Binance is the leading cryptocurrency exchange service platform in the market.
As cryptocurrency becomes increasingly popular, different exchange services are becoming more and more competitive in the hopes of staying ahead of their rivals.
This is to say that, offering most secure exchange services, making their systems user-friendly and customer-focused, and offering as many different coins as possible is a must for these exchange platforms.
Considering these factors, Binance happens to become one of the most popularly known cryptocurrency exchange today.
Before I get into Binance full detail of how it works, and why it’s such a successful exchange, there are few things you’ll want to know first.
If you’re thinking about using Binance for your cryptocurrency investing needs or career, then you should keep reading this my most comprehensive review.
You can also learn more about Binance by taking a look at another review from CryptoTotem.
Are you ready to begin?
Let’s start now.
What is Binance?
Binance is a third-party cryptocurrency exchange platform that allows users to buy, sell and trade cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and many other Altcoins, including the newly released cheap cryptocurrencies.
Up until recently, Binance was primarily made to be a crypto-to-crypto exchange, meaning that it had no involvement in fiat deposits or withdrawals.
But some months back from the time of writing this review, the platform now offers a limited amount of support for bank account and credit card direct deposits.
Binance has risen to fame for a number of reasons. Firstly, the platform offers a hugely extensive lists of supported cryptocurrency pairs.
While this of course includes hallmark coins like Bitcoin and Ethereum, this also includes small-to-micro cap tokens. Secondly, trading fees are extremely low at Binance.
Standard trading fees average a very competitive 0.1%, this can be further reduced for those holding the platform’s proprietary digital asset – the Binance Coin.
Originally a China-based cryptocurrency exchange service, Binance was founded in 2017 by a developer named Changpeng Zhao.
Although, relatively new to the exchange industry, Binance has proven that with a strong business plan, directed towards attracting and satisfying users, you can rise to the top very quickly.
Zhao’s company, Beijie Technology, raised over $15 million to start the exchange after an extremely lucrative ICO (Initial Coin Offering), and Binance has been on the rise ever since the launch days.
Building up one of the world’s strongest cryptocurrency exchanges was no easy task, and it wasn’t always such smooth sailing for Binance.
China’s government regulations on cryptocurrency proved to be more than just a minor inconvenience for the Hong Kong-based company.
They had to think creatively to operate more freely. They are now headquartered on the island of Malta and have other locations all over the world.
Binance fundamental goal is being able to offer regulation-free cryptocurrency exchange services to a global market.
This move proved to be a wise choice, as the newly-launched exchange has only grown since then.
According to Zhao’s own words:
“Our vision is to increase the freedom of money globally. We believe that by spreading this freedom, we can significantly improve lives around the world.”
From its successful ICO to their decision to be as globally-accessible as possible, it’s no wonder that Binance has become a significant player among cryptocurrency exchanges.
Whether you’re new to the world of cryptocurrencies or you’re a seasoned veteran, you should keep your eye on this exchange.
Binance has its own coin known as, the Binance Coin (BNB), which is used within the exchange for trading cryptocurrencies as well as paying fees.
The increased popularity made the value of BNB token to rise slowly over time.
Even though it’s been just a few years since the initial launch of the exchange, Binance is already a household name to those in the cryptocurrency investment and trading business.
Binance has a mobile and desktop app which can be downloaded using the download link in your account. After you have done those two things, you can start trading using the app.
While the mobile version is available for Android users from the Google Play store, its status for iPhone users is still unclear.
Though it was previously on the iOS App store, over time, it was occasionally removed for reasons known to the Binance team alone.
Previously, Binance iOS app version was always available from website itself, but that’s not currently the case (as of August 2019).
Binance has been silent on this issue, so it’s unknown when and if the app for Apple users will return.
You can also download the Android and desktop versions directly from Binance’s website here. The desktop app is available for both Windows and MAC users.
Binance provides users with a cryptocurrency wallet for every coin on their platform, and it allows people to trade using various currencies of their choice.
You only need to use the wallet address when depositing funds to it. The funds will show up as soon as possible depending on which currency you’re using and how fast it can be transferred.
Always be sure to double-check your wallet address when transferring any type of currency.
Typing the wrong wallet address is one of the most common causes of a cryptocurrency transfer problem.
Note: Binance exchange platform recently acquired the trust mobile cryptocurrency cold storage wallet, which supports almost all the known airdrop protocols.
Binance login 2FA
What is 2FA?
2FA (Two-Factor Authentication) is when you protect your account with two factors or locks, creating an additional layer of security.
In this context, a factor is split into three different categories:
- Users knowledge (Password)
- Something the user owns (Phone SMS)
- Biometric traits (Fingerprint)
To be properly protected by 2FA your account must require 2 locks before granting access. The two main factors for Binance is a password, as well as either an SMS, or Google authentication code.
