In this article, we will review Binance, and help you decide if it’s the best option for you. We will look at the exchange company from every aspect, including how it works, its different features, products, security aspects, trading fees, and customer support in detail.
Binance’s name is the amalgamation of Bitcoin and finance. It’s a platform to buy, sell or trade various cryptocurrencies. Changpeng Zhao founded the company in China in 2017. The company had to move its headquarters to Malta in Europe due to China’s strict policies against cryptocurrency.
Besides trading hundreds of digital currencies, Binance has launched and developed its own blockchain, namely Binance Smart Chain (BSC) that uses its native token, BNB to pay for transactions.
How Does Binance Work?
Binance offers different options to let you use their platform. They have a mobile app and a desktop-based app that allow you to trade, sell or set up recurring buys.
The centralized exchange needs your personal information and verification for opening an account which is good for security reasons. The exchange claims to process around 1.4 million orders per second. It trades in more than 500 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and its own native BNBs.
Binance offers services around trading, listing, delisting, or withdrawing cryptocurrencies, and is well known for being the biggest crypto exchange in the world.
Opening an Account on Binance
The process of opening an account is simple. Simply click here to head over to Binance and hit the register button and fill in the details.
There are multiple account levels you can choose to access, though Level One should be sufficient for most people.
For Level One, you don’t require any verification. Level one has a daily withdrawal limit of 2 BTC daily.
For Level Two, which allows 100 BTC daily withdrawal, you have to upload a photo ID and wait for approval.
The verification process may take some time, but once you have opened an account, you can buy coins, add them to your wallet, and start trading.
Binance offers a user-friendly interface that supports both beginners and experts. When you visit the Binance website, it offers two choices for digital trading.
The basic view is well designed, containing all the information you need for trading. It has information about coins on the left, graphs in the center with buying and selling boxes, and your trade history is shown on the right side of the page.
Despite being called basic, it is nonetheless not easy to use for beginners. The user interface is a bit overwhelming for newbies, but it is intuitive for those with little experience in digital currencies. Still, it has a simple layout and contains all the right information you need on your dashboard.
For expert traders, Binance offers its Advance level. It has a dark theme. It has larger trading charts and gives access to more market data for those that are looking to do high frequency trading or scalping.
Binance offers plenty of choices for buying cryptocurrency. It supports most fiat currencies and credit cards. You can buy cryptocurrency through:
Binance supports more than 50 fiat currencies, including EUR, BRL, GBP, and AUD, using a bank card or bank transfer. They have also partnered with third parties to allow its users SEPA payment methods. However, the service is available against only selected fiat currencies like AUD, CAD, and Euros. It is not available for USD.
Buy Cryptocurrency Using Peer-to-Peer
The P2P method of buying allows you to buy cryptocurrency directly from other users. P2P transactions give you more control over who buys your coins, pricing, and settlement time. Buyers and sellers can post or read ads and contact directly to trade cryptocurrency.
Debit and Credit Card
Binance accepts debits and credit cards to purchase hundreds of cryptocurrencies.
Binance does not offer wallets for storing cryptocurrency. You can choose any wallet of your choice. However, it recommends using Trust Wallet, a decentralized wallet that supports more than 40 blockchains and hundreds of currencies.
Trading on Binance
Binance offers services round trading, listing, fundraising, delisting, or withdrawing of cryptocurrencies.
They offer three types of transaction orders: Limit, Market, and Stop-limit orders.
- Limit Orders: These are executed only at a price limit set by traders.
- Market Orders: These orders are executed immediately at the best market price.
- Stop Limit Orders: Conditional orders that become valid only if the price reaches a specific figure. Once the market price reaches the predetermined Limit price, the trade is executed automatically.
In addition to these types of trading, Binance also offers other types of orders for specific future contracts like:
- Stop Market Order: It works like a stop-limit order. Once a stop price is reached, it triggers the market order.
