Binance Exchange is one of the most trusted cryptocurrency exchange platforms in the market. Having ventured into the market only in 2017, it has become a leading crypto exchange option for traders. If you want to start your cryptocurrency business, we have come up with this detailed Binance exchange review to help you make the best decisions.
Its customers access the most popular cryptocurrency trading pairs in any worthy exchange, giving it the highest trading volume among all crypto exchanges. Binance even has its own cryptocurrency called Binance Coin. In addition to Binance Coin, Binance has over 500 other cryptocurrencies available to trade at competitive prices.
Binance exchange clients can purchase crypto assets directly using a credit card or up to 31 fiat currencies. It is available via smartphone apps, desktops, or websites. Moreover, Binance has a wide range of features to support its users. If you need to decide whether Binance is the right exchange for you, read on to make an informed choice.
Binance: The Beginnings
Binance was launched in July 2017 by veteran crypto trader Changpeng ‘CZ’ Zhao. This new exchange was then based in China, but as restrictions on crypto in the country started to tighten, its base was quickly moved out. Over the years, the company has been situated in Malta and Japan but still hasn’t found a permanent base of operations. Talks are ongoing with several countries to probably make a solid headquarters.
Despite the initial challenges, Binance was able to amass a massive userbase thanks to its lower entry fees, creative solutions, and a large array of cryptocurrencies. Today, Binance is the go-to exchange for products like NFTs, credit cards, loans, derivatives, etc. The exchange even offers two proprietary tokens: BUSD, a stablecoin, and BNB, a good performer thanks to its low fees.
Binance has two versions to account for countries’ regulations: one for US users and the other for users in other countries. Due to US restrictions, the US version has limited functionality compared to the other and is not available in some states, like New York. This feature review describes the second version (for users outside the US).
Binance has a website that you can use and a desktop application for Windows and macOS. If you trade on the go, you can install the Binance app on your iOS or Android smartphone. It also has different modes to fit the experience levels of all users: ‘lite’ for novices which is relatively easier to use, and ‘Advanced’ for more experienced and well-versed crypto users.
The lite version allows new traders to convert fiat currencies to crypto or one crypto form to another on the spot market quickly. If you are using a smartphone app, you can choose between the Lite version of the Pro version, which is the advanced form of the application.
Binance has most of the top ten most popular crypto assets. You can as well use various payment methods like credit cards, fiat currencies, wire transfers, SEPA, cash deposits, or even crypto exchange. Some of these assets include:
- Bitcoin (BTC)
- Binance Coin (BNB)
- Litecoin (LTC)
- Ripple (XRP)
- Bitcoin Cash (BCH)
- TrueUSD (TUSD)
- Tether (USDT)
If you do trade cryptocurrencies, Binance Exchange allows you to trade over 174 coins, including:
- Stellar (XLM)
- Chainlink (LINK)
- Bitcoin SV (BSV)
- Cardano (ADA)
The exchange platform is loaded with various financial tools, charts, indicators, and technical predictors to help you make the best exchange possible. Binance, like other top exchange platforms, has ventured into the borrowing and lending markets, allowing users to earn interest on their crypto assets. If you store coins using the Binance wallet, you can gain up to 7% APY.
As mentioned earlier, Binance stood out early in its entry due to the low fees they charge on any major exchange. Both buyers and sellers pay 0.1% in fees, which you can reduce by having more than 50 Bitcoin value in trading volume over 30 days or having over 50 Binance Coin (BNB) in your account.
Adding an asset to your account is free, and for withdrawal, you will pay a flat fee depending on the asset, congestion on the network at the time of withdrawal, and the minimum withdrawal amounts. The fees that Binance charges include:
- Trading fees: 0.02-0.10% per trade
- Wire transfer fees: $15
- Debit/credit card: 3-4.5%
- Other fees: 0.5% on instant buy/sell
How to deposit and withdraw funds into a Binance account:
When you want to transact crypto on Binance:
Create an account or log in to your account, select the ‘Buy crypto’ option on the left side of your screen, and choose ‘Card deposit.’ You can also use the ‘Wallet’ option on the left side of the screen. You can deposit funds using Wire transfer, Swift, SEPA, BTH, and ETH.
To withdraw funds, use the ‘Wallet’ option, then click on ‘Fiat and Spot.’ This option should allow you to transfer funds to your bank account in your selected currency. Withdrawal takes up to 5 business days, depending on your withdrawal method.
Binance offers 24/7 customer support through LiveChat, though you may find yourself interacting with a bot instead. The live chat agents offer valuable insight if the chatbot’s response doesn’t help, and Binance is present on forums such as Reddit.
How to sign up for Binance
Signing up with Binance is a straightforward process that should take about 15 minutes. First, you need to choose between registering a verified and an unverified account. The difference between the two is simply the verification process that will require you to submit a picture and identification documents so that Binance can prove your identity as the account’s owner. To register an unverified account:
- Navigate to the Binance website and click the Register button
- Enter your email address
- Create your password
- Accept Binance’s Terms and Conditions of Use
- Confirm your registration via email
If you want to deposit and withdraw cryptocurrency, you need to verify your account. Once you follow these steps, you can move on to verify your account as follows:
- Log in to your account
- Navigate to User Center and select Identity Verification
- Select Personal, then fill in your details
- Select an ID type for verification (Driver’s license or Passport)
- Upload the document you selected, then a picture of yourself
- Wait for Binance’s email communication about the verification status of your account (Wondering how long verification takes? Read: How long does it take to be verified on Binance)
Advantages of using Binance
If you are still unsure of using Binance, here are some benefits of opening an account today.
