Binance Review 2023: Pros, Cons and How to Start Trading on Binance
In early 2009, an anonymous internet persona named Satoshi Nakamoto notified users of a well-known forum community that he had launched a new kind of peer-to-peer currency. Using blockchain technology, this new currency provided for the near-instant and permissionless transfer of value anywhere on Earth without the need for a third party. This new magic internet money that we call Bitcoin became the foundation of an entirely new asset class and spawned a multi-trillion dollar cryptocurrency industry. In 2017, nearly a decade after the Bitcoin network was launched, Changpeng Zhao founded Binance.
This Binance review will examine the pros and cons of one of the top cryptocurrency exchanges in the world today. Let's get started.
What is Binance
Domiciled in the Cayman Islands, Binance is one of the world's largest cryptocurrency exchanges on Earth. At the time of writing, the Binance exchange boasts over 500 cryptocurrencies available to trade at some of the most competitive prices on the market. Amongst these is their own cryptocurrency, Binance Coin (BNB). The wide selection of features, the advanced trading platform, and the vast number of transactions supported on the platform make Binance one of the best cryptocurrency exchanges in operation.
Wide Selection - Binance has one of the widest selections of cryptocurrencies in the world. Their platform offers users over 500 currencies to purchase.
Transaction Types - Unlike most exchanges, Binance is not just a trading platform. Users can access several sophisticated transactions and tools including, margin trading, trailing stop-losses, and peer-to-peer trading.
Platform - The comprehensiveness of Binance's platform is designed for the highest levels of trading and offers its users access to financial instruments such as options, advanced charting tools, and the best technical indicators available.
Difficult to use - Due to the sophisticated nature of the platform, Binance can be overwhelming to investors who are new to the cryptocurrency market. Even individuals who have experience with other exchanges may find it challenging to navigate their way through the Binance exchange.
Regulation - Binance is far from the most regulated exchange on the market. Investors looking to prioritize safety and regulations over sophistication and access to more complex trading mechanics may wish to steer clear of the Binance exchange.
Binance is one of the top crypto exchanges in the world, alongside Kraken. To learn more about Kraken, read our review.
Is Binance Safe and Reliable?
One only needs to Google the words "cryptocurrency hack" to see untold numbers of people who have had their cryptocurrencies stolen over the last 10 years. With horror stories like the Mt Gox saga still scared into the psyches of veteran cryptocurrency investors, it is a foregone conclusion that the question on every investor's mind will be, "is Binance safe"?.
On May 7th, 2019, Binance experienced a major hack that saw over 7000 Bitcoins stolen from the exchange. Since then, Binance has spared no expense when it comes to safety and security on the platform. They now offer users a range of services to help secure their accounts, including using 2-factor authentication.
Other security features include IP address and device whitelisting, cold storage, and its new Safe Asset Fund for Users (SAFU). While no exchange can guarantee against any breach in security, with Binance's broad security features, it is highly unlikely that your cryptocurrency investments will be at risk on the platform.
That said, users should be aware that Binance is not regulated by financial regulators in major jurisdictions, including the U.K. and the United States. Users wishing to invest their capital with regulated exchanges should consider alternative exchanges.
See if Binance Is a Good Fit for You
Binance Review: Platform & Features
For regulatory reasons, there are two versions of Binance. One version is designed for users in the United States, and the other is intended for users in other countries. Due to these regulatory restrictions, the U.S version of the platform has a far more limited range of functionality than its counterpart. It is not available in multiple states, including New York. This Binance review will focus on the platform and features of Binance outside the U.S.
Like most exchanges in the digital age, Binance divides its services among its desktop platform and Binance app. Their Binance app is suitable for investors of various skill levels. They have included a "lite" feature that simplifies the user interface making the app much easier for novice investors. This lite functionality counteracts an essential criticism of Binance's exchange: that it is too complex for new investors to navigate.
The Binance exchange accepts multiple payment methods, supports a range of fiat currencies, and offers several options for transferring funds into/out of your account. These include bank transfers, SEPA, wire transfers, and cash deposits.
If you are interested in trading cryptocurrencies, the Binance exchange also provides one of the most sophisticated and cutting-edge platforms available. Their comprehensive range of trading tools, indicators, and chart options thoroughly equip traders with all the resources they need.
Finally, Binance has followed other major exchanges by breaking into the borrowing and lending markets by allowing you to earn interest on your cryptocurrencies. They offer up to 7% APY on selected coins that you store using the Binance wallet.
You can also borrow money on Binance.
