Because there are so many options in the digital currency exchange industry right now, finding the correct exchange or trading platform can be a problem for both new and experienced cryptocurrency users.
Binance is a popular cryptocurrency exchange that began in China before relocating to the crypto-friendly island of Malta in the European Union. Binance is well-known for its cryptocurrency-to-cryptocurrency exchange services.
Binance burst onto the scene during the 2017 crypto craze and has since risen to become the world’s most popular cryptocurrency exchange.
We’ll try to cover all you need to know about Binance in this review, including how it operates, the crypto pairs you can exchange, trading fees/limits, security concerns, and customer support.
- 1 How Binance works
- 2 Binance Signup & Login
- 3 How Trading on Binance works
- 4 Binance Cryptocurrencies
- 5 Binance ICO & Binance (BNB) Coin
- 6 Binance Fees & Limits
- 7 Is Binance Safe and Regulated?
- 8 Binance Customer Support
- 9 Binance move to Malta
- 10 The Launch of the Decentralized Exchange
- 11 The Launch of the Decentralized Stock Exchange
- 12 Launch of Binance Jersey – Now Supporting Fiat to Crypto
- 13 Binance Supported Countries:
- 14 Buying Bitcoin with Australian Dollars
- 15 Binance KYC Verification
- 16 Payment via Debit or Credit Card
- 17 Binance Launchpad and Initial Coin Offerings (ICO)
- 18 How Token Offerings work on Binance Launchpad
- 19 The Lottery System
- 20 Binance Hack
- 21 Conclusion
How Binance works
Those who visit Binance for the first time will note that there are two types of digital currency trading possibilities available: basic and sophisticated.
For total beginners, neither the basic nor the advanced versions are likely to be straightforward to use. Anyone with some experience with digital currencies and a basic understanding of how exchanges work should be able to use the platform and its various features.
The key difference between the basic and advanced versions is that the advanced version includes a more detailed technical study of the value of digital currencies over time.
The basic version’s dashboard now includes many graphs and charts for the pairs you’re trading, as well as order books and transaction history.
This is how the basic view appears:
The Basic view is professionally designed and laid out, with all of the information you need plainly shown on the left, graphs in the center, buy and sell boxes, and trading history on the right so you can easily check what the most recent transaction prices were.
And here’s how the advanced view appears:
The advanced view has a dark style and makes the trading charts larger, with the most recent transaction prices on the right and the buy and sell boxes underneath.
It’s truly a question of personal opinion, but I prefer the lighter-colored basic view since I find the layout to be a little easier to use.
Binance Signup & Login
Users must first establish an account in order to utilize the exchange. The procedure is quite straightforward, and you do not need to validate your account for level 1, which has a daily withdrawal limit of 2BTC.
You must upload a photo ID and wait for approval for level 2, which allows you to deposit up to 100BTC every day. There are still greater restrictions, but you’ll have to contact them directly to make those arrangements.
Verification times will vary depending on how busy the site support staff is, so plan ahead if you want to withdraw greater amounts and double-check that this stage is completed before depositing and trading large quantities on the exchange.
To fund your account, go to “Funds” > “Deposits / Withdrawals” at the top of the page, pick the currency you want to send, and then click the “Deposit” button next to it to get the wallet address.
You can then send your cash to this address to begin trading on the site; however, depending on the currency you deposit, it will take varied amounts of time for your funds to appear, as this is dependent on the blockchain of that currency.
Some currencies, such as Ethereum, are faster than Bitcoin, which takes a long time to process.
You can immediately begin trading, swapping, and investing in numerous digital currency pairs now that your account has been funded. Binance provides a wide range of options, since it not only supports all major digital currencies, but also several ICO listings and tokens.
The platform can only be used to generate limit and market orders at this time. This has been viewed as a negative by some, as many people expected more advanced trading choices.
Simply wait for your order to be fulfilled according to the terms that have been established after placing it.
How Trading on Binance works
If you’ve used any other cryptocurrency exchange before, trading on Binance is fairly simple.
To get started, make sure you have some money in your account — there are trading pairings available in BTC, ETH, BNB, and USDT.
