As cryptocurrency grows in popularity, more and more exchanges are being created for buying, trading and selling different cryptocurrencies. This makes it more and more difficult to decide which exchange you’re going to use.
Some are aimed at beginners, while others are better for more advancedtraders. So, it’s important to know which exchange is right for you!
This Binance review will give you a complete overview of the Binance exchange. Once you have read this, you will have a good understanding of whether it is the right exchange for you.
First, we will give you some background information on Binance, and how it has become one of the most popular exchanges to trade cryptocurrencies. We will then explain some of the advantages of using Binance, as well as some disadvantages, too.
There will also be a step-by-step guide on how to deposit, trade and withdraw coins, along with some helpful images. By the end of our Binance review, you will have all the information you need to start trading on the exchange by yourself.
Well, what are you waiting for? Let’s go and discover more about Binance!
Binance Review: What is Binance?
Binance is an exchange that hosts crypto-to-crypto trades. This means that they do not accept real-world money, such as U.S Dollars (USD) or Euros (EUR). The exchange was first created in 2017 and was originally located in China. However, as cryptocurrency laws are very strict in China, the exchange has since moved to Japan, a country that loves digital currency!
The man who created Binance is called Changpeng Zao, however, he is well known as CZ. Interestingly, CZ used to build some of the trading systems that are used in the Tokyo stock exchange. I guess he used this experience to help make Binance what it is today!
Before Binance opened their exchange, they raised money through an initial coin offering (ICO). This is very similar to crowdfunding, where people can invest to help a company get started.
However, an ICO is still different, as people invest cryptocurrency instead of real-world money. The Binance ICO raised the equivalent of $15 million, and in return, they gave investors their own cryptocurrency token, which is named the Binance Coin (BNB). Even though it’s called Binance “Coin”, it is actually a token, which is built on the Ethereum blockchain.
Advantages of Binance
First up, let’s discuss the actual advantages of this crypto trading platform.
There are now more than 1889 individual cryptocurrencies, with new ones being created almost every day! There are more than 100 different cryptocurrencies available at Binance. They range from well-known coins such as Ethereum (ETH) and Litecoin (LTC), to smaller coins like CyberMiles (CMT) and ZCoin (XZC). Coinbase, an exchange that sells more Bitcoin than any other, only lists a total of 4 coins!
Another excellent feature of the exchange is that when trading crypto-to-crypto, Binance fees are one of the lowest in the industry. Customers are charged 0.1% on every trade, meaning if you traded 1 ETH, you would only be charged 0.001 ETH!
Quick tip: If you are trading with Binance Coin (BNB) you get a 50% trading discount!
Deposits are always free, but withdrawals do cost money. However, most exchanges operate in the same way. Withdrawal fees are different for each cryptocurrency, and change depending on their value.
For example, at the time of writing, for every Litecoin (LTC) that you want to withdraw, it would cost you 0.01 LTC in fees. However, if the value of Litecoin increased, so would the withdrawal fee. This is because the fee is fixed to the price of Litecoin, and not top the price of USD (or your local currency).
There are no limits to the value of deposits you make, but if you want to withdraw more than 2 BTC worth of cryptocurrency, then you would need to verify your account further. This can be done by submitting identification, such as your passport.
Binance takes security very seriously, and customers are asked to set up two-factor authentication (2FA) when they register an account. 2FA is an extra level of security that sends a special code to your mobile phone every time you want to log in, trade, or withdraw funds.
If you are still wondering “Is Binance safe?”, the website also uses the CryptoCurrency Security Standard (CCSS) to protect accounts, which is an industry-standard for major exchanges.
As Binance has become one of the most popular exchanges to buy, trade and sell cryptocurrencies, there are lots of trades happening all the time. This is an important factor as it means you have a better chance of selling your cryptocurrency immediately, if and when you need to.
For example, if you wanted to buy a cryptocurrency, but it has a low trading volume, then it’s harder to buy because there aren’t that many sellers. However, if lots of people looking to sell that coin, it will be easy to buy.
Fun Fact: The technology supporting Binance can process up to 1.4 million transactions per second!
Now that we’ve discussed some of their advantages in this Binance review, let’s take a look at some of the exchange’s less-than-ideal points.
There are mixed reviews on the customer support offered by Binance exchange. Although you can contact Binance by email or live chat, some users have reported long delays. This might be because the exchange has a large number of customers, however, and thus, we hope that Binance will improve their response times. There is also no phone support, which is something offered by other popular exchanges like Coinbase.
✗ No Fiat Deposits or Withdrawals
One of the biggest disadvantages to Binance exchange is that customers can’t deposit funds using traditional payment methods. Other well-known exchanges such as Coinbase, Kraken, Livecoin, and HitBTC allow customers to use their debit or credit card. Some even accept a bank transfer and PayPal!
Because Binance doesn’t support fiat deposits, it makes it impossible for beginners to buy a cryptocurrency for the first time. First, you would need to purchase a cryptocurrency like Bitcoin or Ethereum using fiat, and then you can deposit that into Binance and trade for other coins.
This also means that you can only withdraw cryptocurrencies from the Binance exchange, too.
We definitely recommend giving Binance a try, check it out!