Binance is a global platform for trading over 300 crypto currencies. This exchange is attracting more and more traders, which is why we offer you this Binance review. You’ll find out how this platform operates, its fees, its advantages and disadvantages…
How reliable is Binance?
In our opinion this broker has made a name for itself among the trading platforms of the moment, despite its fairly recent arrival. However, it has several shortcomings that should not be overlooked.
It is not regulated by the European regulator CySEC, which is undoubtedly a very important aspect. By analyzing reviews and opinions on the internet, we found that there were many reliability issues that involved users.
We also found that the trading commissions are very high. An extremely high figure considering that with reliable and regulated solutions like eToro, the commissions are zero.
In view of all the points we will raise in this article, Binance is not unanimous. Notably, because of its reliability which has shown its flaws and its complexity of use. Indeed, many people point out the difficulty of using the trading platform. The site does not have an ergonomic interface, which impacts on usability. For beginners, it is better to look at eToro which is a better option.
Who is Binance?
The platform was founded in 2017 by Changpeng Zhao, and immediately established itself during the historic rise of the trading market in 2017 by allowing trading of a wide range of tokens.
The creation of Binance
Binance was founded through a fundraising via ICO (Initial Coin Offering). The team of this exchange raised the impressive sum of 15 million dollars! In a few months, it became the number one exchange in the world in terms of volume.
The company was founded in China but, following the government ban on crypto-currency trading, the company decided to move the servers to Japan and the headquarters to Malta. Through a memorandum of understanding signed with the Malta Stock Exchange, Binance created Binance Jersey, an independent platform from the main one created in order to expand its European influence.
Registering with this site allows you to trade a lot of tokens through sophisticated but easy to understand tools.
The broker offers everyone, even without registration, the opportunity to take advantage of the Academy’s resources, so that you can understand what cryptocurrencies really are and how their exchange takes place.
You will be able to understand everything about the blockchain, how it is operated and why you should operate it.
You have the possibility, still without registration, to donate to the projects that are followed by the Charity section of Binance and also to be able to get from them the possibility to participate in the collected contributions if you propose a socially interesting project that the site will find useful to register among its own.
The Binance offer
Binance offers a large number of services to its users. Three other platforms have been set up in recent months to complete the offer of this exchange:
- Binance.com is the flagship platform. It allows you to trade cryptos at relatively low prices, make leveraged trades, participate in OEIs (initial exchange offers), store coins and earn interest by making your cryptos available to the exchange
- Binance Jersey is the tool that allows you to buy cryptocurrencies by bank transfer. So it allows you to exchange fiat currency with bitcoin and some of the major altcoins
- Trust Wallet is the Binance wallet. It allows you to manage, receive and send bitcoins, many altcoins and tokens based on the Ethereum and Binance blockchains
- Binance Dex is its decentralized exchange. Based on its own blockchain, it allows altcoins to be exchanged at near zero price. Being decentralized, it allows users to access directly with their own wallet and private keys, no registration is required.
Binance, For whom ?
In our opinion, Binance is for all types of traders who want to trade crypto currencies. Startup founders themselves can capitalize on their projects by creating cryptos for interested investors.
The company sometimes decides to reward some particularly deserving startups by including them in its incubation program, where they are offered great technological support and the funds needed to start the project.
Finally, you should know that Binance is especially designed for experienced traders. As a beginner trader, the platform might confuse you a bit. In this case, it will be better to choose an online broker such as eToro. The latter makes a lot of room for novices, for example by offering a demo account, social trading and even an Academy section to develop your knowledge.
Binance Account Types
You should know that Binance provides its users with a single account, unfortunately, there is no demo account. However, with this single account, it is possible for you to create more than a hundred sub-accounts.
This is a real drawback and even these sub-accounts are not useful for those who are just starting out and experienced traders will not have the time to use them to their advantage.
Binance offers different fees depending on the transactions made by its customers.
Fees on cryptos
The main platform allows you to trade crypto-currencies. It does not charge any commissions on deposits. When it comes to trading, each trade has a fixed commission of 0.1%.
If you hold Binance Coin in your trading account and decide to use it to pay commissions, Binance will apply a 25% discount on fees. Depending on the number of BNBs you hold, you can get additional discounts as you go along.
Fees on withdrawals
For cryptocurrency withdrawals, the fees vary depending on the crypto used, in most cases the fees are less than €1 per withdrawal.
Fees on buying and selling
To buy directly with foreign currencies, you need to use the dedicated Binance Jerszy platform. It does not charge any fees on deposits and offers a fixed commission of 0.1% on purchases and sales.
