This Binance review will provide you with an in-depth overview of the platform, its features, fees, and how to open and use an account. Additionally, we’ll reflect on what are the positive and negative sides of the exchange. Also, we’ll explain why it is one of the most popular cryptocurrency exchanges in the world.
Binance is currently the world’s largest cryptocurrency exchange by trading volume. It was founded by Changpeng Zhao (known by his initials CZ) in China in 2017. Since then, the platform has established itself as one of the most reliable players in the crypto space.
Notably, Binance is also considered as one of a handful of cryptocurrency exchanges that do not fake volume or engage in wash trading activities. The company continuously seeks to ensure transparency in its operations.
Over time, the exchange has proven itself reliable and responsible to its customers and has lived up to set standards and regulations, cementing its reputation in legitimizing cryptocurrencies as an asset class.
Overall, Binance keeps up to date by covering all significant industry advances and upgrades, having established itself as the most widely used gateway to markets of digital cryptocurrencies.
Note: Binance implemented a required KYC on August 20. As a result, all new users must pass Intermediate Verification in order to utilize Binance products and services, including cryptocurrency deposits, trades, and withdrawals. Existing customers who have not yet completed Intermediate Verification will have their account permissions temporarily changed to “Withdraw Only,” with withdrawal, order cancellation, position closing, and redemption services limited. For additional information, please check the official announcement here.
Binance’s reputation in the industry
What makes Binance particularly attractive is its extensive list of supported crypto-assets and their trading pairs, including the industry’s hallmarks like Bitcoin and Ethereum, as well as smaller and micro-cap tokens. Each token must fulfill Binance’s standards and criteria just to be considered for listing (and can also be de-listed for violating the terms).
In 2019 Binance exchange experienced a sophisticated cyberattack (it was hacked). Thieves stole $40 million in Bitcoins at the time, but thanks to Binance’s SAFU fund, all losses were covered by the exchange, and Binance reimbursed traders immediately. This act significantly strengthened Binance’s reputation in the cryptocurrency industry.
What is Binance’s SAFU fund? SAFU, the Secure Asset Fund for Users, is an emergency insurance fund. On the 3rd of July, 2018, Binance announced the Secure Asset Fund for Users intending to protect the investors’ funds on the exchange. Thus, Binance allocates 10% of all trading fees received into SAFU to protect users and their funds in extreme cases. All SAFU funds are stored in a separate cold wallet.
Binance’s native token BNB (Binance Coin)
Another aspect of Binance that makes it appealing is its competitive trading fees (a flat rate of 0.1%), further reduced by holding the platform’s native token, Binance Coin (BNB). The token had been issued and distributed in an ICO with the launch of the exchange (as an Ethereum ERC-20 token, the ICO itself raising ~$15 million at the time). To know more about the fees on the platform, check our Binance fees guide.
Binance offers an incentive to pay transaction fees in BNB by offering a 50% discount in the first year of membership, decreasing every subsequent year for five years. The token is not just limited to that, though, as one can also use it to invest in ICOs which participate in Binance’s Launchpad program, for example.
Tip: Whenever it comes to using a crypto exchange or any asset exchange for that matter, there’s going to be some little balance left behind after trades. However, Binance has a solution to this problem. It offers a convenient option to swap your tiny balances and convert them into BNB. Here’s a guide on How to Convert Small Balance to BNB. Alternatively, watch the video below.
Watch the video: How to Convert Small Balance to BNB on Binance
How to open Binance account?
- Create account. Head over to the Binance main web page (for the US citizens here) and register with an e-mail address and a password. Remember to use common sense when choosing a password; make sure it’s long enough and alphanumeric, including both upper and lower case letters and numbers. It is also advisable to set up two-factor authentication (2-FA) as an additional security measure, installing Google Authenticator on one’s phone for the purpose. This makes it so that each time you log in or perform any operation (such as to request withdrawal of funds; read our How to Withdraw from Binance guide for more details), you will need to enter a unique number sent to you on your phone to confirm it is you.
