As one of the newest companies entering the crypto space, this Chinese cryptocurrency exchange is on track to becoming the biggest exchange of 2018. Binance’s ridiculously low trading fees and direct access to ICO’s make it a very appealing exchange to use. But is it as good as everyone is saying? Read on for more information.
Overview of Binance
Binance launched in mid-July 2017. Using the funding from their own ICO they were able to create a power-house exchange with lower fees and access to as plethora of altcoins.
Despite their young age, they have already captured the #1 rank on coinmarketcap.com for the largest 24 Hour Trading Volume of any exchange.
Their multi-tier and multi-cluster architecture creates a safe and stable platform, that is capable of processing 1,400,000 orders per second.
Trading on Binance is a breeze and they offer options for both the beginner and advanced user.
Basic View of Trading:
One of Binance’s biggest downfalls, however, is the fact they do not have the ability to deposit or withdraw to fiat (USD/EUR). This may deter some newer traders, but there is a very easy workaround. After buying your main coins at Kraken or Coinbase, simply transfer them over to Binance and then trade for other altcoins.
One of Binance’s best features is the ability to use their own coin (BNB) to pay for trading fees. This reduces the fee in half to 0.05%. More info in the below sections.
They also have a mobile app. I have been using their app for a few months now and have not had any issues. It easy displays all of your coins and values right next to them. And trading on it is just as easy as on a desktop.
Cryptocurrencies that Binance supports:
- Bitcoin Cash
- +58 more altcoins with more being added almost daily
Where Binance shines:
- Capable of millions of orders be second
- Account registration is super easy
- Withdrawl limit is high for non-verified accounts
- Super low fees when using the Binance coin
- Trading interface is fast and easy to use
Disadvantages of Binance:
- No support for fiat
- Phone support is lacking
Binance Fees and Liquidity
Binance fees are some of the lowest of all the exchanges.
Everyone starts out at 0.1%. This is applied to trading only. There are no fees for depositing and withdrawal fees vary by coin.
Fee chart for withdrawals:
See entire withdrawal fee chart
However, as I pointed out above, to get the most out of the exchange you should use their own coin (BNB) to pay for fees. This reduces the fee by half (0.05%) and is fairly easy to set up.
Using your cryptocurrency of choice (Bitcoin, Ethereum, etc.), buy BNB on the exchange and they will automatically use it for any future fees. However, there is a caveat. This discount is reduced every year:
|1st Year||2nd Year||3rd Year||4th Year||5th Year|
|Discount Rate||50%||25%||12.5%||6.75%||No Discount|
In terms of liquidity, transferring crypto is very easy to do. If you are trying to withdraw to fiat, you will have to transfer your cryptocurrency to another exchange that allows for fiat withdrawals. Changelly is a very good option.
Binance Account Types
There are three levels of Binance accounts. Here is a screenshot of the account dashboard:
The amount you can withdraw is determined by which verification tier you are in.
When you sign up, you are considered Level 1. This level allows for a 24h withdrawal limit of 2BTC. You do not need to submit any verification documents of any kind and can there is no limit to how much you can trade.
Level 2 allows for a withdrawal limit of up to 100 BTC.
You need to enable either two-factor authentication (2FA) or Google Authenticator in order to be classified as Level 2.
Following that, you need to provide:
- First and last name
- Passport photograph
- Self-portrait with passport
If you wish to withdraw higher limits you will need to submit a formal request.
Is Binance safe?
This is a relative question and often gets asked by newcomers. To determine the safety of an individual exchange is hard and also very ambiguous.
Some better questions would be:
- Are my funds safe to keep on Binance?
- Has Binance ever been hacked?
- Is there a risk of a trading freeze if depend gets too crazy?
- Does Binance have 2FA?
First of all, you should never keep your funds on an exchange for more than a couple days. It doesn’t matter what exchange you are using, there is always a risk of something happening to the exchange. Putting your funds in a wallet is the safest bet against having them locked down.
That way when you are ready to trade again you can transfer them back to the exchange. And in Binance’s case, there are no deposit fees so it won’t cost you anything.
Binance has never been hacked as of yet and has over 3 million users. It is considered a very safe exchange with various safety measures in place. Now, that doesn’t mean it’s impenetrable, but it has a solid reputation for security.
There is always a risk of one particular currency going haywire and the exchange may halt withdrawals to prevent any crazy price swings.
Binance does have 2FA and is required when signing in.
Problems with Binance
The only problem I have with Binance is not being able to deposit or withdraw USD. It is an amazing exchange with very robust features, but it’s a pain in the rear to have to send currency to another exchange to cash out.
For a guide on how to do this check it out here.
Binance is currently my favorite exchange. Between the super low trading fees and access to so many different altcoins, it’s hard to beat.
It also has two features that I haven’t spoken about yet that really set this exchange apart.
One of them is Binance Labs:
Binance Labs is their own personal incubator for new tokens and coins. They are truly looking to make the crypto space a better place!
- A platform to launch
- Coin Listing
- Ideas and Concepts
It’s a very cool feature that not many other exchanges offer. If you are looking to launch your coin, Binance is a great opportunity.
They will even review your coin and offer advice and provide insight on how to make it better.
Another cool feature of Binance, that goes hand-in-hand with their Labs, is their Launchpad.
Binance Launchpad is for investors looking to invest in new ICOs, new companies, coins, and tokens.
Binance gives you exclusive access to these programs and you can invest early before anyone else. It’s almost like Kickstarter, but for crypto.
Can I send crypto from my Binance account to my friend’s Binance account?
Of course! However, there will still be withdrawal fees.
What is the BNB burn?
Every quarter Binance will burn their own BNB coin until 100MM BNB are burned. This promotes decentralization and indirectly brings the value of BNB up.
Why are withdrawals suspended?
You may have noticed that you can not withdraw a certain coin from your funds. This is to prevent congestion within the network and major price spikes.
Binance is a solid choice for a crypto exchange. They are fast, secure, and offer a wide selection of cryptocurrencies to exchange.
Although there is no option for fiat support, their trading fees are very low and their interface is easy to use.
If you want to check out other exchanges, read below.