Binance Exchange Review

Binance is a Hong Kong–based cryptocurrency exchange launched by developer Changpeng Zhao (aka CZ) in July 2017. Zhao’s company Beijie Technology created the exchange after a successful ICO that raised $15 million. Its defining features are innovation and new features, proactive community, ability to buy bitcoin and altcoins with more than 40 fiat currencies, their own Binance Chain and Binance coin (BNB), Binance Futures and margin trading with up to 125x leverage, and vision to morph into a decentralized autonomous organization (DAO) in the coming future.

General info

Web address: Binance
Support contact: Link
Main location: Malta
Daily volume: 334630 BTC
Mobile app available: Yes
Is decentralized: No
Parent Company: Binance Holding
Transfer types: Bank Transfer, Credit Card,
Debit Card, Crypto Transfer

Supported fiat:
Supported pairs: 563
Has token: Binance Coin BNB
Fees: Very Low (Compare rates)
OPEN ACCOUNT and TRADE

How to Buy Bitcoins on Binance?

  • Sign up to Binance
  • Deposit funds to your account
  • Find the trading pair for Bitcoin and the deposited cryptocurrency
  • Sell the deposited cryptocurrency for Bitcoin
  • Withdraw the Bitcoins to your own wallet
  • Alternatively you can just buy Bitcoin directly with your credit card.

Binance Review: Key Features

Binance is one of the star exchanges in the cryptocurrency trading space. Led by a charismatic leader Changpeng Zhao, it’s been up and running slightly over three years. Still, it managed to establish itself as one of the most innovative and open-minded hubs of crypto innovation.

Binance website. Source: Binance.com

Binance’s core features include:

  • Trade over 180 cryptocurrencies on Binance. Binance is one of the major altcoin exchanges with one of the best selection of tradable assets.
  • Binance Fiat Gateway. Binance lets you instant buy bitcoin and other 15 top cryptocurrencies with 40 popular fiat currencies using bank cards, cash balance, and other payment methods. Besides, you can sell them for some of the supported national currencies, too.
  • Low trading fees. Trading on Binance brings you some of the lowest in the industry.
  • Multi-platform support. Binance is accessible via its web platform, mobile apps for Android (including Android APK) and iOS, and desktop clients for macOS and Windows. Besides, you can make use of Binance API.
  • Binance Futures with up to 125x leverage and margin trading with up to 3x leverage. Trade cryptocurrency contracts and assets with leveraged positions for maximum returns.
  • Around the clock customer support. Binance has a dedicated help center, where you can reach out to the support team or real beginner guides and explanations of all sorts of exchange functions.
  • Binance Launchpad. All customers of Binance can participate in its initial exchange offerings (IEOs). Binance’s IEOs are among the most profitable in the industry.
  • Binance Finance. Binance also supports staking, crypto lending, and other means of earning passive income from your crypto assets.
Binance markets. Source: Binance.com

In brief, Binance is one of the most innovative cryptocurrency exchanges in the market. Binance developers and global community members continuously work to improve the ecosystem and popularize the use of cryptocurrencies globally. The exchange is a great trading option for both beginners as well as experienced traders.

Binance Trading Fees

Depositing funds is entirely free with Binance. It is, however, a slightly different story with trades and withdrawals, although these remain among the cheapest in the crypto industry.

Binance takes a 0.1% cut of every trade that takes place on its trading platform, making it one of the cheaper crypto exchanges on the web. As such, 0.1% trading fees apply to both spot trading and margin trading For example, Coinbase Pro charges 0.5% for any trade, while Bittrex charges 0.2% fee per trade. Other popular altcoin exchanges like KuCoin and HitBTC charge similar rates. KuCoin matches Binance’s trading rate of 0.1% per trade, while HitBTC charges 0.1% for market makers and 0.2% per trade for taking orders. Exchanges like Poloniex or Kraken are more expensive, too, as they are 0.15%-0.16% maker fee and 0.25%-0.26% taker fee.

You can also get significant trading fee discounts for using Binance Coin (BNB) (up to 25%), referring friends (up to 25%). Together, they make Binance one of the cheapest exchanges in the industry.

