In 2009, an anonymous internet user going by the name or alias of Satoshi Nakamoto announced to members of a popular forum community that he had introduced a new peer-to-peer currency. This new currency utilizes blockchain technology to enable the almost immediate and third-party-free transfer of value anywhere on Earth.
This new digital currency, known as Bitcoin, formed the basis of a brand-new asset class and the origin of a multi-trillion dollar cryptocurrency sector. About 10 years later, specifically in 2017, Changpeng Zhao launched Binance.
This article examines the pros and cons of Binance and provides you with all the information you need to know about the platform.
Binance is the world’s largest cryptocurrency trading platform. Because of its wide range of trading options and services, it is not particularly user-friendly. Depending on their level of education and experience, investors may struggle to understand how to use Binance.
Binance’s desktop and mobile dashboards offer a comprehensive range of trading options, including an excellent selection of market charts and hundreds of cryptocurrencies. Users can also access a variety of order types and trading options, such as futures and options. Most of Binance’s options and services are not available to U.S. clients; they can only trade 65+ cryptocurrencies.
Binance offers extensive instructional platforms, an NFT platform, and other services in addition to its tools and services. The NFT market does not appear to be open to American users at this time.
As previously stated, only 65+ cryptocurrencies are available in the United States. Users outside the U.S. can trade several fiat currencies, including USD, GBP, AUD, EUR, INR, and HKD.
Several cryptocurrency pairs are available on Binance, depending on your geographic location. Some of the cryptocurrencies that can be found on Binance US include Binance Coin (BNB), VeThor Token (VTHO), Harmony (ONE), VeChain (VET), Matic Network (MATIC), and Dogecoin (DOGE). Binance also supports well-known cryptocurrencies like:
- Dash (DASH)
- Compound (COMP)
- ETH (Ethereum)
- Bitcoin (BTC)
- Cosmic (ATOM)
- Cardano (ADA)
- Bitcoin (LTC)
Binance’s extensive list of supported cryptocurrencies and trading pairings, which includes well-known tokens such as Bitcoin and Ethereum as well as lesser-known and micro-cap tokens, makes it especially appealing.
To be considered for listing on Binance, a token must meet specific rules and requirements (and can also be delisted for violating the terms). In 2019, a sophisticated cyberattack occurred on the Binance exchange. At the time, the hackers stole $40 million in Bitcoin, but thanks to Binance’s SAFU fund, the exchange covered all losses and paid traders immediately. This action greatly improved Binance’s reputation in the cryptocurrency industry.
Despite its regulatory issues, the platform maintains strict control over its security. The company’s user-level security appears to be strong with two-factor authentication, sophisticated access controls, and security notifications.
The platform employs cold storage facilities, end-to-end encryption, password resets, and real-time monitoring of withdrawal attempts and changes in email addresses to secure data. If something strange occurs, withdrawals will be halted immediately for at least 24 hours.
Binance’s U.S. dollar balances are FDIC insured for extra security. Hence, if your balance is stolen, you can recover your funds. Also, Binance U.S. has never publicly announced a breach, even though the Binance global exchange lost $40 million worth of bitcoin in 2019.
Overall, Binance appears to have good security, and most users should rest easy knowing that most of their assets are safe from hackers as long as they take the necessary precautions.
There are several ways to contact Binance’s customer support service. Among these are:
- Ticket requests can be made through the account portal.
- In-account live chat, which can be found in the bottom right corner of the support screen on the Binance website.
- Contacting Binance via social media platforms such as Telegram, Reddit, and Twitter. This is the option with the quickest response time.
Important announcements are often made on the official Binance Twitter account (customer service-related questions can also be directed to a different helpdesk at @BinanceHelpdesk).
@BinanceResearch also has up-to-date institutional-grade assessments and more in-depth information for more experienced traders and investors.
Binance has some of the lowest trading commissions in the industry. There is no deposit fee at the moment. Still, users must pay a set fee known as the “Binance withdrawal fee” to cover the transaction costs associated with withdrawing cryptocurrency from their Binance account.
