Binance review: How good is the cryptocurrency exchange?

Review:
Type:
Security:
Available:
Markets:
5 out of 5 stars (5 / 5)
Exchange
Very high
Desktop, mobile
500+

Binance logo

Besides finding the right cryptocurrency to trade for minimal risk and maximum profit, every crypto investor must also find the right exchange to use. If you’ve been looking for the definitive exchange, you’ve likely stumbled upon Binance at least once – the company claims to be one the world’s largest cryptocurrency exchanges, and its reputation precedes itself.

But what features does it offer? Is it really the world’s largest crypto exchange?  And more importantly, is Binance the right exchange for you? Here’s a detailed Binance review of the cryptocurrency exchange that will answer those questions and many more.

Official website of Binance

Official website of Binance

Security for customers
0%
Low fees
0%
Offers and trading conditions
0%

Introduction – What is Binance?

Binance is a cryptocurrency exchange that provides both new and experienced traders with a platform for making profits trading various cryptocurrencies. It’s currently the world’s largest crypto exchange by trading volume – the platform facilitates twice as many trades as its competitors. 

The company was founded in 2017. It a relatively new company, but it didn’t long for Binance to get adopted by top traders. By January of 2018, only months after launch, Binance had become the largest crypto exchange in the world.

While it is popular in the U.S., it’s not the biggest exchange by trading volume in the region. Coinbase holds that title – but this does not make Binance any less useful. The founder of the company, Changpeng Zhao, was a developer who created high-frequency trading software before creating Binance. The company was briefly based in China; however, it later moved out due to the country’s stringent regulation of cryptocurrencies.

(Risk Warning: Your capital can be at risk)

Who is the cryptocurrency exchange Binance for?

The array of features that Binance offers makes it the right option for a seasoned trader to use. Here’s a quick look at all the platform has to offer:

P2P Trading

The platform enables peer-to-peer trading, allowing buyers and sellers to connect directly. The wide array of payment options available and the inclusion of fiat payments make it an extremely flexible option. 

Binance P2P trading

Binance P2P trading

Binance Exchange

With Binance, you can exchange fiat currency for cryptocurrency, and the platform allows you to do this in several ways. The company recently partnered with Simplex, allowing its users to buy any of the 31 supported cryptocurrencies using a credit card. You could also use a debit card. However, the transaction fee can be as high as 3.5% for those in the U.S.

Alternatively, you can also buy crypto via SEPA transfers and bank transfers using Binance. This is an especially attractive payment option since there is no transaction fee.  But there is a downside to it – the payment option is not available for USD deposits.

Binance exchange

Binance exchange

Binance Futures

Binance Futures was launched in 2019, two years after the company was founded, and enabled traders to invest in cryptocurrencies for a specific price. One of the best things about it is that it enables leverage trading of up to 125x. While no other major platform offers this feature, it must be used only by seasoned professionals who know the risks since it can also multiply losses by 125x.

If you opt to use Binance Futures, your balance for trading futures will be held separately from your trading account(s). It is also important to note that you must fund it with USDT. Binance Futures’ interface is nearly identical to that of the regular trading interface. A handful of additional controls enable the user to control the leverage and view open positions.

The fees are lower for “maker” trades, and users that trade large volumes monthly are also eligible for low fees. Users can make use of coin futures to collateralize trades or use “Leveraged Tokens” to avoid the risk of liquidation while making use of leveraged exposure.

Binance Futures

Binance Futures

Binance Savings

Users can make a return on idle funds by opening savings accounts with Binance. The interest in flexible savings accounts is always varying, while locked savings accounts pay higher interest on term deposits.

Staking

The platform also enables its users to earn returns on proof-of-stake and DeFi coins without them requiring to know how to stake the coins. Just like Binance’s savings accounts, staking is available in flexible and locked options.

Liquid Swap

It enables you to trade coins with other users with minimal slippage or alternatively provide users with liquidity in exchange for fees. While the concept is similar to Uniswap, Binance’s Liquid Swap is decentralized.

Binance Liquid Swap

Binance Liquid Swap

Binance Smart Pool

Crypto miners can contribute to a large group and split the rewards. The best thing about Binance’s Smart Pool is that computing power is redirected to the most profitable cryptocurrency dynamically, making for optimized gains.

In addition to all this, the company also offers crypto loans and a cryptocurrency VISA card with zero conversion fees. Beginners could use Binance using the Basic interface and enjoy its benefits; however, the platform is best suited for seasoned traders.

