Binance is a cryptocurrency to cryptocurrency exchange service based in Hong Kong. The platform was launched in July 2017 and currently supports the exchange of over 130 coins including Bitcoin, Litecoin, Ethereum, and Ripple (XRP). With the capacity to handle 1.4 million transactions every second, Binance has become the largest crypto exchange in terms of daily trading volume and managed to attract over 9 million users to its platform in just a year’s time. Binance also has their own cryptocurrency token, the BNB (Binance Coin), which allows users to reduce their trading fees if they use the token as a trading pair.
Pros & Cons
What can I do on Binance?
Binance operates as both a cryptocurrency exchange and online wallet:
Binance Exchange. Allows you to buy and sell cryptocurrencies. You can transfer cryptocurrencies like bitcoin, bitcoin cash, ether, and litecoin into more than 130 altcoins (e.g. XRP, NEO, and Dash), and vice versa. The trading platform also contains both advanced and intermediate trading tools and instruments for traders to look at coin movements and conduct market analysis.
Binance online wallet. Connected to the exchange, Binance also provides its users with an online wallet where they can see their coin balance, as well as coin deposit and withdrawal addresses to allow for the moving of cryptocurrencies.
What cryptocurrencies are supported on Binance?
Binance is constantly updating the list of supported cryptocurrencies on its platform. However, here is a list of the top coins currently traded on the exchange:
- Binance Coin
- Bitcoin Cash
- HealthCare Chain
- Ethereum Classic
- Bitcoin Gold
- POA Network
Binance Payment methods
Currently, Binance only allows you to deposit and withdraw cryptocurrencies. This means you can only trade cryptocurrency coins amongst each other, as opposed to being able to use fiat currency (USD, GBP, EUR, etc.). To deposit coins, simply go to your binance wallet and look for the deposit address of the respective cryptocurrency coin you’d like to deposit. This is the address you will need to send your coins to. Unfortunately, you can’t use Binance to buy cryptocurrencies such as Bitcoin or Ethereum with PayPal.
As usual with sending cryptocurrencies from one place to another, there might be an additional transaction fee. This is dependent on the cryptocurrency you are transacting with, as it is simply used to reward miners for verifying the transaction you have sent on the blockchain, and is not a fee charged by Binance.
What devices can I use Binance on?
You can use the platform through your browser on all operating systems, including Windows, macOS, and Linux. There is also a desktop app for Mac and Windows users. Binance also has a mobile app that is compatible with Android and iOS users. In effect, you can use the following devices to access Binance:
- Desktop computers
How easy is it to use Binance?
Binance is very easy to use. The website is incredibly simplistic, allowing for easy access between the exchange and the wallet, which is the case for the mobile platform as well. On the exchange/trading platform, there is the option of having intermediate or advanced tools, which aims to accommodate different types of traders by providing different trading instruments and analytics.
The difficulty of using Binance is the same difficulty associated with trading itself. Unfortunately, Binance does not provide educational tools for traders, so first-time users should be wary and look through alternate resources online to learn the ropes of trading.
Binance’s services are available globally and you can access the platform from any country.
Account verification on Binance is not compulsory. However, there are 3 levels of verification, which provide increasingly more advantages. The first level allows you to withdraw a maximum of 2 BTC, the second level of verification offers a withdrawal limit of 100 BTC, and the third level offers even higher withdrawal limits.
You can register for a Binance account with a simple email verification to start enjoying its exchange and wallet services at the first level of verification. For the second level of verification, you will need to either submit a scan of a government issued national ID document, a valid driver’s license, or a passport photo. You will also need to provide a selfie photo of yourself holding your identity card, along with a piece of paper showing the date you took the photo. The third level of verification comes from directly contacting the Binance support team as it is up to their discretion to offer it.
You can contact the Support team through email ticketing, Telegram, Facebook, Twitter, Reddit or Instagram. Binance also offers a support page for account related issues. You can also browse through their FAQ articles. Although team usually responds promptly to queries, there have been existing complaints about the occasionally slow response from their customer support team.