Depending on the blockchain network you are withdrawing from, and how busy the network is at the time of withdrawal, you may have to pay a different fee to withdraw your tokens from the Binance exchange. Some of Binance’s fees are listed below:
- Commissions on trades: 0.02 to 0.10%
- Debit/credit card fees: 3 to 4.5%
- Wire transfer fee: $15
- Other fees: 0.50% for Instant Buy/Sell
Swap Farming
Users can obtain various cryptocurrencies through swapping. Binance swap farming employs an Automated Market Maker (AMM) model to swap currency pairs without trading with other parties. Users of the exchange have immediate access to a liquidity pool where they can deposit or trade cryptocurrency pairs.
Typically, token pairs are pooled together, and the live ratio of those tokens determines the swap price. Swap farming is an intriguing service that Binance customers can use, and the fees for accessing these liquidity pools are not prohibitively expensive.
Margin and Leverage Trading
Users of the Binance cryptocurrency exchange can engage in margin and leverage trading. These options are attractive to experienced investors and traders who want to purchase futures contracts and speculate on how the prices of valuable assets will change.
Binance trades may have up to 20x leverage. In margin and leveraged trading, as the prospect of earning profit increases, so does the prospect of incurring losses. Hence, only those skilled in risk management should engage in margin and leverage trading.
Staking
Binance Earn allows users to generate passive income through one of the best staking platforms. Binance Earn enables users to stake various cryptocurrency assets and earn interest.
Staking options include both locked and flexible staking. Digital assets must be staked for a set period in locked staking, whereas in flexible staking, users can buy and sell tokens whenever they want.
Binance Academy
Binance has created an online academy with tons of research, articles, and insights into the cryptocurrency market for new and experienced users. The Academy has both an incubator for leading blockchain projects and institutional-level analysis of trending news stories.
Copy Trading
Beginners and new users can use copy trading as a special tool as they begin to build their cryptocurrency portfolios. With Binance copy trading, users can start investing in digital assets by copying the exact trades of skilled and experienced traders.
You can choose between two account types when opening a Binance Exchange account, and the process is relatively simple.
Listed below are the steps for opening an unverified account:
- Click “Register” on the Binance homepage.
- Type in your email address.
- Create a password.
- Accept Binance’s Terms of Service
- Select “Create Account.”
- Confirm your registration via email.
If you want to create a verified account, follow the same steps outlined above, then:
- Sign in to your account.
- In the User Center, select “Identity Verification.”
- Select “Personal.”
- Fill out your information.
- For document verification, select an ID type, such as a passport or driver’s license.
- Take a picture of or upload your document.
- Snap a picture of yourself.
- After you’ve added all necessary documents and photos, click the confirm button.
- Binance will then review your submission as soon as possible.
Once your account has been verified, you will be notified via email.
Binance is difficult to match in terms of features. It has low fees and is the world’s largest cryptocurrency exchange. However, this does not imply that Binance is suitable for everyone.
If you’re concerned about security, you should consider using more regulated exchanges, such as Coinbase Pro or Kraken.
Finally, if you live in the United States, you might want to check out Binance.us. The user interface is similar to the global Binance, although it has fewer features.
Pros
Low Cost
Binance charges some of the lowest trading fees in the industry.
Advanced Trading Options
Binance offers options trading as well as the ability to define trigger conditions for specific trade types to be executed.
Analytical Tools
Binance’s analytical tools allow you to monitor the markets in real-time.
Cons
Complex User Interface
Binance’s user interface can appear disorganized and difficult to understand at times.
Regulatory Issues
Binance was investigated in the United States in 2021 for tax evasion, insider trading, and money laundering.
Is Binance suitable for beginners?
Binance isn’t the most straightforward or user-friendly exchange available. It is designed for more experienced traders.
What digital currencies can I trade on Binance?
Binance accepts many popular cryptocurrencies, including Bitcoin and Ethereum. On the US platform, the platform supports just over 65 cryptocurrencies.
Is Binance secure?
Binance has a solid reputation for user-level cybersecurity, although it has previously faced certain regulatory challenges. Binance US has never been compromised.
- Despite regulatory issues, most cryptocurrency traders prefer the Binance exchange because it has low fees, a wide range of services, and a state-of-the-art trading interface.
- It also keeps improving and expanding its services by adding more technical options and configurations and keeping up with the latest market changes and trends.
- Binance has the highest trading volume, making it the world’s most popular cryptocurrency exchange.
- It is the go-to platform for taking your crypto trading career to the next level.
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