Binance is a very popular and one of the largest cryptocurrency exchanges in the world in terms of the daily trading volume of cryptocurrencies. Binance was founded in 2017 by Changpeng Zhao. Changpeng Zhao is a developer who had previously created high-frequency trading software. This crypto exchange supports more than 200 coins for deposit and withdrawal. Today, I will review Binance and help you decide whether it is safe to use this cryptocurrency exchange or not.
Binance is completely safe because it is one of the world’s most secure and trustworthy exchanges in the world. Binance features multiple layers of ‘bank-like security protocols to ensure 100% safety to customers’ investments. Binance has cold wallet storage and it supports two-factor authentication for maximum security. So, overall, Binance is a trustworthy exchange to trade cryptocurrency.
Jump To A Section
- 1 Overview Of Binance
- 2 How Binance Works
- 3 Service Offered By Binance
- 4 Currencies And Payment Methods Of Binance
- 5 Fees Of Binance
- 6 Pros And Cons Of Binance
- 7 Binance Transaction Limit
- 8 Customer Reviews Of Binance
- 9 Final Thoughts
Overview Of Binance
Binance is a Hong Kong-based cryptocurrency exchange and it was launched in July 2017 by developer Changpeng Zhao (aka CZ). Binance is created by Zhao’s company Beijie Technology, after its successful ICO that raised $15 million. Investors, invested in the ICO got Binance Coin (BNB) as profit and they can use Binance Coin to trade cryptocurrencies and pay for fees on Binance. Initially, the value of BNB was around $0.1 and its price started to increase once it becomes very popular. Over the years, founder Changpeng Zhao has been able to maintain an impressive track record and now his company provides trading systems for over 30 other platforms. However, the recent events of the Chinese government and their view on cryptocurrencies made Binance run their server from more lenient states. It gives Binance more freedom to run a competitive exchange service. This is what Changpeng Zhao says –
“In response to China’s decisions, we are moving our IPs from Hong Kong to an offshore location. So we are registered in multiple locations and we have people in multiple locations. That way we will never be affected by one regulatory body,”
How Binance Works
The working procedure of Binance is very simple. They offer two options for digital currency trading. They are –
If you are a beginner in crypto trading then at first you might find the Binance interface a bit complicated. However, if you have a bit of knowledge of digital currencies then you will be able to use this exchange and its different services. The main difference between the Basic and Advanced versions of Binance is, the advanced version offers a more in-depth technical analysis of digital currency and its value. On the other hand, the Basic version of Binance offers different graphs and charts of the pairs that you are trading.
Like any other crypto exchange, Binance offers services that include trading, listing, fundraising, and de-listing or withdrawal cryptocurrencies. Moreover, Binance allows Cryptocurrency enthusiasts who want to launch their own tokens to use this exchange for raising funds through initial coin offerings (ICOs). If you want to trade in Binance then you have to complete the necessary KYC requirements. Once you successfully complete your Binance account, you will be able to add cryptocurrency funds to the Binance wallet address and start trading. The Binance exchange supports three types of trading, they are –
1. Limit Orders: This type of order is executed only at the limit price set by the trader
2. Market Orders: This type of order is executed immediately at the best available market price
3. Stop-limit Orders: This type of order is only valid when the price reaches a specified level
Binance also offers four additional types of orders for crypto derivatives. They are –
1. Stop market order
2. Trailing stop order
3. Post only order
4. Limit TP/SL order
Service Offered By Binance
Binance offers various services. Service of Binance includes –
1. Binance Exchange
2. SEPA/Wire transfers
1. Binance Exchange
Binance exchange service allows its customers to exchange fiat for Bitcoin or other coins. If you have a Binance account then you can buy crypto via P2P trading or credit/debit card. P2P trading is an excellent service of Binance. P2P trading connects buyers and sellers of cryptocurrency directly. It features fiat payments and also supports a variety of payment options.
On the other hand, recently Binance partnered with “Simplex” that will provide a brokerage service via credit and debit cards. With this service, you will be able to buy at least 31 different cryptocurrencies with a credit card. However, if you want to use this service then you have to pay the service charge and it might get as high as a 3.5% fee for USD purchases.
