As the cryptocurrency is increasing in popularity, a growing number of exchanges are being created and used for trading, buying and selling different coins.
Thus, choosing the right trading or exchange platform can be quite tedious for both beginners and experienced cryptocurrency enthusiasts.
A popular cryptocurrency exchange created by Changpeng Zao, Binance was launched in China in 2017. However, as the laws in China are very strict, it was moved to Japan – a country that loves digital currency. Though the exchange is only a couple of years old, it has somehow managed to gain quite a reputation in the industry and among crypto traders around the world, because of its impressive ICO listings and low trading fees.
That being said, before the exchange was opened, the company raised money by offering ICO. It is just like the crowdfunding campaign, wherein people or investors put their money to get the company started.
An equivalent of $15 million was raised through the initial coin offering. The investors in return got their cryptocurrency token, known as Binance Coin. In this Binance Exchange Review, I will discuss all the major aspects of Binance Exchange that you need to know, including the services, fees and limits, pros and cons, customer support and its comparison with other exchanges.
- Binance Services
- How to Use Binance?
- Binance BNB Coin
- Binance Trading Fees
- Pros of Binance Exchange
- Cons of Binance Exchange
- Is Binance Safe?
- How Do I get the Binance App?
- Binance vs. Other Popular Exchanges
- Binance Competitions
- Binance Customer Support
- Final Thoughts
This is no financial advise, all the content and the ideas present in this page and all the other pages of the website do not guarantee financial success and may lead to a loss of your money. You should always do your own due diligence before trading or seek professional advise.
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Binance Exchange specializes in crypto-to-crypto trading. But starting 2019, there is an option to fund your account using debit and credit cards. Thus, you can make deposits with cryptocurrencies and credit cards. Also, the deposit made on the exchange is free from any kind of fees.
The exchange offers two different options for trading digital currency, basic and advanced. If you do not have any experience with digital currency platform, you might find these platforms a little complex to use. However, for traders with a background in digital currencies and know-how of how the digital currencies exchanges works, will appreciate the services offered by Binance.
The basic version of the platform is also quite an advanced platform for trading. It provides access to detail charts along with various indicators that can be overlaid on the charts. It allows you to manage the trades and get access to trade history and order books. The major difference between the basic and advanced version of the exchange is the ability of the advanced version to perform in-depth technical analysis. The tools offered by the advanced platform are more sophisticated and the analysis can be done over a longer period.
Binance offers the ability to its clients to trade with a wide variety of cryptocurrency. Following are some of the crypto that can be traded on Binance exchange.
- Bitcoin Dash
- Bitcoin Gold
- Deposits can be made by transferring cryptocurrencies from other wallets to your Binance wallet.
- In January 2019, Company also introduced deposits using credit card transfers.
- Users can make use of basic and advanced trading platform based upon their experiences.
- Advanced version allows performing an in-depth analysis using sophisticated tools.D
How to use Binance
Binance signup and login
To make use of the exchange and start trading in cryptocurrency, you will first need to create an account on Binance. The signup process is quite simple and straightforward. For level 1 account, there is no need for verification. The daily withdrawal limit for level 1 is 2 BTC. For level 2 the withdrawal limit goes up to 100 BTC daily. However, for level 2, you will have to go through the verification process and upload a photo ID.
The verification time can be different for different users depending upon the availability of staff members. Thus, if you are planning to withdraw a large sum of amount, make sure you plan the verification process well in advance.
Depositing crypto in Binance
Previously there were no fiat options, you needed to have some cryptocurrencies in a wallet somewhere and then transfer it in. Following are the steps to deposit cryptocurrency in your Binance account.
- To fund your account, click on funds in the top right corner.
- Click on deposit from the drop-down menu that appears.
- Choose the currency and copy the address provided.
- Make a transfer from your wallet to Binance.
In January 2019, the company announced that they will accept deposits through credit cards as well. They have collaborated with a payment service known as Simplex. Thus, users and traders can know purchase cryptocurrencies like Bitcoin, Litecoin, Ethereum and Ripple through credit cards. Though the platform host over 150 cryptocurrencies, you can only buy the above-mentioned coins.
This time of deposit will depend upon the currency you’re trying to deposit as it relies on that particular currency Blockchain. If you are wondering whether Binance is a wallet, then yes, you can store Bitcoins and other cryptocurrencies on Binance. The exchange takes security very seriously, which is reflected in the fact that it has never been hacked before.