For SMS, whenever you want to log in, the service sends you an SMS message with a verification code that expires after a certain period of time, and you have to input that number in order to log in.
While for Google authentication, you will need to use a third-party Google Authentication app, which will assign you a backup key (secret key).
The App then generates one-time passwords (OTP) at regular intervals, using the secret key as a seed. Those one-time passwords are required to log in.
To learn how to setup the Binance Two-Factor Authentication security, please visit the academy guide page here.
One of the most attractive features about Binance as a cryptocurrency exchange platform is the sheer variety of coins and token that they offer.
Whether you want a mainstream currency like Bitcoin (BTC), or an alternative coin such as Ripple (XRP), you’d be hard-pressed to find one that Binance doesn’t support.
One important thing to know about Binance is that it only allows you to deposit cryptocurrencies into their system.
However, you can still use their brokerage service to purchase these currencies using your credit card of any flat currency.
From there, you’ll have cryptocurrency in your Binance wallet, and you’ll be able to deposit, withdraw, and exchange freely within their system.
Binance has an excellent track record for offering new coins quicker than many of its competitors, which entices users to use their exchange service.
This way, they can get new currencies at favourable prices before it starts gaining traction in the market. Binance’s quick offerings are yet another stand-out feature of their services.
Binance offers a number of security safeguards to ensure your funds remain safe from the threat of external malpractice.
As I’ve noted earlier, you are advised to install 2FA. This means that unless a hacker has access to your mobile phone, they won’t be able to gain access to your Binance account.
Moreover, if you attempt to login from a device or IP address that has not previously been used on Binance, you will need to confirm this via your registered email account.
You can also choose to receive email notifications when key account functions are performed, such as withdrawals.
Although Binance originally started in China, they moved their headquarters to Malta and even established some few other locations around the globe.
However, since beginning of September 2019, users in 29 countries, including the United States, will be blocked from the platform on binance.org pending the upcoming launch of their new US-based platform, binance.US, for those users.
This step is an effort to bring the company in compliance with US cryptocurrency regulations. No release date for the new platform has been given, but it will be in partnership with BAM Trading Services Inc.
Though, most users in the restricted countries are advocating accessing Binance via VPN or wallet without accessing binance.org, no passports from the banned countries will be accepted for verification purposes. Geo-based IP banning will also be in effect.
Binance fees and limits
Binance has a serious edge on its competitors by making a consistent effort to minimize these fees for its users. If you’re always considering fees, this platform will be a good choice for you.
Generally, Binance charges a flat rate of 0.1% as a trading fee, a rate that is nearly unheard of in the exchange industry. And many companies charge twice that amount.
If you plan to trade in high volumes frequently, this may be a money-saving advantage. Read how to reduce Binance transaction fees.
As with many similar exchanges, Binance evaluates their exchange fees based on the user’s trading volume during previous 30 days.
Deposits are always free with the exception of blockchain fees. As for withdrawals, you can find a detailed table on their website, highlighting the fees for each particular cryptocurrency.
If you have Binance Coin (BNB) in your wallet on the exchange while trading, you will automatically receive 25% off your trade fee for holding their token.
This is a nice touch that encourages users to continue using the exchange and its currency.
To see the most recent Binance fees, please click here now.
Since the beginning, Binance has put customer support high up on its priority list, emphasizing user-friendly experiences.
Their customer-centric attitude, low fees, and extensive service offerings have secured them as an industry leader.
So, what can you expect out of Binance from a customer support perspective?
Most users seem to step away from Binance’ customer support system satisfied and without any complaints.
The most common way that anyone with a problem (like: Binance withdrawal suspended), or inquiry can reach customer service is via their site’s email contact form.
Although the response time may not always be fast due to a high volume of inquiries, most customers have reported positive outcomes from this support channel.
Other than the email contact form, they also have a customer service chatbot. This resource is best reserved for inquiries or FAQs.
For rare or specific problems, the chatbot won’t be helpful as it generates an automated response.
Depending on the nature of your problem, you may be able to find the answer in their website’s FAQ section before submitting a request to their support centre.
Binance’s customer support system is quite good and has received mostly positive reception from users.
When you consider that there are a handful of exchanges out there that are notorious for delayed, low-quality customer support, this is an accomplishment.
Even if Binance’s responses aren’t always as instantaneous as users might like, their support staff aims to provide solutions as quickly as possible.
In terms of its regulatory status, Binance is regulated in Malta under its newly enacted Virtual Financial Assets (VFA) act. Aside this, Binance is not licensed by any other regulatory bodies.
This does not mean the platform is not complying with the anti-money laundering obligations.