To access the trading screen, go to the top right menu and pick “Exchange” > “Basic” or “Advanced.” The Basic view will be used.
Select a tab from BTC, ETH, BNB, or USDT on the right hand side of the screen. This is the currency you will be trading in. Then select your preferred currency from the drop-down menu. You can also use this page to search for currencies and create a favorites list by clicking the star next to any of them.
Take note of the left-hand column, which shows prices that people are willing to sell at in the top half in red and prices that people are willing to purchase at in the bottom half in green, once your selected currency has loaded. The final sale price is shown by the number in the middle.
To place a buy order, go to the middle box beneath the graphs and look for the green buy box on the right.
You can manually input a price you want to pay, but clicking a number in the left-hand column is a preferable option.
You can then either type in the amount of currency you want to buy or click the 25%, 50%, 75%, or 100% buttons, which will fill it with an amount dependent on how much of the buying currency you have (in this case BTC).
When you place an order, it will appear in the “Open Orders” area until it is filled.
Your new currency will then appear under the “Deposits / Withdrawals” tab, where you can withdraw it to your preferred wallet.
Binance is well-known for its large selection of support coins. Traders can use the platform to trade a variety of digital currencies, such as Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, EOS, Dash, LiteCoin, NEO, GAS, Zcash, Dash, Ripple, and others.
Binance also offers a variety of tokens as part of its ICO listings, as previously noted. With this in mind, traders can earn from trading these tokens on the platform.
Binance is now very quick to add new cryptocurrencies and tokens after their initial coin offerings (ICO), which means you can buy them for a low price and profit later on.
They presently support BTC, BNB, ETH, and USDT trading pairs.
Binance ICO & Binance (BNB) Coin
The Binance Coin, which was issued during their own ICO, is also worth noting. The Binance currency can be used to pay fees, and it will also be one of the primary basic currencies in their future aspirations to construct a Decentralized Exchange.
Purchasing the Binance currency appears to be a good long-term investment because the exchange aims to use its revenues to buy back a percentage of the coins every quarter and destroy them, reducing the supply and increasing the value for 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.
Binance Fees & Limits
Binance charges an average fee of 0.1 percent on each trade made by a user at the time of writing. Those who pay using the Binance token will receive a 50% discount on the trading charge, which is fantastic news. These are undoubtedly some of the most affordable rates currently offered.
Withdrawal fees vary depending on the digital currency. For Bitcoin withdrawals, for example, 0.0005 is charged, while ETH withdrawals are taxed 0.005. To give you a sense of the fees you’ll be charged for withdrawals, consider the following examples:
There is no restriction to the number of coins you can deposit when it comes to transfer limits. However, users can only withdraw a certain amount of money until they are validated.
After verification, you will be classified as a level two user, which will remove these restrictions and give you a lot more freedom when using the platform.
Users must give Binance with their entire name, country, gender, a photo of their passport/government-issued ID, and even a selfie with their passport as part of the verification procedure.
Is Binance Safe and Regulated?
Despite the fact that Binance is one of the newest cryptocurrency exchanges on the market, it has quickly earned the trust of its consumers and the digital currency community.
However, the exchange does not provide enough information to consumers about how their monies are protected, despite our desire to think that security is a priority. It is possible to use two-factor authentication, which is always a welcome sight. The platform does, however, have a multi-tier and multi-tier system design.
In 2018, Binance suffered a hacking attempt.
The hackers attempted an audacious manoeuvre, which was fortunately detected by the exchange’s automatic systems. The hackers had been collecting people’s logins via a phishing website for months and quietly putting API access on the accounts.
They then struck, converting all of the victims’ altcoins to BTC and acquiring Viacoin, pushing the coin to an all-time high, then selling their own supply of Viacoin at the peak before attempting to withdraw the BTC to their own wallets. Fortunately, no cash were lost as a result of the breach, and the only persons who lost money were the hackers, whose funds will be donated to charity.
Because this attack was made possible by people entering their Binance logins and 2FA credentials into a phony website, you should always double-check that you’re on the right Binance url before logging in. We urge that you bookmark the site and only use it from there; do not click links in emails, Twitter, Telegram, or other places.