Binance presents a good set of tools for traders who have basic trading experience. The exchange interface might appear somewhat intimidating for someone new to crypto exchanges, but it’s straightforward for an intermediate or experienced user. Even if you are a novice, it shouldn’t take too long to figure out your way around, but Binance is designed for people who know what they’re doing in mind.
The platform charges reasonable trading fees, set at 0.1% for each trade. This can be further reduced by using BNB (Binance Coin). Buying and selling orders are completed within a matter of seconds, and the funds are sent straight to your Binance wallet.
Is Binance a secure exchange?
Yes, Binance is a secure exchange thanks to their Two Factor Authentication (2FA) capacity. This gives your account an added layer of protection beyond having an individual username and password. You can set up your 2FA with SMS authentication or the Google Authentication app available on iOS and Android.
Binance also provides the option of implementing an anti-phishing code, which is a code that will be provided with all official Binance emails to distinguish from potential scam emails used to retrieve your personal details (phishing).
Are there trading fees on Binance?
Yes, there are trading fees. When trading on Binance, you can either pay the standard 0.1% fee (per transaction) when using other cryptocurrencies as trading pairs (USDT, BTC, or ETH), or you can use the Binance Coin (BNB), which provides for different levels of discounts depending on how old your account is.
Upon your first year of using Binance, you will receive a trading fee discount of 50% whilst using BNB. On your 2nd, 3rd, and 4th year, you will be eligible for a 25%, 12.5%, and 6.75% discount respectively. There is no discount by your 5th year of using the platform.
Depositing cryptocurrency to a Binance account is free. However, you might account for a network transaction fee that varies depending on the cryptocurrency you are depositing with. Network or blockchain fees are used to reward miners for their work in verifying the transaction you made, and the fee is usually negligible (under £2). This is not a fee charged by Binance.
In regards to withdrawing cryptocurrency, you will also incur a similar network transaction fee. Binance also charges an additional, fixed withdrawal fee, depending on what cryptocurrency you are withdrawing. These are outlined here.
What are the withdrawal and deposit limits?
Currently, there is no limit to the amount of cryptocurrency you can deposit to your Binance account. However, the daily withdrawal limit is set at 2 BTC for email verified accounts, and at 100 BTC for accounts that have provided a verified photo ID.
Binance has fixed withdrawal minimums per cryptocurrency. For example, the minimum amount of Bitcoin you can withdraw is 0.002BTC. If you wish, you might be able to access higher withdrawal limits by contacting the Binance team directly, but this is up to their discretion.
Summary of Binance exchange
Binance is a solid exchange for traders looking to trade between cryptocurrencies, which is why it’s one of the best known names in the business. Within a year, they have managed to become the largest cryptocurrency exchange in terms of market volume and user-base. This is largely because they have made significant strides in improving user experience and security on both their exchange and wallet.
Although the exchange does not currently offer the ability to transact with fiat currencies, Binance have announced that this will be available in the future. As of now, Binance allows for users to trade with more than 130 altcoins in the cryptocurrency market. Altcoins refer to cryptocurrency coins outside of Bitcoin, Litecoin, and Ethereum.
Binance’s trading platform also provides all the necessary trading tools for intermediate and advanced traders, such as stop orders and limit orders.
The Binance wallet is convenient and easy to use. You can store over 130 altcoins on the Binance wallet, and even though it is an online wallet (which provides less security than paper and hardware wallets), it features Two Factor Authentication (2FA) to keep your coins secure. The wallet can also be accessed through any operating system or device (computer, mobile phone, or tablet).
What are the security features?
Binance features Two Factor Authentication (2FA) security. This is an additional layer of verification that needs to be provided by a user before they can access their account, after they have signed in using their username and password. The second factor of authentication usually requires access to another personalised device of the user, usually a smartphone. Users will either need to provide SMS verification or verification through the Google Authenticator app.