Binance Futures, Margin Trading, and Options

Binance futures platform. Source: Binance.com

Binance has developed several different options for trading with leverage. Its spot trading exchange has a separate feature for margin trading certain cryptocurrencies with up to 3x leverage. At the same time, it has launched an integrated Binance Futures platform, which allows you to trade options with up to 125x leverage.

Binance Futures trading. Source: Binance.com

But what is the key difference between these modes of trading?

Aside from a significant difference in leverage, the two types of trading are fundamentally different:

  • In margin trading, the exchange, in this case, Binance or its users, are lending you the extra funds needed for opening a 1:3 leveraged position. You are charged a usual 0.1% trading fee, as well as an ever-changing daily interest fee.
  • Binance Futures allow 1:125 leverage. Here you don’t buy cryptocurrencies directly, but only a contract representation of a commodity. Also, unlike traditional futures, Binance Futures do not have an expiry date, so their trading is very similar to trading pairs on the spot market. At pixel time, Binance Futures support 24 USDT-denominated perpetual contracts. In addition to the trading fee, you also pay a periodic funding fee.
  • Binance Options. An option is another type of perpetual contract. Binance Options is an American style options contract, thus granting traders the option to execute the contract any time prior to the expiration date. The expiration dates range from 10 minutes to 1 day.

Binance Finance

In addition to the spot, margin, futures trading, and ability to buy and sell bitcoin and other 180 cryptocurrencies with fiat, Binance has also developed a suite of financial services that are accessible for every registered and verified user. These include:

  • Binance Savings. Binance savings is a product that lets you earn cryptocurrency by staking assets for either short (flexible) or long (locked) term. Staking assets in a flexible manner gets you a little bit more than a 1% annual yield while locking in your assets for a while can get you up to 15% per year.
  • Binance Staking. Another alternative way to earn money while holding, staking is currently used by numerous protocols. At the moment, Binance lets you stake nine cryptocurrencies, and the estimated annual yield varies from 1% to 16%.
  • Binance Debit Card. Binance introduced its Binance Card, which is set to allow you to make crypto purchases worldwide, just like a regular bank card.
  • Binance Crypto Loans. The latest addition to Finance section, crypto loans by Binance exchange, let you borrow stablecoins like USDT or BUSD for a certain period by using crypto collateral.
Cryptocurrency loans via Binance. Source: Binance.com

While some of these features are handier than others, Binance’s Finance product range is set to grow in the future, as it remains to be seen what kind of other innovative services the exchange is going to introduce for the global crypto community.

Binance Launchpad

Binance launchpad. Source: Binance.com

Binance users can also access the first and one of the best IEO (initial exchange offering) launchpads out there – Binance Launchpad. Since late 2017, Binance started to mediate between IEO buyers and sellers and has launched 14 successful IEO projects.

IEO participants have to hold at least some BNB (Binance Coin) but also have some luck in the lottery, which determines in what order the participants get the opportunity to buy the new coins.

Binance Launchpad’s average ROI (return on investment) is the highest out of all other exchanges, so it might be worthy of checking out.

Binance Security

Security at Binance is generally sound, although the exchange has experienced a significant hack in May of 2019. The exchange lost over 7000 BTC due to a number of compromised user accounts and used its #SAFU fund (Secure Asset Fund for Users) for user compensations. Since then, the exchange has strengthened its security by introducing the Universal 2nd Factor (U2F) authentication method and enhancing its exchange monitoring capabilities.

Besides, Binance encourages users to enable two-factor authentication (2FA) using either Google Authenticator or SMS authentication. Also, traders have an option to whitelist addresses and set up an anti-phishing code. It also has a fairly extensive security FAQ in its support section, where it advises its users on how to guard against phishing attempts and personal security lapses. Every withdrawal from Binance must be confirmed by email.

Binance account security. Source: Binance.com

As of 2020, Binance boasts of having state-of-the-art artificial intelligence (AI) risk control solutions that use identity and facial recognition, big data analytics, and cyber forensic investigations to monitor each movement that takes place on the exchange and identifies suspicious and irregular activities.