Binance Smart Pool

Binance Smart Pool

(Risk Warning: Your capital can be at risk)

Regulation and safety of Binance:

Binance is the largest cryptocurrency exchange in the world and enables its users to trade nearly 200 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. To keep its expansive user base protected, the company employs powerful blockchain forensics and the latest in AI. It’s also worth mentioning that Binance provides all of its users with real-time support, a rarity in the crypto trading world. 

While the measures taken are impressive in themselves, what’s most impressive about Binance’s security is its SAFU program. The company uses 10% of its profits from trading fees to cover any losses due to hacks.

So far, the Secure Asset Fund for Users has been a great success – when the company was hacked in 2019, all the funds were recovered using SAFU.

Security Measures

Binance has a two-factor authentication feature that it recommends all users enable. You can use the Google Authenticator or another two-factor authentication app of your choice to protect your account.

In addition to allowing two-factor authentication, the company sends you an email every time you withdraw from your account. You will need to authenticate every withdrawal by clicking on the link, making your account that much more secure.

It’s also worth mentioning that you can enable an anti-phishing code, which will then appear on all the emails that Binance sends you. That way, you will be sure that whenever you click on a link that is supposedly from Binance doesn’t lead you to a malicious site.

  • Google Authenticator
  • Email notices and confirmation
  • SMS confirmation

Regulatory Compliance

Cryptocurrency’s history of use for making illicit transactions drives away many from the technology’s potential to change how we transact. Because of this, new regulatory bodies and legislature have been put in place. While the trading service is licensed in most states of the U.S., Binance does not have a New York Virtual Currency License, which is more popularly known as the BitLicense. 

You can take a look at all the states the company is licensed to operate in by visiting their support page or clicking here.

Binance Licenses

Binance Licenses

(Risk Warning: Your capital can be at risk)

Binance privacy explained:

Just a few months after launch, most seasoned traders had adopted Binance as their go-to platform. The feature-loaded interface made trading cryptocurrencies convenient for traders of all skill levels. The company also understood that keeping its large user base protected is just as important as making crypto trading more accessible. 

The two-factor authentication offered gives users peace of mind, and knowing that the platform has a multi-tier architecture is also comforting. 

While Binance does share some user data with third parties, it is only to ensure that the platform is accessible by all users. The transaction data is monitored for suspicious activity, which is how the company protects its users from fraud.

PCI Scanning, Secured Sockets Layered encryption technology, pseudonymization, internal data access restrictions, and strict physical access controls to buildings & files are only some of the many measures the company takes to protect user data.

You can read more about how the company handles user data here.

Binance Hacking Attempt 2018

Hackers targeted the Binance exchange in 2018. However, the company’s automated security systems caught the hacking attempts, and it was later found that the hackers had been stealing user credentials via phishing sites for months.

After the hackers installed API access on enough accounts, they struck the exchange and converted all of the affected users’ cryptocurrencies to Bitcoin. Then they purchased Viacoin in large volumes, driving the price of the coin up, and began to sell off their Viacoins before attempting to withdraw the funds.

The hack was caught in time, and no funds were lost. All the excess funds that the hackers had accumulated were donated to charity.

It is events like these that serve as a reminder to protect yourself on the internet. Never click on links that you receive in emails, and triple-check the URL of the website you visit to ensure it is not a phishing site.

The 2018 hacking attempt inspired a whole lot of confidence around Binance. Not only was the hacking attempt stopped before any funds were lost, but the company also offered a bounty of $250,000 to anyone that catches the hackers.

Binance trading conditions

To trade using Binance, the only thing you need is proof of your age – you must be 18 years old. The company will ask you to submit a government-issued ID to verify your age and identity.

Besides that, you will need an internet-connected computer to make full use of the platform. You will also need a phone number so you can activate two-factor authentication.  But these requirements are a given, so all you need is a state ID to get started.

Binance limits and liquidation

To use the Binance exchange, all you have to do is create an account on the website. To create a Level 1 account, you only need to supply your name and email address – verification is not necessary. 

Level 1 accounts have a 2BTC daily withdrawal limit, making them unsuitable for seasoned traders. However, upgrading your account to Level 2 is a lot easier than you’d think. You must upload your state ID on the website and wait for the approval. Once Binance approves you, your daily limit will be increased to 100BTC per day.