That being said, credit card deposit method will not work for countries that are on the sanction list including North Korea, Syria, Afghanistan, Libya, and Iraq. Apart from this, people from the US states of Washington, New York, Connecticut, New Mexico, Hawaii, and Georgia.
When it comes to the processing fee, the platform will charge a fixed 3.5% transaction fee for credit card users. Thus, if you are planning to buy BTC worth of $10000, a transaction fee of $350 will be applied on your credit card.
How to use Binance
- No verification is required for level 1 users and can withdraw up to 2 BTC worth crypto daily.
- For level 2, the withdrawal limit is up to 100 BTC crypto but does require verification.
- Deposit made through credit cards has a processing fee of 3.5% for all users.
- Users from North Korea, Syria, Afghanistan, Libya, and Iraq cannot deposit using credit cards.
Binance BNB coin
One of the things to take note about is Binance BNB coin. This was issued by the exchange during their initial coin offering. The BNB coin can be used to pay the fees on the platform. In the future they are even planning to create a decentralized exchange wherein the BNB coin will form one of the key base currencies. In addition to this, if you make use of the BNB coin to pay towards the fees, you can get a 25% discount on trading fees. Meaning a lot of money can be saved by using BNB coin. The discount during the first year was 50%, for the second year 25%, for the third year 12.5% and so on.
To get the discount, you must maintain the BNB coins in your wallet and the discount will be applied automatically. The appropriate number of coins will be deducted from the account. However, if you wish to keep your BNB coins, there is an option to turn off the feature that automatically uses your BNB coins to pay towards the trading fee.
And with Binance planning to create their decentralized exchange that will be powered by BNB coins, it is expected that the demand for BNB will only increase once that happens. Binance also said that they plan to use 20% profit of each quarter to buy back these BNB coins and eventually destroy them. The company plans to buy back 50% of the total coins to destroy. Thus, making the remaining 50% coins more valuable.
Binance BNB coin
- You can pay the trading fee by using the BNB coins to get a discount of 25%.
- Discount is automatically applied if the coins are present in your Binance wallet.
- Binance plans to buy back BNB coins every quarter by using 20% of their profits to eventually destroy them.
- They want to destroy 50% of the total coins that were offered during the ICO and use the other to create a decentralized exchange.
Binance trading fees
Trading fee is one of the competitive advantages that Binance utilizes to its advantage. It offers a flat trading fee of 0.10%. This is quite low in comparison to the industry average, which is around 0.25%. This is one of the reasons as to why Binance has been so successful since it has started 2 years ago. Low trading fees is the reason why it can be the best cryptocurrency exchange for you.
Apart from this, if you have managed or can manage to attain any of the Binance VIP levels, then the trading fee can be even lower. That being said, the VIP level that you will qualify for will depend upon your trading volume over the last 30 days and the holding of your BNB coin. For instance, if you are at the initial VIP, then your trading fee will be reduced by 0.01%, meaning you will have to pay 0.09%. On the other hand, if you are on the highest VIP level, then there will be a trading fee of 0.02% for makers and 0.04% for takers.
Being said that, to achieve the highest VIP level the traded volume should be more than 150,000 BTC over the last 30 day period.
Binance Trading Fees
- Trading fees of Binance is one of the lowest in the industry which stands at a flat rate of 0.10% per transaction.
- If you have attained one of the eight VIP levels of Binance then you can get a further discount on trading fee.
- The trading fee for VIP users can be from 0.01 to 0.09% depending on the level they attain.
Pros of Binance exchange
Now that you know a fair deal about Binance, let me tell you about the different advantages that I think makes the exchange stand apart from its competitors. Let us get into more detail and speak about the different pros that it has to offer to you.
For any cryptocurrency trading platform, one of the key factors to attract and retain an existing customer is its reputation. Binance has a relatively simple to use interface and more importantly is secure. I had no problem working with the exchange platform.
Hundreds of Cryptocurrencies
One of the key factors that made Binance so popular among traders from all around the world is because they can trade in many different cryptocurrencies from the single platform. They have a massive range of coins available on their platform. Certain exchanges do not offer more than 20 coins, but Binance provides access to over 150 coins. The platform believes in hosting new altcoins before any other exchange.
