- Affordable trading fees and occasional fee discounts
- More than 600 crypto coins to trade
- Multiple trading options
- Has Binance Academy to help beginners learn how to use the interface
- Binance International is not available in the U.S. and its substitute has limited options
- Poor customer support
- Lacks an in-build wallet
Binance is a household name among crypto traders. With over 90 million registered users, the platform is one of the biggest of its kind. In this Binance review, you will be able to unravel what Binance is and what you can do on the platform. From availability to cost and services, here’s all you need to know about Binance.
What is Binance?
Binance is the world’s most popular crypto exchange platform. The exchange is the brainchild of the savvy developer, Changpeng Zhao. At launch, the company had its headquarters in China. However, due to ever-increasing pressure from the government to regulate crypto, the exchange moved its headquarters to the Cayman Islands in the Seychelles.
When Zhao formed Binance in 2017, he was no newbie to financial trading systems. The seasoned developer founded Fusion Systems, a top-notch financial trading platform, in 2005. However, despite a 12-year headstart, Fusion Systems was a shadow of the success that Binance burst into.
Just one year after its launch, Binance was worth a staggering $1.3 billion in market capitalization. In the years that followed, the exchange soared in popularity and revenue until it hit its all-time-highest valuation in 2021, when it was worth $90 billion.
Presently, Binance still has a hold where crypto exchanges are concerned. The company churns out transactions worth at least $76 billion every 24 hours. These transactions come from the 600-plus coins listed on the platform.
Binance is a widely accessible platform, which could explain its overwhelming popularity. The exchange operates in almost every country except Japan, China, Malaysia, and the U.K., and its derivatives trading feature is inaccessible in Europe. For the US, Binance is available as Finance.us, a subsidiary of Binance International. This means U.S-based traders may have varying services from global Binance traders.
The exchange is also accessible on multiple platforms. Traders can access Binance from the Binance desktop app on Mac, Windows, or Linux devices. There is also an Android and iOS application on respective play stores.
Binance Trading Options And Order Types
In layman’s language, options are contracts that allow investors to trade assets on an exchange. In Binance’s case, assets are the cryptocurrencies listed on the platform. Binance allows traders to choose from different types of options, each with different terms and conditions. Below is a list of some of the trading options available on Binance Global.
Spot trading is the most common type of trading option on a crypto exchange. It typically involves the direct buying and selling of assets. The key concept behind spot trading is to buy an asset at a lower price and sell it at a higher one to make a profit.
When spot trading on Binance, there are three constant features, a buyer, a seller, and an order book. An order book is a ledger that lists prices from all sellers of a given asset and all bids made by willing buyers.
For spot trading, once a buyer’s bid matches a seller’s price, the transaction happens on the spot, hence the name spot trading. Using smart contracts, Binance changes asset ownership from the buyer to the seller immediately after the transaction closes.
Another trading option on Binance is margin or leverage trading. This type of options trading is essential for investors who want to trade more money than they have in their accounts. A classic margin trade occurs when a trader borrows money from a third party and uses that investment to trade.
On Binance, traders can ask for loans from other traders. The trader has to give collateral to get the investment. Collateral is also known as the initial margin deposit. Traders get a loan that is x times the amount of collateral they place in their margin trading account. For example, if a trader has an initial margin deposit of $10000, they can get a loan of 2, 5, or 10x of the collateral, which is $20,000, $50,000, or $100,000.
Aside from collateral margin, traders also have to maintain a margin threshold. This means the funds in your account should not drop below a certain point to ensure you have enough to repay the loan in case you make losses. In the end, traders use the profits they get to pay the amount owed plus the interest rate specified in the smart contract.
Futures trading is an interesting way to trade assets on Binance. This trading option is similar to spot trading, but instead of changing assets on the spot, futures allow traders to trade without having to own the assets.
Practically, futures trading is similar to betting on a currency’s performance in the future. On one hand, you have a trader who believes the coin’s price will drop after a specified time, while another believes the price will spike. Each trader places money on the prediction, and whoever predicts correctly when the appointed time comes gets the total amount.
Orders are instructions that traders use to guide an exchange on which trades it should make and when to make them. Binance has two main order types, limit orders and market orders.
