Can one exchange be all things to all traders? In two short years, Binance has grown into the NASDAQ of the cryptocurrency market. Over 450 cryptocurrencies with a market value of $1.3 billion trade on the world’s largest cryptocurrency exchange.
But as trading on Binance becomes more liquid and faster, is it providing an unfair advantage to the big monied traders? With the many exchange scandals happening over the years, many users online have been asking “is Binance safe?” or “is Binance reliable?”. After testing the exchange in depth by reviewing fees, features, and pros and cons, we have found that the average trader is at an advantage when using this platform and we recommend users to try this exchange. There are several reasons why we think many traders could have a safe experience on this platform, all of which we will explain in this detailed review.
What is Binance?
Binance’s meteoric rise to become the leading cryptocurrency exchange seems incredulous but possible if you know its founder. Changpeng Zhao worked for the Tokyo Stock Exchange and Bloomberg before building one of the fastest high frequency trading systems, Fusion Systems. Since Binance launched in 2017 in China, its fast execution times have attracted hordes of professional traders. When China shuttered crypto exchanges, Binance moved its offices to Malta. Binance Jersey and Binance Uganda recently opened to provide fiat-to-crypto trading.
With one of the fastest order execution times and institutional-grade research reports, professional crypto traders have found a home on Binance. Over-the-counter trading (OTC) between two private parties was introduced in 2019 for trades over 20 (~ USD 1 million) BTC. An incubator lab for blockchain startup projects and a launch pad for ICOs ensures a steady stream of new coins and pairs to trade.
Counting with over 313,000 daily active users, Binance is the largest bitcoin exchanges in the word after Coinbase. However, with more platforms cropping up daily to buy cryptocurrencies, it may not necessarily be the best option for the retail investor in 2019 . Can the many retail traders who also use the exchange compete on an exchange known for its fast trade execution? Since many traders are new to cryptocurrency trading, we set out to discover how user friendly this exchange is for beginners. To evaluate how intuitive the Binance platform is, this review assesses how to trade cryptocurrency on Binance, as well as the safety and security of the exchange.
How does the Binance exchange work?
Binance is a centralized cryptocurrency exchange. With the recent launch of the Binance Decentralized Exchange (DEX), Binance aims to give the trader the choice of the best of both worlds.
The crypto exchange seeks to cater to all levels of investors by providing both a Basic and Advanced trade setup. Over 400 coins are offered. If you want immediate access to new coins, Binance is where to get hot alt coins. The steady flow of coins from its ICO launches to alt coin listings on Binance ensures early access to a good supply of new coins. While on some exchanges you may have to wait patiently for liquidity to trade new coins, on Binance, you can participate in trading competitions and earn while helping to create liquidity in new coins. Trading fees are low and even cheaper if you use Binance coin (BNB). As a centralized exchange, though, Binance is vulnerable to security breaches and says it fends off dozens a day.
Binance Decentralized Exchange (DEX)
Binance is sidestepping these security issues with the launch of its Decentralized Exchange (DEX). Binance DEX runs on its own blockchain, Binance Chain blockchain, and uses the Binance coin (BNB). Decentralized exchanges do not hold customer funds or information – the main targets of hackers. Instead funds are held by the wallets of the individual traders. The Binance DEX launch is one of the most watched launches in crypto exchange history. Binance has the trading volume to build liquidity, which has been the main weakness of other DEXs. The DEX will remain crypto-to-crypto and thus outside the purview of regulators.
Take Dex for a Test Drive
The Binance Chain testnet is open. Do not use real coins on the demo account! If you have 1 BNB in your account, you can go to the Test Faucet, where you will be prompted to open a testnet wallet. Within minutes, you will receive test funds in your wallet to play on the new decentralized exchange.
What cryptocurrencies does Binance support?
Binance is a global cryptocurrency exchange with supported jurisdictions across the globe. Following is a list of countries and US states where the exchange does not operate.
|Congo (Brazzaville)||Congo (Kinshasa)|
|Cuba||Democratic People’s Republic of Korea|
* Also note the following restricted states: New York, Connecticut, Hawaii, Georgia, New Mexico, Washington
Fees & limits
The basic trading fee is 0.1 percent, which is significantly cheaper than other exchanges such as Coinfloor and Coinjar, who charge 1% and 0.3% respectively. This fee is adjusted downward based on trading volume over a 30-day period and Binance Coin (BNB) holdings. If you trade using BNB, you will receive a 25 percent discount (formerly 50 percent. The below list of fees shows fees decreasing on a declining scale as the trade volume and BNB holdings increase.
|Level||30d Trading Volume (BTC)||BNB Holdings||Maker*||Taker*|
|General||< 100 BTC or||≥ 0 BNB||0.1000%||0.1000%|
|VIP 1||≥ 100 BTC||≥ 50 BNB||0.0900%||0.1000%|
|VIP 2||≥ 500 BTC||≥ 200 BNB||0.0800%||0.1000%|
|VIP 3||≥ 4500 BTC||≥ 1000 BNB||0.0700%||0.0900%|
|VIP 4||≥ 10000 BTC||≥ 2000 BNB||0.0600%||0.0800%|
|VIP 5||≥ 20000 BTC||≥ 3500 BNB||0.0500%||0.0700%|
|VIP 6||≥ 40000 BTC||≥ 6000 BNB||0.0400%||0.0600%|
|VIP 7||≥ 80000 BTC||≥ 9000 BNB||0.0300%||0.0500%|
|VIP 8||≥ 150000 BTC||≥ 11000 BNB||0.0200%||0.0400%|
*For all BNB transactions, fees are reduced a further 25 percent (e.g., a fee of 0.1000% would be 0.0750%.
