verify a block is rewarded with a certain number of LTCs. However, this reward reduces with time until the last Litecoin is mined. In August 2019, an LTC halving took place, where the reward was reduced from 25 LTC per block to 12.5 LTC. This amount gets halved roughly every 4 years.
Mining cryptocurrency requires a huge amount of processing power from specialised hardware. Unlike most other cryptocurrencies, Litecoin can be mined with personal computers. The mining process is quick and has improved storage efficiency, making transactions faster and cheaper. However, they are generally smaller in size.
What Is Binance Coin?
Next up in the Litecoin vs Binance Coin, BNB is the cryptocurrency issued by the Binance exchange. As of August 2021, BNB was the fourth-largest cryptocurrency by market capitalisation behind Bitcoin, Ethereum, and USD Tether.
Binance Coin: Brief History
BNB was initially based on the Ethereum network but has since become the native currency of Binance’s own blockchain. As of June 2021, the Binance exchange was the largest crypto exchange in the world, supporting more than 1.4 million transactions per second. Binance Coin was created in July 2017 as a utility token for discounted trading fees, created to empower the Binance platform and fuel its operations to establish a sustainable ecosystem, though its uses have since expanded. Having a native currency reduces the exchange’s dependency on traditional money, which can cause delays and extra charges, placing a greater financial burden on the end-user. Using BNB on Binance provides a seamless experience while saving investors money on trades.
BNB Burning
Binance Coin is pre-mined and has a strict maximum of 200 million BNB tokens that were issued for use. Every quarter, Binance uses 20% of its profits to repurchase and permanently destroy or burn any BNB in its treasury. In April 2021, Binance burned approximately $595m worth of tokens. The exchange has completed more than 15 burns to date and will continue to perform quarterly burns until it buys back and destroys 100 million BNBs – 50% of the total supply. This process ensures that the supply of Binance Coins remains finite, making it scarce and more valuable.
How Binance Coin Works
Considering the basic workings of Litecoin vs Binance Coin, BNB was created as a utility token for discounted trading fees but has since expanded to numerous applications on a wide range of platforms. It can be used as payment for transaction fees on the Binance Smart Chain, Binance.com, and Binance DEX. Users of Binance Coin receive a discount in transaction fees on the exchange as an incentive.
BNB can also be used to make credit card payments, book travel accommodation, donate to charity, purchase online services like buying virtual gifts and for financial purposes like taking out loans or making investments. BNB can also be used to invest in certain Initial Coin Offerings (ICOs) that are listed through Binance’s Launchpad. This is where new crypto tokens list on the Binance exchange and using its native coin provides a seamless marketplace for trading in both well-established and new cryptocurrencies. Binance Coin’s popularity has been bolstered by the support of various partnerships, including a high-end Asian live video streaming platform, Uplive, which sells virtual gifts for BNB tokens. In addition, it is supported by the platform, mobile app and Visa debit card of Monaco.
Litecoin Vs Binance Coin Similarities
Quick Transaction Speeds
Both Litecoin vs Binance Coin are known for their quick transaction speeds—2.5 minutes for Litecoin vs 1 second for BNB. While BNB is much faster than Litecoin, both are very quick compared to the transaction speed of Bitcoin, for example, at 10 minutes.
Supply
Litecoin vs Binance Coin both have a limited number of coins. However, there are 84 million LTC available, while Binance has capped the BNB supply at 200 million. As there is a fixed number of LTC tokens, inflation will not affect the overall value of the currency, unlike fiats like the USD or GBP. The limited supply of both coins increases their scarcity and value.
Unregulated
Most cryptocurrencies are not regulated by any central authority like a government or bank, setting them apart from fiat currencies. Litecoin vs Binance Coin are no different. While BNB is semi-centralised, any holder of the token has a say in the future of the blockchain and neither crypto is regulated.
Price
Both Litecoin vs Binance Coin reached their all-time highs of $413 and $686, respectively, on 10 May 2021. The prices of Litecoin can be affected by security and public perception. For example, in September 2021, a fake press release was published on GlobalNewsWire announcing a partnership between Litecoin and Walmart, causing the price of LTC to increase by approximately 30%. The average transaction fee is minuscule compared to the percentage fees used by credit card companies, banks and payment processors like PayPal.
Low Transaction Fees
Litecoin users can expect to pay around $0.03 or $.04 on average in transaction fees. As Binance Coin was created for internal exchange purposes, there is no fee directly associated with the network. However, if you make any other trade on the Binance exchange, you will pay 0.1% but you will also get a 50% discount if you pay for trades with BNB (0.05%).
Security
Discussing the security of Litecoin vs Binance coin, LTC provides a high level of privacy but is not necessarily completely anonymous as large exchanges require ID verification to buy and sell cryptos. Litecoin also attempts to protect users against flood attacks, where spammers aim to crash the network using a very large number of small transactions, by charging a per-transaction fee, which would make such an attack very expensive.
Binance is generally considered a secure platform with trusted protection features. The exchange uses a multi-cluster and multi-tier framework to keep investors’ funds safe. However, similar to Litecoin, you need a verified account to use BNB, so you won’t be totally anonymous.