Thus, if you are trading using the Binance exchange, you might get the ability to buy such coins for cheap prices. And if they do well in the future and get listed on other platforms, their price will only go up, allowing you to make large profits only because you were able to enter early.
One of the great advantages of Binance over other cryptocurrency exchanges is that the fees of Binance are lowest in the industry when trading crypto to crypto. For every trade made, the users are charged 0.10% flat. Thus, if you are trading 1 ETH, the fee will only be 0.001 ETH. In addition to this, if you are trading using the Binance BNB coin, then you take added advantage of trading fee discount.
The deposit made through crypto is always free, however, if you are depositing credit cards, you will be charged a transaction fee of 3.5%. Apart from this, the withdrawals made do cost money. The withdrawal fee changes based upon the type of cryptocurrency being withdrawn. Having said that, if you are looking to withdraw more than 2 BTC worth of crypto, then you need to have a verified account.
When it comes to security, Binance offers one of the most robust platforms. Customers have to set-up a two-factor authentication when they register their account with the company. This is an added layer of security that sends a special code on your registered phone number every time you try to login to the account or make a trade or withdraw funds. Thus, if you have any concerns whether or not Binance is safe for your cryptocurrency trading, be rest assured and use the platform with great security and privacy. It is as good as you can get in the digital currency world.
ability to process 1.4 million transaction per secon
The cryptocurrency platform can handle 1.4 million transactions per second. This tells you fast and good Binance is. I have experienced no lag while trading crypto on this platform. The speed is essentially important for traders who trade large volume and the lag can cause serious loss in money.
High volume trading
Since Binance Cryptocurrency exchange is one of the most popular exchanges in the world at the moment to buy and sell different coins, the number of trades happening all the time is very large, when compared to other exchanges. This can be crucial as it means that you have a far better chance of selling your digital assets immediately, as and when you need to.
For instance, if you are looking to buy a cryptocurrency but at the time has a low trading volume, it will be difficult to buy them because there are not many sellers available to buy from. On the other hand, if many people are trying to sell their digital currency, then buying becomes easier.
And since the number of listed digital currency on the exchange is over 150, the number of active users on the platform will be more in comparison to any other cryptocurrency exchange platform. The high volume provides an excellent opportunity to buy and sell digital currency immediately.
Binance recently launched margin trading functionality for its users, allowing them to open both long and short positions. The firm also said that the funds in your margin wallet determines the amount that you can borrow, with a leverage of 3:1. Thus, if you have 1 BTC, you can borrow 2 more. Having said that, you can only make use of margin trading functionality if you have a verified account on Binance. You can move the funds from your Margin wallet to Binance Primary wallet without any additional fees. Thus, if you are someone who wants to short bitcoin or other cryptocurrencies on Binance, now you can do so by using the margin trading feature of Binance.
Binance and TradingView
Binance have also embedded charting and analysis tool TradingView with their exchange platform, allowing users to get access to different numbers of charts for their technical analysis requirements. A beginner-friendly tool, TradingView offers a number of different features and remains to be a versatile option when it comes to technical analysis. However, while you can create and analyze charts through TradingView, you cannot make any transactions on Binance through TradingView.
Cons of Binance Exchange
Until recently, one of the major drawbacks of using Binance exchange for buying and selling digital currencies was the absence of fiat options. However, that has been taken care of by the company and now they allow to buy cryptocurrencies using credit cards. While there is no other disadvantage that I think of, but as per some users, there can be some improvement in their customer support department.
The reviews about customer support are a mixed bag of positives and negatives. Some of the users who are using the exchange has said that there is a long delay in the response to their queries. Binance can be contacted by using chat and email. However, as per user reviews they had to wait for long to get a response. One of the key reasons for long delays could be a large number of the customer base that they have.
When you have such a large user base, the number of queries also tends to be large in numbers. And thus the delays. That being said, I do believe that the company will take actions towards it, to improve their support services. I personally never had any major issues with the exchange platform and thus never really had to get in touch with the customer support team.
Apart from this, one thing that they can add to their support is the phone contact option that can be found in some of the other popular digital currency exchanges such as Coinbase.
Pros Of Binance Exchange
- Low trading fee.
- Over 150 cryptocurrency available to trade.
- It uses 2FA for the security of users.
- Exchange can handle 1.4 million transactions per second
- Margin trading to short cryptocurrencies on Binance exchange.
- Integration with TradingView for technical analysis.