Leveraged token fees
Binance’s leveraged tokens maintain leverage between 1.5x and 3x, and give traders the opportunity to make more money during price fluctuations without taking the risk of a sell-off.
When you trade leveraged tokens, you pay a cash trading fee. But that’s not all, you’ll also have to pay a daily management and funding fee. The management fee is 0.01% and is charged daily. Funding is exchanged directly between traders.
How do I open an account with Binance?
To trade cryptocurrencies on Binance, you need to open an account and the procedure is quite simple.
1 – Open a Binance account
2 – Verify your account
3 – Make a first deposit
4 – Start trading
Steps to register with Binance
If you are a new user and want to use Binance, you can create an account for free. Here is a tutorial for the registration process:
1 – The quick opening of your account
- To open your Binance account, you need to go to their homepage and click on “Register”.
- A page will appear asking you to provide basic information such as your email address, an account password and a reference code (if applicable).
You are required to verify their email address via a 6-digit code, and once verified, your account will be registered.
2 – Verify your identity
Once your registration is validated, you will be asked to perform a 2-factor verification:
- your phone number
- Google verification.
For Google verification, you will need to download the Google authentication application from Google Play (Android) and verify the code that appears against Binance. Once you have completed these two steps, you can deposit funds into your Binance account.
3 – Deposit funds
Once you have verified your identity, you can deposit funds.
On your dashboard, click on “Deposit”, a new page will open, you will then have to select a currency, the payment method and the amount to transfer.
4 – Start trading
Now you can start trading cryptos as you wish. You can find all the available currencies on the interface: Bitcoin, Ethereum, NEO…
When you have chosen the crypto currency you want, click on the buy button. It will then be a matter of configuring your investment: amount, payment method and payment currency.
Deposits and Withdrawals
Making a Deposit to Binance
To make a deposit on the Binance exchange, you can share the token address with other users to receive funds in your account. The platform gives you the option to deposit funds in two different ways.
Deposit in crypto currency
Use cryptocurrency if you want to share the address/QR of any crypto token. Select the desired token, copy the token address and share it. Don’t forget to select the appropriate network. Otherwise, you risk losing your assets.
Depositing fiat currency
You can also deposit cash into your account. It supports the following payment methods that account holders can use to deposit money:
Bank Transfer (SEPA)
Card (Visa/ MasterCard)
ADVcash account balance
Etana account balance.
Make a withdrawal from Binance
To withdraw funds from Binance, you must:
- Log in to your account
- Enter your wallet to perform the withdrawal transaction
- Select the name of the coin/token from the list or you can manually type the full or abbreviated name.
- Copy the deposit address from the destination platform or wallet and put it in the recipient field.
For security reasons, if you haven’t done the security check yet, you will be guided to activate it. Otherwise, you must enter all the required codes. Before clicking “Submit”, we advise you to check all the information entered such as withdrawal token, amount and address.
Financial Products Available on Binance
Binance has only crypto-currencies as financial products. Therefore, you do not have the possibility to trade neither stocks nor commodities.
The site provides you with about a hundred crypto-currencies and trading pairs. The main crypto-currencies present are the following:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Binance Coin (BNB)
- Tron (TRX)
- Cardano (ADA)
- Monero (XMR)
- Cosmos (ATOM)
- Stellar Lumens (XLM)
- Ontology (ONT)
- Zcash (ZEC).
There are also many tokens from different blockchains (Ethereum, Tron, etc.). New cryptocurrencies are introduced every month, or those whose trading volumes are too low for the platform are removed.
The following crypto-currencies can be purchased in fiat currency:
Finally, the Binance mobile wallet supports the following cryptos:
- Bitcoin (BTC)
- Ethereum (ETH) and all ERC20 tokens
- Ripple (XRP)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Binance Coin (BNB) and all tokens based on its chain
- Tron (TRX) and all tokens based on the Tron network
- Vechain (EFP)
- Stellar Lumens (XLM) and all tokens based on the Stellar network
- Cosmos (ATOM)
- Tezos (XTZ)
- Dogecoin (DOGE)
We can see that Binance only offers crypto-currencies. In our opinion, this does not allow you to diversify your asset portfolio in the best way. If you want to have a wide range of financial products, and thus diversify your portfolio, turn instead to a trading site like eToro. They offer stocks, stock indices, ETFs and more.
What countries is Binance available in?
