Binance is the pacesetter in the crypto world. This exchange is the go-to platform for people looking to get started with crypto investment. What many users love about Binance are its low trading fee, tons of supported cryptocurrency and user-friendly platform. But are they the best crypto exchange out there? Read our review to find out.
Before we get into all the basics, let’s give you some background about the crypto space.
In early 2009, an internet user called Satoshi Nakamoto announced his intention to create a peer-to-peer currency on well-known communities. By using Blockchain technology, this revolutionary currency allowed near-instant, and permissionless value transfers anywhere on Earth without any intermediaries. As a result, Bitcoin has become the basis for an entirely novel asset class and led to the expansion of the cryptocurrency market into a multi-trillion dollar market. After the Bitcoin network launched nearly a decade ago, Changpeng Zhao established Binance in 2017.
This Binance review summarizes the pros and cons of one of today’s top cryptocurrency exchanges. So, let’s get started.
What is Binance
Binance ranks among the top cryptocurrency exchanges globally. The company is currently headquartered in the Cayman Islands. Thanks to its rapid success, the platform currently enjoys support from many countries including the US, where it has a license to operate. There are currently more than 500 cryptocurrencies available for trading on the Binance exchange. And the best part is that they charge low trading fees, making the platform attractive to many crypto traders. Without mincing words, Binance is a popular cryptocurrency exchange in operation. This is primarily due to its powerful trading platform, comprehensive features, and ability to support many transactions.
- Wide Selection – One of the most significant advantages of Binance is that they offer a wide selection of cryptocurrencies. At the moment, there are 500+ cryptocurrencies available on the platform.
- Transaction Types – With Binance, you don’t just trade on a platform. The Binance platform allows users to perform a variety of complex transactions and tools, including margin trading, trailing stop-losses, and peer-to-peer trading.
- Platform – Binance’s platform is designed to accommodate all levels of traders, and it offers its users the best technical indicators, advanced charting tools, and financial instruments.
- The platform is challenging to use – Binance’s complex platform has the potential to overwhelm investors who are oriented toward the cryptocurrency market. The Binance exchange may seem complicated, even to those with previous experience.
- Regulation – In terms of regulation, Binance is far from the best on the market. The Binance exchange might not be the best choice for investors who value safety and regulation over sophisticated trading mechanics and access to more complex trading strategies.
Binance: Is it safe?
A quick Google search about “cryptocurrency hacks” will reveal thousands of accounts of people over the last ten years who have had their cryptocurrencies stolen. In light of the Mt Gox saga, it is safe to assume that every investor will ask the question, is Binance safe?
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78% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.
CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
A significant hack occurred on Binance on May 7th, 2019, in which over 7000 Bitcoins were stolen. Binance has since taken safety and security on its platform exceptionally seriously. Using 2-factor authentication is now one of the services available to users to help secure their accounts.
Whitelisting IPs and devices, cold storage, and a Safe Asset Fund for Users (SAFU) make security even more robust.
It is unlikely that your cryptocurrency investments will be at risk with Binance’s comprehensive security features, even if no exchange can provide a guarantee against any breach in security.
Users should know that Binance is not regulated by major financial regulators, including those in the United Kingdom or the United States. Users interested in investing in regulated exchanges may want to consider alternatives.
Platform & Features
Binance has two versions due to regulatory reasons. In addition to the US version, there are versions for other countries. As a result of these regulations, the US version of the platform is significantly less functional than its counterpart in Europe. For example, it is unavailable throughout many states, including New York. We will examine the platform and features of Binance outside the US in this review.
Binance offers two main types of services, the desktop platform, and the Binance app. Regardless of your level of expertise, you can take advantage of the Binance app. A “lite” feature makes the app user-friendly for newbies by simplifying the user interface. As a result of the lite functionality, Binance’s exchange counteracts a common criticism that it is too complicated for new investors.
Several payment methods are available on Binance’s exchange; the exchange supports several fiat currencies, and many transfer methods are available. These methods include bank transfer, SEPA, wire transfer, and cash deposit.
