Last Updated on August 3, 2020 by harsh vasistha
In this new decade, the cryptocurrency industry has a variety of exchanges to choose from. Making a decision on which exchange or trading platform is best for your needs is quite a hassle for both the novice and experienced digital currency users.
Binance exchange is among the most popular exchanges out there in the market. The giant exchange was initially started in China but they had to move to due to clashes with authorities in China. Malta is a more crypto friendlier country and that is why Binance chose to settle there. However, it’s unclear whether Binance is regulated in Malta. The exchange is popular due to its crypto-to-crypto exchange product.
Moreover, Binance which officially launched back in 2017 has been increasing its scope for withdrawals and deposits through fiat integration. Actually, it is referred to as the largest cryptocurrency exchange platform by trading volume as users have access to over 540 crypto-to-crypto.
Indeed, if you are looking to join Binance to take your cryptocurrency investment to the next level, then I suggest you should read our in depth review of the giant crypto exchange. We have covered the very basic details you may be trying to find out from how it works, the crypto pairs that you can exchange, trading fees/limits, security of the platform, and customer support.
What is Binance
Binace exploded into the scene back in 2017. Binance refers to a third party exchange platform where users can buy, sell and even trade digital currencies such as Bitcoin, Ethereum, Litecoin, Ripple and hundreds more.The exchange was founded by Chinese national Changpeng ‘CZ’ Zhao who was recently named as the wealthiest man in the cryptocurrency industry in the latest edition of Hurun Global Rich List published on 26 February.
However, it has been unclear where the giant exchange is headquartered due to the latest denial by the Malta authorities who claimed that the exchange is not under its jurisdiction. Well, as CZ said, the time for headquarters is out-dated and we should move on. Binance has no specific headquarters and I’d be lying if I say the exchange is ‘headquartered’ in Malta.
Moving forward, in a time-frame of two years since it was launched, Binance has risen to become one of the top cryptocurrency exchange platforms in the world. In fact, the platform often facilitates over $2 billion worth of trades on a daily basis.
In addition, Binance is also famous for its dedication to help the needy. The platform runs several charitable projects though its Binance Charity Foundation initiative. This includes the firm’s latest campaign to help females who are suffering period poverty in Uganda.
Now lets see how Binance works.
How Binance Exchange Works
Well, when you visit Binance for the very first time, you will notice that the exchange provides two alternatives for cryptocurrency trading- basic and advanced. However, for a complete beginner, neither of the two options are easy to use. Nevertheless, anyone with experience in cryptocurrencies and an idea into how exchanges function, should be able to use the platform and explore its different services.
The key difference between the basic and the advanced platform is that in the advanced platform, Binance offers in depth analysis of digital currencies value over time.Currently, the basic platform offers a number of graphs and charts for the pairs that you are trading, order books and the trading history. This is the interface of the basic version.
The basic interface is nicely designed and well set with all the information crucial to a trader well provided. Prices are presented on the left, the graph at the center together with the buy and sell boxes. The trade history appears on the right so that a trader can quickly view the recent trade prices.
This is what the advanced version’s interface looks like.
The advanced version’s interface uses a dark theme and amplifies the size of the trading charts. The latest prices are displayed on the right while the buy and sell boxes are placed underneath.
The choice is yours to make; the basic or advanced? I suggest as a beginner you should use the basic one. Experienced traders can use whichever version.
To begin your Binance trading journey, one will have to sign up first.The registration process is quite easy and straightforward and you are not required to verify your account for level one which has a withdrawal limit of 2 BTC daily.
However, for level two you have to upload your ID and wait for verification. Level two has a daily limit of up to 100 BTC. Binance exchange offers higher limits but an account holder should contact them directly to arrange that.
Account verification time depends on how busy the support staff are. Due to this, those wishing to withdraw huge sums should plan ahead and ensure verification is complete before depositing and trading huge amounts on the Binance exchange platform.
After the account verification process iks over, users can go ahead and fund their account. One can choose from a variety of digital currencies but i’d suggest you pick one between BTCand ETH. After clicking the choosing your prefered cryptocurrency to fund the account, you can click the deposit button and you will be provided with a wallet address.
You can transfer funds to the given wallet address of your preferred digital currency to fund your account. The time frame for the funds to reflect in your account will depend on the currency chosen as it will rely on that currency’s blockchain. For example, transactions in Ethereum are faster than Bitcoin which may take a while.
Now with the account loaded funds, a user can start trading, exchanging and investing in the several currency pairs provided. Binance exchange platform supports all the major cryptocurrencies so there are a variety of options to choose from.
To get verified, a user should provide Binance with their full name, country, gender, a photo of passport/government-issued ID, and a selfie with the passport or ID.