Additionally, Binance also provides the option of creating an anti-phishing code, which is a code that will appear on all future emails from Binance to help you distinguish from potential scam emails that aim to retrieve your personal information (phishing attempts).
Are there fees?
There are no direct fees for simply storing your cryptocurrency coins on your Binance wallets. However, you will incur small, negligible network transaction fees whenever you transfer coins in or out of your wallet. These are fees associated with the cryptocurrency you are transferring and are used to reward miners for verifying transactions on the blockchain. This is not a fee charged by Binance.
However, Binance does charge a fixed withdrawal fee, dependent on the cryptocurrency you are transacting, whenever you want to take funds out of your wallet. For example, when withdrawing Bitcoin out of your binance wallet, you will be charged a flat fee of 0.0005 BTC.
What are the deposit and withdrawal limits?
There are no limits for depositing cryptocurrencies to a Binance wallet. However, there are daily withdrawal limits. You can only withdraw up to 2 BTC daily if your account is only email verified. Once you provide additional verification, such as a photo ID, your daily withdrawal limit increases to 100 BTC. If you seek a higher withdrawal limit, you will have to contact the Binance team directly, but it is up to their discretion to increase your withdrawal limit.
Summary of wallet
Binance wallets provide the expected level of convenience for anyone intending to use an online wallet to actively trade cryptocurrencies. Their wallets stand out due to their capacity to support upwards of 130 cryptocurrencies. However, there are much better alternatives for storing cryptocurrencies safely, such as paper wallets or hardware wallets, which allow you to keep your assets secure and offline.
Extra Binance features
Binance recently acquired the popular mobile wallet Trust Wallet, which has been designed to hold Ethereum and ERC20 tokens. This is Binance’s first major acquisition and is likely to mean a more frictionless connection from Trust Wallet to the exchange, but as it doesn’t hold nearly as many cryptocurrencies, Trust Wallet will not be replacing Binance’s online wallet.
If you’re looking for more information about blockchain technology, keeping your coins secure, and other things crypto, Binance try to answer your questions through educational content in the Binance academy.
Binance is a highly recommended choice for anyone looking to trade and store a vast amount of cryptocurrencies in one place. This is because Binance operates as both a wallet and exchange that specialises in the trading of altcoins (cryptocurrency coins outside of Bitcoin, Litecoin, and Ethereum), providing upwards of 130 altcoins to trade on the exchange or store on the wallet. The purpose of the wallet is to facilitate trades on the exchange, rather than to act as a dedicated wallet.
They have become a popular choice amongst users due to their transparency and professionalism, by maintaining an active social media presence and regularly posting press releases on their website concerning future plans and improvements to the platform. Within a year, Binance have become the largest cryptocurrency trading exclusive exchange, as reflected by their market volume and large user-base.
Although it is currently not possible for users to trade using fiat on the Binance exchange, and thus their wallet only holds cryptos, Binance have announced they do intend to provide such accessibility soon. At present, users have circumvented this issue by buying cryptocurrency with fiat using brokerages like Coinbase, and depositing the bought cryptocurrency on Binance to start trading with a greater range of coins. Although the exchange does provide both intermediate and advanced settings for users, first-time traders might find their first time on the platform daunting.
How to open an account with Binance
Decided to register a Binance account? Great, here’s how it’s done:
- Sign up for an account with your email and password. Make sure you create a strong password.
- After confirming your registration, you will receive an email with an activation link. Click on the link to confirm your registration. You will be redirected to your account dashboard.
- Now, set up the Two Factor Authentication (2FA) by opting for either SMS verification or Google Authenticator app verification. If you wish to use the Google Authenticator app, all you will have to do is scan the barcode with your smartphone whilst on the app.
- After setting up your 2FA, you are now ready to trade. However, if you wish to have higher withdrawal limits, you will need to provide additional details to Binance, such as proof of identity. This will require you to confirm your identity with a photo of a valid government-issued ID card, passport photo, or driver’s license.