Binance at a Glance
Pros
- One of the cheapest cryptocurrency exchanges with low fees
- World’s largest and most trusted exchange with over 500 cryptocurrencies for trade
- Offers a great number of trading options, order types, and extra services
- Is multi-supported and compatible with Android, iOS, macOS, and Windows
- Features its exchange token (BNB) which you can use for lower trading fees
Cons
- The platform is not available in the US
- Its wide range of features and trading options might be overwhelming for beginners at crypto and trading
- Currently facing regulatory and legal issues in several countries
- Has no built-in digital wallet available
- Does not have a transparent corporate structure and has no FDIC/SIPC insurance
TL;DR
Binance, despite its young age, has become the leading cryptocurrency exchange with a solid reputation. Supporting over 500 cryptocurrencies, it is considered to be the largest exchange by trading volume. Because of its low fees compared to its competitors, it has become the preferred choice by many investors.
However, it also comes with its own set of disadvantages. Some might be interested in the many trading options Binance has to offer while others can also be put off and find it too difficult to navigate.
In this review, we’ll be taking a closer look at Binance. Pull back the curtains a little. Let’s see the good, the bad, and everything in between.
Binance Review: Everything You Need to Know
Getting Started
Creating an account on Binance is fairly easy. You can sign up via its website, app, or desktop app using just your email and phone number. To unlock fiat deposit and withdrawal limits, you must complete identity verification.
Identity verification usually only takes a couple of minutes. You must provide ID documentation and upload a selfie. Then, your account should be ready.
But before you do anything, make sure to beef up the security of your account first. Enable two-factor authentication and check the list of devices authorized to access your account. You can also use a strong password and change it regularly to be doubly safe.
Binance also has a feature called “Withdrawal Address Management” which helps you to limit the wallet addresses where you can withdraw your funds. This protects you from unauthorized access.
Then, you are good to go. You can now proceed to depositing or buying crypto.
Binance Fees: How Low is Low?
In Binance, there are two common buy scenarios. We call them fees of instant purchase and fees of a non-instant purchase. Instant purchase occurs when we purchase a coin straightaway using a credit card or other instant deposit. A non-instant purchase happens when we deposit fiat currency such as USD, EUR, etc, which we will be converting into a coin.
These scenarios are subject to the Binance Fee Structure: trading, deposit, and withdrawal fees.
Trading Fees
Trading fees involve mostly commissions in each trade. Binance trading fees are known to be low compared to Coinbase and other popular exchanges. Your trading fee largely depends on your traded volume. Trading costs get discounted according to your trading volume, existing Binance coin (BNB) on your account, and whether you make or take liquidity.
The standard trading fee on Binance is 0.1%. If you have any positive BNB balance on your account, you earn a 25% discount which means the trading fee is reduced to 0.075%.
The platform does not charge an inactivity fee or any account management fees either. Unless you deposit via credit/debit card, there are no deposit fees. This makes Binance cheap and most traders’ cryptocurrency exchange of choice.
Deposit Fees
If you deposit using a credit/debit card, Binance charges a 1.8% fee. At other exchanges, you can only use a credit/debit card to initiate instant buy orders, and depositing fiat currency through a card is usually not possible. This Binance feature is certainly unique and sets it apart from others.
Most users prefer to use other deposit methods such as SWIFTWire, SEPA transfers, and BTC and ETH deposits since Binance charges no fees.
Withdrawal Fees
Withdrawal fees adjust based on the status of the market and the type of crypto you are withdrawing. It can be difficult to know what you owe until you are about to withdraw. Constantly check the Binance website to keep updated on current withdrawal fees.
Most users consider trading and converting to a less expensive coin if their crypto-asset has a high fee. You can maximize your profits with this method.
Maker or Taker
Different fees are charged depending on whether you are a “maker” or a “taker.” A market maker creates buying or selling orders under specific conditions. Those orders aren’t carried out instantaneously. An example of this order would look like this: Sell BTC when the price hits $15K. These orders create liquidity which makes it easier to instantly buy or sell when the conditions are met.