This incident has done a lot to boost Binance’s confidence; not only did their automatic systems detect the attempted breach before any assets were lost, but they’ve also given a $250,000 reward to anyone who can help them capture the perpetrators. Binance handled admirably throughout the situation and has been praised for their quick response.
Binance Customer Support
A great customer support team, capable of resolving all user inquiries and requests in a timely manner, is required for an exchange to be successful. While Binance’s help section may need some improvement, the team is responsive and capable of providing professional assistance to traders in need. Support tickets are submitted through the website’s online form, and responses are sent via email. There is presently no live chat support available, nor is there a phone number where clients can contact the customer service team.
Aside from the customer service team, Binance provides a number of FAQs and articles to help users become familiar with the exchange and how it operates.
It should be noted that Binance’s customer service has a reputation for being slow to reply to consumer queries. This is a common occurrence with most major exchanges, and it is caused by the sheer number of users and support employees.
This year, the stock exchanges have developed at a breakneck pace, and the corporations have been unable to keep up with demand. Binance expanded quickly, jumping from debut to the world’s largest exchange in just a few months.
Due to the technicality and security needs involved, support workers for exchanges must be rigorously vetted and trained – unlike other typical organizations, where staff can be educated more quickly.
Double-checking wallet addresses to ensure you’re transferring the proper coin to the correct address on the site are some things to keep in mind. One of the most common blunders consumers make when utilizing exchanges is misplacing their wallets.
Also, if you want to transfer significant funds, do a modest test payment first – it may cost you a bit more in costs, but it will be worth it for piece of mind.
If you do need to contact support, be sure to provide them enough information so that they can assist you right away. Include wallet addresses, transaction times, and any other details you think they’ll need to expedite the process.
Binance move to Malta
Binance was trading in Japan without obeying legal procedures, according to the Nikkei newspaper in March 2018. This created considerable market instability until Binance announced that they would be relocating their operations to the crypto-friendly island of Malta in Europe, stating:
After reviewing several different locations, the company decided to invest in the European nation due to its existing pro-blockchain legislation and the stability that it offers financial technology companies through its regulatory framework.
This is excellent news for the organization, and they even received a kind greeting on Twitter from Malta’s Prime Minister.
Binance also revealed that they are in talks with Maltese banks to provide Fiat transactions, implying that they will be able to offer a fiat to crypto on-ramp in the future, as well as fiat trading pairs on the exchange.
More excellent news for Binance, whose profile and reputation in the sector appears to be growing.
The Launch of the Decentralized Exchange
Binance’s most recent news, which appears to be good news for BNB holders, is that they are going to build their own Decentralized Exchange (DEX):
We believe that major improvements may be made in providing Binance customers with a level of trading experience to which they are already accustomed, based on our comprehensive research into decentralized exchange frameworks and analysis of previous implementations. In the foreseeable future, centralized and decentralized exchanges will coexist, complimenting one another while still being interdependent.
The BNB digital asset, which is now an ERC-20 token, will become the network’s native token and will be used to pay trading fees on the new exchange.
The Launch of the Decentralized Stock Exchange
They want to construct a regulated and decentralized global stock exchange for listing and trading tokenized securities and crypto-assets alongside the Malta Stock Exchange.
According to CapLinked, the market cap of equity tokens alone is expected to reach $1 trillion by 2020, and Neufund will become the first end-to-end primary issuance platform for security tokens, specifically equity tokens, thanks to its partnership with MSX, a subsidiary of the Malta Stock Exchange, and Binance. It will safeguard secondary trading of equity tokens and allow enterprises all over the world to legally fundraise on the Blockchain while providing much-needed liquidity.
This is additional good news for Binance, who are attempting to cement their position as the world’s leading cryptocurrency exchange.
Launch of Binance Jersey – Now Supporting Fiat to Crypto
The trading platform is up and running, and it allows you to trade in fiat currencies like euros and pound sterling, with Europe as their primary target market.
At the time of writing they are only offering four trading pairs with more to follow soon:
- BTC / EUR
- BTC / GBP
- ETH / EUR
- ETH / GBP
Binance Supported Countries:
Customers who intend to trade in the support fiat currencies must complete our KYC requirements, which include submitting their identification documents such as their passport and driver’s license.