- Confirm your personal details. Undergoing a simple Binance Know-Your-Customer (KYC) process is also required, which includes providing a full name, home address and country of residence, and date of birth upon which one gets redirected to a third-party verification and KYC services provider (NetVerify) where to complete the process one must upload a copy of a government-issued ID (which can be an ID card, a passport or a driver’s license). Know-your-client and anti-money-laundering procedures are crucial for obtaining regulatory approval to launch and operate as a legitimate and trustworthy exchange in most jurisdictions worldwide (with a few notable exceptions that provide precisely the opposite of that tending to be tax evasion havens and/or cybercriminal hubs). Check our in-depth step-by-step Binance Know-Your-Customer (KYC) guide for more details.
- Add funds. Fiat deposits via bank accounts [temporarily suspended EUR deposits via SEPA bank transfers since July 7, 2021] and/or credit/debit cards are supported in a select number of countries; otherwise, one ought to first purchase Bitcoin or Ethereum elsewhere (most commonly Coinbase) and then deposit them to their Binance wallet address for that particular asset. Once one makes a deposit (usually confirmed in no more than 20 minutes), one can start trading.
- Start trading and investing. Go to the ‘Exchange’ button at the top of the screen and choose between the ‘Basic’ or ‘Advanced’ trading platform interface. If you are just starting and don’t have any previous experience trading, the first option gives a quick view of the market trading pairs and it is recommended before jumping to the more advanced one.
Adding funds to your Binance account
Not until too long ago, Binance had been primarily a crypto-to-crypto exchange with no fiat on and off-ramps, meaning that one had to buy cryptocurrency Bitcoin or Ether elsewhere and then deposit it to Binance.
Over the last year, though, limited support for bank accounts and credit/debit card deposits have been added through third-party payment processors and service provider partner companies (like Simplex in the EU or BAM for their US operations). Both Mastercard and Visa are accepted, although the client may incur an additional charge if the native currency is anything other than USD or EUR. Standard processing fees are 3.5% with a 10$ minimum which is slightly lower than Coinbase’s 3.99%.
Watch the video: How to buy Bitcoin and many other cryptocurrencies with a credit or debit card on Binance
Classic vs Advanced interface
The Classic interface (previously named basic) is more straightforward and understandable for beginners or those who like simplicity. The dashboard still gives you all the needed options to perform a buy/sell trade. It has a simple order book on the left with ‘Buy’ and ‘Sell’ buttons where one specifies the number of tokens to buy/sell or puts a price for which to buy/sell as many tokens.
The Advanced interface is more or less identical in functionality to what traditional trading platforms look like, with more sophisticated charting tools and advanced order types (such as stop-loss, stop-limit, etc.)
On Binance, there is access to more than 500 trading pairs, and when a trade completes, it becomes visible in one’s Binance account balance. It is generally advisable to keep funds on the exchange only when and if actively trading, otherwise if it is used just to hold an asset long-term with no intentions to trade Binance is not meant as a custodian. One is better off transferring their funds on to an external wallet – ideally, for more significant amounts, a cold storage one.
Watch the video: How to make the most commonly used “limit order” on Binance
What is a “limit order”? A limit order is an order with a specific “limit price,” which means that Bincance will only execute it once the market price reaches the price you set or better. Limit orders can be used to trade at lower or higher than the current market price, presuming the market reaches the price you have set. However – if you do not want to wait until the asset’s price reaches a specific level and wish that your “limit order” will be filled – you can always use a “market order” to fill your position instantly with the best current market price.
Binance offers an API that allows one to connect their account to any programmed trading bot or application and have them trade on one’s behalf in automating strategies and automatically responding to signals and events (taking advantage of arbitrage opportunities across exchanges, etc.).
Watch the video: How to execute all types of trades (Limit, Market, Stop-Limit, OCO, Cross Margin, Isolated Margin) on Binance
Customer support and communication
Customers can submit ticket requests via the account portal. Still, Binance has a good, active in-account live chat and social media presence on Twitter, Telegram, and Reddit, which may often provide quicker responses.
Any important announcements are usually broadcast on the official Binance Twitter account (there is also a separate helpdesk for customer service inquiries at @BinanceHelpdesk). Simultaneously, the Telegram group channels are always quite active and responsive to any questions and queries.
