Binance is one of the most popular crypto-to-crypto exchange platforms.
Though the platform is new, as it was recently released during the last crypto bull run of 2017, it has managed to outperform some of the market’s older exchanges.
This article will look at the various features that made Binance one of the most popular cryptocurrency trading platforms out there.
Pros
- High transactions per second: Binance is one of the few exchanges out there capable of handling up to 140K transactions per second.
- Security: Binance makes use of all the latest cryptographic methods to secure its platform. To further improve security at an account level, there are features such as 2 Factor Authentication (2FA). Additionally, login from unknown IP addresses is blocked by default. Thus, helping protect your account.
- Low fees: The low trading fees on Binance attracts numerous traders to the platform.
- Multilingual: Binance is an exchange that is based in China. Due to the multilingual support on the platform, every user, no matter what nationality, can easily grasp the interface.
Cons
- Trading bots: Trading bots flood the site’s order books with orders. Thus, it is more difficult for you to get the price you want for a particular cryptocurrency.
- Overwhelming platform: Binance can be hard to learn especially for people who are new to crypto transactions.
The Takeaway
Even if there are some disadvantages in using Binance, the pros still outweigh the cons. Binance has proven itself as a capable crypto exchange system despite high volume and traffic across the platform, and the problem with trading bots can be solved by adjustments in your account’s orders. Also, Binance can be easily mastered through continued use of the platform, and this means that hardships in using it can be overcome through practice and navigation on the site.
What Is Binance?
Before 2017, there were numerous crypto exchanges available in the market. However, they posed many problems for users. One of the most common issues these exchanges faced was that they couldn’t handle large numbers of transactions quickly. Additionally, the trading fees charged by these exchanges were comparatively higher than what we see now.
On July 14th, 2017, Binance was officially launched to the public, and it completely changed the game in the crypto space. The ease with which one can trade on this platform is what attracts most of the traders to the platform. This feature, combined with the large number of cryptocurrencies that it supports, makes it an impossible platform to skip.
However, what turned people’s heads was the high transaction rate that Binance had to offer the world. Binance was equipped with all the resources necessary to handle the massive volume that cryptocurrency entails. By January 2018, Binance quickly became the crypto exchange system with the highest trading volume.
Three years since it was initially launched, Binance has still held onto its crown. Many new features have also been added to the Binance exchange, making it more attractive to traders around the world. Let us now have a look at various services that Binance has to offer its users.
Binance Services
Binance is famous for its unique features, which every crypto trader or saver can enjoy. Let us take a look at some of them.
1. Crypto Exchange
The Binance crypto exchange platform was the very first service that Binance offered. On this platform, you can trade with over 500 different cryptocurrencies. This large number of options that Binance can cater to is another reason for its high popularity.
Just like any other cryptocurrency exchange, you will be able to execute trades on this site. Binance is known for the large volume trades made on its platform. So, expect the order books to vary constantly.
The main advantage of trading on Binance is the high liquidity that it offers on all crypto assets. Due to its large user base, you will be able to find numerous traders who will satisfy your order quickly.
The trading fee charged by Binance is as low as 0.02%. It depends on the volume of trades that you make on the platform. The higher the volume, the lower the fee.
2. Buy Cryptocurrency
When Binance was initially launched, it was a complete crypto-to-crypto exchange. This means that there was no facility for a user to buy crypto using fiat currency on the platform.
Traders used to buy Bitcoin or another crypto from a different exchange and then transfer it onto Binance to be able to trade. This has now been changed when Binance allowed users to purchase cryptocurrency using their respective fiat currencies.
The different ways in which you can purchase crypto using fiat is by using a Single Euro Payments Area (SEPA) bank transfer or with your credit/debit card. While Binance has added the feature to buy cryptocurrency using fiat, it still lacks the feature of being able to withdraw money directly into your bank account.
3. Margin Trading
Leveraged trading is prevalent in the crypto world. With it, you can trade with more assets than what you own. By trading on leverage, you will be able to earn a higher return if you make the right order.