If you’re interested in trading cryptocurrencies, the Binance exchange offers a robust and innovative platform. They provide advanced trading tools, indicators, and chart options, giving traders all the needed tools to succeed.
The Binance exchange has also branched out into lending and borrowing markets by allowing you to earn interest on your cryptocurrency. You can earn up to 7% APY on selected coins stored in your Binance wallet.
Binance Fees & Commissions
In the industry, Binance’s trading fees are among the lowest. As of now, Binance doesn’t charge a deposit fee.
Withdrawals from Binance are subject to a flat fee to cover Binance’s transaction costs.
Depending on the blockchain network you withdraw from and the congestion rate on the network at the time of the withdrawal, you will pay a different price to withdraw your cryptocurrency from the Binance exchange.
The following are some Binance fees:
- Fees per trade – 0.02-0.10%
- Fees for debit/credit cards – 3-4.5%
- $15 wire transfer fee
- No cryptocurrency conversion fee
- 0.5% Instant Buy / Sell other fees
Based on this, Binance is much cheaper than other exchanges. Binance US users will still pay substantially less than other brokers, even if they pay a little more.
What types of trades are available on Binance?
In the cryptocurrency industry, Binance offers one of the largest selections. They offer over 500 different cryptocurrencies and several trading instruments to trade these currencies.
We’ll consider some of their best-selling products.
Cryptocurrencies – The Binance exchange offers one of the most extensive lists of altcoins, including over 500 altcoins. Even the most exotic cryptocurrencies will be available to trade on this exchange since its currency list is so long.
Futures – Binance offers this level of sophistication instruments only to a select few exchanges.
Derivatives – On the Binance exchange, you can also trade derivative contracts.
As a result of regulatory pressures from numerous jurisdictions in Europe, Binance has decided to cease offering futures and derivatives across most of Europe. The Netherlands, Germany, and the UK are among those affected.
How to Open An Account
One business day should be sufficient to open an account with Binance due to the process’s streamlined nature. To get started, go to Binance’s website.
Register with Binance by selecting “Register Now” on their homepage.
You can register with a mobile number or an email address, depending on your choice. If you opt for a text message or email verification, you’ll submit a code sent to you
by text or email.
After completing this step, you’ll need to verify your identity to use the Binance exchange. Also, you will have to upload copies of your passports/identification documents and undergo a facial recognition scan as part of this process. You will find an instructional video on the top-right corner of the screen that will help you comply with the intermediate verification.
Binance can seem overwhelming at first. Let’s go over how to fund your Binance account and withdraw funds first.
You can make deposits in two ways. You can use a credit card or select “card deposit” on the left side of the screen or choose “wallet” from the list.
Choose “Fiat and Spot” from the Wallet menu on the left. You can select the bank account you want to withdraw funds from on this page.
Binance: How to Trade Crypto
This Binance review wouldn’t be complete without discussing how to trade on Binance. Here are the steps to buying and trading Binance coin (BNB). Below you can see the different tools you can use, including the more advanced tools like Binance margin trading. In this Binance review, we’ll choose the “Classic” option.
This option will lead you to the Binance trading station. If you’re new to trading, the trader workstation may seem daunting. You can select your currency pairs using the search box in the top left corner. The top right corner has the trading pair BNB/BTC (Binance Coin/Bitcoin).
You’ll find the buy and sell options under the price and volume charts on the screen. You can use these options to enter trades. Before advancing to larger trades or margin trading, you should practice using small capital.
Binance Customer Support
If you need customer support on the Binance platform, you can reach out via Twitter, use the live chat feature, or submit a ticket. For email support, you must fill out their web form.
Even with regulatory challenges, the Binance exchange remains the preferred exchange for most cryptocurrency traders because of its low fees, diverse offerings, and advanced trading platform. The company enjoys support in many countries across the globe and has become the go-to platform for people looking to start crypto trading.