What is Binance?
Binance is a cryptocurrency exchange founded in 2017 in Hong Kong, quickly growing to become the world's largest crypto exchange by trading volume. Their initial growth and popularity was so impressive that they actually had to suspend registrations in January 2018. Binance is now extremely well established, offering over 40+ fiat currencies and 300+ cryptocurrencies to customers around the world, with no deposit fees and extremely competitive trading fees (maximum 0.1%).
My Overall Thoughts on Binance
Binance is a feature-packed exchange that is perfect for experienced crypto traders and investors, as there are plenty of trading tools and options available. For a beginner, I admit it can be a little overwhelming, but once you get the hang of it you will realise why Binance is such a great platform. These are the top 3 reasons why I like Binance:
1) Binance has extremely low fees, which it can offer because of the huge amount of trading volume and the large customer base it has. The base rate for buying and selling coins on the market is just 0.1%, which can be further reduced. The easiest way to receive a discount on your fees if paying your fees using BNB (Binance's own token). You automatically receive 25% off the fee when using BNB. That means instead of paying 0.1% for a trade, it will be only 0.075%! Additionally, if your 30-day trading volume is high, and you own a certain amount of BNB coins, then you receive further discounted trading fees.
2) There are over 300+ cryptocurrencies available on Binance, and they are regularly adding new coins. You are almost certain to find a coin that you want to invest in. Another great new feature is that you can even buy NFTs now on Binance.
3) Binance has a wealth of trading options and tools including Spot trading, Margin trading, P2P exchange, and Futures. Experienced traders will enjoy the detailed charts available on the platform, and the use of limit orders and stop-limits.
One thing that Binance is lacking is a Live Chat feature. If you are an experienced crypto trader you may not find it an issue, but for new users it can be frustrating encountering problems and not being able to speak to someone to resolve it. I think that customer service is an area that Binance could improve in the future.
Overall, if you are looking for extremely low fees, tons of features, and a wide range of cryptocurrencies, Binance is an exchange you should consider.
Key Features & Advantages of Binance
Binance has so many features that make it one of the most popular crypto exchanges in the world. Here is a list of the best features Binance has to offer:
What Services does Binance offer?
If you have done some research on the best crypto exchanges, you will probably find that there are so many options and it can be hard to decide on one. I am going to expand on the best services offered on Binance so you can see if it's the right exchange for you.
Over 300+ different cryptocurrencies to buy, sell or trade: Binance offers over 300+ different cryptocurrencies which is one of the widest offerings available around the world. As the largest crypto exchange in the world based on trading volume, you know that the liquidity will be high, so you will be able to buy and sell any coin easily on their platform.
Android and iOS mobile apps: Binance has an excellent app that makes it easy for beginners, while also catering for advanced traders. Within the one app, there are two versions that you can toggle between with the click of a button - you have Binance Lite which is great for newbies to use, and there's Binance Pro which gives access to plenty of advanced features and trading tools. According to Google Play store, the Binance app has over 10 million downloads, with a high user review rating of 4.4 stars, from 319 000 reviews.
Advanced, Classic and Basic trading interfaces: Binance caters for customers of every level, from complete beginners to the world of crypto investing, to experienced day traders. If you want the simplest way to purchase crypto, you just need to select the basic 'Convert' option, which brings up a very simple interface as displayed below.
For those that are more comfortable with a traditional market interface, you can choose to buy crypto with the Classic mode, which has a lot more information compared to the basic version. This is a screenshot of the Classic mode for BTC/USDT trade.
Experienced traders that want full access to all trading tools can select the Advanced option under the Trade tab, and here is a screenshot of what this looks like.
Use Binance Earn to grow your crypto: Binance offers various options for you to grow your crypto while you leave it on their exchange. This is a potential investment opportunity if you are planning on HODLing your crypto. Instead of having it just sit there, you may as well make it work for you. You can see the different staking options available below.
Binance Visa Card: Binance has partnered with Visa to offer a card where you can spend your crypto at 60 million merchants worldwide. The card is free, does not have any administrative or processing fees, and you can even receive up to 8% cashback on eligible purchases! This is a great step in the right direction for crypto becoming a mainstream method of payment.
P2P exchange: Binance offers a P2P (peer-to-peer) exchange which allows users to trade crypto directly with each other on their own terms, in virtually any country. This is what the P2P exchange looks like, if you are searching to buy BTC using USD.
Binance Loan: Anyone registered as a user on Binance can access Binance Loan if they wish. You can borrow with different loan terms: 7, 14, 30, 90 and 180 days, with the option to repay it early, only being charged for the hours borrowed. Interest is calculated hourly at a rate of 0.001667% per hour (0.04% per day).
NFT Marketplace: NFTs are becoming increasingly popular, and Binance has taken the opportunity to be part of the action. Binance has a new NFT marketplace where you can mint, buy and sell NFTs.
Margin trading with up to 10x leverage: 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.
Trade Futures and Derivatives: A relatively new feature that Binance offers is Binance Futures, which lets users speculate on the price of Bitcoin and altcoins such as Ethereum, Ripple, Litecoin, Bitcoin Cash, and more. When trading futures, users are not actually buying or selling the cryptocurrencies, but just taking advantage of the price rises/falls to make money.
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 has extremely low fees, with options to further reduce them as well. I will explain this below.
