Binance: The Top Cryptocurrency Exchange?
Even if you’re new to cryptocurrency investing, chances are you’ve heard of Binance. This Malta-based exchange is widely recognized as one of the largest platforms in terms of daily trading volumes, offering users access to over 540 individual crypto-to-crypto trading pairs.
Furthermore, Binance has been expanding its scope by allowing deposits and withdrawals via real-world fiat currencies, which is expected to contribute to its continued growth.
If you’re considering joining Binance for your cryptocurrency investment needs, it’s essential to read our comprehensive review first. We have covered all the crucial details, including how Binance works, who is eligible to open an account, information about fees, supported coins, and more.
What is Binance?
Binance has gained widespread recognition for several reasons. Firstly, the platform offers an extensive list of supported cryptocurrency pairs, including not only popular coins like Bitcoin and Ethereum, but also small-to-micro cap tokens. Secondly, Binance boasts low trading fees, with an average fee of 0.1% that can be further reduced for users holding the platform’s proprietary digital asset, the Binance Coin.
In addition to its core exchange platform, Binance has ventured into various other areas. For instance, the company announced plans to launch the world’s first blockchain bank in Malta. Binance has also signed a Memorandum of Understanding with the Malta Stock Exchange to explore opportunities for trading digital securities.
Furthermore, Binance is known for its commitment to philanthropy. Through its Binance Charity Foundation initiative, the platform has initiated several charitable projects, such as a campaign to address period poverty among females in Uganda.
Now that we’ve covered the basics, let’s delve into a more detailed explanation of how Binance works in the next section of our review.
Binance has gained widespread recognition for several reasons. Firstly, the platform offers an extensive list of supported cryptocurrency pairs, ranging from hallmark coins like Bitcoin and Ethereum to small-to-micro cap tokens. This wide range of options allows users to access a diverse array of investment opportunities.
Secondly, Binance boasts low trading fees, with the standard trading fee averaging a competitive 0.1%. Moreover, for users holding the platform’s proprietary digital asset – the Binance Coin – the trading fees can be further reduced, providing additional cost-saving benefits.
In addition to its core exchange platform, Binance has diversified its offerings into various other areas. For instance, the company announced plans to launch the world’s first-ever blockchain bank in Malta, showcasing its commitment to innovation and exploring new frontiers in the cryptocurrency industry. Furthermore, Binance has signed a Memorandum of Understanding with the Malta Stock Exchange, aiming to facilitate the trading of digital securities, thereby expanding its scope beyond traditional cryptocurrency trading.
Moreover, Binance is renowned for its dedication to philanthropy through its Binance Charity Foundation initiative. The platform has spearheaded several charitable projects, including a recent campaign to help females in Uganda who suffer from period poverty, demonstrating its commitment to making a positive impact on society.
Now that we’ve covered the remarkable features of Binance, let’s delve into a more detailed explanation of how the platform works in the next section of our review.
Certainly! Here’s a step-by-step overview of how Binance works:
Step 1: Open an account
Go to the Binance homepage and create an account. If you only plan to deposit and withdraw funds using cryptocurrencies, you will only need to provide an email address to register.
Step 2: Set up two-factor authentication
To secure your Binance account, you’ll need to set up two-factor authentication (2FA). This involves installing an application like Google Authenticator on your phone. Each time you log in or perform key account functions like a withdrawal request, you’ll need to enter a unique code that can only be found on your phone.
Step 3: Deposit coins
Assuming you want to deposit cryptocurrency, go to the “Funds” section of your Binance account. If you’re interested in fiat currency deposits, follow the on-screen instructions in the “Funds” section (if available). On the deposit page, scroll through the list of supported coins and select the one you want to deposit. Copy the unique wallet address provided to you and use it to transfer funds from your private wallet or another platform like Coinbase.
