Binance is one of the newer cryptocurrency exchanges and has had enormous growth in its year of existence, reporting profits of over 200 million in their second quarter. Below we will explain the features of Binance that allowed it to grow so rapidly.
What Makes Binance so Great?
- Large Variety of Trading Pairs
- Own Application on Android and IOS
- Extremely Low Fees (.05%-.1%)
- Amazing Customer Support
- Beautiful Interface
- Automated Security System
- Binance Coin
- Contests, Promotions, and Affiliates
Binance Trading Interface
Binance’s website interface is considered to be one of the better ones out there. On the left side is the order book, where you can see buy and sell orders that are currently available. In the top middle of the screen, is the price chart. From here, you can customize it to your liking, changing the period length, candle style and more.
Below the price chart is where you can enter orders. Depending on if you want to make a buy or sell order, you will use the Buy or Sell side. This is the trading pair for EOS, but depending on which pairing you are on, it may look a little different.
Binance gives you the options of creating a market or limit order. With a market order, you select an amount of a currency that you want to buy or sell, and the order automatically executes working up the order book. This is recommended for beginners.
The limit order option allows you to choose an amount and price, and will only execute at that price. This is great as you can let the order come to you, allowing you to get better deals.
Binance Trading Pairs
Binance has over 100 coins available to trade and add new ones almost every week. These 4 main pairings are Bitcoin (BTC), Ethereum (ETH), Tether (USDT) and Binance Coin (BNB).
Every coin on the exchange is tradable against Bitcoin and Ethereum, while only some of the higher volume ones are available on USDT and BNB. Binance also added a TUSD pairing, which is another stable coin similar to Tether.
Multiple trading pairs are extremely convenient as they bring liquidity to the exchange.
In terms of trading volume, Binance is ranked #1 out of all exchanges that have trading fees. It is important to look at exchanges with fees, as otherwise trading volume can easily be faked. Here are the top 10 most traded coins on Binance in terms of volume at the time of this writing.
Binance App Review
Binance has created its own app where users can trade, send and receive cryptocurrency from the comfort of their smartphone.
Recently, the Binance app was added to the app store increasing the number of people who have access to it. Previously, a workaround had to be done to install it on iOS.
The app is completely trustworthy and has never had a security breach yet. The app is really helpful for checking balances and sending transactions on the go. The interface is also really nice, making it easy to navigate and see whats going on in the app.
Binance has the lowest fees out of any major exchange by far. The base fee is .1% and can be reduced by 50% if the user decides to enable paying with BNB for fees. This fee reduction has a set schedule, which will decrease every year.
|Time||Year One||Year Two||Year Three||Year Four|
If a user turns on BNB fees, this makes it so whenever a trade is done, the exchange looks to see if the trading fee can be covered by that accounts Binance Coin balance. If so, the entire trading fee will be reduced by 50%. This provides an incentive to collect Binance Coin, as demand may be high from others wanting to reduce their trading fees.
This can be toggled off in your account settings if desired, although at its current rate of 50% reduction, it doesn’t make much sense to.
Binance Withdrawal Fees
For withdrawal fees, Binance has a different fee for each coin. Here’s a table of some of the most popular coins withdrawal info. Stellar and Neo have very low withdrawal fees making them convenient to withdrawal. Neo isn’t divisible, which is why you must withdrawal a whole coin.
|Coin||Minimum Withdrawal||Withdrawal Fee||Approx USD Value|
Compared to other websites, Binance is average on their withdrawal fee prices. There is a lot of inconsistency on the different coins which doesn’t make too much sense. At the end of the day, the fees are very low and shouldn’t matter for larger transactions.
Binance Coin is the main coin used to interact with the Binance exchange. Binance Coin was distributed through an ICO in 2017. There will only ever be 200 million BNB, and this number will decrease over time as the Binance exchange buy’s back and destroys the circulating supply.
Binance Coin’s token economics are extremely well thought out. The coin can be used to save big on trading fees, purchase exchange listing, and it’s own trading pairs.
Binance’s Privacy and Limits
Upon signup for Binance, the exchange will only ask you for an email address. This may be important for people that want their identity to remain hidden. This tier of verification is level 1, allowing 2 BTC worth of cryptocurrency to be withdrawn every 24 hours.
Binance has a level two verification allowing you to raise your withdrawal limits to 100 BTC a day. For this tier of verification, you will be asked to verify your identity by sending a picture of your identity card like a drivers license, a selfie with your ID and paper with a message on it.
Most traders will not need to do this unless they are trading with a lot of money. Binance is forced to ask this information due to laws and regulations around cryptocurrency trading.
Lastly, level 3 verification be obtained for the highest limits on a case by case basis. To obtain this tier, you must contact Binance and explain why you need the extra limits.