Takers, on the other hand, fulfill the orders created by makers. They are the ones who buy and sell instantly.
Makers are offered a sort of rebate since they provide liquidity to the platform. Binance updates its Maker-Taker fees on its Fee Schedule page.
Supported Cryptocurrencies
Aside from its low trading fees, Binance is also considered to be one of the largest cryptocurrency exchanges by trading volume with more than 500 coins listed internationally. It currently supports 18 major fiat currencies such as USD, AUD, EUR, GBP, HKD, and others. Depending on your location, the platform can offer 50 to 591 cryptocurrency pairs.
If you are looking to add altcoins such as Dogecoin, Litecoin, Tether, and others to your portfolio, Binance has them all and then some. You can also find Defi tokens and stable coins here.
With such a wide range of available crypto coins, Binance also makes it easier for investors and traders to enter the market. They can purchase cryptos through several ways like bank deposits, credit/debit cards, PTP (Peer-to-Peer) trading, and 3rd Party Payment.
Binance Security: Is it Safe?
One of the main issues brought up every time is Binance’s security. Is it safe? Are users truly protected from hacks and possible data breaches?
Large-scale Hack of 2019
Back in 2019, Binance experienced a large-scale security breach where hackers stole more than $40 million worth of cryptocurrency. Hackers were reported to have stolen API keys, two-factor codes, and other information during the attack.
Binance was able to trace the 7,000 crypto coin theft to a single wallet after the hackers stole from the company’s Bitcoin hot wallet. The theft was estimated to have impacted 2% of Binance’s total Bitcoin holdings.
According to the company, all of the other wallets remained secure and unharmed. Since then, the platform has taken active remedial measures to prevent further data breaches.
Tighter Security Measures
One of Binance’s top priorities remains to be its user protection. On the user-level of security, the exchange provides two-factor authentication via the Google Authenticator app, including SMS and email for safer sign-in. It also features advanced access control to users with opt-in extra security measures such as IP and wallet address, whitelisting, device management, and the ability to restrict device access.
As for platform security, Binance has also placed state-of-the-art security measures and strict data privacy controls. For instance, the majority of user funds and assets are securely stored in offline, cold storage facilities. There is also a risk management system in place where every withdrawal attempt, password reset, two-factor authentication, and email address change gets analyzed. Any unusual activity triggers suspended withdrawals for a minimum of 24 to 48 hours.
All user data and personal information, including Know-Your-Customer (KYC) information, are protected by encrypting data in storage. Data in transit is secured via end-to-end encryption.
Lastly, 10% of all trading fees are stored in a secure fund (SAFU) to protect against losses incurred due to the unlikely event of a platform breach.
Binance Lite vs Binance Pro
Users, especially beginners, tend to find Binance a tad too overwhelming. To address this pain point, Binance created a Lite mode to simplify buying and trading for users. Lite mode has a streamlined user interface that targets speed, ease of use, and accessibility. It greatly reduces the amount of information and displays only the most frequently used features.
The Lite Mode is the default user interface for users who downloaded the app for the first time. Users can still switch between Lite and Professional modes anytime. But for beginners, Lite mode is recommended.
Using the Lite mode, you would find the overall app experience to be much simpler. A basic dashboard lists the price of the popular cryptocurrencies. With a quick tap, you can quickly buy or sell crypto at any time. Unlike the professional mode, the trading interface in Lite Mode is also a lot less complicated and does not show any advanced charting features.
If you are an active and experienced trader, you’d want to go for the Professional mode. With a robust trading interface, view the order book information and more technical details to help you grow your crypto assets using the full ecosystem.
Easily switch between Lite and Professional mode to see which mode best suits you and your trading style.
Reliable Binance Customer Support?