Additionally, @BinanceResearch provides current institutional-grade analyses and more in-depth insights for more sophisticated traders and investors.
It’s worth mentioning that Binance has been busy drastically expanding its customer support (CS) team to ensure the highest service quality. According to the CEO, the platform’s CS team has recently grown 5-fold.
Margin trading and Futures
Margin trading has also been introduced, and one needs to specifically apply for a margin account, making sure they understand the risks involved. Customers use the BNB token as collateral against funds borrowed at a margin rate of 3:1. Noteworthy, platforms like BitMex offer up to x100 leverage, while Binance offers up to 20x leverage as of July 19, 2021).
Trading of futures contracts has been another addition. It requires that one uses his regular Binance account to open a Futures account, again, ensuring he understands the risks involved and what forward and futures contracts on underlying assets are. It is important to note that on July 26, 2021, Binance announced, that it delists AUD, EUR and GBP cross and isolated margin pairs, with timeline shown as below:
- At 2021-08-10 02:00 (UTC), Binance Margin will suspend EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, BCH/EUR, YFI/EUR, ETH/GBP, BTC/GBP, GBP/BUSD and GBP/USDT cross margin borrowing, and suspend EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, ADA/EUR, BNB/EUR, DOT/EUR, XRP/EUR, XLM/EUR, LTC/EUR, LINK/EUR, BCH/EUR, SXP/EUR, YFI/EUR, ETH/GBP, BTC/GBP, XRP/GBP, BNB/GBP, GBP/BUSD, GBP/USDT and BTC/AUD isolated margin borrowing.
- At 2021-08-12 02:00 (UTC), Binance Margin will conduct an automatic settlement, cancel all pending orders, and then delist EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, BCH/EUR, YFI/EUR, ETH/GBP, BTC/GBP, GBP/BUSD and GBP/USDT cross margin trading pairs, and EUR/BUSD, EUR/USDT, ETH/EUR, BTC/EUR, ADA/EUR, BNB/EUR, DOT/EUR, XRP/EUR, XLM/EUR, LTC/EUR, LINK/EUR, BCH/EUR, SXP/EUR, YFI/EUR, ETH/GBP, BTC/GBP, XRP/GBP, BNB/GBP, GBP/BUSD, GBP/USDT and BTC/AUD isolated margin trading pairs.
Risk Warning: Margin trading carries a substantial risk and the possibility of both significant profits and losses. Past gains are not indicative of future returns. All of your margin balance may be liquidated in the event of extreme price movement. The information here should not be regarded as financial or investment advice from Binance. All trading strategies are used at your discretion and at your own risk. Binance will not be liable to you for any loss that might arise from your use of Margin.
Both long and short leveraged positions are available on Bitcoin and Ethereum as the underlying and as paired with Tether USD (USDT) – both the required collateral and the products themselves use Tether USD price (a stablecoin pegged to the value of the US dollar as a useful fixed-value instrument in these markets).
Related video: Explained: What Are Binance Margin & Futures Contracts?
On June 3rd, 2021, Binance launched the ‘Cooling-off Period’ option on Binance Futures, so traders can use it to temporarily disable Futures trading to prevent compulsive trading and practice self-discipline.
Cryptocurrency staking (earn passive income)
Binance exchange also provides cryptocurrency staking services that run on a proof-of-stake consensus (such as Algorand, Tezos, Cardano, Polkadot, and Ethereum 2.0). By staking a specific cryptocurrency – you can earn passive income without any hassle.
To make things easier for you, we have even prepared a simple step-by-step guide on how to stake Ethereum 2.0 on Binance. Please note that the staking procedure is similar for all digital assets.
Cryptocurrency staking is the process of locking up a portion of your assets to qualify to earn staking rewards (interest), participate in the governance, and verify the transactions within a specific decentralized network. In some ways, this is similar to how a traditional company works. Shareholders have stakes within a company, which gives them the right to vote in the management and directorship of a company. Staking rewards can vary from 5% to 30% APR depending on which coin the user is staking. Learn more: How to stake cryptocurrencies?