On Binance, you can leverage up to 125x. This means that all profits you make on the margin trading platform can also be multiplied by 125x. With leverage trading, the profits, as well as the losses, are multiplied by the leverage that you take. So, you need to be extremely careful while trading on leverage.
4. Binance Futures
Speculating the price of Bitcoin and other altcoins like Bitcoin Cash, Ripple and Ethereum can also earn you money on the Binance platform. On Binance Futures, Tether (USDT), a cryptocurrency with a value meant to mirror the value of the US dollar.), is used as collateral.
Your Binance Futures account is completely separated from the trading platform. With USDT as the main focus, traders can earn more by learning about market trends. At the end of the contract, you will receive the final settlement based on the correctness of your prediction. The settlements, once again, are done in the form of USDT.
5. Savings
This is one of the newer features added to the Binance ecosystem. Using the savings feature, you will be able to earn a small interest percentage on all cryptocurrencies that you hold.
You can think of the savings feature on Binance as your traditional bank account. You receive interest for the funds you hold, but the best part is that you will also receive gains in non-staking cryptocurrencies. So, if you hold some Bitcoin or Ethereum on your account, then move them over to the savings service on Binance to earn a small interest as time passes by.
6. Liquid Swap
In 2020, the success of the Uniswap protocol cannot be denied. Uniswap is a decentralized protocol that provides liquidity for Ethereum Request for Comment 20 (ERC 20) tokens on the Ethereum blockchain. Binance has its replica of Uniswap called the BSwap. This offers instant liquidity to some crypto assets.
Currently, you can only swap USDT, Binance US Dollar (BUSD), and Dai (Dai is a stable coin that mirrors the value of US dollar) stable coins on the BSwap platform. However, we can expect more cryptocurrencies to be added in the future.
Liquid swap also allows you to earn some passive income. By providing liquidity to the pool, you will be able to earn from the fees that other users pay.
Binance Account Limits
Another great thing about Binance is that you don’t need to worry about your Know Your Customer (KYC) when you initially hop onto this platform. The basic account can be created with just your email ID. Using this basic account, you can withdraw up to 2 Bitcoins (BTC) every 24 hours.
By providing your KYC documents, you can attain a level 2 account with a withdrawal limit of 100BTC every 24 hours.
All the services offered by Binance are accessible when you have a level 1 account. However, to access the Binance futures service, you need to complete the KYC of your account.
Fees
The trading fees charged by Binance is one of the lowest in the market. The fees are decided based on the monthly trade volume on your account.
Based on this trading volume, your account can be classified from VIP0 to VIP9.
The trading fees levied on a VIP9 account is as low as 0.02%. Account-holders who have a trading volume of over 150,000 BTC and hold 11,000 Binance Coins (a cryptocurrency created by Binance back in 2017 ) tokens fall into this category.
An account holder with VIP0 accounts would need to cough up 0.1% trading fees for being both the maker or the taker of the market.
Users can further reduce the low fee by opting to pay using the BNB tokens. As Binance’s local token, charges in payments using BNBs are slightly lower than other cryptocurrencies.
For a futures account holder, the fees levied can go as low as 0% for a VIP9 account and as high as 0.02% for a VIP0 account.
Payment Methods
With the Buy Cryptocurrency service, you can now purchase cryptocurrencies directly on Binance using your traditional payment methods. The payment methods supported by Binance varies from place to place.
A user in the USA or India has the option of paying using credit/debit cards. However, as the cryptocurrency is bought in terms of the local currency, you need not have to cough up any additional currency conversion charges.
While debit/credit card payments are the most convenient ways to pay for your cryptocurrency, a few users prefer using their bank accounts instead.
Luckily for European users, Binance allows you to use direct bank transfer using SEPA to buy cryptocurrency on the platform.
Customer Service
Binance has a very detailed FAQ section containing answers to most of the problems you might face on the platform. If you do end up in a situation where the answer isn’t available in the FAQ section, then you can contact their customer care.
