1. Binance Overview
Binance is a Hong Kong–based cryptocurrency exchange launched by developer Changpeng Zhao (aka CZ) in July 2017. Zhao’s company Beijie Technology created the exchange after a successful ICO that raised $15 million.
Investors who invested in the ICO got Binance Coin (BNB) in return which can be used to trade cryptocurrencies and pay for fee on Binance. BNB’s initial value was around $0.1, and as Binance got more and more popular the coin appreciated in price.
Beijie Technology and its founder maintain an impressive track record within the industry. Zhao’s CV includes high-profile positions, such as technical director at Blockchain.com, and his company now provides trading systems for over 30 other platforms.
Following struggles with the Chinese government’s views on cryptocurrencies, Binance now runs its servers from more lenient states, providing it with the freedom to run a competitive exchange service:
“In response to China’s decisions, we are moving our IP’s from Hong Kong to an offshore location. So we are registered in multiple locations and we have people in multiple locations. That way we will never be affected by one regulatory body,” explained Zhao. The trading exchange has been experiencing astounding success since its summer launch, and it now sits around the top ten in terms of 24-hour trading volumes on Coinmarketcap.
2. Binance Services
Binance offers a crypto-to-crypto exchange, meaning that it doesn’t facilitate any fiat currencies. This allows the platform to work freely, steering clear of any red tape or regulation (for now). Users can choose between the “basic” and “advanced” interfaces.
The basic interface allows a quick view of market and trading pairs, making it easier to switch pairs; The advanced view give users access to advanced charting tool.
For people who are new to trading there won’t be any difference between the two views – both would seem too complex.
There’s an impressive cryptocurrency selection available for trading in conjunction with the Bitcoin, Ether, BNB, XRP and Tether trading pairs.
Additionally Binance has recently partnered with Simplex to supply a brokerage service. This service allows you to buy 6 different cryptocurrencies with a credit card. However, this service comes with a fee of 3.5%.
3. Currencies and Payment Methods
Binance accepts crypto deposits only. All coins supported by the exchange can be deposited and withdrawn. Having said that, Binance’s brokerage service allows you to buy the following currencies with a credit card: Bitcoin (BTC) Ripple (XRP) Binance Coin (BNB) Ethereum (ETH) Litecoin (LTC) Bitcoin Cash (BCH) All in all, the number of coins available to trade, deposit and withdraw on the exchange is nearly 100, and all major altcoins, including Litecoin, Ripple, and Bitcoin Cash, are in the listing.
4. Binance Fees
In a competitive space, the fee structure of Binance is cutting edge. Its team members have sharpened their knives and are slicing the opposition apart.
A flat rate of 0.1% is very enticing for any trader who doesn’t need immediate fiat liquidation. Incredibly, it undercuts most other large exchanges, some of which charge upward of 0.2%. That’s a pretty sizeable difference if you’re working with large orders.
BNB, the native Binance token, provides an additional 25% discount on this trade fee when working with the coin. Deposits are free, as you’d expect (aside from blockchain fees that are always paid by the sender). Withdrawal fees do apply, although they generally correlate with the blockchain transaction fees as well. The withdrawal fee seems to be updated on a regular basis to try and offer a fair price.
5. Binance Limits
Binance has a very simple limit structure. There are only withdrawal limits. Non verified accounts can withdraw up to 2 BTC every 24 hours. Verified accounts can withdraw 100 BTC every 24 hours. Verification requires filling out a basic Know Your Customer (KYC) form and providing proof of identity among other documents.
6. Supported Countries
Binance does not mention which countries are supported by its exchange which makes it basically available worldwide. There is also no mention about exceptions for US citizens which caused Binance to come up on the US Department of Financial Services radar for potential violation of New York’s virtual currency regulations.
7. Customer Support and Reviews
There’s a lot to love about Binance, and many traders continue to be upbeat about the service. Low fees, a responsive exchange, and developers with a proven track record leave most people beaming. Binance has generally been considered a comprehensive success in its short life so far.
Most support inquiries need to be made via the site’s email contact form. As with most major trading exchanges, you may have to wait awhile for a response simply due to the sheer growth in demand.
There is a customer service bot chat to tap into, but some of the responses are automated (and in some in Chinese).
Happily, the website is completely multilingual, so most people should get along fine in one language or another (15 in total supported). This is another real advantage for Binance as it seeks to compete as a global cryptocurrency exchange.
One major problem does appear to be a thorn in the site’s side: Many reviews complain about a faulty 2FA/SMS confirmation. The temperamental nature of this setup for Binance means that a few customers struggle to withdraw funds. In fact, it’s such a problem that scam allegations have been pointed at the service. To be honest, dodgier prospects exist across the industry, and I see this as more of a technical issue than a scam. From personal experience I can say that if you use Authy (and not Google Authenticator) that problem doesn’t exist. A unique allegation that came up against Binanace is that it lists coins (more specifically shitcoins) in exchange for money. This claim was denied by the company.
8. Frequently Asked Questions
Can I Withdraw Money from Binance?
You can only withdraw cryptocurrencies from Binance. There is no option to withdraw fiat currencies (i.e. USD, EUR, etc.)
Can I Buy Bitcoins on Binance?
Yes. It’s possible to Buy Bitcoins on Binance with a credit card or with any supported cryptocurrency or Buy bitcoins on Litebit with a bank transfer and then transfer them to Binance.
How Do You Buy Bitcoins on Binance?
- Sign up to Binance
- Deposit funds to your account
- Find the trading pair for Bitcoin and the deposited cryptocurrency
- Sell the deposited cryptocurrency for Bitcoin
- Withdraw the Bitcoins to your own wallet
Alternatively you can just buy Bitcoin directly with your credit card.
Is Binance Safe?
Binance is considered a safe exchange that allows user account protection via the use of Two Factor Authentication (2fa). On May 7, 2019, Binance experienced a major hack which resulted in 7000 Bitcoins stolen from the exchange. However Binance has stated that all losses will be covered by its emergency insurance fund (aka SAFU).
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