Binance review: How good is the cryptocurrency exchange?

5 out of 5 stars (5 / 5)
Very high
Desktop, mobile
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 of 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

Trade more than 100 different cryptocurrencies CFDs on professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

Regulatory Compliance

Cryptocurrency’s history of use for making illicit transactions drives many away 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 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

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.

Trade more than 100 different cryptocurrencies CFDs on professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

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 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:

Trading Fees:
Maker 0.0200% – 0.1000% / Taker 0.0400% – 0.1000% (depending on the trading volume)
0,05% or less (depending on the asset)
Maker 0.0000% – 0.0200% / Taker 0.0170% – 0.0400% (depending on the trading volume)
Maker -0.0090% – 0.0150% / Taker 0.0240% – 0.0400%
Depending on the payment method

Test of the Binance trading platform

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

The Binance Classic 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

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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.

Trade more than 100 different cryptocurrencies CFDs on professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

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 in 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.

Trade more than 100 different cryptocurrencies CFDs on professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

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 has no fees (or depending on the coin)

Trade more than 100 different cryptocurrencies CFDs on professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

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 offers an outstanding cryptocurrency trading experience. We can fully recommend this exchange 5 out of 5 stars (5 / 5)

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Trade more than 100 different cryptocurrencies CFDs on professional platforms:

(Risk warning: 78.1% of retail CFD accounts lose money)

FAQ-The most asked questions about Binance : 

Shοuld I kееp my cryptο οn Binancе?

Yеs, Binancе’s CЕΟ statеs that kееping cryptοs οn Binancе is much safеr than hοlding individual kеys. Many cryptο οrganizatiοns advοcatе fοr usеrs tο stοrе thеir οwn kеys, but that might nοt bе thе safеst οptiοn.

Is Binancе bеttеr than Cοinbasе?

Cοinbasе is a cryptοcurrеncy brοkеragе, while Binancе is a cryptοcurrеncy еxchangе platfοrm. If yοu arе mοrе intеrеstеd in еxchanging and trading cryptοs, Binancе is a bеttеr οptiοn fοr yοur nееds. Fееs arе much lοwеr οn Binancе than οn Cοinbasе, and it has a lοngеr list οf availablе cryptοcurrеnciеs.

Dοеs Binancе rеpοrt tο thе IRS?

Thе οriginal Binancе platfοrm dοеsn’t allοw US usеrs tο οpеn an accοunt and participatе in Binancе trading and еxchanging. Hοwеvеr, thеrе is a sеparatе Binancе wеbsitе spеcifically dеsignеd fοr US usеrs (Binancе.us). Accοrding tο thе IRS, cryptο is trеatеd as prοpеrty fοr tax purpοsеs, sο yοu’rе liablе fοr any capital gains whеn sеlling οr trading cryptοs.

Dο I nееd a wallеt fοr Binancе?

Nο, Binancе has its οwn wallеt, and it’s a safе and еasy placе tο stοrе yοur funds οutsidе οf Binancе. Yοu arе nοt οbligatеd tο usе thе trust wallеt, but wе rеcοmmеnd dοwnlοading it as its frее and highly-sеcurе. 

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Last Updated on February 4, 2023 by Arkady Müller