Binance’s CFO, Wei Zhou, issued the following comment regarding the launch:
Expanding cryptocurrency exchange markets with fiat currencies in the European region provides new economic prospects for Europeans, as well as relief from the coming Brexit uncertainty, which is also threatening the pound and euro. As part of our global expansion to enable broader cryptocurrency usage, Binance Jersey aims to help bridge the crypto-fiat channel for Europe and the United Kingdom.
If you’re used to trading on Binance, you’ll feel right at home on their new exchange, which uses the same engine and has the same trading screen layout, with the option to switch between Basic and Advanced views.
To fund your account in fiat, you must first complete the KYC process; after that, you can link your bank account from the Deposits screen and deposit funds directly from there.
You can also use BTC or Ethereum to fund your account. You may withdraw monies in fiat currency once your account is set up and your bank account is linked — this is wonderful news because Binance is now able to offer a mechanism for investors to pay out their cryptocurrency.
We’ve upgraded our review scores below because we believe this is a significant improvement to Binance’s Exchange offering; if they can expand it to even more countries (the United States is currently excluded), it could be a game changer, as people will now have an additional, regulated fiat on and off ramp for their holdings.
Buying Bitcoin with Australian Dollars
Binance Lite Australia, the continent’s first fiat gateway to the world of cryptocurrencies, was launched on March 20, 2019, and provides a secure, dependable, and simple option to buy Bitcoin with cash in Australia.
The cash-to-Bitcoin brokerage business is available through a network of over 1,000 newsagents across Australia, and it currently allows anybody to buy Bitcoin using Australian Dollars (AUD), with ambitions to expand to other digital currencies and fiat purchasing alternatives in the future.
Users must first complete account verification on Binance Lite, after which they can submit online orders and deposit cash at their local newsstand in order to receive their pre-ordered Bitcoin.
InvestbyBit, an independently operated subsidiary of the Binance.com bitcoin exchange, runs the Binance Lite brokerage service. The program seeks to make buying cryptocurrencies easier and make digital assets like Bitcoin more accessible across Australia.
Fees As an initial rate, each purchase will be charged a 2.5 percent transaction cost (with a 50% discount applied) plus GST on the transaction fee. As a result, the transaction charge for a $50 order will be $1.22, and the GST will be 10% of the transaction fee, or $0.12.
Limits Because the system is still in beta, the minimum buy amount has been reduced to $30, and the maximum purchase amount has been set at $1000. These restrictions may change over time, and only orders in multiples of $10, such as $50, $60, and $70, are accepted.
Binance KYC Verification
Customers who are making their first purchase must complete a one-time Know Your Customer (KYC) document verification. When utilizing the service, you must follow the prompts after the order page and complete the verification process.
In addition to your residential address, you must supply 1 or 2 types of government-issued ID documents, such as a passport, driver’s license, or Medicare card, to complete the verification procedure. After placing a new order, returning clients who have already completed KYC verification will be directed to the order summary page.
Each account is tied to a phone number, and users should use the phone number provided while completing the verification process for the first time. Anyone who wants to use a new phone number will have to go through the ID verification process all over again.
Payment via Debit or Credit Card
Through a cooperation with Simplex, Binance now allows customers to pay for cryptocurrency with debit and credit cards. Visa and MasterCard are accepted for purchases of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and XRP tokens on Binance, with the following advantages:
Swift Transfers: It takes 10 to 30 minutes on average for cryptocurrencies to arrive in your wallet.
Fees are low: only 3.5 percent each transaction or ten dollars, whichever is more.
Visa and MasterCard are accepted, making it convenient.
Users can purchase supported cryptocurrencies with a debit or credit card by visiting https://www.binance.com/en/creditcard after reading the official instructions page.
Binance Launchpad and Initial Coin Offerings (ICO)
Binance Launchpad is the exchange’s token launch platform, with the goal of connecting blockchain projects with the larger cryptocurrency community and allowing them to raise financing while interacting with Binance’s large user base.
In December 2017, the BREAD and GIFTO projects, as well as BitTorrent and Fetch, were able to hold successful token sales on Binance Launchpad.