Storage
Both Litecoin vs Binance Coin require a digital or cold storage wallet to be safely stored between transactions.
Litecoin Vs Binance Coin Differences
Market Capitalisation
Both Litecoin vs Binance Coin feature in the top 15 cryptocurrencies based on their market cap. However, BNB is higher, ranked at third, closely following Bitcoin and Ethereum. Litecoin, on the other hand, is close to falling outside of the top 15.
Mineable
Litecoin, like many other cryptocurrencies, uses a form of proof-of-work (PoW) mining to secure its network. The PoW algorithm requires one party to prove to all other participants in the network that the required amount of computational effort has been spent. Binance Coin, on the other hand, uses neither proof-of-work nor proof-of-stake (PoS) protocols as all the coins have been pre-mined. Instead, transactions are verified through a proof-of-authority (PoA) model.
Centralisation
The centralisation of Litecoin vs Binance Coin is also different. Litecoin is a decentralised cryptocurrency whereas Binance Coin is a centralised token. This means that it is more reliant on the backing of Binance for its value, circulation and development. More than 80% of BNB is either owned or held by Binance and has little utility outside its ecosystem. If government legislation or enforcement were to target Binance, BNB would likely decline.
Liquidity
Comparing Litecoin vs Binance Coin in terms of liquidity, the former is generally much more liquid, with a greater trading volume across more exchanges and platforms.
Purchasing
When you buy Litecoin on an exchange, its price is often quoted against the USD, meaning you sell USD to buy LTC. If the price of Litecoin rises, you can sell it for a profit. However, if the price falls and you sell, you would make a loss. Unlike Litecoin, you cannot buy Binance Coin with fiat currencies like the USD. To buy BNB on Binance, you need to purchase other cryptocurrencies first like Bitcoin, Ethereum or Litecoin.
How To Trade
You can trade Litecoin via leveraged products such as spread betting or CFDs (contracts for difference). This means that you need only deposit a percentage of the full value of a trade to open a position. Therefore, you don’t have to invest all your money at once by buying LTC outright. While leveraged trading allows you to magnify your profits, losses will also be magnified. BNB is a token predominantly used for discounted trading fees on Binance and leverage is not available.
Usage
Comparing the usage of Litecoin vs Binance Coin, the former may seem to exist solely to be bought and sold back and forth. However, like other cryptos, it can be used by individuals and institutions to purchase things and transfer funds between accounts. BNB’s usage goes much further than Litecoin’s, allowing users to pay for travel accommodation, buy virtual gifts and get loans.
Pros Of Litecoin For Traders
There are many benefits for traders using Litecoin vs Binance Coin:
- Low Transaction Fees
- Better Transaction Speeds
- Higher Number of Fixed Coins
- A Different Hashing Algorithm
- Decreased Block Generation Time
Pros Of Binance Coin For Traders
The benefits of using Binance Coin include:
- Low cost
- Flexible usage
- Community trust
- Take part in ICOs
- Quick Transactions
- Unique burndown policy
- Trade Multiple Cryptocurrencies
- 50% trading discount & other incentives
Litecoin Vs Binance Coin Verdict
When evaluating which of Litecoin vs Binance Coin is the best cryptocurrency for you, there are many things to consider. While they are quite similar due to their fast, low-cost transactions, the usage, volume and market capitalisation of each differ. As Binance Coin was developed to be the native coin of the largest exchange in the world, its value and use have surged, though it does still have limitations, such as its centralisation, that Litecoin does not have.
FAQs
Is Litecoin A Good Investment?
As well as being one of the oldest cryptos on the market, Litecoin is one of the more popular altcoins. It is relatively stable and consistently ranks in the top 15 cryptocurrencies by market cap. However, there are no great cases of investors using Litecoin in a meaningful way. Litecoin’s founder, Charlie Lee, sold all of his LTC in 2017, causing the market to question its worthiness.
Is It Worth Trading Binance Coin?
Given the current landscape of the crypto world and the progress of Binance, BNB is considered an excellent utility token. Along with its use of making transactions on Binance exchange, you can invest in this coin to earn profit and use it for other purchases.
How Do Litecoin Vs Binance Coin Measure Up Against Other Cryptos?
Litecoin vs Binance Coin have different infrastructures and their primary use is somewhat different too: Litecoin is a peer-to-peer payments system while BNB is an exchange medium. Compared to alternatives, both are relatively popular, though tokens like Bitcoin, Ethereum and Cardano tend to be traded more frequently.
How Do I Buy Litecoin Vs Binance Coin?
You can buy LTC with fiat currency or other cryptos. However, you can only buy BNB with cryptocurrencies, such as Bitcoin, Ethereum and Litecoin.
How Do Litecoin Vs Binance Coin’s Transaction Speeds Differ?
Both Litecoin vs Binance Coin’s transaction times are considered to be quick, especially when you consider that Bitcoin’s transaction speed averages 10 minutes. Litecoin’s transaction speed is 2.5 minutes, while Binance Coin’s speed is an impressive few seconds.