2. SEPA/Wire Transfers
Now Binance allows its users to buy crypto directly with fiat using SEPA & bank transfers. This is an excellent feature because it doesn’t require any transaction fees. This payment option is available for several fiat options but unfortunately, it doesn’t support USD deposits. Binance also has a privacy-focused browser named Brave and it integrated a Binance Widget for in-browser trading! This widget allows you to buy and trade crypto through Binance.
Currencies And Payment Methods Of Binance
Binance supports nearly 200 currencies that includes some major altcoins such as:
1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Litecoin (LTC)
4. Ripple (XRP)
5. Bitcoin Cash (BCH)
6. Chainlink (LINK)
7. Binance Coin (BNB)
8. Binance USD (BUSD)
9. Basic Attention Token (BAT)
10. Cosmos (ATOM)
11. Dash (DASH)
12. EOS (EOS)
13. Nano (NANO)
14. Paxos Standard (PAX)
15. TRON (TRX)
16. TrueUSD (TUSD)
17. Tether (USDT)
18. Stellar Lumens (XLM)
Binance supports these payment methods:
1. Credit/ Debit card
3. Bank transfers
Fees Of Binance
If you compare the fee structure of Binance with other crypto exchanges then you will find Binance’s fee structure is more competitive. Binance has a flat rate of 0.1% which is very lucrative for traders who don’t need immediate fiat liquidation. If you use Binance’s futures trading platform then you will be able to enjoy even lower fees, starting at 0.02% for makers and 0.04% for takers. Moreover, the native Binance token BNB provides more discount on this trading fee and you can get up to 50% discount. Adding funds in Binance is free but if you want to withdraw the funds then you have to pay fees.
Pros And Cons Of Binance
|Pros Of Binance||Cons Of Binance|
|Low non-instant and instant buy fees||Hiccups in account verification|
|Extremely large coin selection||Not available in the USA|
|Numerous extra services||Non-transparent corporate structure|
|Exceptional education materials||Cryptocurrency not insured by governments|
|More than 100 Currencies to choose from|
|Credit and Debit Card Friendly|
Binance Transaction Limit
Binance has a transaction limit but it’s not that complicated. In fact, there is no transaction limit in Binance. However, Binance has withdrawal limits. If you have a level 1 verified account, then you can withdraw up to 2 BTC every 24 hours. On the other hand, level 2 verified accounts can withdraw 100 BTC every 24 hours. If you want to withdraw funds then you have to fill out a basic Know Your Customer (KYC) form and you also have to provide proof of identity.
Customer Reviews Of Binance
Below are some customer reviews of Binance that are available online –
Nicola Lutecci Says –
Binance is the best company of cryptocurrencies with perfect quality services, much trustworthy.
Get 50% permanent discount on all your costs during spot trading with my sponsorship code when you register either via mobile app or on desktop.”
Manwith0BTC Says –
“Honestly, I can’t understand the bad reviews. This is 1 platform and exchange. It’s excellent and if you don’t know how to trade on such professional tools. You need to do your homework.”
Yoann Santonastaso Says –
“I actually enjoy the website. But the customer service absolutely ruins it for me. There is a lot going on on the website and anytime I have a question I spend hours looking for an answer on the web because I know it’ll take me longer to get a customer service rep. They take between 7 and 11h to reply – that is if the internet connection doesn’t fail or if they don’t disconnect for no reason. And they NEVER have an answer, EVER. Now it reached the point that they don’t even answer anymore. They make a lot of money on our backs and we as customers deserve better. I’m still waiting to know where my money has gone and I’m not sure I’ll ever know.”
David B Says –
“I can trade without problem but they simply deny my refund orders. I cannot take my money out from there. They say that their partner ClearJunction denies my refunds, but that is not my problem. I need to get my money back and they don’t allow me to do it. The client service only says day after day that it is not Binance’s problem, it is ClearJunction (their partner) but doesn’t offer ant solution.”
Andreas Says –
“It’s a scam, they just blame the system and won’t repay. Keep away from Binance”
Lisa Says –
“This is a shady company based in China with no known phone number. When my son died, I sent the necessary legal documentation and death certificate to Coinbase and they graciously transferred his account. Binance told me that I’m basically screwed and they are keeping his money. STAY AWAY!”
If you pull everything of Binance and consider the advantages and disadvantages then the pros will definitely outweigh the cons. If you can ignore the limited fiat support of Binance then it can be your 1st choice as a cryptocurrency exchange. Now the decision is yours!
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.