Bitbuy is a very popular cryptocurrency exchange in Canada and Binance is the largest cryptocurrency exchange in the world based on trading volume.
How do these two platforms stack up against each other, and which is best for Canadians to use?
In this article, we are going to review these two cryptocurrency platforms and see how they differ in several aspects, so that you can choose the one that best suits your needs.
For the majority of newbie Canadian users, we would suggest Bitbuy over Binance, due to its simple and user-friendly user interface, FINTRAC registration, ability to withdraw CAD, and because it is the exchange safest and most reliable Canadian cryptocurrency. However, if you are looking for a more in-depth experience, Binance offers a better and smoother user experience than Bitbuy.
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Advantages and disadvantages of BitBuy
Here are the pros and cons of BitBuy:
- Express Trade function, which allows the almost instantaneous purchase and sale of a giant panoply of cryptocurrencies.
- The Pro Trade feature provides access to advanced charting and tools.
- Storage of 99% of cryptocurrency assets offline with full insurance provided by BitGo.
- Trading fees reduced to just 0.2% for Express Trade and 0.1%/0.2% for Pro Trade.
- Deposits by Interac transfer and bank transfer supported.
- Available only to Canadians.
- Only offers a few dozen different cryptocurrencies.
Get up to $40 in cryptocurrencies by creating a BitBuy account
Advantages and disadvantages of Binance
Here are the advantages and disadvantages of Binance:
- Over 600 different cryptocurrencies.
- Low trading fees not exceeding 0.1% with a 25% discount if you pay with Binance Coin (BNB).
- Additional functions such as staking, NFT marketplace, margin trading and futures trading.
- The largest cryptocurrency exchange in the world by trading volume.
- Not available in Ontario.
- Unable to withdraw CAD from the exchange.
- Beginners may find it difficult to get to grips with the system.
Get a 20% discount on your trading fees on Binance
Bitbuy vs. Binance – Security
Bitbuy is the safest and most trusted cryptocurrency exchange in Canada. Its servers are secured by multiple world-renowned cloud providers and disaster recovery sites. All vendors are ISO, SOC and FIPS 140-2 compliant. Bitbuy’s private codebase keeps core components closed-source, so your intellectual property is secure. Bitbuy uses 2FA security and biometric login features, and 99% of its cryptocurrency is stored in cold storage offline – in partnership with BitGo Trust Company and covered by insurance.
Binance also uses 2FA and stores the majority of its offline cryptocurrencies in cold storage. However, no matter how secure an exchange is, it can be vulnerable to attacks. Binance was hacked in 2019 and over $40 million worth of bitcoins were stolen. Binance covered the loss in full, so none of their users were affected, which is a great response from a world-class exchange like Binance. This gives their clients the peace of mind they need to continue using their exchange for trading. Additionally, four months after the hack, Binance received ISO 27001 certification, having successfully passed an audit on its information security management. This demonstrates Binance’s commitment to security, and the company continually invests in ways to improve its cybersecurity defenses.
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Bitbuy vs. Binance – Fees
Let’s start our comparison with a look at the different fees charged by Bitbuy and Binance.
Depositing CAD into Bitbuy will incur a fee of 1.50% with Interac transfer and 0.5% with bank transfer.
On Binance, you cannot pre-fund your account with Canadian dollars, but you pay with your credit or debit card at the time of purchase. A 2% charge applies when you make a purchase with your card.
On Bitbuy, if you use Express Trade (the easiest way to buy and sell cryptocurrencies), the fee is 0.2%.
If you use Pro Trade (market trading), the buy fee is 0.1% and the sell fee is 0.2%.
Binance only charges 0.1% per trade, with a 25% discount if you pay with its own currency (BNB). If you deal with large volumes, you can also benefit from higher discounts.
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Withdrawing CAD from your Bitbuy account will incur a fee of 1.50% with Interac transfer and 1.0% with bank transfer.
On Binance, you cannot withdraw Canadian dollars, which is a big drawback. If you want to convert your crypto back into fiat currency, you need to send your crypto to another exchange (e.g. Bitbuy), then sell it there and transfer CAD to your bank.
Binance is very popular around the world, especially with high-volume traders, but Bitbuy is my recommendation for Canadians, especially those who are new to cryptocurrencies. It is best suited for beginners as it is user-friendly, offers extremely high security, is available across Canada, and users can withdraw CAD directly to their bank account.
Bitbuy only offers a few dozen different cryptocurrencies. If you are looking for a wider range, you might prefer to use Binance, which offers over 600 coins. Note that Binance is not available in Ontario and you cannot withdraw Canadian dollars from this exchange. If you want to use Binance, when the time comes to sell your crypto, it’s best to transfer it to another exchange that allows fiat withdrawals.
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Thanks for taking the time to read our comparison article!
And you, which platform do you prefer?