Stock tokens (ceased)
On April 12, 2021, Binance launched the tradable stock contract a zero-commission fee enabling traders to trade tokenized versions of mainstream stocks. The exchange has onboarded electric vehicle manufacturer Tesla (NASDAQ: TSLA) as the first stock under the flagship feature.
Tradable stock tokens are a new concept. Investors now have an opportunity to diversify their portfolio by venturing into both the crypto and the traditional stock market without having to leave the Binance platform.
Important: On July 16th, 2021, Binance announced that it ceases support for stock tokens on the exchange, effective immediately. Therefore, stock tokens are unavailable for purchase on Binance.com, and it will no longer support any stock tokens after 2021-10-14 19:55 (UTC).
Binance’s decentralized exchange
Binance also runs a decentralized type exchange (DEX) which follows a different operational logic from the centralized counterparts. DEXes are non-custodial (one has direct control over his funds and trades directly from his wallet) and run and execute trades directly on the blockchain.
As such, they are considered more secure, much less vulnerable, and susceptible to manipulation but not as consistent in terms of transaction fees and speed of execution (due to the underlying architecture on which they run). At present, the tradable assets and pairs available tend to be limited to the ecosystem of the chain the exchange runs on and the limitations of cross-chain interoperability.
In the case of Binance’s DEX, it was launched in March of 2019 on its own dedicated Binance chain, using BNB as its native platform currency, which it migrated from its Ethereum ERC-20 token standard to a BEP-2 format on the Binance chain.
As mentioned already, there are significant structural and technical differences between centralized and decentralized exchanges. There are still hybrid constructions that centralize the order book and matching engine but keep the execution of trades and transactions on-chain, making them close to the speed and efficiency of centralized ones while maintaining the security guarantees of decentralization.
Pros & Cons
✔️ Established industry presence
✔️ Excellent reputation
✔️ Safe & secure
✔️ Many trading options (spot, margin, P2P, stock token, and more)
✔️ It has its own exchange token (BNB), which gives you many exclusive rights such as launchpad investing eligibility, lower trading fees, the ability to convert low [other] crypto balances into BNB, and more.
✔️ More than 500 crypto assets and pairs tradeable
✔️ Many useful features
✔️ Numerous payment options available
✔️ Active social channels
✔️ Great customer support
❌ Perhaps not ideal for complete beginners
❌ Lacking phone customer support
Crypto trading bots that support Binance API
If you want to automate your cryptocurrency trades – we recommend trying a recognized crypto trading bots like Coinrule or TradeSanta. Both are modern and simple to use Binance-compatible crypto trading bots that are easy to use. To find out more about the best crypto trading bots on the market read our in-depth review by clicking the buttons below.
Binance 2020 retrospective
Binance has achieved significant growth over the course of 2020, listing multiple new assets, capturing assets to new markets, and launching country-specific versions of the Binance platform in order to comply with increasing regulatory oversight of the crypto market.
Binance’s New Year Message, published at the beginning of 2020, focused on providing enhanced security features, dedicated launchpad funding and support for innovative blockchain ventures, and upgrades to Binance’s decentralized exchange platform and Binance chain.
Notably, Binance launched an Australia-specific platform in July 2020, announcing new fiat-to-crypto services that streamline access to crypto trading for Australian traders. Binance’s entrance into the Australian marketplace with a dedicated platform mirrors efforts made by the exchange to provide US-based traders with regulatory compliant functionality, with the ongoing 2020 launch of Binance US set to conclude in 2021.
The launch of geo-specific instances of Binance throughout 2020 reflects the overall goal of Binance to implement Binance Cloud, a cloud-based exchange platform system announced in September 2020. Heralded as a digital asset trading platform that functions as a white-label backend for smaller exchanges, Binance Cloud is designed to maximize scalability and security for new exchange operators.
Mid-year controversy dominated by launch of Binance crypto card
While Binance has captured significant crypto market trade volume over the last year, several major events have driven the exchange into finance industry news. Market participant furor over accusations of market manipulation in early May 2020 saw Binance Shanghai subjected to protest groups, with Binance releasing statements that informational delays were caused by user lag.