- Trailing Stop Order: Trailing Stop Orders allows the trader to place a pre-set order at a specific percentage away from the market price. It locks the profit by opening the trade and continuing to profit as long as the trail moves towards the market’s favourable conditions.
- Post Only Orders: You can book these orders in advance as they are not executed immediately.
- Limit TP/SL Order: You can set a take profit or stop loss price in a single order.
Other Services of Binance
Not only for trading, but you can also use your account for staking coins as well. Staking is when you leave your coins in your Binance account and earn interest in a savings account. Binance offers certain rewards for staking coins. You can check the previously distributed rewards of a selected coin.
Binance Earn offers two types of earnings:
- Guaranteed:Investment in stable coins gives predictable returns.
- High Yield: Staking high yield coins give a higher than average return, but it involves risk to your invested principal as well.
Binance Earn offers a suite of other products like:
They give you two types of saving options like in bank deposits. You can have flexible savings and collect daily interests on your coins or fix your assets for a period to earn a high yield.
It’s a perfect opportunity for users to farm new assets. Users stake their assets on DeFi projects and earn rewards that are distributed every hour.
By investing in the BNB vault, users can invest in both centralized and decentralized finance products and benefit from multiple opportunities offered by Binance.
Binance Exchange facilitates spot trading. Spot trading is the process of buying or selling digital currency for immediate delivery.
Binance enables users to conduct fiat to crypto or crypto to crypto transactions. For spot trading, you can select between three interfaces from beginners, Classic and advanced users. Binance operates spot trading 27/7, which means you can buy and sell crypto anytime, day or night.
Binance Futures Trading
When you purchase a futures contract on Binance, you can trade on the value of any specific cryptocurrency. In future trading, you don’t buy or sell a specific cryptocurrency but own a contract to buy or sell it at a future date.
Binance Security and Features
If you are concerned whether your cryptocurrency is safe with Binance, rest assured as Binance allows user account protection via Two Factor Authentication.
Binance experienced a major security breach in May 2019. Hackers stole 7000 Bitcoins from the exchange. Luckily no one suffered any loss as hackers were caught and funds were restored.
This even instills a lot of confidence around Binance. They prevent the hackers before anyone loses any funds, but they now also offer a bounty of $250,000 to anyone to help catch the hackers.
Binance Visa Card
Binance Visa Card allows you to use your account to purchase things from more than 60 million merchants worldwide. You can also buy things from places that don’t accept cryptocurrencies. This means you will buy with fiat money without any fees at all. Binance will not charge any administrative or processing fee.
Its Binance’s blockchain incubator focuses on nurturing pre-ICO stage projects. It is designed to help promising cryptocurrencies by providing the necessary funding for development and advisory resources.
Binance also supports LaunchPad, which is a site to host and support emerging cryptocurrencies and blockchain projects.
Binance Exchange Fees
Binance offers the lowest fee structure in the crypto exchange market. It allows traders to choose their preferred payment method. It supports more than 30 currencies, and you can also pay through Bitcoin, Ethereum, BNB, and more.
If you choose to buy cryptocurrency through debit or credit card, you can expect to pay 3% to 4.5%. Wire transfer comes with no transaction fee, but it is not available everywhere.
There are no fees for depositing cryptocurrency. You need to convert your fiat money into Bitcoin, Ethereum, or Tether, and then you can deposit crypto into your account.
Binance charges you a standard fee of 0.1% for trading on the platform. You can reduce the trading fee by purchasing BNB and using it as a trading fee. Using BNB as the trading fee will give you a 25% discount on all trading fees. If you hold BNB in your account, your trading fees will automatically deduct from your BNB balance. They charge 0.02 % to 0.1% trading and purchasing fee.
It offers free SEPA transfer or $15 per US wire transfer. Those who choose to pay via Binance Token can get a 50% discount on the trading fee. Binance.US offers 0.1% to 5.0% depending on your payment method.
You can use the available futures trading platform. Binance offers as low as 0.02% and 0.04% for traders on the future trading platform.