The company gives its users higher limits than 100BTC, too, but the only way to further increase your daily limit is to request the customer support team. The support staff verifies user identities manually, and therefore, the time needed for verification varies depending on the volume of users trying to upgrade.

If you need to make a large withdrawal, it is best to upload your ID as soon as possible, so you get approved in time.

Fees and costs

When trading with Binance different fees can appear. Binance charges a Maker and Taker fee. The advantage is that you will get better trading conditions (higher VIP levels) if you make a higher trading volume. See the fees below in the table:

Fees:
Trading fees:
Maker 0.0200% – 0.1000% / Taker 0.0400% – 0.1000% (depending on the trading volume)
Margin Borrow Interest Rate:
0,05% or less (depending on the asset)
USD-M Futures trading fees:
Maker 0.0000% – 0.0200% / Taker 0.0170% – 0.0400% (depending on the trading volume)
Coin-M Futures trading fees
Maker -0.0090% – 0.0150% / Taker 0.0240% – 0.0400%
Deposits:
Free
Withdrawals:
Depending on the payment method

(Risk Warning: Your capital can be at risk)

Test of the Binance trading platform

Binance offers an impressive selection of cryptocurrencies to buy and makes buying and selling them easily with its user-friendly interface. Crypto/fiat trading pairs are also made available on the Binance fiat market.

The Binance Calssic Platform is the most suitable for traders

The Binance Classic Platform is the most suitable for traders

If you’ve never traded cryptocurrencies before, you can use Binance’s basic interface to trade. For more seasoned traders, the “classic” and “advanced” trading options allow for smarter book-style, margin, P2P, and OTC trading.

Binance offers the following platforms for cryptocurrency trading: 

  • Convert
  • Classic
  • Advanced
  • Margin
  • P2P

Binance Spot Trading

Binance provides all of its users with three interfaces for spot trading, and you can pick between them depending on your skill level. The classic interface allows you to learn about the market at a glance and switch your trading pairs with ease. On the other hand, the advanced view features advanced charting tools, allowing you to trade smarter.

Most beginners won’t even be able to tell the difference between the two interfaces. But luckily, you don’t have to be an expert trader to use Binance.  You can use the basic view to convert coins at the market rate without needing to look at a chart or the order books.

Binance Spot Trading

Binance Spot Trading

Binance Margin Trading

The company allows margin trading for a select few trading pairs. But the nice thing about Binance is that you can use the leverage of up to 10x on some cryptocurrencies.

You can pick cross margin trading, which will use your entire margin balance, or use the isolated margin option to limit your potential losses.

Binance margin trading

Binance margin trading

How to trade with Binance?

If you’ve traded with any other exchange before, you will have no trouble making your way around Binance’s interface. Before you trade, you must ensure that your account has some funds. You must deposit them to your Binance account and pick your trading pair. 

Post loading the funds, click on the “Exchange” button on the top-right corner of the screen and select “Basic” or “Advanced” depending on the interface you want. The trading screen will then load accordingly.

Start trading with Binance

Start trading with Binance

You must then select one of the four tabs – BTC, ETH, BNB, or USDT, from the right-hand side of the screen. There’s also a search tab available on this section of the screen, enabling you to pick cryptocurrencies other than those listed. 

If you frequently trade in a currency that’s not present on the left-hand side by default, you can add that currency to your favorites list for easier access.

After you pick the currency, the column on the left of the screen will display the prices that other users are willing to sell the currencies in. The top half of the section is highlighted in red and shows how much users are willing to pay for the currency. 

The numbers in the middle are the latest selling prices of the currency. Placing a buy order is uncomplicated – simply click on the green buy button under the charts. 

Binance order mask trading

Binance order mask trading

While Binance allows you to manually enter your price, clicking on the number on the left is an easier way to set the buying order. After this, you can enter the amount of the currency you want to buy. If you’re buying Bitcoins, you can click on the 25%, 50%, 75%, or 100% buttons that appear on the screen. 

The order will appear under the “Open Orders” section till it is filled, post which your currencies will appear under the “Deposits/Withdrawals” menu.

How to Open an Account with Binance?

Binance keeps the registration process very straightforward. After navigating to the website, you must click on the “Register” button on the top-right corner to begin the process.

You will then need to enter your email address and set a password for your account. If you’ve been referred to by someone, you will need to enter the referral ID at this stage.

Open your account with Binance

Open your account with Binance

Next, you will need to accept the Terms of Service and click on the “Create Account” button.

A verification code will be sent to your email address, which you will need to enter to finalize the creation of your account. You can then start trading right away.

