Binance is a crypto trading platform that offers one of the most competitive rates around. Whether you’re a beginner or a seasoned trader looking to trade crypto, this is probably the easiest and cheapest way to go. In this article, we will do the full Binance exchange review 2022 for you.
The platform accepts users from around the world and has received favorable reviews from the crypto community. Recently the exchange has also partnered with 3rd party companies such as Simplex to allow credit card and wire transfer purchases of cryptocurrencies at a premium. Finally, US users can trade on Binance-US which is compatible with US trade regulations.
Binance is a Hong Kong-based cryptocurrency exchange launched by developer Changpeng Zhao (aka CZ) in July 2017. Zhao’s company Beijie Technology created the exchange after a successful ICO that raised $15 million.
Investors who invested in the ICO got in return which can be used to trade cryptocurrencies and pay for fees on Binance. BNB’s initial value was around $0.1, and as Binance got more and more popular the coin appreciated at price.
Beijie Technology and its founder maintain an impressive track record within the industry. Zhao’s CV includes high-profile positions, such as technical director at Blockchain.com, and his company now provides trading systems for over 30 other platforms.
Following struggles with the Chinese government’s views on cryptocurrencies, Binance now runs its servers from more lenient states, providing it with the freedom to run a competitive exchange service:
In response to China’s decisions, we are moving our IPs from Hong Kong to an offshore location. So we are registered in multiple locations and we have people in multiple locations. That way we will never be affected by one regulatory body,” explained Zhao.
The trading exchange has been experiencing astounding success since its summer launch, and it now sits around the top ten in terms of 24-hour trading volumes on Coinmarketcap.
Pros and Cons of Binance.US
- Low fees compared to other exchanges
- 25% trading fee discount if you pay fees using Binance Coin (BNB)
- Not available in all states
- $10 minimum trade
- Site can be difficult to use
- Lack of information on security
- U.S. partner of Binance, which has a history of regulatory scrutiny
Cryptocurrencies Available on Binance.US
You can buy and sell over 50 cryptocurrencies on Binance.US, including:
- Bitcoin (BTC)
- Ethereum (ETH)
- PAX Gold (PAXG)
- Harmony (ONE)
- Orchid (OXT)
- Helium (HNT)
- Chainlink (LINK)
- Cardano (ADA)
- Stellar (XLM)
- Tether (USDT)
Binance.US also offers a large number of trading pairs. This includes options to trade two cryptocurrencies without the need to cash out one for USD, as well as options to trade between crypto and a fiat currency like USD. Different exchanges offer different trading pairs based on the cryptocurrencies they offer.
Cryptocurrencies offered: Binance.US offers the purchase and sale of more than 50 cryptocurrencies, including Bitcoin, Etherium, Bitcoin Cash, Litecoin, Chainlink, Dogecoin, and other popular digital currencies.
Fiat-to-Crypto Markets: If your preferred digital currency isn’t supported by the Instant Buy feature or you want to enter a manual trade to save on fees – Binance has you covered. First and foremost, the platform is home to plenty of fiat-to-crypto markets.
This means that you will be buying a digital asset that is priced in real currency – such as euros or pounds. In fact, there are multiple markets on the Binance exchange that are priced in GBP – so you don’t need to worry about FX rate fluctuations.
This includes everything from Ethereum, Bitcoin, and Dogecoin to Polkadot, Litecoin, and Chainlink. Binance also allows you to trade cryptocurrencies against the likes of Australian dollars and the Turkish lira.
Crypto-to-crypto trading: Binance.US currently offers more than 50 crypto-to-crypto tradings with Bitcoin and eight other digital currencies: Cardano (ADA), Bitcoin Cash (BCH), Binance Coin (BNB), Etherium (ETH), Chainlink (LINK), Litecoin (LTC), Uniswap (UNI), VeChain (VET) and Tezos (XTZ). Many other cryptocurrencies can be traded for stablecoins Tether and Binance USD, Binance’s own stable coin ($1 BUSD always equals $1 USD).
Peer-to-peer trading: Binance.US’s OTC portal allows trading directly between buyers and sellers. There are no transaction fees, but users are charged the spread between the buy and sell price. The minimum trade amount is the equivalent of $10,000.
Crypto wallet: Trust Wallet is the official wallet for Binance users, a free app to store cryptocurrency that is highly rated by Google Play and App Store users. Users, however, are welcome to use their own choice of crypto wallet.
Mobile app: In December 2020, Binance.US released an update of its mobile app to include live price tracking, the ability to automate recurring buys, and more customizable features. The mobile app mimics much of the same functionality as the desktop site.
Available in 43 U.S. states: Binance.US is available in all but these seven states: Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
Binance.US has an option to automatically buy and sell crypto using U.S. dollars, using a simple interface that’s similar to what you’ll find on Coinbase and other competitors. Each of these buys/sells transactions charges a 0.5% fee.
Deposit and Withdrawal Fees
Before you trade money for crypto, you’ll need to deposit — and when you sell, withdraw — U.S. dollars into and out of your Binance.US account. The fees for this are minimal, especially if you transfer from your bank account using ACH.
|METHOD||MINIMUM WITHDRAWAL||DEPOSIT FEE||WITHDRAWAL FEE|
|ACH (automated clearing house)||$1||$0||0|
|Wire transfer||$100||$0||$15 domestic, $35 international|
There are also individual withdrawal fees for moving your crypto holdings from your Binance.US account into your own crypto wallet. These fees vary based on the type of cryptocurrency.