Binance Security Review
Binance is one of the most secure exchanges in the world. There have only been two minor security incidents that were handled extremely well by Binance.
In the first incident,
A fake website imitated Binance and managed to collect users logins. After collecting logins and waiting for over a month, the hackers logged into Binance sold the currency of the compromised accounts into VIA and attempted to move the VIA off the exchange.
Binance’s automated security system detected this, stopped outgoing transactions and caused the hackers to lose everything.
Well played Binance.
In the second incident, two accounts fully verified accounts login were compromised. Because the hacked account was fully verified, it has no withdrawal limit allowing the hacker to move stolen funds off the exchange.
It is not recommended to leave lots of cryptocurrency on exchanges.
Binance allows users to set up two-factor authentication to add additional layers of security to their account.
After both of the incidents, Binance announced the implementation of SAFU, the Secure Asset Fund for Users. This funds takes 10% of all Binance trading fees and sets them aside in the event any users funds are lost. Binance also offers reduced ot zero fee trading when events like this happen, proving their dedication to their users.
Binance is not FDIC ensured as it is not based in the USA.
Binance’s CEO and Team
Binance’s CEO is Changpang Zhao, who is fantastic with his presence on social media and news. The Binance Team is spread across the world, with locations in Malta, Tokyo, and Hong Kong. Malta has very flexible laws surrounding cryptocurrency which makes it a great location for their new headquarters.
What Languages Does Binance Support?
Binance supports the following languages:
- 한국어 (Korean)
- русский (Portuguese)
To change languages, mouse over the nav bar section in the top right.
How to Deposit Cryptocurrency on Binance
If you are using Binance for the first time, you will probably want to know how to deposit cryptocurrency. To do this, mouse over the funds tab, and click deposits.
After clicking this, all the currencies Binance has to offer are shown. Use the search bar to narrow it to the exact currency you want to deposit. After typing in a currency tag, your accounts deposit address will be shown. This is different for every account and cryptocurrency, so don’t send to the address shown below.
Now, copy this address, or click show QR code to send a transaction to Binance. This can be done from an exchange like Coinbase, or another wallet where you are storing cryptocurrency that you want to send to Binance.
How to Withdrawal from Binance
After earning some profit on Binance (hopefully), you may want to withdraw your earnings. To do so, mouse over funds, and click withdrawals. From here, you will be prompted for a currency. This example will use Bitcoin, but you may be withdrawing something else.
Paste an address into the “Withdrawal Address'” field, and then choose an amount you want to withdraw. Note that this amount may end up being different than expected, as Binance charges a small withdrawal fee. For example, on Bitcoin, it is .0005 BTC, which is currently around $3.
Binance Contests and Airdrops
Binance is more than an exchange, it holds contests and airdrops allowing for increased participation from its users. Binance has given away Mercedes and iPhones to users that have the highest trading volume on pairings, as well as airdropping currency to users that hold x amount of a currency.
Binance Affiliate Program
The Binance Affiliate program is one of the contributing factors to what has allowed Binance to grow as fast as it has.
Users can create links to send to friends referring them to the exchange. Accounts referred to the exchange give the referrer 20% of the exchanges fees back to the referrer. This provides an incentive for its users to invite more users.
What countries does Binance support?
Binance itself supports every country and does not even ask for a country upon signup. Depending on if cryptocurrency is legal in your country (it most likely is) then you are free to use Binance!
Is Binance a decentralized exchange (DEX)?
Binance Chain will focus on performance, ease-of-use, and liquidity. Binance Coin (BNB) will be updated to exist on its own blockchain mainnet, ultimately being a native coin.
Binance plans to transition from being a company to a community.
Can I use a credit or debit card on Binance?
Nope! Binance is a crypto to crypto exchange, meaning it is limited to cryptocurrency. In order to get funds from a credit/debit card you will need to first purchase Bitcoin or Ethereum from a fiat exchange, and then send it to Binance.
Does Binance accept new users?
Yep! After a brief shutdown period in January of 2018, Binance is accepting new users again! At the beginning of 2018, cryptocurrency markets saw insane growth, and most exchanges were unable to keep up with the amount of new users.
Since then, Binance has upgraded their infrastructure, and are accepting new users!
Binance has a launchpad for cryptocurrency and blockchain projects that want to raise funds on the Binance platform. There have only been a few projects such as Gifto and Bread have used this, but it is certainly an interesting feature. After crowdsourcing funds for the projects, Binance automatically distributes the tokens to participants.
Overall, Binance is an incredible exchange that should only continue to dominate the cryptocurrency trading market. Here’s an infographic recapping why Binance is so amazing.