- Improvements in customer support can be made.
- No live chat option available.
Is Binance safe?
Even by being one of the newest cryptocurrency exchanges in the market, Binance somehow managed to attain the highest level of trust from the people trading in the digital asset. Though there isn’t much information available on how Binance ensures the privacy of their users and security of digital currency, it is known that they take security seriously.
The platform makes use of the two-factor authentication mechanism ensuring that only the right people can get access to the accounts. In March 2018, hackers tried to attack the exchange to steal digital currency from users’ wallet but failed to do so as the hack was caught by their automated system present on the exchange platform.
Hackers made use of phishing website to start gathering login credentials of users account to withdraw cryptocurrency to their wallets. However, the hack was stopped and no one lost any funds.
The one thing to make note of, from this entire hack is that it was made possible by people entering their logins and two-factor authentication on phishing websites. I always recommend people to access websites and exchanges from the right URL. Do not access the URL that is posted on social media platforms like Twitter and Telegram.
This unsuccessful hack attempt did a lot of positive for Binance as a company as a number of people started to instill their trust in the exchange platform. They knew that their funds and digital assets are in secure hands and completely protected. With their exemplary approach, the entire incident was managed swiftly.
However, during May 2019, Binance experienced another hack wherein they lost 7000 BTC of worth $40 million at the time. The company said that all of the losses will be covered by their emergency fund and no user money will be at risk. The losses were fully reimbursed by the company shortly. The fact that Binance was so quick to recover the losses suffered by users, provides more authority towards their integrity and honesty as an exchange platform.
Be assured that your funds are completely safe and Binance is trustable exchange platform to trade cryptocurrencies. However, the hack also underlines the issue that you should be more careful in following the security practices and only maintain a small amount of crypto on the exchange’s wallet. Keep them securely in hardware wallet where they can be stored more safely.
Is Binance safe?
- Binance makes use of two factor authentication to ensure the privacy and safety of users’ wallet is maintained.
- Attempts to hack the exchange was blocked by the automated system present on the platform. Meaning that platform is secure and safe to use.
- However, it was hacked in May 2019 and Bitcoins worth $40 million were lost to hackers.
- The company however, reimbursed all of the users who lost their money using the emergency fund.
- Reimbursing user losses proves that Binance is safe to use.
How do I get the Binance App?
You can get access to the trading platform directly from their website using any web browser. However, before you make any trade you will have to create an account with them. For mobile use, you can download the app directly from Play Store or the App Store. For people from China, they can find links to WeChat resources on the homepage of Binance.
Binance vs. Other Popular Exchanges
Binance vs. Coinbase
Until last year, many traders from around the world including newbies preferred the use of Coinbase, as it allowed the option for fiat-based deposit. However, with Binance also providing the same service, it has also become a beginner-friendly exchange. When it comes to the trading fees, Binance ranks much higher than Coinbase due to its lower fees. Coinbase charges 0.25% trading fee, which is much higher in comparison to 0.10% of Binance. Having said that, both exchanges have good trading volume and liquidity on their platform. You can read the complete Coinbase exchange review here.
Binance vs. Bitfinex
One of the biggest exchanges for Bitcoin trading by volume, Bitfinex offers trading options like margin trading, which is not considered suitable for newbies. Thus, if you are just a beginner in the digital currency market, I would recommend to thoroughly learn everything about margin trading before you get into it. Bitfinex provides support for over 100 cryptocurrencies, which is not as much as Binance, but still is a lot. Bitfinex uses the maker taker fee schedule. Makers are the people who tend to add new orders to the exchange. Makers have a fee of 0.10% just like Binance. On the other hand, takers are those who take the order out from the exchange. The fee for them is 0.20%, which is twice as that of Binance.
Bitfinex charges you with an inactivity fee of $5 every month, if you don’t trade or engage in any funding activity for an uninterrupted period of one year, on Bitfinex platform. The inactivity fee starts at the end of one year period and will be charged each month from thereon. The fee will be deducted from your digital tokens or any other property you hold on Bitfinex. However, there is no inactivity fee for Binance.
Binance vs. Bittrex
Launched in December 2014, Bittrex is a US cryptocurrency exchange platform that has become one of the most preferred altcoin exchanges over the years. It charges a flat fee of 0.25% on all of the trades made through the platform, which is 2.5 times that of Binance. That being said, the exchange offers over 250 different altcoins that is much higher in comparison to what Binance has to offer.