Step 4: Trade
Once your cryptocurrency deposit has been credited, which usually takes no more than 10-20 minutes, you can start trading on Binance. Hover over the “Exchange” button at the top of the screen and choose between the “Basic” or “Advanced” trading platform. If you’re new to trading, it’s recommended to start with the “Basic” platform.
Now you have access to over 540 individual trading pairs. If the coin you want to purchase is not directly paired with the cryptocurrency you deposited, you’ll need to make an additional trade. For example, if you deposited Bitcoin Cash but want to buy a smaller cap ERC-20 token that isn’t paired with Bitcoin Cash, you may need to exchange it for Bitcoin or Ethereum first.
Once your trade is completed, your newly purchased coin will be available in your Binance account. You can choose to keep it in your Binance account or withdraw it to an external wallet.
Binance also offers an API that allows you to connect your account to various crypto trading bots, allowing them to trade on your behalf and automate your trading strategy.
Now that you understand how Binance works, let’s explore the cryptocurrencies that are supported on the platform.
What Cryptocurrencies Does Binance Support?
Including popular ones like Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and EOS, as well as smaller, lower-cap tokens. At the time of writing, there are 164 individual cryptocurrencies that can be bought and sold on the Binance platform. To check the trading pairs available against a specific coin, you can refer to CoinMarketCap or Binance’s official website for up-to-date information.
- Basic Attention Token
- Binance Coin
- Binance GBP Stable Coin
- Bitcoin BEP2
- Bitcoin Cash
- Bitcoin Diamond
- Bitcoin Gold
- BlockMason Credit Protocol
- Celer Network
- Dusk Network
- Enjin Coin
- Ethereum Classic
- Genesis Vision
- iExec RLC
- Kyber Network
- Loom Network
- Matic Network
- Moeda Loyalty Points
- Nucleus Vision
- Ontology Gas
- Paxos Standard Token
- POA Network
- Power Ledger
- Pundi X
- QLC Chain
- Raiden Network Token
- Red Pulse Phoenix
- Ripio Credit Network
- Streamr DATAcoin
- Theta Fuel
- Time New Bank
- USD Coin
How Much Does it Cost to Trade at Binance?
The standard trading fee at Binance is 0.1% for both market makers and market takers. However, if you trade more than 500 BTC (or cryptocurrency equivalent) in a 30-day period, you can reduce the fee to 0.09% as a market taker. The lowest fee available for market takers is 0.04%, but you would need to trade at least 150,000 BTC in a single month.
Market makers, who provide liquidity to the platform, also start with a 0.1% fee, but this can be reduced to 0.02% for trades of more than 150,000 BTC per month.
Additionally, if you hold Binance Coin (BNB) in your account, you can use it to pay for trading fees and get a 25% reduction, bringing the standard trading fee down to 0.075%. However, please note that the discounted fees offered through Binance Coin will reduce over time, with the next reduction bringing the discount down to 12.5%.
It’s important to check Binance’s official website for the most up-to-date information on trading fees and discounts.
Who is Eligible to Trade at Binance?
Binance is a global cryptocurrency exchange that traditionally accepts users from all countries. However, Binance recently announced that it would be restricting users who hold US passports from using its exchange due to regulatory compliance reasons. Binance is working on launching a dedicated exchange for US citizens that complies with regulatory requirements.
Deposits, Withdrawals and Payments
Binance now also allows fiat currency deposits and withdrawals, which can be done via credit cards or bank transfers. However, not all locations are supported, so it’s recommended to check for availability beforehand.
Specifically Visa and MasterCard, can be used to purchase cryptocurrencies directly from the Binance website. It’s important to note that additional charges may apply if the native currency of the credit card is not USD or EUR. The standard processing fee for credit card transactions on Binance is 3.5% with a minimum of $10, which is slightly lower than Coinbase’s fee of 3.99%.
Please note that fees and availability of services may change over time, so it’s recommended to check Binance’s official website for the most up-to-date information.
