Binance

If you’re into crypto, you’ve probably heard of Binance. Heck, you might even have an account there. World’s biggest crypto exchange by trading volume, Binance has quickly built its reputation since its inception in 2017. Does the crypto exchange lives up to the hype? This is your ultimate Binance guide.

Binance: Review

Founded in 2017 by the enigmatic Changpeng Zhao, better known as CZ on Twitter, Binance has become synonymous with the word “crypto exchange.” Nowadays the crypto exchange without headquarters (although officially based in Malta)  is often considered to be one of the largest platforms in terms of daily trading volume, operating with more than the next 12 crypto exchanges combined. Today, Binance offers more than 400 cryptocurrencies to its customers and a whole ecosystem of crypto services: from a start-up platform exclusively for entrepreneurs, to data-driven insights, a trusted wallet, blockchain software supported by the community, academies and even charities.

If you are thinking about joining Binance for your cryptocurrency investing needs, read our review first to help you get started. We’ve covered everything you need to know, such as how Binance works, how to open an account, what fees can you expect, which cryptocurrencies can you trade and other relevant aspects.

Binance history: From ICO to world leader

The year is 2017. Bitcoin is making headlines, ICOs are the new IPOs, and amidst this crypto craze, a new player enters the arena—Binance. With a resume that boasts stints at Blockchain.info and as a co-founder of OKCoin, CZ was no stranger to the crypto sphere. Binance started its journey with a $15 million ICO. While most companies spend their first year finding their footing, Binance hit the ground running. Within five months of its launch, it became the largest crypto exchange in the world by trading volume. How did they do it? A killer combo of low trading fees, a wide range of crypto assets, and a user-friendly interface. Soon, the introduction of Binance Coin (BNB) was a logical step forward, offering users discounted trading fees. Today, BNB is the 3rd largest crypto in the world by market cap (excluding the stablecoin USDT).

Fast forward to 2018, and Binance was already setting its sights beyond being a mere trading platform. Enter Binance Launchpad, the platform’s token launch service, which gave birth to several successful projects like BitTorrent Token (BTT) and Polygon (MATIC). Binance also dipped its toes into the decentralized exchange (DEX) waters with Binance DEX and launched its own blockchain, the long anticipated Binance Smart Chain (BSC).

Security breach in 2019

In May 2019, the crypto community was rocked by news of a security breach at Binance. Hackers managed to steal 7,000 BTC, worth around $40 million at the time. While this could have been a death knell, Binance solved the issue fast. With transparency and swift action, CZ took to social media to address the issue head-on. Binance used its Secure Asset Fund for Users (SAFU) to cover the losses, ensuring that no user funds were affected. The platform also undertook a comprehensive security overhaul to fortify its defenses.

The years 2020 and 2021 saw Binance in a complex dance with regulators. From moving its headquarters to Malta to facing scrutiny from various countries, Binance has been agile in navigating the regulatory landscape.

Historical milestones:

• 2017:

• Binance bursts onto the scene with a $15 million ICO and within just two months of its launch, it becomes one of the top 10 crypto exchanges by trading volume.

• 2018:

• Binance Launchpad is introduced, serving as a launching pad for new tokens and projects, and later on Binance announces the development of Binance Chain.

• 2019:
  • Binance faces a security breach, losing 7,000 BTC (40 million dollars at the time). The platform uses its Secure Asset Fund for Users (SAFU) to cover the losses and undertakes a security overhaul. In the same year, Binance Futures is launched.

• 2020:

• Binance moves its headquarters to Malta to better navigate the regulatory landscape.

• Binance Smart Chain is launched, offering a dual-chain architecture and becoming a hotbed for DeFi projects.

• Launched Binance Pay, a mobile payment app that allows users to make payments with cryptocurrencies.

• 2021:

• Binance enters the NFT space by launching its own NFT marketplace. Soon after, Binance Academy is introduced, offering educational content to help users understand the crypto landscape.

• Binance reportedly processed over $10 trillion in trading volume.

