Binance Blocks US Customers - Where Will Crypto Traders Go Now?
Binance will begin blocking US customers from trading on the Binance.com website. In attempt to become compliant with US law, they will be opening a new exchange which is designed for US customers. This exchange, named Binance.us, will be able to support US customers who are still interested in using Binance as their home exchange.
But, we know you have questions.
What is going to happen next?
What if I don’t want to use Binance.us?
What are the best crypto exchanges for trading now?
Does this mark the end of Binance?
Don’t worry, we will answer all of these questions and more as we dig into everything that is going on with Binance.
Binance.us is going to be the partner exchange to the Binance.com exchange. One thing that should be made clear so there is no confusion, Binance.us will not be operated by Binance.
Binance.us is going to be operated by BAM Trading Services. This company will license technology from Binance in order to build the exchange.
The idea of another company operating the Binance.us exchange is certainly a concern which raises more questions than it answers. Besides the Binance branding, it’s difficult to say if the exchange will have the same level of security, stellar reputation, and customer-centric operating principles.
Unfortunately, the confusion that is Huobi / HBUS / Huobi Global / Huobi Pro has left a bad taste in some investors’ mouths. Raising the concern that a few small missteps and we could end up with a similar nightmarish situation.
With the announcement of Binance.us, many cryptocurrency traders and investors questioned which assets would be available to US customers. The Binance team has not released any hard details on the cryptocurrencies that will be listed at launch, but they did provide some assets they are considering.
These assets were the following.
While we don’t know whether all these assets will be available for trading at the launch of Binance.us, the team has more recently announced the exchange will support deposits for Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, and Tether starting on September 18 when registrations on the exchange open.
It may not be indicative of the actual assets which will be available in the short term, but it’s just another area of concern. Binance has prided itself as the exchange which listed the greatest projects available in the crypto market.
If the team is only able to support a handful of blue chip assets, Binance.us will be directly competing with the likes of Coinbase Pro. It is yet to be seen if they can compete with Coinbase Pro when the playing field has been leveled.
Update: The assets available at launch have been confirmed in a blog post published by CEO Catherine Coley.
Binance Coin (BNB)
Strange enough, Binance failed to mention BNB as an asset being supported for deposits at launch. Excluding BNB suggests there may be hurdles they still need to overcome before they can list BNB on their partner exchange.
Without leveraging some of the key aspects of Binance Coin, we will only have to wait and see if Binance.us can still offer the trading discounts and other benefits that are experienced by Binance.com traders.
Sans reduced trading fees, investors may just have another reason to abandon Binance altogether.
The Great Migration
Binance is experiencing a great deal of uncertainty. This uncertainty will drive many investors to jump ship. Investors need a new trusted environment to continue trading without fear of these concerns. But, the question remains - “where should we go”?
Since early 2018, Binance has been the trusted home for so many traders. Some may have known no other home.
To answer these burning questions, our team began reviewing every major exchange over the course of the last 3 months. Our goal was to find the best alternatives to Binance.
Here, I will share our findings and make a case for a few key exchanges which will be the most promising options for traders moving off of Binance.
This American classic has been a hot spot for US traders since the 2017 crypto craze. Bittrex is known for their world class security, exceptional user experience, smooth trading experience, quality customer support, and diverse asset selection.
Although the recent altcoin purge from Bittrex has been less than desirable, the number of cryptocurrencies supported by the exchange still sits at a cool 98 assets. Considering the strict US market, this is nothing short of incredible.
Paired with their easy fiat-to-crypto on-ramp experience, Bittrex is a prime place for US customers to migrate. You certainly won’t be disappointed moving to this exchange.
It also wouldn’t serve Bittrex justice if we didn’t highlight their security history. Their record remains squeaky clean. Never falling victim to a hack.
This can be attributed to their tireless focus on security first practices. Founded by Bill Shihara and 2 others, their founding team consisted of security professionals from Microsoft.
It wouldn’t go without saying, Bittrex is the #1 choice for cryptocurrency traders who are looking for an alternative to Binance.
If altcoin hunting is your game, then there is no better place to look for hidden gems than KuCoin. Unlike most other exchanges which focus on high market cap assets, KuCoin has grown their reputation by focusing on providing a secure exchange for trading a large variety of altcoins.
In a recent push by the KuCoin team to improve every aspect of the exchange, they have come out shining after revamping their trading engine.
The trading experience on KuCoin has never been better than today. Swift execution speed, exceptional trading features, and a long list of security measures ensured the success of their platform.
As KuCoin continues to develop their platform, we will see exciting things come out of the KuCoin team.
All of these reasons and more place KuCoin as a solid #2 choice for crypto investors and traders who are looking for an alternative exchange to Binance.
Besides Bittrex and KuCoin, there are a few exchanges which receive honorable mentions as alternatives to Binance.
Coinbase Pro and Kraken have been cornerstones of the cryptocurrency market since they launched. However, their lack of available assets and focus on institutional investors has led them to diverge from the interests of many retail investors who are looking to build diverse portfolios.
Binance End Times
As Binance closes down its exchange to US customers, we expect the competition will begin heating up. While Binance has been the king of cryptocurrency exchanges since early 2018, its reign may finally be coming to an end. The coming months will be a telling time for Binance.
Without capturing the US market, Binance may struggle to maintain a global lead. On the other hand, if Binance is able to recover their customers and continue growing in the US, there may not be anything which can stop the unprecedented growth of Binance.
After all, if anyone is able to launch a new exchange in the US and gain traction, that would be CZ and his team at Binance.
A Game of Speculation
We are still at the early stages of what is to become Binance.us. Unknowns often lead to speculation and incorrectly predicting the future.
When it’s all said and done, nobody knows what will happen. Binance.us could become a runaway success as investors fight tooth and nail to get access to the new US regulated exchange. Or, Binance could go down in a flaming wreck as investors around the world abandon ship.
Only time will tell what course will be charted. In the mean-time, we will continue to work with everyone to find them the home that works best for them.
Our goal is to have happy traders who enjoy relaxing while Shrimpy conveniently manages their exchange accounts.
There is no doubt the next few years will be exciting as exchanges fight for their share of the emerging crypto trading market. I’m certain nobody is prepared for the chaos which is about to ensue.
Whatever happens, don’t forget to remove your funds from Binance.com. While CZ recently tweeted to let everyone know withdrawals will be available for a long time to come - it’s not advisable to leave your funds on an exchange. Especially when you can’t even trade on that exchange.
Note: Shrimpy will continue to function as expected for all users outside the US.
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The Shrimpy Team