On the contrary, Binance requires all customers that plan to use fiat currencies, while depositing and withdrawing to go through a KYC (i.e. Know your Customer) process.
Moreover, if you attempt to withdraw more than 2 BTC in a 24 hour period, then you will also be required to go through a verification process.
It is also important to note that Binance is in the process of applying for regulatory approval in the US to launch a fully licensed exchange for US citizens.
This means that it will need to ensure its regulatory endeavours are water-tight if it is to get the green light.
How does Binance work?
In order to give you a birds-eye view of how the platform works, we’ve broken down the main steps that you will typically need to follow to get started.
1. Create account on Binance
Head over to the Binance homepage (by clicking here) and open an account. If you’re only planning to deposit and withdraw funds using cryptocurrencies, then you’ll only need to provide an email address.
2. Setup 2FA security
In order to secure your account, Binance will ask you to set-up two-factor authentication (2FA). This means that you’ll need to install an application like Google Authenticator on to your phone.
Subsequently, each and every time you want to log in – or perform key account functions like a withdrawal request, you’ll need to enter a unique code that can only be found on your phone.
3. Deposit crypto coins
Although a selected number of regions can now use credit/debit card, or bank account to deposit funds, am on assumption that you’re depositing a cryptocurrency.
If it’s a fiat currency deposit, then head over to the ‘Funds’ section of your account and follow the on-screen instructions (as that’s even how to deposit USD in Binance).
Nonetheless, on the deposit page, you’ll need to scroll through the long list of coins that are supported, and click on the one that you want to deposit into Binance.
You can use this address to send cryptocurrency funds to that you purchased on another platform.
Just copy the unique wallet address that is provided to you, and use that to transfer the funds from your private crypto wallet.
4. Start crypto trading
Once your cryptocurrency deposit has been credited – which usually takes no more than 10-20 minutes, you are then ready to start trading.
Hover over the ‘Exchange’ button at the top of the screen, and select whether you want the ‘Basic’ or ‘Advanced’ trading platform.
You now have access to over 540 individual trading pairs. If the coin that you want to purchase is not directly paired against the cryptocurrency you deposited with, you’ll need to make an additional trade.
For example, if you deposited with Bitcoin Cash, but you’re looking to buy a smaller cap ERC-20 token that isn’t paired with Bitcoin Cash, then you might need to exchange it for Bitcoin or Ethereum first.
When you complete your trade, your newly purchased coin will now be available in your Binance account. You can either keep it in your Binance account, or withdraw it to an external wallet.
Binance also offers an API which allows you to connect your account to a number of Crypto Trading bots and allow them to trade on your behalf, automating your strategy and hopefully profiting from the bot’s trades.
Deposits, withdrawals and payments
Basically, Binance was known as a cryptocurrency-only exchange, but recently, the platform is now able to facilitate fiat currency deposits and withdrawals.
As at the time of writing, this is available via credit cards or a direct bank transfer. Not all locations are supported though, so you’re advised to check this list.
Using credit/debit cards
If you’re looking to use a traditional credit card to purchase coins, you can now do this directly from the Binance website. Both Visa and MasterCard are accepted.
The platform notes that while payments can be accepted from credit cards of all currencies, if the native currency is anything other than USD or EUR, then an additional charge might apply.
In terms of the standard processing fees, this comes at a cost of 3.5% ($10 minimum). This is slightly lower than industry counterpart Coinbase, which charges 3.99%.
Using bank transfer
If you’re looking to deposit and withdraw funds via a bank transfer, then this can be facilitated via the platform’s Binance Jersey off-shoot.
At the time of writing, supported countries mainly consist of the UK and Europe, alongside a number of other jurisdictions such as Turkey, Singapore, Australia, New Zealand, and the United Arab Emirates.
To get funds into your Binance account via a bank transfer, you need to specify your desired currency and how much you want to deposit.
Binance will then provide you with details of the account you need to make the transfer to, alongside the reference number you need to include within the transfer.
How long does Binance verification take?
Normally, the verification process takes less than 1 hour. However, the automatic verification relies on third-party security services, so it may take 36h or more during peak time.
Is Binance Exchange legit?
When it comes to safe exchange and data protection, Binance makes user security a top priority. That’s why hundreds of people trust Binance with their crypto trading every day.
They may be relatively new to the exchange industry, but they’ve proven themselves by incorporating effective security features into every aspect of their system.
Since launching in July 2017, Binance has taken the cryptocurrency exchange industry by storm. Their strongest point is their commitment to iron-clad security along with making sure any security breaches don’t cost their clients.
Their fees are fair, their customer support is helpful, and their app is convenient.
If you’re looking for an exchange that has extremely low fees, dozens of different crypto coins, and a customer-centric focus, be sure to give Binance a focused look today.