Binance vs. Kraken
Kraken is one of the oldest cryptocurrency exchanges in operation around the world. However, it supports only 16 different cryptocurrencies as opposed to Binance with over 150+ cryptocurrencies. And just like Bitfinex, Kraken also works on the maker and taker fee schedule. The maker fee is 0.16% max and the taker is 0.26% max. This is quite high in both cases when compared to Binance.
Binance vs. Other Popular Exchanges
- Trading fee of Coinbase is 0.25% as compared to 0.10% of Binance.
- Bitfinex uses maker-taker fee schedule, whereas Binance charges a flat 0.10% trading fee.
- Bittrex charges 0.25% trading fees, just like that of Coinbase. But offer over 250 altcoins, which is higher as compared to Binance.
- Kraken offer only 16 cryptocurrencies to be traded, which is a lot less in comparison Binance that provides access to over 150 coins.
Binance is known for its creativity in the cryptocurrency world. From discounts on trading fee by paying with BNB coins to frequently engaging users with various competitions, their creativity is one of the reasons why it has become such a popular exchange within a short period.
The company is involved in holding regular competitions with exciting prizes to be won every time. Some of the previous competitions held by Binance includes Tron and Waves. In the Waves competition, the company gave away 20K waves to different traders depending upon how many trades were made by them for this currency.
Whereas, for the Tron, competition provided traders with an opportunity to win Maserati Car, Mercedes, Apple MacBook Pro, and iPhone. The winner of this competition was based upon the highest trading volume for Tron currency. So if you are someone who has the highest traded volume for Tron, then you would stand a chance to win one of the above prizes.
The company often keep such competitions to reward people for their loyalty with the platform and also provides a way of marketing to attract new customers to their platform. This is one of the reasons why it gained so much popularity within two years, since its launch. So be on the lookout always, who knows you might even win a Mercedes by trading in digital currency.
- The exchange regular engages their users with competitions and prizes to be won.
- You can win prizes like Maserati Car, Mercedes, Apple products and others.
Binance Customer Support
Like I said previously, customer support is somewhere Binance can improve. On the official website, they have a FAQ section, which isn’t completely useful. You can go through the web page and look for the answer if you find your question on the list. However, if the question isn’t available on the page, you are required to submit the issue through an online form.
It might take some time for them to respond to your query, maybe because they don’t have adequate support staff. Since they have experienced such huge growth, the number of issues they receive might be on the higher side as to what their staff can handle. Scaling their support team is one of the areas where they can certainly improve. I believe that with time and in the years to come, this will certainly improve and along with their response time to issues of the users.
If you have to contact the customer support team, ensure that you provide them with all the information necessary to be able for them to help you out in the first instance itself. Giving details like wallet addresses and any other information you think would be useful can help speed up the process.
Binance currently can process 1.4 million orders per second, thus making it one of the fastest exchanges in operation at the moment. In just over 2 year time, the platform has become quite popular among traders, mainly due to its low trading fees and access to over 150 plus cryptocurrency. Users can use the platform on most of the major devices including Android, WeChat, and HTML5. Though the exchange was launched in China first, it does support multiple languages including Korean and Japanese.
Everything that has been listed in this review, only tells that Binance is one of the leading cryptocurrency exchanges, due to its wide range of support for digital currencies and extremely low trading fees in comparison to other exchanges. Users can also make use of its BNB coin to pay towards the trading fee, using which they can avail a discount of 25% on the overall trading fee.
For users who do not want to take this discount can also keep their BNB coins and sell them back to Binance, who is going to use 20% of their profit each quarter to buyback and destroy the coins until only 50% of those remain. Surely, in the days to come, the value of the coin will enhance as it is also going to be used in the creation of a decentralized exchange.
From January 2019, users are also able to deposit money and buy cryptocurrency using credit cards. This makes the platform more preferable for users who do not have any experience in digital currency. The company has shown time and time again that it can be trusted fully. They even reimbursed the money of traders who lost their BTC during the Binance Hack. I would certainly recommend Binance as one of the safest cryptocurrency exchanges that users can make use of to buy and sell cryptocurrencies.
If you are a trader and want to invest in bitcoin and other cryptocurrencies, you can take a look at my technical analysis of Bitcoin on youtube where. I regularly update content based on the recent market movements, which you can follow on the link above.