That said, recent events have shown that Binance can respond quickly to significant threats and protect customers’ funds. For example, in March 2018, criminals managed to use phishing to hack into the accounts of numerous users, whose funds were inexplicably sold off in order to purchase the Viacoin (VIA) cryptocurrency. However, despite this, Binance was able to systematically identify and reverse all irregular trades, meaning that the only people to lose money were the hackers.

In July 2018, Binance has started a Secure Asset Fund for Users (SAFU) and allocates 10% of all trading fee revenue there. In the case of a successful hack, it is used to cover user losses like it was done in the May 2019 security breach. Later in 2019, the exchange also had a KYC data leak, which hackers have allegedly obtained from a 3rd party vendor.

According to CryptoCompare Exchange Benchmark Q4 2019 report, Binance is a solid A grade exchange. It makes it in the top 20 exchanges in terms of security grade, too, scoring an above-average 11.5 out of 20 possible points.

All in all, Binance is a secure exchange, but security is not its hallmark, and there is some room for improvements.

Binance Apps

Binance trading is accessible via multiple devices. The most common option is Binance’s web platform, where you can enjoy all of the benefits and services listed above.

Alternatively, you can download Binance’s mobile app for either Android or iOS. Both mobile apps allow you to access most of the features of the web platform, including fiat gateway, Binance Futures, Binance Options, spot trading, margin trading, P2P trading, and more.

Binance mobile app for Android.

Binance is also one of a few cryptocurrency exchanges that have its desktop trading application for both macOS and Windows. Both apps offer better performance but have less integrated features than the web platform.

Binance trading application on Windows.

As you can observe, Binance is an easy to use exchange with a wide array of easily accessible features for both new and experienced retail investors. Asides from that, it’s worth to mention that Binance’s international traders’ community is often rewarded with various contests and competitions with valuable rewards.

As such, Binance remains one of the most accessible and easy to use exchanges in the industry.

Deposit and Withdrawal Methods

Given that Binance offers only crypto-to-crypto markets, all deposits and withdrawals involve moving funds to and from external crypto wallets.

This doesn’t apply for fiat-to-crypto purchases and deposits via third-party service providers, though, as they come with their own service fees that range from 1% to up to 7%. For example, you can make EUR deposits using:

  • Simplex (VISA and Mastercard)
  • SEPA bank transfer
  • iDeal bank transfer
  • BANXA (bank cards and bank transfers)
  • Koinal (VISA, Mastercard, and other major card processors)
  • Paxful (300+ payment methods)

Supported fiat deposit and withdrawal methods differ for every fiat currency.

Binance fiat gateway partners. Source: Binance.com

Crypto withdrawals are a speedy process on Binance. To withdraw your crypto holdings, hover over the “Funds” dropdown menu, click the “Deposits” option, for example, and then type in the desired cryptocurrency to receive a Binance wallet address into which they can deposit it.

Customer Support

As for customer support, Binance has a comprehensive support center with an extensive FAQ base. Apart from that, you can also submit a request for the Binance support team or ask the community’s help in official Telegram, Facebook, or Twitter groups.

Binance customer support center. Source: Binance.com

It should be noted that Binance doesn’t offer a phone number for customers to call with their queries. This can make Binance a little less responsive than other exchanges, and while their online support system is often quick, it can get bogged down a little during periods of peak demand.

Conclusion

In this Binance review, we learned that Binance is exceptionally keen on experimenting and pushing cryptocurrency services forward. The exchange offers some of the lowest trading fees possible, and although it does provide fiat-to-crypto market pairs, it still provides an ability to buy and sell bitcoin and other 180 altcoins for fiat. On the one hand, it provides futures, options, and margin trading for more risk-tolerant users, while on the other, there are savings and staking programs for more risk-averse traders. The only area lacking praise would be privacy measures, which is a complicated issue in the current regulatory environment. Overall, Binance offers an excellent suite of services for all sorts of cryptocurrency users.

Source: https://cryptonews.com/reviews/binance/

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