February 9

Binance Review 2021: Complete Breakdown of The Crypto Exchange

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Founded in 2017 in Hong Kong, Binance has quickly grown to become one of the worlds largest cryptocurrency exchanges. They grew so fast they actually suspended registrations in January 2018. They now serve 263 cryptocurrencies and over 30 fiat currencies to customers all over the world with no deposit fees and very competitive trading fees (0-0.1%).

  • Web Address: www.binance.com
  • Main location: Malta
  • Deposit Methods: SEPA & Bank transfer (ACH)
  • Cryptocurrencies: BTC, ETH, XRP, LTC, BCH, EOS, XMR, TRX, XLM, NEO & 250+ more
  • Fiat Currencies: USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more
  • Deposit Fees: None
  • Trading Fees: 0-0.1%
  • Mobile app available: Yes

My Binance Review summary:

Overall Binance is a great option for buying/trading crypto, they recently integrated with SEPA which makes depositing super easy with no fees. Their trading fees are super competitive with the maximum being 0.1% (with ways of reducing it). Binance also have no shortage of options with access to nearly 250 cryptocurrencies. On the down side, however, Binance's platform can be overwhelming for beginners as there are just so many options and due to regulation they have limited options available to US citizens.

Binance supported currencies:

List of supported cryptocurrencies

FETIOSTNEOKMDBNBFUNSCNEBL
BTCSNTDASHARDROMGGXSWANGTO
ETHDGBXMRMITHZECSKYDCRNCASH
XRPAIONXEMPIVXZILSYSWAVESMANA
BCHWTCVETPOLYLSKCMTBTSRLC
EOSBATUSDTKNCBTGNULSBCDREQ
XVGNASETCLOOMONTXZCREPTHETA
LTCLRCICXGASNANOLINKMKRCVC
ADAELFQTUMBNTSTEEMPOWRPPTPOA
XLMARKSTORJCTXCZRXHOTDOGE

List of supported fiat currencies

EDHUFPEN
AUDIDRPLN
ARSILSRON
BGNINRRUB
CADKESSAR
CHFKRWSGD
COPKZTSEK
CZKMXNTHB
DKKNGNTRY
EURNOKUAH
GBPNZDUSD
HKDPHPVND
HRKZAR

Binance services:

Binance Exchange

Binance’s Exchange lets users exchange fiat currencies for Bitcoin and other cryptocurrencies. Binance offers several ways of doing this, including the following:

P2P trading 

Under the P2P (peer-to-peer) feature, Binance allows sellers and buyers of cryptocurrencies to trade directly. This feature allows for fiat payments, with users able to choose from different payment options depending on their preferences.

Credit/Debit Card

Binance partners with Simplex to give users a brokerage service. Under this service, users can purchase 31 cryptocurrencies using their credit or debit. Users who use this service are charged a 3.5% premium for purchases done using USD.

SEPA/Wire Transfers

Binance has also partnered with 3rd party payment providers to allow users to buy cryptocurrencies using fiat through bank transfers and SEPA. Because both SEPA and wire deposits do not attract a transaction fee, this option has become very popular among Binance users.

The one downside is that this option is only open for a limited number of fiats, including AUD, CAD, and Euros, and it is not available for USD.

If you want to trade crypto through your browser, you can also use the Binance widget that is only available on the Brave browser. Brave is a privacy-focused browser, and this widget allows you to trade as well as view and manage your portfolio.

Binance Trading Platform

Binance is one of the easiest trading platforms with a simple and intuitive user interface. There is a large selection of cryptocurrencies to trade. Additionally, users can trade Ether, Bitcoin, Tether, XRP, BNB pairs as well as crypto/fiat pairs on the fiat market.

Traders get to choose between “Advanced”, “Classic” and “Basic” trading interfaces for different styles of trading including order book, P2P, over the counter, and margin trading options.

Spot Trading 

Users who want to get into spot trading can choose between three interfaces. These interfaces align with different excel levels. The classic interface allows users to see market and trading pairs easily which makes it easy to switch between different pairs.

The advanced interface allows traders to use the advanced charting tools. If both of these options seem too complex for you, then you can choose the basic option. Although its functionality is limited, this view still allows less experienced traders to trade coins without having to view charts or deal with order books.

Margin Trading

Margin trading is only available for a select few trading pairs, with users able to leverage up to 10x on some pairs. Cross margin trading is very risky as it risks your whole account, while isolated margin trading only risks the trading pair you are looking at in that instance.

Binance Futures and Derivatives

Binance Futures is a relatively new feature as it started in 2019. Binance Futures lets users speculate on the price of Bitcoin and altcoins such as Ethereum, Ripple, Litecoin, Bitcoin Cash, and more. When speculating like this, traders do not have to actually purchase or sell these assets.

Binance also allows traders to leverage their trades up to 125 times. This is a risky move because even if traders can multiply their profits by 125x, their losses are multiplied by the same factor too. This leverage is higher than you would find on any other reputable platform.

