Even though the crypto sector as a whole has seen a dip in its daily trade volume (across the globe) recently, altcoin trading platform ‘Binance’ has continued to flourish and attract new customers on a near daily basis. This is made evident by the fact that the firm’s annual growth rate has increased quite substantially through the course of 2018 alone.
If figures released by Forbes are to believed, this year the Malta-based exchange is all set to rake in a total of $1 billion in profits. To put things into perspective, this figure is nearly $650 Million higher than the profit estimates that have been released for Coinbase (who many believe to be one of the premier altcoin-trading avenues in the world today).
Binance Vs Coinbase: A Closer Comparison
A quick look at BTI’s crypto volume index shows us that Binance is currently leading the roost when it comes to daily (24-hour) crypto exchange volume. To be even more specific, during the month of November, Binance was able to facilitate around $1.02 billion worth of daily transactions on its platform. Over the same course of time, Coinbase was able to generate just $106 million worth of daily BTC trade volume.
With that being said, it is still worth remembering that Coinbase still has the most number of active users across all crypto exchanges worldwide. At press time, the firm boasts of a total of 421,909 live customers (which is significantly higher when compared with Binance’s 312,801 total users).
More On The Matter
In addition to ‘wash trading’ being one of the reasons behind the mammoth numbers being posted by some of the top crypto exchanges, the aforementioned BTI report also states that various traders who sell and purchase assets simultaneously “could have been creating misleading financial activity on various crypto exchanges”.
If that wasn’t enough, many of the top trading platforms (including Coinbase) facilitate trades which involve paid listings to generate fake volumes.
Rounding off this article, it is worth mentioning that Coinbase currently allows crypto enthusiasts to trade a fewer number of digital currencies when compared to Binance. For example, Binance currently allows for the exchange of tokens such as BCH, Ethereum Classic, LTC along with 158 other altcoins (as well as more than 400 trading pairs.)
This is primarily because the HQ for Coinbase is situated within the United States, a country where the regulatory environment is quite stringent (especially when compared to the economic setting that currently exists within Malta, the small island nation where Binance is situated)