Like most of the other high profile cryptocurrency exchanges out there, Binance uses email support as its primary form of customer support. The only problem with internet support is that you cannot expect an instant resolution to your issues. While the platform promises a reply within 48 hours, I usually have received responses under 2 hours.
Apart from this, the website also flaunts a chat feature. However, this would most likely be a bot replying with automated messages. If scanning through the FAQ section seems too tiring, you can use their chatbot, which would point to the right FAQ answer you are looking for.
Binance is one of the most stable crypto exchanges that I have used. The only time I had to contact customer care was when my funds took too long to reflect in my account. However, there have been numerous reports of Binance having a faulty 2FA verification system. I have 2FA enabled using Google Authenticator. I have not faced any issues with it so far.
Frequently Asked Questions About Binance
Registering through email is a very straightforward process in Binance. First, you need to click on the website’s register button on the right side. Next, you will be prompted to enter your email address and desired password for your account. Note that it has to contain eight characters with one UPPER CASE letter and one number.
Identity verification is done through logging into your Binance account and clicking User Center > Identification. Once you click “Verify,” a personal information form containing your birthday, name, and address will need to be filled up with the correct data. Once done, click on “Advanced Verification” to enable the system to confirm your identity through any personal IDs that you have.
To deposit cryptocurrencies, you need to copy and paste the deposit address on your wallet. You can change desired networks such as USDT, OMNI, and ERC20 in the window. Then, you need to paste the withdraw address so that the platform knows where your money will be sent. Bear in mind that a transaction takes a few minutes to complete since confirmations are necessary.
Verdict
Binance is an exchange designed for the new age of crypto space. This is one of the very few exchanges that are capable of handling such a high transaction rate. The low fees constantly added new features, and support for numerous cryptocurrencies just makes it simply irresistible.
The only downside of using Binance is that numerous trading bots mostly fill the order books. So, getting the price that you want for a particular cryptocurrency might not always be possible.
Despite this, the features and benefits of using Binance are very helpful for both new and veteran traders. This makes it a popular platform regardless of your experience in cryptocurrency. As time goes by, Binance will only continue to improve, and it will surely stay as one of the best exchanges available online.
Binance Reviews
Binance Review – January 30th, 2021
★★★★★
Binance is a very popular site. Thus, many people use it, and it has the reputation to prove its popularity. As the largest crypto exchange in the world, it has amazing features that help people like me in trading. The app is also great since it is available both on Android and iOS. This makes my wallet management quicker and better.
Review from Rand
Binance Review – December 22nd, 2020
★★★★★
Binance is capable of handling large amounts of traffic in their system. It doesn’t matter whether I’m trading at night or day; everything still runs smoothly. Furthermore, most major cryptocurrencies are supported by the site, and the user interface is efficient.
Review from Matthias
Binance Review – July 25th, 2020
★★★★★
Binance helped me to be an economically independent person. Once I learned about the features, I used them to my advantage, and I keep earning more and more crypto until now! Many banking agencies back the site, and thus, it does not matter which account I transfer funds into; every transaction is smooth and great.
Review from Peter
Binance Review – December 3rd, 2019
★★★★★
To summarize my experience with this platform, all I can say is that it is impressive. I used to believe that I will never be able to learn about wallet and crypto, but when Binance came into my life, I quickly grasped all I need to know.
Review from Quinn
Binance Review – April 27th, 2019
★★★★
What I like most about this platform is its versatility. I never had this freedom in choosing and trading before! Also, the page design is top-notch. It doesn’t matter how long I use the site; it doesn’t strain my eyes.
Review from Harry
Binance Review – February 17th, 2019
★★★
Yes, the site has smooth withdrawal and fast customer service. However, there are some areas of improvement, such as the bugs in the login window and problems in identification. If these were to be solved, it would be a perfect platform.
Review from Martha
Binance Review – January 2nd, 2019
★★
This might be a personal preference, but I like other site’s user interface better. I wish that the overall design would be darker. Also, more buttons should be added so that users can see changes in the market easily. Other than that, transactions are fast and reliable.
Review from James
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