• 2022:

• During crypto bear market, Binance focuses on obtaining regulatory approvals and licenses in multiple jurisdictions.

• In March 2022, amidst the Russian invasion on Ukraine, Binance’s CEO refused to Russians from using the platform due to financial freedom.

• Binance acquired CoinMarketCap, a leading cryptocurrency data aggregator.

• 2023:

• Binance launched Binance Web3.0 staking, a platform that allows users to stake their cryptocurrencies to earn rewards.

• Binance became the first cryptocurrency exchange to be licensed in the United Arab Emirates.

How to create an account on Binance?

The registration process on Binance is user friendly and simple. If you want to have the full trading experience, you full also need to complete the Know-Your-Customer (KYC) verification, which we will also explain below. Here are the steps:

Step 1: Registration

Go to the Binance homepage and click »Register«, typically located in the top right corner. Binance offers two options for registration: using your email address or your mobile number. Choose the one that suits you best. If you’re going for email, make sure it’s secure and not shared with anyone else. For mobile users, ensure you have your phone handy for the next steps.

Step 2: Set your password and enter verification code

Set a strong password: Use uppercase, lowercase, numbers, and symbols. The stronger, the better. Binance will often show a password strength meter to guide you.  Once you’ve entered your email or mobile number and chosen a password, Binance will send you a verification code. If you’ve used your email, check your inbox (and maybe the spam folder, just in case). Mobile users, keep an eye on those incoming messages. Enter the code on the Binance registration page to verify your authenticity.

Step 3: Enable two-factor authentication

To further secure your account, Binance will ask you to set up two-factor authentication (2FA), which means you will need to install an app like Google Authenticator on your phone. Then, every time you want to log in – or perform key account functions such as requesting a withdrawal – you’ll need to enter a unique code that can only be found on your phone.

Step 4: Solve CAPTCHA

Before finalizing your registration, you’ll be asked to slide a puzzle piece into a slot (it’s a fun little CAPTCHA). This ensures you’re not a robot and keeps automated bots at bay.

Step 5: That’s it

Congratz, you’ve successfully created a Binance account.

Does Binance require Know-your-customer (KYC) verification?

What is KYC verification?

First things first, KYC stands for “Know Your Customer.” It’s a verification process that financial institutions use to confirm the identity of their users. In the crypto world, KYC serves as a safeguard against illegal activities like money laundering and fraud. While the crypto ethos often champions anonymity, the reality is that regulatory pressures make KYC a necessary part of the game. So, if you’re planning to use Binance for anything more than just the most basic trades, you’ll need to complete KYC verification.

You might be wondering, “Why does Binance need to know who I am?” Well, as one of the largest crypto exchanges in the world, Binance has to comply with global anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. This means ensuring that the funds flowing through the platform are clean and legal. By verifying your identity, Binance can keep the bad actors at bay and provide a more secure trading environment for everyone.

KYC verification process

So, how do you go about completing KYC on Binance? Typically, you’ll need to provide:

• Photo ID: This could be a passport, driver’s license, or any other government-issued ID.

• Proof of Address: A utility bill or bank statement usually does the trick.

• Selfie: Sometimes, you’ll also need to take a live selfie to confirm that you are indeed the person on the ID.

How to trade on Binance?

Step 1: Fund your account

Before you can start trading, you’ll need some crypto in your Binance account. Head over to the »Wallet« section and choose »Fiat and Spot«. Here, you can deposit either fiat money or cryptocurrency. If you’re new to the game, you might want to start with a fiat deposit through bank transfer or credit card. For the crypto veterans, simply send your chosen cryptocurrency to the corresponding Binance wallet address.

Step 2: Select trading option

Once your account is funded, it’s time to hit the trading floor. Go to the “Trade” tab at the top and choose between “Basic,” “Advanced,” or “Classic” trading interfaces. If you’re new, “Basic” is your best bet. It offers a simplified layout while still providing all the essential tools you’ll need.

Step 3: Choose your trading pair

In the trading interface, you’ll see a search bar on the right where you can select the cryptocurrency pair you want to trade. For example, if you’ve deposited Bitcoin and want to buy Ethereum, you’d select the BTC/ETH trading pair.

