Binance provides a platform for trading digital coins, featuring a massive ecosystem that includes two blockchains, a decentralized trading platform, its own native coin, and more.
Founded by Changpeng Zhao, and originally headquartered in China, it was not long before it had to leave its country of origin due to China's negative stance towards cryptocurrencies.
Over the last several years, Binance has been growing its user base, becoming the largest cryptocurrency exchange in the world in January 2018. Its aim is to continue to expand and keep its position as the most dominant trading platform in the industry.
Binance Review — Overview
Binance is the world's leading cryptocurrency exchange, with a massive, ever-growing ecosystem. Over the years, it has spread its influence around the world, constantly adding new countries. It is also considered to be one of the safest and most user-friendly exchanges out there, with different types of accounts for different traders. Binance offers low fees, it supports fiat-to-crypto transactions, and it has no maximum withdrawal limit for verified users.
What is Binance?
Binance is a crypto exchange platform founded in China in 2017. While it later claimed that it had moved its headquarters to Malta, the country's officials have recently confirmed that this is not the case. Binance's officials explained that it is a borderless exchange, and as such it doesn't need to limit itself to a specific country.
By using its centralized and decentralized platforms, as well as numerous subsidiaries located around the world, Binance offers its users the ability to buy, sell, trade, and exchange cryptocurrency. Its users can deposit and withdraw cryptocurrencies from its platform, and even use its fiat-to-crypto gateways to buy coins with traditional money.
It has a long list of supported cryptocurrency, and as such, it is frequented by traders and investors from all over the world. The exchange is also working on expanding its presence to all corners of the globe, with plans to have at least two of its fiat-to-crypto exchanges on every continent.
But, even this is only an addition to its vast ecosystem, that continues to grow without pause.
How does Binance work?
While most cryptocurrency exchanges require their users to go through a Know-Your-Customer (KYC) procedure in order to trade on their platforms, this is not the case with Binance. In other words, anyone can trade on Binance without verifying their identity, first.
However, this only includes a limited account with a relatively small amount of money being used. Binance will require KYC verification for accounts with major balances. But, if you are a casual investor who would only withdraw up to 2 BTC or less per day, you can do it with an unverified account.
Of course, this implies that the account is, in fact, necessary. However, Binance understands that the crypto industry consists of experts, as well as newcomers who constantly grow in number. This is why the exchange has two types of accounts, catering to the needs of its advanced traders, as well as beginners.
Once you create your account, you will have the ability to deposit cryptocurrency from your wallet, or to buy them directly on the exchange. USD can be deposited via Paxos, while other currencies, such as EUR, RUB, UAH, and KZT were enabled in partnership with Advcash back in 2019.
Regardless of which account you have chosen, you will also have access to certain analysis tools, trading tools, and more. Of course, users with advanced accounts will have additional resources for more complex trading strategies. These are not available for novice accounts so that they would not confuse and intimidate new users unnecessarily.
Lastly, it is worth noting that users should consider obtaining some Binance Coin (BNB) tokens. This is Binance's native cryptocurrency, and using it for paying fees brings a significant discount that will reduce the cost of using the exchange's services.
Key Services & Additional Features
Binance is the largest cryptocurrency exchange in the world, and with so many of them out there — this is quite an achievement and evidence of the exchange's quality.
Binance is easy to use, even for those who have never owned or used digital currencies before. It offers a user-friendly platform where you can buy Bitcoin, as well as up to 150 other digital coins. It has proven to be quite safe, as well, despite a hacking incident that took place in May 2019.
Since then, the exchange has stepped up its security in order to prevent something like that from ever happening again.
Newcomers to the crypto industry will also likely appreciate its knowledge base, titled "Crypto & Blockchain Education | Blockchain Course," which can be accessed on its website. The site also offers tutorials, as well as a place to ask questions and receive answers from other members of the community.
Next, Binance offers Trust Wallet as secure crypto storage, as well as a Launchpad for launching new cryptocurrencies. Its members are the only ones who can access the Launchpad and invest in new coins early on, so owning an account on Binance definitely has its benefits.
Binance is also strongly into charity, and it even has its own Binance.Charity arm. This section of the exchange has helped those in need around the world via cryptocurrency and is currently helping in a fight against COVID-19, as well as those affected by the Beirut explosion.
Binance is also working on the development of Binance Card, which is basically a crypto credit card that will let users pay with it in any regular store by using nothing but crypto
Finally, there is Binance Labs — a venture arm of Binance, established to empower blockchain and cryptocurrency entrepreneurs, projects, and even entire communities. Through it, Binance supports projects with strong potential to impact the crypto industry and bring new solutions, improve old ones, and lead to the establishment of entirely new concepts.
What Cryptocurrencies are listed on Binance?
Binance is known for having a massive crypto offering, with over 150 coins listed and available to all traders at all times. Of course, the list includes all the largest and most popular cryptos — anything that traders might be interested in and willing to trade, including
Bitcoin Cash (BCH)
Bitcoin Gold (BTG)
Ethereum Classic (ETC)
and many others
Supported Countries, Currencies and Payment Methods
Unfortunately, Binance doesn't reveal all the details regarding its availability. It is known that its goal is to serve all crypto users in the world, but it doesn't openly state which countries are supported and which ones are not.