Binance has 24/7 live chat customer support. Currently, that’s the only way you can connect to customer service via their website or mobile app. You can initiate the chat by using the yellow chat icon found in the bottom right corner of most pages. You can also scroll to the bottom under Support and click the “Submit a request” link. The link directs you to the chat function.
Once you are there, you will be given a string of questions. A chatbot can address any basic issues and troubleshooting. But if your query is too complicated, a live agent will be assigned to you to resolve your case.
The public opinion on Binance’s customer service seems divided. Some users claimed that their issues got resolved right away while others had trouble getting their problems sorted out.
Others had taken a less direct approach and still got effective results. If you are not having any luck with the live chat function, you might want to consider sending a DM on Binance’s official Twitter page or join the subreddit, r/binance. Binance uses these third-party sites to provide better support for its users.
Binance Trading Products
There are a lot of versatile trading products that Binance offers. To maximize your earnings and quickly learn the ins and outs of this platform, it is best to do your exploring.
Spot Trading
Spot trading means exchanging one crypto for another. This kind of trading allows you to trade your fiat money or crypto assets for other crypto coins through either a market or limit order. A market order occurs when you agree to trade for currency at the current market price.
A limit order works as its opposite. You can set a designated price at which you want the trade to occur. Only when the currency reaches that price can the trade happen automatically.
Binance Earn
Binance Earn is good for people who prefer to increase their crypto holdings without taking the risks of trading. It is a one-stop service that enables you to grow your passive income.
It also features two types of products under Savings: Flexible Savings and Fixed Savings. These two products work similarly to a bank’s demand deposit where you can deposit your crypto and gain daily interest from your dormant funds.
With Flexible Savings, you may redeem your assets should you need to. Fixed Savings, however, requires you to deposit your asset for a fixed period. The advantage of opting for Fixed Savings is that it generates higher returns than Flexible Savings.
Launchpool is another product that lets users stake their crypto in Defi projects. By providing liquidity to a liquidity pool, users get rewarded. This product is highly appealing to users looking to farm new assets. You can acquire newly launched tokens whenever you stake BNB, BUSD, and other crypto coins.
There is also the BNB vault created especially for BNB HODLers. HODLers can invest in both centralized and decentralized finance products to maximize yields and benefits available in the ecosystem.
Binance Margin
Let’s face it, not everyone can afford to buy large amounts of crypto. However, Binance allows users to fully maximize a trading opportunity despite not having enough crypto.
Launched in 2019, Binance Margin enables users to access greater sums of capital by getting additional funds from a third-party provider. Using this product, you can amplify your results and get bigger wins without risking the assets you’re holding in your account. However, remain aware of the risks for bigger losses as well.
There are currently 69 borrowable cryptocurrencies on Binance Margin.
Binance Loans
Binance Loans enable you to borrow USDT or BUSD by securing a collateral amount of crypto within your account. You can choose how long you want your loans to last. You can opt for 7, 14, 30, 90, and 180 days. There are currently 22 cryptocurrencies that can be used as collateral.
Binance has a simple interface where you can calculate the collateral and repayment amounts you’ll need to agree to for the loan. It also provides you with a breakdown of how the interest is collected.
NFT Marketplace
Binance launched the NFT Marketplace in the hopes of bringing artists, creators, and crypto enthusiasts together. You can mint, sell, bid, and purchase NFTs (non-fungible tokens) from creators around the world.
Reputable artists and influential brands can even host events where they’ll sell premium and exclusive NFTs. These events can include assets from digital artists, musicians, celebrities, and other big-name brands.
You can also purchase Mystery Boxes. Each Mystery Box is guaranteed to have one random NFT. You can either win a normal, rare, super rare, or super super rare NFT. While you may not return a Mystery Box after purchasing it, you can trade the NFT or the unopened Mystery Box.
Futures Trading
Binance also offers futures trading. To understand this feature, we must delve into crypto futures first. Investors take risks on an asset’s future value or otherwise known as cryptocurrency futures. Crypto future contracts derive their value from established cryptocurrencies such as Bitcoin or Ethereum.