Limit orders are orders that allow you to specify a buying or selling price for your asset. For example, if you want to sell BTC at $15,000, the order waits until the market price of BTC hits this level, and only then does it execute the sale.
Binance also offers another version of a limit order called a stop limit order. Stop limit orders can halt your transaction if the asset’s price drops below the limit you set for it. This helps prevent losses when asset prices tank.
Market orders are instant orders that execute almost immediately. As long as a buyer or seller in the order book has an ask price or bid that matches what a trader is looking for, a market order will execute instantly.
Currencies and Payment Methods
Binance supports over 600 cryptocurrencies. However, sites like Binance.us may have about 57 different coins on their platform. Despite this discrepancy, most mainstream crypto coins are accessible on both platforms. Here’s a list of the mainstream crypto coins available on Binance.
- Bitcoin (BTC)
- Ethereum (ETH)
- DogeCoin (DOGE)
- Ripple (X.R.P.)
- Cardano (A.D.A.)
- Polkadot (D.O.T.)
The Binance trading platform also supports multiple stablecoins. Let’s explore a list of some of the most popular stablecoins supported on Binance.
- Binance USD (B.U.S.D.)
- Tether (U.S.D.T.)
- Coinbase USD Coin (USDC)
To buy these coins, you need to pay certain fees. Binance gives users a variety of payment options to facilitate easier transactions. You can easily buy crypto on Binance using credit or debit cards, bank transfers, e-wallets like PayPal and Advcash, or peer-to-peer merchants.
Binance does not charge a deposit fee for any amount of funds deposited in their accounts. However, for traders moving funds from one exchange account to Binance, transaction charges may apply based on the other platforms’ terms and conditions.
When it comes to Binance withdrawal fees, users should expect fluctuations. The cost varies based on the network’s congestion and other market factors, but it shouldn’t be a problem. The changes are not drastic, and Binance indicates the current withdrawal fee on each withdrawal page.
Among regular users, Binance’s trading fees range from 0.10% (makers’ fee) to 0.01% (takers’ fee). Regular users have a 30-day transaction volume of less than $1 million. For users above this 30-day transaction volume, Binance charges trading fees based on a tier system. There are nine tires listed in ascending order based on the increase in transaction volume.
Users in the lowest tier, tier 1, pay a 0.09% makers’ fee and a 0.01 takers’ fee. Traders in the top-most tier, tier 9, pay a 0.02 maker’s fee and a 0.04 taker’s fee. Additionally, Binane gives trading fee discounts for certain coins and trading pairs, so it always pays to keep an eye out for these deals.
Crypto traders on Binance adhere to strict deposit, withdrawal, and trading limits. Once traders complete the initial verification level, they are instantly eligible for a $5000-worth deposit. Ten days after verification, the limit rises to $30,000. To increase deposit limits past this point, a trader must complete all three Binance verification processes, from basic to advanced.
Withdrawal limits on Binance follow a similar approach to deposit limits. After completing the basic verification process, traders can withdraw a maximum of 0.05BTC within 24 hours. This is roughly $1,015. The highest 24-hour trading limit on Binance is 100 BTC, for which a trader must complete all three verification levels successfully. This guide can help you learn more about how to withdraw on Binance.
On the other hand, Binance trading limits are subject to the trading pair. Different trading pairs have varying trading limits. This is primarily a minimum tradable value, not a maximum one.
Is Binance safe? This is a question many traders ask, and the answer is yes. Binance has reliable security features. The site has 2-Factor Authentication to guarantee user safety. It also applies to a strict KYC procedure. This ensures the platform has verifiable users and that the transactions made are as free from scams as possible. Binance also has F.D.I.C. insurance for all U.S. dollar balances. This means that, in the event of a hack, users will receive compensation for their funds.
Binance offers round-the-clock customer service. Traders can seek assistance by filling out forms on the website and submitting them as tickets. Alternatively, they can use the chat box on the website to talk to customer support or tweet their queries on Binance’s Twitter account.
Despite the variety of methods available for contacting Binance customer support, the exchange doesn’t have very impressive customer service. This is mainly due to the number of clients it supports, which makes it overwhelming to respond to queries on time or thoroughly.