The balances used in speculation are held in a separate account and must be collateralized using Tether (USDT).

Binance Futures’ interface is very similar to the trading interface. The only differences include functions such as the ability to view open positions and functions that allow traders to control leverage.

The fees on Binance Futures stand at a maximum of 0.04% on any trade. The fees are lower for traders who have massive monthly trading volumes or whose trades often increase liquidity in the order book before they are executed.

Binance financing:

Savings

Binance now allows users to earn interest on idle funds. You can choose between a “locked” or “flexible” account. Flexible accounts will offer variable interest yields while locked accounts will give you higher interest rates through a locked deposit.

Staking

The platform also offers a staking service that allows users to earn returns on decentralized coins (DeFi) and proof-of-stake finance without having in-depth knowledge on how to stake coins. Just like their savings account, these have both a locked and flexible option.

Binance Smart Pool

Binance also allows users to join smart pools. These are mining pools that automatically split rewards among users. The pool’s hash power will also automatically be redirected to the cryptocurrency that is the most profitable at any given moment, which is a great way to optimize returns without being actively involved.

Binance Visa Card

The Binance Visa Card is a great product that allows you to rapidly convert and use crypto in places that only accept fiat money. In the background, your crypto funds will be transferred into fiat currency free of charge. This way, you will not have to hold fiat per se.

Crypto Loans

Binance also allows users to borrow USDT or BUSD which will be collateralized with ETH or BTC. You’ll be able to get your hands on stablecoins, while still having exposure to crypto and avoiding taxes for selling coins.

Binance Liquid Swap

This is an automated market maker (AMM) platform that is similar in many ways to Uniswap. Users are able to trade coins on Liquid swap with little slippage. Liquidity can also be exchanged for a share of fees.

Binance fees & limits:

When trading crypto-to-crypto the standard flat fee of 0.1% applies. You can get a discount of 25% if you choose to pay your fees via Binance's own coin(BNB).

It is also possible to reduce your base trading fees to as low as a 0.02% maker fee and a 0.04% taker fee by holding different amounts of BNB and reaching certain trading levels.

What is BNB?

Binance Deposit Fees:

Binance does not charge a deposit fee for fiat currencies however they do charge a small fee for transferring your cryptocurrency to Binance.

Binance Withdrawal Fees:

This is set dynamically depending on the current state of the blockchain, its worth nothing these are generally very low and amount to less than one USD.

Binance Limits:

This depends on your methods, currency, verification status ect. If you are fully verified you are unlikely to encounter any limits.

Transaction Type

Limits

Fiat purchases

Varies by payment method and currency. Lower limits are often around US$5,000 equivalent maximum per 24 hour period.

Non-verified user crypto withdrawal limits

2 BTC equivalent maximum per 24 hours

Market order limits

Varies by market liquidity. Maximum market orders in less liquid markets may be as low as ~US$50,000 equivalent

Is Binance Safe?

Regulation: Binance is a Malta based exchange and is lightly regulated by the country’s Virtual Financial Assets Act. It has been argued that while Binance does what it should to remain compliant, they also did a lot to minimize the number of regulations they have to abide by.

Verification process: Users on Binance are not required to provide verification if they want to exchange cryptocurrencies for other cryptocurrencies. However, verification is needed to increase withdrawal limits, access fiat purchases, and access additional features. The verification process is within the norm when compared to other exchanges.

Security features: Binance follows cybersecurity best practices and has a 2-way authentication system. They use multi-address wallets and cold storage to store customer funds. Binance has been victim of one hack to date when it lost over 40 million in reserves back in 2019. However, all the funds were replaced using their own cash reserves.

Binance Pros and Cons

Pros
  • It’s a well-known exchange. Binance is the biggest cryptocurrency exchange in the world in terms of popularity and volume.
  • Competitive fees. Their standard trading fees (0.01%) are the norm for most exchanges; however, the different tiers and BMB accounts make their fees more competitive.
  • Allows you to use fiat. Binance allows you to use fiat to buy a wide number of cryptocurrencies.
  • Extra features. Not only does Binance offer direct purchases, but it also offers other features like staking services and advanced trading choices.
Cons
  • Lose regulation. Binance does not offer services in all states due to missing some regulatory requirements.

Frequently Asked Questions

Which countries does Binance support?

Binance allows people from all over the world to trade on their exchange, with a few exceptions like the US. Note that it’s the user's responsibility to make sure that they only use Binance in their country if it’s legal there. Since Binance users don't have to go through a verification, this is largely reinforced through geo-blocking and the honor system.

If you are a US resident, know that you can instead use their Binance US exchange.

Is there a Binance app?

Yes, you can trade on Binance on the go by using their iOS or Android app.

What is Binance’s verification process?

Their verification process is pretty similar to other exchanges. It involves filling out your personal information and providing photographic evidence of its authenticity.

What kind of customer service does Binance offer?

Binance offers a wide help section where you can submit requests. You can also reach their team through a variety of social media channels.


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