Binance is a global cryptocurrency exchange with supported jurisdictions around the world. Here is a list of countries where it does not operate:
- Ivory Coast
For a trade to be truly quality, it is necessary that there is an excellent customer support team, capable of answering all the questions and requests of the users, in a timely and professional manner.
In this sense, one can’t help but notice that Binance customer service is really responsive and able to offer professional assistance to merchants in possible difficulty.
You can contact Binance both by email or by instant messaging via the dedicated portal. Both services are available 24 hours a day. There is also a comprehensive FAQ and a beginner’s guide to getting started in the cryptocurrency world.
Advantages and Disadvantages of Binance
Like all services, in and out of the cryptocurrency world, Binance has its pros and cons. We have listed for you some of the strengths and areas for improvement.
- Secure and reliable platform
- Many integrated services that allow you to use the same site to make all potentially interesting transactions
- A large choice of crypto currencies
- Very low transaction fees
- High protection of user data and a lot of privacy in general
- Compatible with all recent devices and operating systems.
- No demo account
- Only one type of account available
- No phone support
- May not be suitable for beginners
- High fees and commissions on some transactions
Security on Binance
Used daily by millions of users, Binance has a trading volume of over $1 billion per day. The security level is very high. However, for security reasons, the site has not disclosed any information about how the funds are stored.
All we know is that almost all of the cryptocurrencies held by the Chinese giant are stored in inaccessible offline wallets, with backups protected in secure locations.
Binance also uses advanced security protocols to secure its platform and send alerts in case of a breach. Users also have the ability to protect their funds with Google Authenticator 2FA.
On June 3, 2018, the SAFU (Secure Asset Fund for Users) fund was also created, an emergency security fund into which Binance deposits 10% of all fees generated by the exchange to cover any customer losses in the event of an emergency. These funds are stored in a separate cold wallet.
Binance and piracy
It’s worth noting: since its inception, Binance has suffered several hacking attempts. Indeed, in March 2018, there was a major hacking attempt but it was unsuccessful because the site’s automated systems reacted in a timely manner. Malicious actors had used a phishing site to accumulate credentials and secretly install API access to targeted accounts.
But it didn’t work, as they were caught in the act and their funds were reportedly donated to charity. The incident boosted confidence in the site’s security system.
More recently, hackers managed to embezzle over 7,000 BTC. However, in response to the incident, the exchange said it would cover all user losses from its Secure Asset Fund for Users (SAFU) account. Despite the immediate response promising to cover user losses, the incident has damaged its credibility.
Binance, a regulated platform?
As far as its regulation is concerned, Binance is regulated in Malta under the recently enacted Virtual Financial Assets Act. However, this does not mean that the platform does not comply with its anti-money laundering obligations.
On the contrary, it requires all customers who plan to use fiat currencies to deposit and withdraw money to go through a KYC or Know Your Customer process. In addition, if you attempt to withdraw more than 2 BTC in a 24-hour period, you will also have to go through a verification process.
It should also be noted that Binance is in the process of seeking regulatory approval in the United States to launch a fully licensed exchange for US citizens. This means that it will need to ensure that its regulatory efforts are watertight if it wants to get the green light. All in all, from a regulatory standpoint, it’s still not a 100% reliable exchange.
Our Opinion on Binance Platforms
We can’t end this review without evaluating the different platforms offered by this broker.
The Binance Platform
Those visiting Binance for the first time will notice that the platform has two options for trading crypto-currencies, the basic and the advanced platform.
The main difference between the basic and the advanced version is that the advanced version offers a more in-depth technical analysis of the value of the digital currency over time. But even the basic version has different charts and tools regarding the pairs you are trading, the books and the trading history.
Binance Avis mobile application
The latest platform available for trading and managing your crypto is the BINANCE MOBILE trading app, available for Android and iOS devices. Simple, intuitive and comprehensive, it is the ideal tool to make day trading comfortable and fast.
Users will not have to compromise on functionality when using the app. Tap Funds and deposit the coins you want into your account. Once ready to trade, tap Markets and choose the coin you want to buy or sell.
The candlestick price chart and moving averages will be displayed as normal. Choose a time period and the HI and LO indicated by arrows. Switch to the detailed view to compare the level of buy and sell orders. Press Buy or Sell to place your order.
Conclusion: Our Opinion on Binance, the Verdict
Binance is among the most popular cryptocurrency exchanges of the moment. It has two comprehensive trading platforms for buying and selling digital currencies, equipped with useful indicators and a number of analysis tools. However, beginners might find it difficult to use at first. Using the broker’s software, however, seems to be more suitable for traders with prior knowledge of cryptocurrency markets.