Binance loans offer a seamless and efficient way for you to borrow money on Binance using your cryptocurrency holdings. This dynamic financial service enables users to leverage their assets and gain access to additional capital by providing collateral in the form of digital currencies. By offering a diverse range of loan options and competitive interest rates, Binance loans cater to the varying needs of its users, empowering them to maximize their investment potential and financial flexibility.
To borrow money on Binance, you must first select the desired loan product that best suits your requirements. Binance offers a wide array of loan options, including:
- fixed-term loans
- flexible loans
- Binance Liquid Swap loans
Fixed-term loans provide users with a predetermined loan term, interest rate, and repayment schedule. In contrast, flexible loans allow users to repay the loan at any time without incurring additional fees. Lastly, Binance Liquid Swap loans allow you to borrow stablecoins against your cryptocurrency holdings, leveraging the liquidity of the platform.
Upon selecting the appropriate loan product, users must deposit their collateral in the form of supported cryptocurrencies. Binance currently offers an extensive list of cryptocurrencies that can be used as collateral, including popular digital assets such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Binance USD (BUSD), among others. Once the collateral has been deposited and the loan terms have been agreed upon, the user can proceed to borrow money on Binance, with the loan amount being disbursed to their account almost instantly.
Binance loans employ a robust risk management system, ensuring that the users' collateral remains protected throughout the loan tenure. This system monitors the Loan-to-Value (LTV) ratio and triggers a margin call or liquidation event if the LTV exceeds a predetermined threshold, thereby safeguarding the interests of both the borrower and the platform.
Binance Review: Fees & Commissions
Binance trading fees are some of the most competitive in the industry. Currently, it does not charge a deposit fee, and the Binance withdrawal fee is a flat fee paid by users to cover the transaction costs of moving the cryptocurrency out of their Binance account. The specific price you pay to withdraw your cryptocurrency from the Binance exchange will fluctuate depending on the blockchain network you are withdrawing from as well as the level of congestion that the network is experiencing at the time of the withdrawal.
Here are some of the Binance fees:
- Trading Fees - 0.02-0.10% per trade
- Debit/Credit Card Fees - 3-4.5%
- Wire Transfer Fee - $15
- Crypto Conversion - N/A
- Other Fees - 0.50% Instant Buy/Sell
As you can see, the Binance exchange is significantly cheaper than other platforms. Although users of Binance US will pay slightly, their fees will still be substantially cheaper than if they were to use other leading brokers.
What can you trade on Binance?
Binance has one of the most comprehensive ranges of cryptocurrencies in the industry. They currently offer over 500 different cryptocurrencies as well as a wide selection of financial instruments to trade these currencies. Let's take a look at some of their most popular products.
Cryptocurrencies - Binance boasts one of the most impressive altcoin lists globally, with over 500 altcoins available to be purchased through their exchange. With a list of currencies that long, you will be able to find even the most exotic cryptocurrencies available to trade on the exchange. Check out our article on how to buy altcoins on Binance in just a few easy steps.
Futures - The Binance exchange is one of the few that offers instruments of this level of sophistication.
Derivatives - Various derivative contracts are also available on the Binance exchange.
Due to regulatory pressures from various jurisdictions across Europe, Binance has decided to wind down its futures and derivatives products in most of the European continent. This includes the U.K, Germany, Italy, and the Netherlands.
Besides these, Binance also opened its NFT marketplace, where you can trade such products or even give them as gifts.
How to Open Your Binance Account
The account opening process with Binance has become extremely streamlined and should take no longer than one business day to complete. To begin, head over to the exchange's website.
On their homepage, you will see the option to "Register Now." Select this option to begin registering an account with Binance.
You will have the option to register either with a mobile number or email. Once you have done that, you will be asked to verify either option by entering the code via email or text message, depending on which one you decided to use.
Once you completed this step, you have to verify your identities to use the Binance exchange. To do this, you will need to send a copy of basic identity documents such as passports/I.D. cards and comply with a facial recognition scan. If you need extra help complying with the intermediate verification, an instructional video can be found in the top right-hand corner of the screen.
Learning how to use Binance can be quite an overwhelming experience. Before we move on, let's quickly look at how to deposit and withdraw from Binance.
To deposit funds into your Binance account, select the "buy crypto" option on the top left-hand side of the screen and then select "card deposit." Alternatively, deposits can be made by selecting the "wallet" option on the top left-hand side of the screen.
To withdraw funds from your Binance account, select the "wallet" option on the top left-hand side of the screen and then select "Fiat and Spot." On this page, you will have the option to withdraw your funds to your preferred bank account and in your selected currency.