Note;

The account opening process is very fast at Binance. You can start trading in less than 10 minutes.

(Risk Warning: Your capital can be at risk)

Identity Verification

To increase your daily withdrawal limits, you must verify your identity by navigating to the account dropdown menu and clicking on “Identification.” 

The verification process will then begin. You must:

  • Select your country of residence from the dropdown menu, then click the “Start” button.
  • Type in your first and last name, along with your date of birth and address. Also, select your nationality from the menu before clicking on the “Submit & Continue” button.
  • Choose the country of issuance from the dropdown menu. Also, select the ID type. You may upload a driving license or passport.
  • The website allows you to upload a photo or a file copy of your ID. You can also use your phone to upload the picture if that’s easier. After uploading your ID, click on the “Confirm” button.
  • Take a selfie, and upload it to the site. Make sure the picture is in focus and that your entire face is visible. Click “Complete” to finish the process.

After your identity is verified, your account’s daily withdrawal limit 2is raised to 100 BTC. 

Does Binance offer demo accounts?

Demo trading modes enable beginner traders to practice trading strategies without it affecting their account’s balance.

Unfortunately, Binance does not supply a demo trading mode. You will need to deposit a fiat currency or use cryptocurrencies (or stablecoins) to use the exchange. Exchanges like Bitfinex offers a free demo account. 

Is there a negative balance protection in Binance?

No, the company does not provide negative balance protection to its users. If you place a buy order and the funds are in the negative, the site will ask you to contact the customer support team. This can happen if you are using too high leverage and margin trading. 

Only after you pay the due amount will you be able to use the platform.

Binance deposits and withdrawals

One of the best things about Binance is its affordability. The company has a flat rate of 0.1%, but this is for traders that do not need immediate fiat liquidation. If you trade futures, the fees are even lower, starting at 0.02%. 

Most other trading platforms do not offer such low fees, which drives traders from around the world to the platform. You can make deposits for free – as you’d expect from a premium exchange like Binance. However, you will need to pay the blockchain fees as per usual.

Withdrawals are not free, and the fees are updated regularly, which is how the company ensures competitive pricing.

See the Binance deposit below: 

Binance deposit methods

Binance deposit methods

Deposit methods and fees:

  • Bank transfer 0% fee
  • Bank cards 1.8% fee
  • iDEAL 1.3€ fee
  • ADVcash 0% fee
  • Etana Account 0.1% fee
  • BTC 0.0000012 – 0.00027 fee
  • Cryptos (depending on the coin)

Withdrawal methods and fees:

  • Bank transfer 0.8€ fee
  • Bank cards 1% fee
  • ADVcash 0% fee
  • Etana Account 0.1% fee
  • Cryptocurrency no fees (or depending on the coin)

Binance support and service

Besides excellent security and ease of use, Binance also has a responsive support team that resolves any of your issues quickly. You can get in touch with the team by opening a support ticket by filling out a form on the website. The resolution will be sent to you at your email address.

The lack of live chat support is slightly disappointing, considering that competitors like Coinbase have it. However, most crypto exchanges do not offer live chat support, so we can’t say it’s a dealbreaker.

To ensure a fast response, make sure you include all the details of your issue – like the time of the transaction and the wallet addresses.

Accepted countries and forbidden countries

The company does not explicitly mention what countries it operates in – and that’s because Binance is available worldwide. However, it’s important to note that U.S. customers need to use a different website than customers from other parts of the world.

Conclusion on the Binance review: Powerful exchange

It’s not hard to see why the cryptocurrency exchange market is so crowded. But we can say with certainty that only the best platforms – those with an excellent interface, top-notch security, and exceptional customer support succeed.

Binance is the model crypto exchange and delivers on all three counts. The millions of happy customers worldwide and an easy sign-up process make Binance easy to recommend to any crypto trader. The company offers trading platforms for beginners and even professional traders. You should find the perfect setup for you.

Advantages of Binance: 

  • High security
  • Beginner-friendly
  • Platforms for professionals
  • Easy to create an account
  • Mobile app
  • High liquidity
  • Support a lot of different cryptocurrencies
  • Fast support
  • Fiat to crypto and backward

Binance is one of the best cryptocurrency exchanges. It offers deep liquidity, low fees, and a powerful trading platform. 5 out of 5 stars (5 / 5)

Trusted Broker Reviews Logo

(Risk Warning: Your capital can be at risk)