It is known that Binance has decided to close its door to US-based customers due to the fact that the main exchange is not in compliance with US regulations. However, at the same time, it opened a subsidiary known as Binance.US, which was compliant with US rules regarding crypto.
As a result, all US users were directed to this exchange, which indicates that Binance still serves the United States-based users, even if not directly with its main platform.
When it comes to fiat currencies, a lot more is known. The exchange supports a number of currencies, such as:
Finally, if you wish to deposit fiat currencies into your account on Binance, you can do it in multiple ways. You can use:
Third-party payment (Simplex, Banxa)
P2P Trading (over 60 options)
How to buy Cryptocurrency on Binance
Buying cryptocurrency on Binance is fairly easy and straightforward. Simply follow these few steps, and you will acquire coins of your own in no time:
Start by creating an account on Binance
On the top-left side of the menu, you will see a 'Buy Crypto' dropdown menu.
From the menu, select the payment method you prefer such as credit/debit card
You will then be taken to the Buy Crypto screen, where you will have to fill out the form. Enter details such as the amount, preferred fiat and cryptocurrency, and your card.
Hit the 'Buy Crypto' button, and you will be done.
Binance Fees and Limits
Binance is a rather affordable exchange when it comes to fees. At the time of writing, the exchange has an average fee of 0.1% per trade. However, as mentioned, the exchange provides a discount for those using Binance Coin (BNB). This puts its fees extremely low, and they will not damage your funds nearly as much as some other platforms might.
There are still withdrawal fees to pay, which differ from coin to coin. For example, the fee for BNB withdrawal is 0.001 BNB. For Bitcoin, it is 0.001 BTC. For Ethereum the fee is 0.001 ETH, and so on.
However, the good news is that Binance has no transfer limits on deposits, at least for users who verify their accounts. Those who trade unverified will only be able to withdraw up to 2 BTC per day.
Is Binance Safe?
As mentioned before, Binance was hacked once in the past. However, both before and after the incident, the exchange remained highly trusted and respected in the cryptocurrency industry.
Apart from regular login credentials and KYC, Binance also features 2-Factor Authentication for your own security. Also, as a centralized exchange, Binance itself is responsible for keeping the users' funds safe in its wallet. The majority of deposited coins are kept safe in cold storages, which was confirmed during the 2019 hack.
Of course, hacking attempts against the exchange of this size and popularity are often, but in the past, Binance always managed to prevent them. This led to even greater confidence. Then, when a successful hack finally happened, Binance still managed to keep its users and reputation by reacting quickly and compensating all users who lost funds.
It even has a special fund put aside in a so-called Secure Asset Fund, which it can use to compensate users should such an attack occur in the future.
Is Binance Legit & Regulated?
The question of Binance's legality and regulatory compliance is a bit complicated, for several reasons. Binance is not an exchange tied to one single country and its laws, and as such, to be 100% regulated, it would have to respect and comply with the regulations of every country it serves.
Another problem is that most countries have no crypto regulations. Even those that do constantly update them and introduce new changes. Some countries would consider an exchange regulated if it registers with the appropriate authorities.
Furthermore, Binance itself has several subsidiaries under the same name, such as the aforementioned Binance.US. Each of them operates on its own, but they still belong to its ecosystem and are considered regulated in their respective countries.
And finally, Binance has been known for acquiring other regulated companies, platforms, and entities. This has been a common way for companies such as Binance to enter new markets and start operating right away.
Binance vs. Other Exchanges
While Binance is a leading provider of cryptocurrency exchange services, it is important to note that there are other options available. Each has their own unique features, so here we provide a few platforms which we personally recommend for their high reputation and regulatory standards.
Binance is still relatively young when compared to some other exchanges, but it can be said that it is in its period of young maturity. It is still developing, but it has proven its capability time and time again.
It takes care of its users, while still keeping everything simple enough that even first-time users can find their way around. Above all else, it continues to grow and it has become a force to be reckoned with in the crypto industry.
With that said, users should always remember that crypto trading is as unpredictable as ever and that it does come at a risk. Whether due to a sudden shift in prices or a hacking attack — the crypto world remains unregulated and chaotic, even now.
Binance is better than most exchanges, and at the very top based on other users' preference. However, you should always decide for yourself whether or not it is the right choice for you.
Frequently asked questions
Binance is one of the most secure exchanges in the crypto industry right now. It uses multiple security levels to ensure that its users' funds will remain safe, and their accounts in their possession.
While maximum deposits depend on the account type, and can even be unlimited for verified users, minimum deposits and withdrawals are limited for all, with the limit being $150.
A popular saying in the crypto industry is 'Not your keys, not your coins' This means that only users who hold their own private keys can call their crypto theirs. As a regulated exchange, Binance is the one who holds the keys, which is why most people prefer to withdraw their coins when they are done with trading. The exchange is certainly reputable enough so that keeping the coins in its wallet should be safe. However, for absolute security, you should consider withdrawing your coins to a personal wallet.
Yes. In fact, Binance is keeping the majority of cryptos in its care in cold storages, away from anyone who might try to steal them. Only a small percentage is kept in hot wallets, as this is necessary for conducting regular daily business.
Yes, Binance.US is a version of Binance tailored specifically for the US market. The exchange is not yet available in all US states, but it can be accessed and used in most of them. Meanwhile, Binance.US continues its fight to receive permission to service all US users, and it recently won the right to start servicing the US state of Florida.