At the time of writing, you can use your credit card to purchase the following coins:
- Binance Coin
- Bitcoin Cash ABC
Bank transfers can be used for deposits and withdrawals on Binance via its off-shoot called Binance Jersey. Supported countries for bank transfers include the UK, Europe, Turkey, Singapore, Australia, New Zealand, and the United Arab Emirates.
To deposit funds via bank transfer, you need to specify the desired currency and amount, and Binance will provide you with the account details and reference number for the transfer.
KYC is Required for Fiat Deposits and Withdrawals
It’s important to note that Binance requires users to go through a Know Your Customer (KYC) process for fiat deposits and withdrawals to comply with anti-money laundering laws. This includes providing your full name, home address, country of residence, date of birth, and uploading a government-issued ID such as a driver’s license, passport, or national ID card. The KYC process is done through Binance’s third-party verification partner, NetVerify.
Security at Binance
Binance also offers various security safeguards, including the option to install 2FA (two-factor authentication) to protect your account. If a login attempt is made from a device or IP address not previously used on Binance, it will require confirmation through the registered email account. Email notifications can also be set up for key account functions, such as withdrawals, to enhance security.
Binance has introduced an “Address Whitelisting” feature which allows users to specify a single wallet address for withdrawals. This adds an extra layer of security as withdrawals can only be made to the whitelisted address, and any changes to the address require additional security steps.
SAFU Reserve Fund
Binance also has a Secure Asset Fund for Users (SAFU) that acts as a reserve fund in the event of a hack. The SAFU fund is funded by taking 10% of all trading fees generated by Binance, and it could potentially grow to a significant amount considering the platform’s high trading volumes. In May 2019, Binance was hacked and lost over 7,000 Bitcoin, but the SAFU fund was used to compensate affected customers, ensuring that they did not lose any money.
Binance is regulated in Malta under the Virtual Financial Assets (VFA) act. While it is not licensed by any other regulatory bodies, Binance complies with anti-money laundering obligations and requires customers who plan to use fiat currencies to deposit and withdraw to go through a KYC process. Additionally, withdrawals of more than 2 BTC in a 24-hour period require verification. Binance is also in the process of applying for regulatory approval in the US to launch a fully licensed exchange for US citizens, which indicates its commitment to regulatory compliance.
In the next section of the review, we will cover customer support.
Customer Support at Binance
Binance, one of the largest cryptocurrency exchanges, experienced a surge in new account applications during the crypto-craze of late 2017. The high throughput led to the temporary suspension of new registrations, but Binance has since increased its customer support team to handle the demand.
To contact Binance, you can submit a ticket request through your account portal. If you are using Binance Jersey for fiat currency transactions, you can access a 24/7 live chat facility. However, Binance does not have a telephone support hotline. Binance also has a strong presence on social media platforms like Telegram and Twitter, which you can use to seek assistance if needed.
Binance Margin Trading
Binance recently introduced margin trading, but it requires applying for a margin account and acknowledging the risks involved through a disclaimer form. To engage in margin trading, you need to transfer Binance Coins to your margin trading wallet as collateral for the funds you want to borrow. Binance allows trading at a margin rate of 3:1, meaning you can effectively borrow twice the amount of your collateral.
It’s important to note that if your margin balance falls below 1.3, Binance will contact you for a margin call to avoid liquidation. If your margin balance drops to 1.1, Binance will be forced to liquidate your trade, resulting in the loss of your collateral. Therefore, margin trading should only be done if you have a thorough understanding of the risks involved.
Binance Review: The Verdict?
In summary, Binance is a popular choice among cryptocurrency exchanges due to its low trading fees, numerous crypto-to-crypto trading pairs, and enhanced security features. Despite being launched in 2017, Binance has quickly grown to handle billions of dollars in weekly trading volumes. Binance also facilitates fiat currency deposits and withdrawals in select countries, with plans to expand credit card and bank transfer facilities in the future.