Step 4: Place your order

Binance offers several types of orders, including “Market,” “Limit,” and “Stop-Limit” orders. Choose the type that best suits your trading strategy:

• Market order will buy or sell immediately at the current market price.
• Limit order will only execute at the price you set or better.
• Stop-limit orders become active only after a certain price is reached.

Step 5: Confirm and execute

Once you’ve inputted all the details, double-check to make sure everything is correct. Hit the “Buy” or “Sell” button to execute your trade. A confirmation message will pop up, and if all goes well, your order will be fulfilled.

Step 6: Monitor and manage

Congratulations, you’ve made your first trade. Now keep an eye on your open positions and be prepared to adjust your strategy as the market changes. Binance offers tools for setting stop-losses or taking profits at certain levels, so make use of them to manage your trades effectively.

The offerings

Spot trading – over 500 crypto pairs

This is the bread and butter of any crypto exchange. Binance offers a massive range of cryptocurrencies for spot trading—over 500 pairs. While the major “players” are of course supported – mainly Bitcoin, Ethereum, Bitcoin Cash, Litecoin and DOT, Binance also offers a wide selection of altcoins. The interface is user-friendly, offering both Basic and Advanced views to cater to traders of all experience levels.

Futures and options

If spot trading is too vanilla for you, Binance has got you covered with its Futures and Options markets. Here, you can trade contracts rather than actual cryptocurrencies, allowing you to profit from both rising and falling markets. But be warned: these are high-risk, high-reward products that are not for the faint-hearted.

• Leverage trading: The Szechuan sauce of crypto trading, leverage trading is adding that extra kick to your potential profits (or losses, so tread carefully). Binance allows you to leverage your trades up to a whopping 125x. This means you can multiply your exposure to price movements, but remember, with great power comes great responsibility. Leverage can amplify your gains, but it can also magnify your losses. So, use it wisely.

Binance Earn

Looking for a more passive approach to crypto? Enter Binance Earn, a financial product that allows you to earn interest on your crypto holdings. From staking to fixed deposits, Binance Earn offers a variety of options to grow your portfolio without lifting a finger. It’s like a savings account, but for crypto. You can use Binance Earn in 3 different ways:

• Savings: the safest way to earn money. Stake or lend your cryptocurrency and earn interest on it. You can withdraw the amount at any time.

• Locked staking: Stake your cryptocurrency holdings for a locked period. You can earn more interest than with the Savings option, but if you withdraw your money before the end of the locked period, you lose any interest earned. This is a great option if you don’t need immediate access to your coins and want to earn some juicy interest on them.

• Launchpool: When a new crypto token is released, you can join the launch pool and invest your current cryptocurrencies and earn interest in the form of new coins that will potentially be worth more in the future.

Binance Smart Chain (BSC)

For the DeFi enthusiasts, Binance Smart Chain is a game-changer. It offers a cheaper and faster alternative to Ethereum for building decentralized apps. With its dual-chain architecture, BSC offers the best of both worlds: the speed and low fees of a centralized platform, coupled with the flexibility and security of a decentralized network. From yield farming to NFT, BSC has become a hotbed for DeFi innovation, all while offering a user-friendly experience that even crypto newbies can navigate.

Launchpad

Next on our list is Binance Launchpad, the platform’s incubator for new crypto projects. Remember the days when ICOs were the Wild West of crypto? Well, Binance has tamed that frontier with Launchpad, offering a curated selection of promising projects for users to invest in. It’s a complete ecosystem that provides projects with the resources, guidance, and exposure they need to succeed. For investors, this means access to some of the most innovative and vetted projects in the crypto space. It’s like venture capitalism but without the suit and tie.