One of the biggest pros of trading futures is its leverage on capital. Traders gain significant exposure to an asset with only a fraction of its cost.
On Binance, you can start trading futures within minutes. To get the ball rolling, you must first open a futures trading account. Then proceed to deposit funds in USDT, BUSD, or any cryptocurrencies supported by Binance Futures. Select your preferred futures contract then select appropriate leverage. Lastly, place your order according to the various order types.
Binance vs. Other Cryptocurrency Exchanges
Finding the cryptocurrency exchange that suits your needs and trading styles can be daunting, especially if you are a beginner. Cryptocurrency exchanges can offer different types of features and services. The last thing you want to do is to have your funds stuck in a system that offers minimal benefits. So, we took it upon us to compare Binance against several top crypto exchanges in the market.
Coinbase vs. Binance
Coinbase is perhaps Binance’s biggest competitor so far. However, these two exchanges are geared towards two different types of users. Coinbase prides itself on the simplicity of its platform. It is good for crypto beginners who want accessible, instantaneous, and secure ways to trade. Crypto newbies might find navigating Binance to be slightly more difficult due to the sheer number of choices this platform offers.
For convenient and easy trading, Coinbase is the way to go. However, the downside is that you’ll be paying a higher price for convenient deposit and withdrawal options.
Binance is better for more experienced traders because of its wide array of advanced trading options. Plus, it provides you with plenty of analytics and data to help you make informed decisions. With low fees, unrivaled collection of altcoins, and availability in more than 180 countries, Binace has a bit more flexibility and an edge over Coinbase.
Kraken vs. Binance
Unlike Coinbase, Kraken is made for traders with a more advanced trading knowledge and experience. The platform offers more advanced features that investors will surely enjoy.
Binance has two different sites. The regular one works for international customers. There is a specific site for US-based users, which is a lot more limited compared to its international counterpart. In contrast to Kraken, which is based in the US, investors from all over the world use the same platform. It is not as limited as Binance in the US is.
The two platforms also have different approaches when it comes to security. Binance holds a small percentage of coins in its hot wallets while the rest of the assets are stored in cold storage. Kraken appears to be far more transparent and secure. It is reported and confirmed that the platform holds 95% of the deposits in cold storage. Kraken also does regular testing to discover any weaknesses. One of the qualities Kraken does better than Binance is security. It has never been hacked since the start of its operation in 2013.
KuCoin vs. Binance
KuCoin rivals Binance in its mission to go above and beyond the basic needs of crypto investors. Both offer popular advanced trading dashboards, margin trading, futures market, P2P marketplace, and more.
KuCoin stands out a bit more with its free trading bot feature. This feature can help increase your investing potential. You set the parameters of the trades you would want to execute, completely automating the process. The bot runs on a cloud, so whether you are busy or sleeping, you never have to worry about missing anything. Plus, you won’t need your phone or computer turned on to keep the bot operating. The platform also lets you see the top performing bots. You can then copy their settings to mimic the performance of these bots.
When it comes to fees, Binance might prove to be a better option. It charges a small fee to deposit fiat currency. You can also buy crypto using fiat currency for only a fee of 0.1%. KuCoin’s major disadvantage lies in the fact that you won’t be able to access the markets using fiat money or withdraw fiat from your KuCoin account. Purchasing crypto using fiat comes with a hefty fee of 3% to 12%. It can get very expensive in the long run, unlike Binance.
The Bottomline
If you are planning to get into cryptocurrency, the exchange you’ll hear most about is none other than Binance. And it is with good reason. Its low fees, wide variety of trading options, diverse crypto coins, and state-of-the-art security make Binance highly appealing. Not to mention, it is also one of the most trusted crypto exchanges around.
However, if you don’t have the funds to start your crypto investments yet or you find Binance too overwhelming, you might want to work with FreeCryptoRewards instead.
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