In 2019, AI also had a successful launch.
The platform makes use of the exchange’s native BNB token, which rewards users for keeping it and allows them can engage in token sales using it.
How Token Offerings work on Binance Launchpad
The possibility to participate in token offerings continues to attract a large number of users to Binance, but there are a few stages to getting acquainted to the Launchpad platform.
Anyone interested in a project should first visit the Binance Launchpad website, click on the project page, and thoroughly examine any of the available projects.
Because token sales are conducted in conformity with regulatory regulations in approved user regions, it’s also important to complete your Binance account verification if you haven’t previously.
The Lottery System
The number of lottery tickets you can claim is determined by the amount of BNB tokens you hold in your Binance account over a 20-day period leading up to the lottery day, with a maximum of 5 tickets per qualifying account.
The 20 days preceding up to the lottery draw date are denoted by X below, and 100 X 200, for example, meaning that your BNB balance is held at 100 BNB or more for the whole 20-day period, but does not exceed or reach 200 BNB.
Each day at 0:00 AM (UTC), a snapshot of each user’s BNB balance is taken, and if your BNB balance falls below the needed minimum amount on any given day over the 20-day period, you will be placed in the lower threshold.
For example, suppose User A has a balance of 301 BNB for 19 of the 20 days, but it dips to 299 BNB on one of those days. They will be relegated to the second tier, with only two lottery tickets available to them.
Users have a 24-hour window before the lottery date to choose how many lottery tickets they want to enter, with the maximum amount based on their BNB holdings over the preceding 20 days.
If a user submits a five-ticket entry and two of them win, they are obligated to pay for two ticket allocations (in BNB) for the tokens.
With numerous lottery ticket holders acquiring tickets with consecutive numbers, each lottery ticket has a unique number. When claiming five tickets, for example, the tickets may be numbered 100010, 100011, 100012, 100013, and 100014.
Binance begins selecting multi-digit numbers at random after the 24-hour period has expired and all tickets have been fully issued. To determine the list of winners, these are compared to the tail digits of all issued tickets.
The selection procedure continues until the maximum number of winners is reached, at which point the appropriate BNB is withdrawn from each winning user’s balance.
Binance discloses in advance the maximum number of probable lottery ticket winners as well as the allocation amount for each winning ticket.
Binance was hacked for the first time in early May 2019, which we reported on here on Blockonomi. In summary, using crucial user information, such as API keys used by trading bots and third-party portfolio managers, a hacker was able to get access and overcome some of their security mechanisms.
They were able to withdraw more than $40 million in bitcoin from the exchange.
Binance opted to pay these losses in full using their “SAFU” security fund, and all users were reimbursed for whatever damages they had incurred.
The fact that Binance compensated these losses increases our trust in their honesty and integrity, but it also emphasizes the importance of following security best practices and only keeping tiny amounts of cryptocurrency on exchanges.
Use hardware wallets to store your assets safely, as even the largest exchanges appear to be vulnerable to this type of attack.
The exchange’s matching engine is now capable of processing about 1.4 million orders per second, making it one of the fastest exchanges on the market.
Furthermore, the exchange is compatible with a wide range of platforms, including web, Android, WeChat, and HTML5. Binance has multi-language support in Chinese, English, Korean, and Japanese, which will please non-English people.
Based on the information presented thus far, Binance is unquestionably the most popular cryptocurrency exchange, with low costs and excellent digital currency support.
Binance is expected to continue to expand and provide excellent digital currency exchange services to its customers because it supposedly has access to several resources and partners.
Binance comes highly recommended by us, and it has been added to our list of the Best Cryptocurrency Exchanges.
Since Binance’s initial introduction, we’ve kept this review up to date ( we were one of the first to offer a review of the platform at the time ). And as time has passed, Binance has shown to be one of the greatest, if not the best, cryptocurrency exchanges accessible.
Changpeng Zhao (CZ) is their CEO, and he has a long history in the cryptocurrency field, as well as a high level of ethics.
Binance The exchange has continued to develop, bringing new products to market as well as new ways to buy and sell cryptocurrencies to people all over the world.