The golden question that is yet to be covered in this review is whether or not Binance is safe. This is a somewhat challenging question to answer. On the one hand, Binance is home to a significant number of security controls that ensure you can buy, sell, and trade cryptocurrencies in a safe manner.
Cold Storage: Binance notes that the overwhelming majority of client cryptocurrency funds are stored in cold wallets. For those unaware, this means that the tokens are stored in wallets that are kept offline at all times – which makes a hacking attempt near-impossible.
2FA: Two-factor authentication is required whenever you attempt to log into your Binance account or you make a withdrawal. This means that Binance will send a code to your mobile phone – which will need to be entered to gain access to your account.
Email Confirmation: In addition to 2FA via your phone, you will also need to enter a code that is sent to your registered email address.
SAFU: The SAFU (Safe Asset Fund for Users) at Binance refers to an insurance pot that is funded through transaction fees. Put simply, the SAFU will be used in the event that Binance experiences a hack.
Device/IP Whitelisting: Any time that you attempt to login to your Binance account from a new device or IP address – you will need to go through an additional security step. This is usually in the form of an email confirmation.
As you can see from the above, Binance has several safety nets in place to help keep your investment funds secure. However – and perhaps most pertinently, Binance is not regulated in the UK. This should be a major red flag for you – as there is no reason why you should put your capital at risk by using an unlicensed exchange.
Binance vs. Other Exchanges
Since Binance provides only trading services I will compare its fee schedule to other reputable trading platforms.
Binance vs Coinbase (pro)
Coinbase Pro is Coinbase’s trading platform. It is one of the leading exchanges around in terms of reputation and adoption.
Aside from the limited availability of the platform worldwide (supports 103 countries), the platform charges a 0.25% trading fee which is 2.5 times what Binance charges.
You can read my full Coinbase review here.
Binance vs Bittrex
Bittrex is a US cryptocurrency exchange that has grown in popularity among crypto traders since launching its operations in December 2014. Its steady growth has made it one of the most preferred altcoin exchanges on the market.
Bittrex charges a flat 0.20% fee on all trades. This is 2 times more than what Binance charges. The exchange supplies a wide variety of altcoins (over 250) which is more than what Binance currently provides.
Binance vs Bitfinex
Bitfinex, one of the world’s biggest Bitcoin exchanges by volume, offers advanced trading options such as Bitcoin margin trading and is not suitable for newbies.
Bitfinex supports over 100 cryptocurrencies and tokens, less than Binance which supports over 200. You can read my Bitfinex review here.
Bitfinex works on a maker-taker fee schedule. Makers, people who add new orders to the exchange, have a 0.1% fee at max (similar to Binance). Takers, people who remove orders from the exchange, have a 0.2% fee at max (twice than Binance).
Fees are reduced once you start trading in higher volumes.
Binance vs Kraken
Kraken, headquartered in San Francisco, California, is one of the oldest cryptocurrency exchanges around. It operates across the United States (with the exception of New York due to the BitLicense) and Canada, as well as in the European Union and Japan.
The platform supports over 30 different cryptos (As opposed to Binance’s 200+). You can read my Kraken review here.
Like Bitfinex, Kraken also works on a maker-taker fee schedule. Makers have a max fee of 0.16% and takers have a max fee of 0.26%. In both cases, Binance wins with lower fees.
Frequently Asked Questions (FAQs)
Can I Withdraw Money from Binance?
You can withdraw cryptocurrencies from Binance. The option to withdraw fiat currencies from Binance is currently limited to AUD and RUB only (and not USD, EUR, etc.)
Can I Buy Bitcoins on Binance?
Yes. It’s possible to Buy Bitcoins on Binance with a credit card or with any supported cryptocurrency.
How Do You Buy Bitcoins on Binance?
- Sign up to Binance Deposit funds to your account
- Find the trading pair for Bitcoin and the deposited cryptocurrency
- Sell the deposited cryptocurrency for Bitcoin
- Withdraw the Bitcoins to your own wallet
Alternatively, you can just buy Bitcoin directly with your credit card.
Is Binance Safe?
Binance is considered a safe exchange that allows user account protection via the use of Two Factor Authentication (2fa).
On May 7, 2019, Binance experienced a major hack that resulted in 7000 Bitcoins being stolen from the exchange. However, Binance has stated that all losses will be covered by its emergency insurance fund (aka SAFU).
Is Binance Safe to Use? When we pull everything together and look at Binance objectively, the pros far outweigh the cons. This is more than can be said for some other competitors. The exchange’s low fees combined with the team’s proven knowledge of how to build a trading platform is enough to make it a major player. It’s no wonder that success followed the service during its opening months. Add to this the ability to offer a truly worldwide service away from the grip of the Chinese government, and there’s not much to stop Beiji Technology.
Having said that, Binance is constantly adding more options, with EUR and GBP trading pairs already available.
Have you had any experience with Binance? I’d love to hear it in the comment section below.