How to Trade on Binance
If you have ever traded on any other exchange before, then cryptocurrency trading on Binace should be straightforward. Once your funds reflect on the platform, at the top right menu you can click on the éxchange’ button. There you will select your prefered version between basic and advanced. Let us use the basic version.
On the right side of the basic version’s interface, you can select a tab from BTC, ETH, BNB or USDT. This is basically what you will be trading in. Afterwards, you can choose the currency you want from the provided list.
After your desired currency has loaded, on the left hand side, there is a column that displays prices that people are willing to sell at in the top half in red and prices people are willing to buy at in green in the bottom half. The middle figure in green represents the last buy price.
Supported Digital Currencies
Binance exchange has received a lot of plaudits for its wide variety of cryptocurrencies supported. Traders can use multiple cryptocurrencies on Binance including Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, EOS, Dash, LiteCoin, NEO, GAS, Zcash, Dash, Ripple and hundreds more.
Additionally, Binance exchange also supports multiple tokens on its platform as part of its ICO listings. Traders can take advantage of these listings to make profits too.
The platform currently provides trading pairs in pairs of either BTC, BNB, ETH or USDT.
Binance ICO and its Native BNB Coin
Binance exchange firm issued its own native coin, the BNB Coin during its ICO. Binance users can use BNB coin to pay fees incurred and also it will be used in Binance’s decentralized exchange future plans where it will be among the key base currencies.
Purchasing a Binance coin is a good future investment as well as the exchange plans to buy back a portion of BNB coins every quarter using their profits and burn them. This action will decrease the supply of BNB coins and as a result, its value will increase benefiting the holders.
“Every quarter, we will use 20% of our profits to buy back BNB and destroy them, until we buy 50% of all the BNB (100MM) back. All buy-back transactions will be announced on the blockchain. We eventually will destroy 100MM BNB, leaving 100MM BNB remaining.”
Currently, Binance charges an average fee of 0.1% for each trade executed on the platform. Traders who wish to use the BNB coin to pay the fees are given a 50% discount on each trade which is excellent by Binance. These are the current charges on spot trading;
On the other hand, withdrawal fees depend on the cryptocurrency you are using. Binance exchange charges 0.0005 for BTC and 0.005 for ETH.withdarwal. The figure below shows the charges of different cryptocurrencies at the time of writing.
On transfers, the platform does not limit users on the amount of funds to deposit. However, the platform limits withdrawals depending on verification of the user. Unverified users are limited.
A verified level two user has a higher withdrawal limit which provides the user with more freedom while using the platform.
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Binance has somehow managed to win a high level of trust from users and the entire if not, the majority of the cryptocurrency community; despite operating for less than three years. The platform provides two-factor authentication which is very impressive. However, the platform offers a multi-tier and multi-tier system architecture.
Back in March 2018, hackers attempted to hack Binance but luckily the attack was caught by the automated systems. Fortunately, nobody lost their funds and the only losers were the hackers whose funds were donated to charity.
The attempted hack was made possible by users who entered their login and 2FA details into a fake website. Binance always wants you to make sure you are using the correct URL while trying to log in to avoid such an incident again. Users should bookmark the official Binance URL and avoid the links given on social media platforms. Following the hacking attempt, Binance responded swiftly and resolved the problem. This was highly praised by the crypto community.
A successful business should always have the best customer support in place. The Binance support staff are responsive and always try to support traders who are in need. Users in need submit a support ticket through the Binance website and their queries are responded to through email.
Moreover, the platform has provided an extensive list of FAQs; which are meant to help users navigate through the platform without hassles. However, there is no live chat support nor a phone number where users can get in touch with the support staff.
I would recommend Binance to do some work on their customer support though. They are quite slow in responding to queries. Users can provide sufficient information to the support staff to ensure that they are sorted fast.
Payment Methods Accepted
Binance exchange used to be a cryptocurrency only platform but currently they are accepting fiat deposits. Deposits can be done using crypto,credit/debit cards and swift transfers.
It is easy for everyone to see why Binance is one of the largest cryptocurrency exchanges on the planet. There are quite a number of reasons why you should choose Binance. Here are quite a few reasons:
- Binance’s matching engine has the ability to process approximately 1.4 million orders per second. This makes it among the fastest exchanges in the market.
- The exchange works on all forms of devices such as web, android, apple, WeChat, HTML5.
- It is available in multiple languages including English, mandarin, Korean and Japanese.
- Super low trading fees.
- Hundreds of cryptocurrency pairs to choose from.
- The most important, enhanced security measures to ensure security of users’ holdings.
The only disadvantage of using the Binance exchange has to be slow customer support. I believe they are working on this. Binance right now is highly recommendable to anyone who wishes to trade cryptocurrencies. It is among the best exchanges in the world.