Binance Deposit Fees
If you are depositing cryptocurrency into Binance, there are zero fees.
If you are depositing fiat currency into Binance, the fee will vary depending on the method of deposit and the currency. For example, if you deposit Australian Dollars (AUD) using PayID/OSKO, it is free of charge. However, if you deposit Hong Kong Dollars (HKD) using a bankcard, the fee is 3.50%. Click here to check the fee for your fiat currency and deposit method.
Binance Withdrawal Fees
Withdrawing cryptocurrency from your Binance account incurs a flat fee to cover the transaction costs of moving the crypto to your wallet. The fee varies depending on each coin; you check how much by clicking here.
For fiat currency withdrawals, the fee varies depending on the withdrawal method and the currency. For example, withdrawing Australian Dollars (AUD) by bank transfer is free of charge. Withdrawal of Pound Sterling (GBP) using Bankcard incurs a 1% fee. You can check the fees for your currency by clicking here.
Binance Transaction Fees
Binance fees for spot trading (buying and selling crypto) start at a low 0.1% and you can get a 25% discount if you pay your fees using Binance's own coin (BNB). This means you are only paying 0.075% on each trade! Watch the video below to find out more about BNB.
Trading fees compared against other popular exchanges
If you are a large volume trader and hold a lot of BNB, you can reduce your fees even further, with the lowest rates at 0.015% maker fee and 0.03% taker fee, inclusive of the 25% discount using BNB.
Pros and Cons of Binance
- Largest crypto exchange in the world based on trade volume
- Extremely low fees of 0.1% with a further 25% discount if you pay with BNB
- Mobile app available for iOS and Android
- Over 300+ cryptocurrencies available
- Additional features such as staking, NFT marketplace, margin trading, futures trading
- Not available in the USA; US residents need to use Binance.US
- Poor customer service - lacks live chat support
Binance is a secure cryptocurrency exchange, which holds most of their digital assets offline in cold storage, and provide tips to its customers on ways to increase security. Binance has settings for enabling 2FA (two-factor authentication), whitelisting devices, managing withdrawal addresses, anti-phishing codes and even U2F (universal 2nd factor authentication), which requires physical access to hardware to access your account.
Despite their best efforts to remain a secure crypto exchange, in 2019, Binance was the victim of a cybersecurity breach, losing over $40 million worth of Bitcoin. The way Binance reacted to the situation was commendable; they covered the loss in full, so their customers didn't suffer any loss. Four months after this incident, Binance was awarded the ISO 27001 certification, having passed an audit of its information security management. It shows how committed Binance is, to maintaining a safe platform for their customers. Binance continually invests in ways to improve their cybersecurity defense.
Binance is a big name in the cryptocurrency world, and for good reason. It is the largest crypto exchange by trade volume, with competitive fees and a platform that is built for beginner investors and experienced traders alike. With over 300+ different coins on offer, and extra features such as staking, margin trading, futures, and even an NFT marketplace, it is an excellent platform for you to rely on for your blockchain ventures.
Unfortunately for Americans, Binance is not available in the USA. It was banned in 2019, but there is an alternative exchange called Binance.US that was founded afterwards, which is available in 43 states. If you are looking for other options and you live in the US, check out this article on the top crypto exchanges for US residents. I have also included a small comparison table below for a quick snapshot.
Comparison Table of the Best Crypto Exchanges in the USA
Frequently Asked Questions
Yes, Binance is a legitimate and well-established cryptocurrency exchange founded in 2017. It is registered in the Cayman Islands and is the largest crypto exchange in the world based on trading volume.
Yes, Binance is considered a safe cryptocurrency exchange. They offer tips to increase security such as enabling 2FA (two-factor authentication), whitelisting devices, managing withdrawal addresses, anti-phishing codes and even U2F (universal 2nd factor authentication), which requires physical access to hardware to log in to your account. However, you should always consider moving cryptocurrency off an exchange and into your personal wallet (either hot wallet app or a cold hardware wallet). Once it is off the exchange it is more secure.
Binance is a cryptocurrency exchange where you can buy and sell crypto, but it also has an official wallet called Binance Chain Wallet. You can send your digital assets to your wallet app (soft wallet) which is a more secure way of storing crypto. More increased security, you can buy a hardware cold wallet to store your coins offline.
Yes, Binance is a trusted cryptocurrency exchange founded in Hong Kong in 2017. It is registered in the Cayman Islands and has quickly grown to be the largest crypto exchange in the world based on trading volume.
No matter how secure an exchange, there is a possibility of it being hacked. Binance was hacked in 2019 and over $40 million of Bitcoin was stolen. The important thing is how the exchange responds after a cybersecurity breach like this. Binance covered the incident in full, and no users' funds were affected. This is an excellent response from the exchange as it gives users peace of mind to trade and invest on their platform.
Binance is not available in the USA, but you can use the sister exchange Binance.US. You can still take advantage of the low 0.1% trading fees, and over 50+ different cryptocurrencies.
Binance.US is a different company to its sister exchange Binance, but they use the same interface and branding. On Binance.US your trading fees on the market are still extremely low at 0.1%, and you also have the option to instantly buy and sell from the exchange with a fee of 0.5%. Binance.US is available in 43 US states, and you can access over 50+ different cryptocurrencies.
Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us.