How to Trade Crypto on Binance
No Binance review would be complete without discussing how to trade on Binance. Let's take a look at how to buy Binance coin (BNB) and how we can trade it on the platform. As you can see below, we have several options to choose from, including Binance margin trading and the more advanced trading tools. For the purposes of this Binance review, let's select the "Classic" option.
Once selected, you will be presented with the Binance trading station. For those of you who are new to trading, the trader workstation may prove to be quite formidable. You can select the currency pair you wish to trade from the search bar in the top left-hand corner of the screen. In the top right corner, you can see that we are trading BNB/BTC (Binance Coin/Bitcoin).
The buy/sell functions are just below the price/volume charts on the screen. You will be able to enter your trades using these two options. It is strongly recommended that you practice your trading strategies with small capital before progressing to larger trades/margin trading.
BNB - The Binance Coin
Binance Coin (or BNB) is a cryptocurrency that was created by Binance in 2017. It is based on the Ethereum blockchain and uses the ERC20 token standard. You can use Binance Coin to pay fees on the Binance exchange and trade various cryptocurrencies. The Binance coin is an important part of the Binance ecosystem and has a number of benefits for users of the exchange. For example, holding Binance coin gives users a discount on trading fees. In addition, you can use BNB to pay for goods and services on the Binance platform. The price of Binance coin has grown significantly since it was first listed on exchanges in 2017 Betano aplicație and it is currently one of the top 10 largest cryptocurrencies by market capitalization. Given its utility on the Binance platform and its growing popularity, BNB is an important cryptocurrency to keep.
Binance Customer Support
Binance offers three options when it comes to customer support, and these include reaching out Via Twitter, asking basic questions through chat, or submitting a ticket. To submit a ticket and get email assistance, you need to fill in the form on their website.
Despite their regulatory challenges, their low fees, diverse offerings, and advanced trading platform ensure that the Binance exchange remains a top contender for most cryptocurrency traders. However, if you don't think it's a good fit for you, check out these Binance alternatives.
If you enjoyed this Binance review and want more information on the best cryptocurrency exchanges for you, follow the link below to check out our comparison page!
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To withdraw money from Binance, you need to log into your account and click on Withdraw. Then, click on the tab Fiat and choose the fiat currency that you would like to withdraw. After you’ve chosen a payment method, enter the details that are required, and enter your verification code.
To buy SafeMoon, you need to open a Binance account. Then, download Trust Wallet or Metamask. An optional step you can take is buying a hardware wallet. Lastly, make a purchase.
The verification process of Binance is straightforward and simple. It usually takes 15 minutes to submit all of the required information and document, and then it takes Binance 10 days to review those documents.
To sell on Binance, you need to log into your account. Then, click on the trading button, and click on Sell. Pick the cryptocurrency that you want to sell, and enter the amount you want to sell. Once this is done, choose how you want to receive the fiat currency.
Go to Coinbase, click on Send/Receive and choose Receive Tab. Click on the asset you want to transfer. Copy the address Coinbase will give you, and go to the Binance website. On the site, go to the section Fiat and Spot and click on Withdraw. Select the cryptocurrency you want to withdraw, and into the Address section, paste the Coinbase address. Select Withdraw after you’ve entered the withdrawal amount.
Click on Buy Now on your Binance account and enter the amount you want to spend. Click Continue and choose the payment method you want to use. If you want to buy with a debit/credit card, click on [Visa/Mastercard] - [Continue]. Enter your card information and follow the instructions and click on Continue.
There are several ways to stake your cryptocurrency on Binance, and these are DeFi staking, the feature Activities that allow you to earn rewards for staking certain crypto for a certain duration, and ETH 2.0 staking.
To short Bitcoin on Binance, go to the Futures account. Click on the tab Trades and then Options. You will be offered five options for expiry, and you need to choose one of them. Specify the contract size in the field Quantity and click on Buy Call. Click on Confirm.
Go into Wallet on your account and then Fiat and Spot. Click on Withdraw, select [USD] - [Bank transfer (SWIFT)] under the tab Fiat, and enter the amount you want to withdraw. Click Continue and enter the details of the account. Confirm the withdrawal.
You need to find the cryptocurrency you want to transfer on your Coinbase account and then click on Receive. Coinbase will generate an address you need to copy. Go to Binance, then go on Funds, and click on Withdraw Bitcoins. Copy the Coinbase wallet address in the To field and follow the instructions.