a) A wide selection of trading pairs
Binance offers over 500 cryptocurrencies for you to purchase, a massive range of cryptocurrencies for trading, and other financial instruments that you can use. These include derivatives and futures. However, due to regulatory activity in countries like Germany, the UK, Italy, and the Netherlands, Binance has wound down its futures and derivatives offers.
b) Additional features
Binance offers its users much more than just a trading platform; you can access features and data such as peer-to-peer trading, trailing stop losses, and margin trading. In addition, you can view and display your data using financial charting tools and other technical indicators. However, you may need to use a crypto portfolio tracker to better track the assets you trade on Binance.
c) Low trading fees
Compared to many other exchanges, Binance has low trading commissions. They do not charge account management or inactivity fees. Moreover, there are no deposit fees unless you deposit via debit/credit card.
d) The Binance Academy
If you are new to investing in the cryptocurrency industry, Binance has an Academy that offers articles, videos, glossaries, and some quizzes to test your knowledge. You can also access webinars via their YouTube channel and more information on all matters crypto on the support center. The content here is of high quality and should get you started in the crypto market and other forms of trading and investments.
e) Crypto card
Binance offers its users a Binance crypto debit card that they can use to purchase items using their crypto. In addition, you can instantly convert the crypto into the fiat currency of the purchase.
Disadvantages of using Binance
Here are some disadvantages of using Binance, especially as a new crypto investor.
a) It is quite technical
Beginner investors will have a hard time navigating around this rather sophisticated platform. Even the most experienced traders do have challenges using the exchange.
b) Lower regulation
Regulators often help investors determine how safe an entity is and will have the authority to help you should any issue arise. Binance is not as highly regulated as other exchanges in the market. It operates in several jurisdictions but is still governed by Hong Kong law. Moreover, Binance’s corporate structure is unclear, and so is its headquarters.
If your priority as an investor is safety over advanced trading functionality, Binance may not be the platform for you. Instead, you can go for brokers who are subject to investor protection schemes like the FSCS in the UK or SIPC in the US.
Frequently Asked Questions About the Binance Exchange Platform
a) What is Trust Wallet?
Trust Wallet is a non-custodial, standalone wallet that Binance bought in 2018. It is a reliable hot wallet (a software-based wallet that connects to the internet) that supports many cryptocurrencies, including BUSD tokens, Ethereum, Bitcoin, Binance’s BNB, and others.
Users can also stake certain coins directly from Trust Wallet, such as Kava, Cosmos, and Binance Coin. In addition, you can use it to transfer some of your cryptocurrency from the Binance exchange to your wallet.
b) Is Binance Safe?
Yes. Safety is crucial in cryptocurrency exchanges as thousands of traders have had their crypto assets stolen before. You may have heard of the 2014 Mt. Gox crypto exchange disaster in which a hack resulted in the theft of 850,000 Bitcoin, which was worth about $473 million.
Binance had an incident where hackers stole 7000 Bitcoin worth about $40 million in 2019. However, Binance was quick to reimburse all users who underwent losses due to the hack through its Secure Asset Fund for Users (SAFU).
Since cryptocurrency exchange platforms do not qualify for formal deposit insurance covers like banks do, they have to ‘self-insure.’ SAFU is a cold storage wallet that protects against such incidents, keeping sufficient funds to reimburse users affected.
Since that Binance hack, there hasn’t been such an incident again. While most people would prefer that the incident never happened in the first place, this hack happening to Binance, and their swift response shows that they are trustworthy.
Binance also offers two-factor authentication plus universal factor authentication to secure your account further. In addition, Binance has invested in IP address and device whitelisting, plus its SAFU, which is a safety backup. Since the IP and device whitelisting feature could block Binance access in some parts of the world, you can choose the best VPN for trading crypto anonymously.
While crypto exchange platforms cannot guarantee 100% solid security, Binance is doing a lot to keep users’ investments safe. Other signs that Binance is a relatively reliable provider are its large client base, high volume traded every quarter, and its established form (having many employees and having been around for years).
However, you should know that financial authorities do not regulate Binance in jurisdictions such as the US and the UK, so you may need good tax software to help you understand your tax obligations. If you prefer regulated exchanges, you should try other platforms.
c) What is advanced Binance?
Binance has two trading versions: Basic and advanced.
The advanced mode is for experienced traders and has plenty of complex data compared to the basic or lite version. The advanced version is packed with 80 well-known charting tools such as MACD, Linear regression, and RSI and is not recommended for beginners.
The basic or lite version has a simpler interface with less-cluttered charts, a newsfeed, and a button to check your wallet balance.
d) How do Binance’s features compare to Coinbase’s?
Coinbase is another leading exchange platform that is comparable to Binance. However, Coinbase is more of a broker exchange that allows users to purchase cryptocurrencies using fiat currencies.
Binance, on the other hand, lets users obtain crypto with not only fiat but also credit cards. Coinbase’s charges are similar to or slightly more than Binance’s, making Binance the better option since it offers way more trading pairs.
e) Can users trade fiat currency on Binance?
Unfortunately not; you can only use fiat currency to purchase crypto directly via Binance.
f) Does Binance offer any competitions?
Yes, Binance offers competitions whose rewards include crypto assets, cash, or cars. These competitions aim to encourage users to trade specific coins and tokens, sign up for an exchange beta program, or see who can get the highest trading volume.
Featured image source: Binance.com