Binance Review
Thinking of investing in crypto or stocks? Find out if Binance is the right place for you.
Binance, launched in 2017, is currently one of the highest ranking cryptocurrency exchanges in the world. It is well known for its broad range of decentralised finance (DeFi) offerings, high liquidity, and interest earning opportunities.
New and experienced users can buy and trade cryptocurrency from the Binance platform with relative ease, although it is known for having somewhat a more complicated user-interface than other exchange platforms, eg. Coinbase. Binance’s Decentralised Exchange (DEX) offers fast trading performance and it’s Liquid Swap automated market maker (AMM) offers more stable prices and lower fees for large transactions.
Binance is accompanied by two blockchain networks: Binance Chain and Binance Smart Chain. These are both powered by it’s native blockchain-based token, Binance Coin (BNB). As well as facilitating Binance’s ecosystem of custom decentralised applications (dApps) that you can build yourself, these dual blockchains have made it easier and more accessible for people to earn money from cryptocurrency. You can also purchase and trade NFTs using the Binance platform.
Pros and cons of Binance
Pros
- Large number of cryptocurrencies. You can buy, trade, and hold (HODL) over 600 cryptocurrencies on this platform.
- Large user base. Over 90 million people currently trust and invest in Binance.
- Secure storage options. Over 90% of Binance’s holdings are held in offline cold storage, meaning that they can’t be accessed by hackers.
Low transaction fees. In comparison to most cryptocurrency exchange platforms, Binance typically has low transaction fees.
- Liquidity. Binance offers high liquidity to its customers. Also, its Automated Market Maker (AMM) Binance Liquid Swap offers more consistent pricing and low fees for big transactions.
- Greater trading control. Binance DEX allows users to trade digital assets directly with each other, giving users more control over their funds.
Cons
- Complex for new users. Binance can be a struggle for users that are not yet adept at crypto buying and trading.
- Banned in several countries. Binance has limited or banned access in Ontario (Canada), China, Europe (for derivatives trading), Malaysia, Japan, Thailand, and the UK (although you can still deposit sterling on Binance via non FCA regulated payment providers). This is due to accusations that Binance has been operating without regulatory clearance from financial authorities.
- History of hacking. Binance has previously fallen victim to numerous security breaches.
How much does Binance cost?
Binance charges different fees for different services. At the time of writing this article, Binance’s fees include:
- Deposit Fees. Crypto deposits are free on Binance.
- Trading Fees. Trading fees will vary depending on the nature of your trade. Unless you use Binance Coin (BNB) to cover any trading fees, you will incur a standard fee of 0.1% per trade.
- Transaction fees. Transaction fees apply and will vary. It’s worth noting however that you can use Binance’s native coin, BNB to pay for transaction fees, which will apply up to a 25% discount to your trading fee.
- Futures trading fees. Futures trading (betting on the future price of crypto without having to own it) incurs a fee. Binance Futures Fee Structure varies depending on the circumstances of the trade.
- Withdrawal Fees. Binance charges withdrawal fees that are based on its fee schedule.
Understanding the Binance user-interface
Binance’s user-interface can be complicated to wrap your head around, particularly for new users. Numerous drop down menus, including: Buy Crypto, Markets, Trade, Derivatives, Earn, Finance and NFTs, feature at the top of the homepage, with each tab hosting a variety of options in each. Tabs like “Derivatives”, which include head scratching choices like “Vanilla Options”, may seem obscure and difficult for the layman to wrap their head around without prior knowledge of the terminology, the system, how it works, etc.
Thankfully, there are numerous trading tutorials on YouTube which explain in detail how to navigate Binance’s platform. The site also offers services for all investor levels, so being a crypto expert isn’t requisite.
Which cryptocurrencies are supported on Binance?
Binance offers the following cryptocurrencies for purchase and trade*:
- BTC
- ETH
- XRP
- BCH
- EOS
- XVG
- FET
- LTC
- ADA
- XLM
- SNT
- DGB
- AION
- WTC
- BAT
- NAS
- LRC
- ELF
- ARK
- KMD
- TRX
- NEO
- DASH
- XMR
- XEM
- VET
- USDT
- ETC
- ICX
- QTUM
- ARDR
- MITH
- PIVX
- POLY
- KNC
- LOOM
- GAS
- BNT
- CTXC
- FUN
- BNB
- OMG
- ZEC
- ZIL
- LSK
- BTG
- ONT
- NANO
- STEEM
- ZRX
- GXS
- SYS
- NULS
- LINK
- POWR
- HOT
- NEBL
- GTO
- NCASH
- MANA
- SC
- WAN
- DCR
- WAVES
- BTS
- BCD
- REP
- MKR
- DOGE
- IOST
- RLC
- REQ
- THETA
- CVC
- STORJ
- SNM
- QSP
- GTC
- CND
- ZEN
*Source: Finder.com.au
How to sign up
To sign up with Binance, you must follow these 5 steps:
- Register. Sign up using the “Register” icon at the top right hand corner of the Binance homepage. You can do this by using a phone number, email address, or an Apple ID.
- Create a password. Once you have registered, you will be asked to create a password. Follow the platform’s guidelines and ensure that this password is something that is not easily guessable.
- Solve a puzzle. You will be required to solve a puzzle to prove that you are, in fact, a human.
- Email verification. You’ll receive a 6-digit code to your email address that you must use to verify your account.
- 2FA and KYC verification. For security reasons, you will be required to provide either a second layer of verification (2-factor verification of 2FA), via either your phone number or Google account. You will then need to do KYC (Know Your Customer) identity verification. This will usually require ID, verification, face verification, and documents such as utility bills or proof of address.