Binance charges a withdrawal fee depending on what type of cryptocurrency you are withdrawing and the current status of the market. Some currencies have higher rates than others.
The withdrawal fee depends on each digital coin. For example, 0.0005 is charged for Bitcoin and 0.005 is charged for Ethereum.
Binance Coin (BNB)
BNB is the native coin of Binance’s ecosystem. Binance launched the coin in July 2017. During its Initial Coin Offering, 20 million coins were given to angel investors, 80 million to the founding team, and the remaining 100 million to the various participants through the ICO process.
The funds raised through Binance were intended for Binance’s marketing, branding, and upgrading its ecosystem.
BNB runs on the Ethereum blockchain and has a cap of 200 billion tokens.
Benefits of BNB
BNB can be used to pay for goods and services and to settle transaction fees.
People using Spot trading save up to 25% on trading fees through BNB. Again 25% can be saved on Margin trading fees. And you can save up to 10% on Future trading fees.
You can also stake BNB and earn multiple rewards through the BNB Vault. BNB can be used to buy more than 60 million merchandise across the globe. You can also earn a sizable yield by depositing BNB and selected Binance Smart Chain projects. Also, Binance scheduled quarterly BNB burns that reduce the supply of BNB and increase its value. That makes it a great profit-earning and staking opportunity for traders.
Pros of Binance
Binance offers many compelling features that make it a great trading platform.
Trade over 180 Currencies
Binance allows you to trade over 180 cryptocurrencies, making it a great option for consolidating your trading in a single platform. It enables you to buy a lot of coins that may not be available on other platforms. They offer the best selection of tradable assets on the market.
Low Trading Fees
Binance also offers very fair trading fees. The main charges are 0.10% for all traders, which is the lowest in the market. You can opt to buy BNB and enjoy some more discounts here as well.
A good reputation is the first thing investors look at while selecting an exchange company, and Binance has by far the best in this regard. The exchange is known to pay attention to its security features and continues to consolidate them.
Binance is an anti-fraud platform. They lead the Crypto-Safe Alliance that shows their commitment to security. They support two-factor authentication and verifies your identity through SMS and Google Authenticator. It also supports Universal Two-Factor Authentication.
In addition to these security features, Binance also offers another security feature named Address Management. You can restrict your withdrawal funds only to authorized wallet addresses.
Binance has a dedicated help center, and their team works 24/7. The support team resolves queries and resolves in-depth issues relating to the exchange’s different functions, features, and products.
Since they have a load of requests to deal with, customers can submit ticket requests via their account portal.
Binance also has a good representation on almost all social media platforms like Twitter, Telegram and Reddit. They offer a quick response to queries and questions.
Binance academy offers multiple useful tutorials and articles where they explain everything in detail.
Cons of Binance
Now let’s look at some of the possible drawbacks of Binance exchange.
- Not an ideal platform to start trading for beginners. Despite its user-friendly interface, Binance is still a bit complicated for complete novices. For those having little knowledge of cryptocurrencies, Coinbase is a far more beginner-friendly platform.
- While customer support is decent, it may be lacking in certain regions.
- Binance US excludes many features and products compared to the global version due to regulatory requirements. For US users, Coinbase or FTX might be a superior option.
Binance is an ultimate choice for both beginners and pro-level traders.
While the exchange seems a little overwhelming for beginners, it offers resourceful data in Binance Academy to teach all about trading digital currency and using its different features and products.
It’s a safe and secure platform for crypto traders and contains one of the rich collections of coins to choose from. The platform is still the market leader in crypto-to-crypto trading, offering the widest range of crypto currencies and the deepest liquidity.
Bernard currently works full-time as a growth hacker and content researcher for HUSTLR. When he was studying in the US 2 years ago, he flipped Yeezys on eBay as a side hustle to fund his degree and living expenses. He’s currently working on his Amazon FBA business & dropshipping on the side.