Binance is a highly popular Chinese cryptocurrency exchange offering a wide variety of crypto-to-crypto trading pairs. Traders can pay for 50% less on their fees using Binance’s own ERC20 token BNB, a model that has become very popular and contributed to the exchange’s immense volume.
An Introduction to Binance
At the time of writing, Binance was the number two listed exchange with $1.3 billion daily volume. Though the exchange is relatively new, being founded in 2017, it’s had an interesting history.
After leaving a CTO position at OKCoin, Changpeng Zhao founded Binance and launched the BNB ICO in July, which raised $15 million. Two months later, Zhao moved the exchange’s servers to Japan to avoid China’s impending cryptocurrency regulations, and it was there that Binance became popular for its thoughtful, deep interface, special fee model, and wide variety of cryptocurrencies. The exhange is also known for running lucrative promotions that reward traders with cryptocurrency and prizes for reaching certain goals, which also helps to boost volume for newly listed coins.
Though fiat money isn’t a part of the equation yet, the exchange is seeking to open new offices that would allow them to offer Euro trading pairs as soon as this year. For now, traders are limited to using ETH, BTC, BNB, and Tether, though getting crypto in and out of Binance is simple. This makes it a great secondary exchange for those who already have a fiat channel into the market, like Coinbase or Gemini or one of the others.
Getting Started With Binance
If you’re a trader that has a bit of cryptocurrency and wants to gain exposure to the wider altcoin market, Binance is a fast and safe option. Advanced traders will also find great opportunities on the platform’s altcoin market.
Creating A Binance Account
New members just need to verify their email address to create a level 1 account, which offers up to 2BTC of daily withdrawals. This is enough for most traders, and there is no deposit limit (of course), meaning that it’s quick to transfer a lot of cryptocurrency to the exchange but slower to get it off. Binance also asks you to set up 2FA after creating an account, which helps secure it with Google Authenticator or SMS codes.
To get level 2 access, members need to submit further identity documentation and wait for verification. Afterwards, they’ll have 100BTC in daily withdrawal. Companies and enterprises are also able to attain special status with Binance and access larger withdrawal limits, API, and other tools.
Depositing Funds to Binance
With a level 1 account, you can deposit any cryptocurrency supported by Binance via the Funds page, which is essentially a list of your wallets and their sum value in both BTC and dollars. Each cryptocurrency has its own wallet, and a Withdraw and Deposit button that generates addresses for use in blockchain’s wallet infrastructure. To deposit EOS, for example, one would click on the Deposit button and then paste the address generated into the wallet they’re sending EOS from.
This is generally how it works with every other cryptocurrency wallet dashboard, but the exchange gets extra points for putting everything out in the open, and not hiding functionality behind too many menus or tabs. There are no fees associated with deposits, though withdrawals carry a small fee (which cannot be defrayed by using BNB). In terms of speed, transfers are blockchain-dependent, but we transferred ETH to Binance and it showed up in our wallet 5 minutes later.
Execution and Fees on Binance
Trading with this exchange is very easy, but traders should remember that they need to be looking at the pair with the correct counter-currency. The exchange has a basic and advanced interface which is available simply by clicking Exchange, and picking between the two. Essential dashboard windows like the order book, asset selector, chart window, buy and sell windows, and order history list populate the Basic exchange.
The advanced exchange offers a greater depth of tools and indicators like the RSI and MACD, as well as a bigger selection of timeframes. Those who enjoy technical analysis will feel at home here. Both interfaces have limit, market, and stop limit orders. There is no leverage, which is disappointing for those with a greater risk appetite. Trading fees are generally low, and can be reduced significantly by paying in BNB instead of the currency being traded. This alone gives BNB value, and it has been steadily rising as the exchange gains popularity. Before executing a trade, the Buy window displays one’s fee.
There are no fees for depositing to the exchange, minor fees for withdrawal, and fees of around 0.10% for trades, or 0.05% when using BNB. It’s easy to turn BNB fee payments on and off via the Account dashboard. The thoughtful inclusion of both a basic and advanced exchange helps make Binance accessible to every kind of trader, and the company also incorporated smart UX elements that make a sometimes-confusing market more logical.
Withdrawals: Low % dependent on blockchain
Trade fees paid in BNB: 0.05%
Binance Security, Support, and Compliance
Compliance: Binance has moved its headquarters and servers multiple times, first from China to Japan, and then onward to places where crypto-to-crypto exchanges could find favorable regulations. Jersey, for example, is the exchange’s next destination. While it remains compliant with international AML and KYC standards and the laws of its current geography, it does not have the same quality relationship with governments that established fiat exchanges enjoy.
Security: Binance suffered an attempted, and failed hack in March of 2018. Scammers using accounts stolen with unsophisticated fraud methods (email, fake websites etc.) logged in en masse to pump coins that they were invested in, only to dump them hours later. It was largely unsuccessful. The lesson is that the exchange is capable of great security, but traders will bear most of the responsibility and should always activate 2FA, double-check URLs and suspicious emails, and generally act cautiously. As a centralized exchange, Binance controls user private keys, so keeping a significant sum of money in one’s wallet is not recommended.
Support: Exchange support is alright, but limited in that there’s only one point of contact: a webpage. Support staff read the comments left on this page and then respond via email, in a manner that can only be described as relaxed. It takes a few days at least to hear back, but given Binance’s global popularity this is no surprise.
Binance incorporates a surprisingly comprehensive blend of elements and tools together into a neat package. Both beginners and advanced traders will enjoy trading altcoins and flipping their lower-volatility cryptocurrencies like ETH and BTC in an organized, safe, and often lucrative environment. The addition of BNB to the exchange is a vital benefit, and offers a solid investment and a way to make Binance more inexpensive for traders.