Binance Card

Binance Card is a product that’s bridging the gap between the crypto world and everyday spending. Imagine walking into a coffee shop and paying for your latte with Bitcoin. Sounds like a dream, right? Well, with the Binance Card, it’s a reality. This crypto debit card allows you to spend your digital assets just like you would with fiat currency. No need to convert your crypto to cash; the card does it for you in real-time. The Binance Card comes with a slew of perks that make it a must-have for any crypto enthusiast:

• cashback rewards in Binance Coin (BNB),
• zero transaction fees,
• ability to spend in over 60 million locations worldwide.

Plus, it’s all managed through the Binance app, giving you complete control over your spending, including real-time notifications and security features like card freezing. It’s pretty much like having a mini Binance exchange right in your pocket.

Binance NFT marketplace

If you’ve been living under a rock and haven’t heard of NFTs, or Non-Fungible Tokens, they’re unique digital assets verified using blockchain technology. From digital art to collectibles, NFTs have taken the world by storm, and Binance is right at the forefront with its own NFT marketplace.

Now you might ask yourself –  what sets Binance’s NFT platform apart? For starters, it offers one of the lowest transaction fees in the industry, making it accessible for both creators and collectors. But it’s not just about buying and selling; the Binance NFT Marketplace is a hub for artists and fans to connect, featuring exclusive collaborations and themed collections. Whether you’re an artist looking to mint your masterpiece or a collector on the hunt for the next big thing, Binance NFT might be your go-to destination.

Binance Coin (BNB) and its benefits

Binance Coin, commonly known as BNB, was launched in 2017 as part of Binance’s initial coin offering (ICO). Initially an ERC-20 token on the Ethereum blockchain, BNB later migrated to Binance’s own blockchain, Binance Chain. Fast forward to today, and BNB is more than just another cryptocurrency, it’s a cornerstone of the Binance ecosystem. BNB is like the Swiss Army knife in your crypto toolkit. It’s versatile, functional, and offers a plethora of use-cases. Let’s break down some of the key benefits:

• Trading fee discounts: Holding BNB in your Binance account gives you trading fee discounts. The more BNB you hold, the less you pay in fees. It’s like a loyalty program, but instead of earning points, you’re saving cold, hard crypto.

• Participate in token sales: Remember the days when you had to scour the internet for ICOs? Those days are long gone, thanks to Binance Launchpad. Well, holding BNB is your ticket to participate in these exclusive token sales. It’s like having VIP access to the hottest clubs in Crypto Town.

• Staking rewards: If you’re a fan of passive income, Binance has a treat for you. You can stake your BNB tokens to earn rewards. It’s like planting a money tree in your backyard, except it’s digital, and it doesn’t require watering.

• Binance Smart Chain (BSC): BNB is the native token of the Binance Smart Chain, which means you’ll need it for transaction fees if you’re interacting with BSC-based decentralized apps (dApps).

• Governance and voting: Being a BNB holder also gives you a voice in the Binance community. From time to time, Binance holds community votes on various topics, from listing new tokens to implementing features. Your BNB holdings give you voting power, making you an active participant in the ecosystem’s governance.

Is BNB a good investment?

BNB has settled its place among top 4 crypto in the world by market cap. After its ICO price of around $0.10, BNB spent much of its early life hovering below the $10 mark. But fast forward to 2021, and we saw it skyrocket to an all-time high of over $600. That’s a hefty increase that would make even Bitcoin blush. But it’s not just about the numbers, it’s about the consistency. BNB has consistently ranked among the top 10 cryptocurrencies by market cap, and its price resilience during market downturns has been commendable.

While we can’t offer financial advice, what we can say is that BNB’s historical price performance and expanding utility make it a token worth watching. If you’re considering adding BNB to your portfolio, make sure to do your own research.

Fees

Fees are one of the most important factors we look at when choosing the right crypto exchange for us. And it’s safu (pun intened) to say that Binance offers a very competitive fee structure for everyone. Let’s dive in.

Trading fees

Binance operates on a tiered fee schedule based on your 30-day trading volume. For the average Joe who’s trading less than 50 BTC in a month, the maker fee is 0.1%, and the taker fee is also 0.1%. But here’s where it gets interesting. The more you trade, the less you pay. High-volume traders can see their fees drop as low as 0.02% for maker and 0.04% for taker. A pretty good incentive to trade.