On the bright side, though, Binance provides multiple documents on various services. These guides go a long way towards resolving the majority of the issues that clients face.
Despite being a top-notch cryptocurrency exchange, Binance has serious competition from other crypto exchange platforms. Here’s how Binance fairs in comparison to two popular crypto exchanges.
A stark comparison of Binance to Coinbase reveals that Coinbase is a strong competitor. The leading competitive edge Coinbase has over Binance is that it offers alternative approaches to the services Binance offers. For instance, while Binance has low-fee transactions and a detailed trading platform, Coinbase provides a beginner-friendly site with an intuitive trading dashboard.
On average, Coinbase offers fewer trading options than Binance, on average. However, the platform is accessible in its entirety in supported countries like the U.S., where Binance only has a hybrid Binance platform that is more limited than the original Binance exchange.
Binance has more cryptocurrencies and services on its platform than Coinbase, but Coinbase has superior service quality. This is especially visible through Conbase’s customer support, which outperforms Binance’s customer service.
Another worthy Binance contender is Crypto.com. This platform has extensive security features compared to Binance. Despite having a $250,000 cap on its F.D.I.C. insurance, the site employs savvy tactics like a bug bounty to identify any teething issues and cold storage for additional security of clients’ funds.
However, Binance may have the upper hand over Crypto.com when it comes to trading costs, trading limits, and the variety of available trading options. Crypto.com charges a makers fee of 0.40% and a takers fee of 0.1% to 0.4%, which is significantly higher than Binance’s trading fee.
A common ground for the two crypto exchanges is their customer service. Crpto.com and Binance have more negative than positive reviews on sites like TrustPilot, indicating a need to improve customer support.
How to Open an Account
If you are interested in trading on Binance, all you need to do is to create an account and complete the verification process. Here are step-by-step instructions on how to open a Binance account.
- Visit the Create Account page on the Binance web browser app and click the Sign up with phone or email option.
- Enter the required details on the page that opens, read the terms of service and policy agreement, check the box to confirm you have read them, and click the Create Personal Account button.
- This will redirect you to a verification page. Enter the verification code sent to your email or phone number and click Submit.
- A page will open asking you to complete your verification. Click the Verify Now button to start the verification process.
- Once you finish the verification process, it can take a few hours to two days to have your account verified and ready for use.
Does Binance Require KYC?
Yes. Binance requires KYC. The Know Your Customer process serves as an anti-money laundering procedure. Therefore, it is a necessary measure for every crypto exchange.
Who Is Binance Best For?
Binance is best for traders with at least intermediate knowledge of crypto trading. However, beginners can take the free classes at Binance Academy to learn how to trade and use Binance’s rather complex interface.
Did Binance Get Hacked?
Yes. Binance was hacked in 2019. During the hack, about $40 billion worth of BTC was stolen. The hackers used multiple accounts during this security breach to siphon out the funds. However, Binance managed to get the situation under control and fully reimbursed users whose funds were stolen.
This isn’t a cause for alarm, though, if you are considering trading on the platform. The hack came during Binance’s first year of operation when the exchange was still setting up, so over time, it has learned from its mistakes and improved security features.
Is Binance Chinese Owned?
Binance’s founder and CEO, Changpeng Zhao, is of Chinese origin. However, the exchange has no known ties to China or the Chinese government. The only relationship Binance has with China is that the exchange’s first headquarters were in the country, but it later moved to Seychelles following strict laws on crypto from the Chinese government.
Is It Safe To Leave Money On Binance?
Yes. It is safe to leave your money on Binance. The platform is trustworthy and has robust security measures to protect your funds. However, ensure you do not compromise your account’s safety by sharing your password or leaving your account logged in on multiple devices.
How Much Does It Cost to Withdraw From Binance?
Binance does not have a fixed withdrawal fee. The exchange will charge a certain fee depending on the amount you transact and the prevailing network congestion at transaction time. You will see the withdrawal fee on every withdrawal page.
How Long Does It Take For Binance To Review Documents?
Binance identity verification can take hours or days. On average, verifying your documents shouldn’t take more than ten days.