Despite controversy in Shanghai, Binance retained strong growth over the course of 2020, with a major peer-to-peer project launched in India allowing users to earn significant rewards by referring Rupee merchants to the exchange’s trading platform in order to drive greater fiat Rupee liquidity.
One of the largest milestones achieved by Binance throughout the course of 2020 was the launch of Binance’s new Binance Visa Card at the end of Q3. The new Visa, made available to users across the European Economic Area, allows users to spend digital assets from linked Binance accounts at over 60 million locations around the world.
Notably, the Binance Visa Card provides users with up to 7 percent cash back, significantly higher than entry level options provided by competitors such as the MCO Visa card.
The performance of Binance’s dedicated BNB coin remained solid throughout the course of 2020, driven by staking rewards provided to platform users in return for discounts on trading fees and various crypto-backed loan programs. A $25 million market dump in early Q4 saw market caps slashed across the crypto ecosystem, with the exception of BNB and select other altcoins capturing double-digit pumps from investor speculation.
Binance remains biggest exchange worldwide
Increased market activity in the EU, USA, and Australia saw Binance gain traction in all three markets compared to major competitors such as Coinbase and OKEx, but regulatory action against Binance from the Russian telecom sector resulted in a prohibited website ban on the exchange throughout Russia — an event predicted by Finbold analysts several months earlier.
The launch of Binance US has seen the exchange secure a strong hold on the US trading ecosystem, with strong efforts from Binance’s regulatory compliance team driving allowing the platform to establish a 6-month roadmap to Binance US availability throughout all US states.
2020 has seen Binance retain its position as the largest and most popular exchange in the world by volume, boasting an average 24-hour volume of over $5 billion throughout the year. The increasing availability of Binance’s crypto-backed loans and DeFi product suite has allowed the platform capitalize on the rapid surge of interest in decentralized finance, driving Binance towards further dominance as the world’s number one crypto trading platform into 2021.
Conclusion and additional resources
All in all, Binance is one of the most widely used crypto exchanges worldwide, operating with the least friction and being one of the most predictably reliable crypto-currency trading platforms by far.
It also never stops developing and expanding its provision of services, adding to the arsenal of technical possibilities and configurations of kinds of market exposure available, keeping up with the latest industry developments and trends.
Binance Academy is a web site of educational materials, tutorials and how-to guides provided by Binance itself.
The Binance official Medium for the latest news, updates, and announcements.
ℹ️ Not sure how to start cryptocurrency trading? Read our in-depth “Crypto Trading for Beginners” guide and make informed decisions. Good luck!
FAQs about Binance exchange
What is Binance?
Binance is a large ecosystem that comprises of many segments. Its Binance exchange is the biggest crypto exchange by volume and ranks among the most-recognized globally. Trust Wallet is the official wallet of Binance where users can send, receive, and store their digital assets in a secure and decentralized manner. Other segments of the ecosystem include Binance Chain, Binance Academy, Launchpad, Binance Labs, Binance Research, and Binance Charity.
Is Binance exchange a good fit for beginners?
Binance exchange is a good fit for complete beginners. The platform is user-friendly. The sign-up and registration process is straightforward enabling beginners to sign up and deposit funds quickly and easily. Moreover, it has up-to-date information and academic centers where users can refer to whenever they encounter challenges while using their platform. It also has many useful features and great 24/7 customer support.
Can US citizens trade on Binance?
Americans can trade on Binance since the crypto exchange launched its Binance.US arm. Launched on September 23, 2019, Binance.US enables American users to deposit Bitcoin, Ether, XRP, Bitcoin Cash, Binance Coin, Litecoin, USDT, USD into the exchange. Almost all of the features available on the global platform are available on the US version. However, they are customized to ideally serve the US market.
Is Binance exchange safe and secure?
Binance exchange claims high standards of safety and security. It is designed in a multi-tier and multi-clustered architecture that offers high processing throughput with the ability to process almost 1.4 million orders per second. Also, when users log in for the first time, a pop-up appears urging them to enable the 2FA (two-factor authentication) that helps in increasing account security.