Fees with BNB

If you’re looking to cut down those fees even further, then Binance Coin (BNB) is your best friend. By holding BNB in your account, you can opt to pay fees with it, slashing the standard trading fees by 25%. And let’s be honest, in the fast-paced world of crypto trading, every little bit counts.

Withdrawal fees

So you’ve made your trades and are ready to pull out some of that hard-earned crypto. What’s it going to cost you? Well, withdrawal fees on Binance vary by cryptocurrency. For Bitcoin, the withdrawal fee is 0.0005 BTC, which is relatively competitive compared to other exchanges. For Ethereum, it’s 0.01 ETH. The key takeaway? Always check the withdrawal fees for your specific asset; you don’t want any nasty surprises.

For those who like to dabble in futures and options, Binance has a separate fee structure. Futures trading fees range from 0.02% for makers and 0.04% for takers, while options come with a flat fee based on the option’s premium. Again, high-volume traders get the benefit of reduced fees, so the more you trade, the more you save.

Mobile App

The Binance Mobile App is a quite a masterpiece of design, balancing both aesthetic appeal and functional efficiency. Whether you’re a seasoned trader accustomed to candlestick charts or a newbie just looking to buy your first Bitcoin, the app has a mode for you. The ‘Lite’ mode offers a simplified trading experience, while the ‘Pro’ mode gives you all the analytical tools you’d expect on a desktop trading platform. And for those who love trading in the dark (literally), there’s a dark mode that’s easy on the eyes. Binance Mobile App also boasts with extensive range of features.

While the app is a marvel of modern technology, it’s not without its quirks. During high-traffic events, some users have reported lag and minor glitches. Additionally, the app’s rich feature set could be a double-edged sword; it might overwhelm newcomers who are just dipping their toes into the crypto waters.

Customer support

Customer support is crucial. In a space as volatile and complex as crypto, having a reliable support system is not just a luxury, it’s a necessity. Binance offers a plethora of customer support channels, aiming to cater to the diverse needs of its global user base. From a comprehensive FAQ section to 24/7 live chat support, Binance has got you covered. But here’s the catch: While their live chat feature promises quick responses, the reality can vary, especially during peak trading hours or high-volatility events. Support tickets, on the other hand, can take anywhere from a few hours to a couple of days to get resolved.

Security

The first question that pops on investot’s mind upon buying crypto is – is my investment safe? Binance employs a multi-layered security architecture, which includes everything from two-factor authentication (2FA) to cold storage for the majority of user funds. The platform also uses advanced AI algorithms to detect suspicious activity, providing an extra layer of security.

SAFU: Binance’s unique feature

One of the standout features of Binance’s security setup is the Secure Asset Fund for Users (SAFU). Initiated in 2018, SAFU acts as an insurance fund, setting aside 10% of all trading fees to cover potential losses from system flaws or breaches. In the event of a security incident, SAFU kicks in to reimburse users, making it a unique safety net in the crypto space. Well, as crypto enthusiasts, we can say kudos to Binance for this innovative approach.

While Binance’s security measures are robust, they’re not infallible. The platform suffered a significant security breach in May 2019, resulting in a loss of 7,000 BTC. However, it’s worth noting that Binance handled the situation with transparency and used the SAFU fund to cover the losses, ensuring that no user funds were affected. This incident serves as both a cautionary tale and a testament to the effectiveness of SAFU.

Conclusion

Here we hope we provided you with a comprehensive lowdown on Binance, the crypto behemoth that’s become a household name. From its robust trading features and extensive product offerings to its innovative security measures like SAFU, Binance has proven itself to be a force to be reckoned with in the crypto universe. But let’s not forget, even giants have their weak spots. Whether it’s the occasional hiccup in customer support or the complexities of navigating its myriad of features, Binance is not without its challenges. However, what sets it apart is its relentless drive for innovation and improvement. It’s a platform that listens to its users, continually evolves, and isn’t afraid to venture into uncharted territories—qualities that make it a frontrunner in the crypto race.

FAQ