If you are here, then it means that you have made the right choices and decisions about crypto-trading so far. This is because Binance and Coinbase are the two largest cryptocurrency exchanges in the entire crypto-verse in order. However, despite the growth, both the exchanges may end up facing situations or may potentially be at a higher risk of losing a lot than the other. Therefore, it is wise to know which exchange would be the right choice to trade with, given their current situation. In order for me to not sound biased, I will give you a general idea about both exchanges and their current situation. Then, the decision would be based on your analysis and judgement.
Current Situation of Binance
The first exchange is Binance that is currently the largest cryptocurrency exchange in the entire crypto-verse. Whether it is providing leverage trading, margin trading, crypto price analysis, detailed historical reports, or any kind of service, Binance has the lead. Based on the vast provision of such services, Binance has gathered a tremendous user base from all over the world. The current score of Binance on “coinmarketcap”, a major tracking platform from the crypto-verse, is 9.8 out of 10. This is a clear demonstration of how demanded the exchange all over the world is. It currently observes an average trading volume of around $27.33 billion, which is a huge figure for a cryptocurrency firm. When it comes to adoption rate, the exchange currently has over 40 million active users on the platform. This is also another major example of how many users and participation it has.
Problems Faced by Binance
In the recent years, the exchange has gained a lot of growth and success. Unfortunately, being in the spotlight has also brought the exchange under the regulatory microscope. This is the reason why the exchange is finding itself troubled because of the regulators from different countries, who are going against the exchange. Since April, regulators from several countries such as the United Kingdom, China, Thailand, Malaysia, the United States, and many more have completely banned Binance. Then there are countries such as Singapore, Hong Kong, Europe, Australia, and many more where the exchange had to discontinue some of its services. This is because prior to 2020, the governments, regulators, and traditional financial institutions were not much bothered about the cryptocurrency industry. This is because no one had imagined that something like the pandemic would hit the world, causing a great shift of people’s interest from physical world to virtual. Prior to the crypto-boom, Binance was offering unregistered or unapproved products and services to users from around the world. However, amidst the crypto-boom, the regulators started noticing the discrepancies and unregistered services being offered by Binance. At present, Binance is troubled as more regulators from countries such as Canada, South Africa, Nigeria, and many more countries have started talking negative about the exchange. The regulators have also started criticizing the exchange for its KYC and AML policy lags, and Binance is trying to fix them as soon as possible. Despite all the efforts, the exchange is still under a lot of scrutiny by the regulators, chances are that the regulators may force Binance into a corner.
Current Situation of Coinbase
Then there is Coinbase, which has been around in the cryptocurrency industry since 2013. The exchange is reportedly learning from all the troubles that Binance is in and it is adapting to such scenarios. The exchange is constantly making the right decisions in order to stay out of the regulatory scrutiny and investigative microscope. The Coinbase exchange went public back in April of 2021 and it has its stocks being traded in the public market. Since the beginning of 2021, the exchange has gone on a hiring spree. It has hired some of the most experienced and highly competent people from the regulatory and government sector. The exchange is doing this to ensure that it has all of its sides covered and it always remains out of trouble. At present, the exchange’s rating is 9.0 and its average daily trading volume is also very less compared to Binance, which is $4.87 billion. However, with Binance being stuck in a puddle, Coinbase is clearly making a lot of progress and has become more promising.