Basic trading screen
The Binance Basic trade set up provides the retail trader with a professional trading experience, without all the technical bells and whistles, which can be distracting for the new trader. The pricing chart sits in the middle of the screen (5) and offers more than the average price action overview. Candlesticks indicate whether buying or selling strength dominated in a trading period and moving averages signal how the current price relates to the cryptocurrency pair’s recent pricing history. The time period and other moving average parameters can be customized.
Trades can be executed by clicking on the bid and ask prices in the order book (3/4). The trade buy or sell order price will be filled automatically, or can be input manually (7/8). Next, enter the amount to trade. Right-top (9), a tally of recent trades is provided. Below (10), search a list of alt coin pairs for the current price and volume.
Advanced trading screen
Many reviewers incorrectly differentiate the Basic and Advanced trade setup on Binance by the different colour schemes. The Basic screen is typically shown as a white screen. In fact, Basic traders can have this futuristic black screen, too, by simply clicking on the night mode icon on the top right of the screen.
Let’s zoom in on the functionality advanced traders can use when they trade on Binance. The price chart takes up half a page in order to use the advanced trading functions. The advanced screen provides a full set of trading indicators (RSIs, stochastics, advanced moving averages, oscillators, and more) and technical analysis tools (Fibonacci, DeMark, Woodie, and more).
How to Buy Cryptocurrency on Binance: Step by Step Tutorial
Binance is popular for its professional trading experience. Does it also accommodate the retail trader? How easy is buying cryptocurrencies on this platform? Let’s find out.
Trade cryptocurrency on Binance
Step 1: Register your account
Firstly, create an account on Binance. On the Register screen, fill in your email and password. Do not forget to fill in a Referral ID if you have been referred to Binance by a friend. Click the verification link sent to your email address and you are signed up!
Step 2: Verify your identity
If you want to withdraw more than 100 BTC (~USD 500,000) a day, then proceed with the ID verification. If you are withdrawing under 2 BTC (~USD 10,000), proceed to Step 3 to fund your account.
Upload your national ID. Option 2, uploading your national ID with a selfie and note is recommended. In the case of being locked out of your account or an attempted breach, facial identification can be used to verify your identity.
Step 3: Fund your account
You have two options to fund your account on Binance. Choose the coin you want to transfer into your account. The deposit address to send your coins to will display. Or buy BTC or ETH with a credit card.
Step 4: Choose the Basic or Advanced trade setup
On the top of the screen, click on Exchange and choose Basic. Alternatively, click on the coin you want to trade from the list in the center of the screen. The main trade page pops up.
On the top left of the screen, the pair traded appears. Below it is the order book of buy and sell bids. Click on the price you want to buy or sell at and the order form will automatically be filled in (shown below). Or fill in the trade order box (market, limit or stop-limit order) manually (shown above).
Step 5B: Advance trade setup
On the Advanced screen, the price chart takes up half the page. This allows you to use the various technical tools (trend lines, Fibonacci) and indicators (RSI, moving averages). The process for placing the order is the same. The the order book is the first column on the right side of the page. Beside it is the trade history. Below is the trade order form.
Step 6: Withdrawal your funds
Here’s how to withdraw money from Binance. Under Funds at the top of the screen, click on Withdrawal. Choose the coins you want to withdrawal and enter the wallet address. Enter the amount to withdrawal and press submit. You will be prompted to provide a two-factor Google authentication code. Click on the confirmation link in the email sent. The withdrawal will be confirmed. Withdrawals can take up to 12 hours and as stated on their website, they cannot guarantee instant withdrawals.
Is Binance regulated?
The exchange’s advanced security measures are better than others indeed, but it remains largely unregulated. Its recent relocation to Malta places it under the oversight of the Maltese Virtual Financial Assets (VFA) and the newly formed Binance Jersey must comply with KYC and AML under the Jersey Financial Services Commission.
Is Binance safe?
As a cryptocurrency exchange platform, Binance offers hot wallet storage facilities for its users. But is it safe? Let’s find out:
- Security Features
Binance uses advanced security protocols to secure its platform and send alerts in case of a breach. Users also have the opportunity to protect their funds with Google Authenticator 2FA.
- Hacking Attempt
In March 2018, there was a major hack attempt on the platform but it was not successful as automated systems on the site reacted in perfect time. Malicious actors had been using a phishing site to accumulate logins and secretly installing API access to the targeted accounts.
On D-Day, they converted all the altcoins in the target accounts to Bitcoin and bought Viacoin, pumping the price considerably. They then sold off Viacoin at the highest price point and tried to withdraw BTC to their wallets.
This, however, did not work as they were caught in the act and their funds were said to be donated to charity. The incident reinforced confidence in the site’s security system.
- May 2019 Hack
More recently, however, hackers managed to siphon off more than 7,000 BTC (worth over $40 million) from Binance. However, in response to the incident, the exchange said it would cover all user losses from its Secure Asset Fund for Users (SAFU) account.
Thanks to the immediate response promising to cover user losses, the incident did not result in permanent harm to the site’s credibility.
It is advisable though not to store cryptocurrencies on exchange hot wallets as these are more vulnerable to attacks than cold storage facilities.
Is the Binance wallet safe?
The Binance Trust Wallet has become one of the most trusted wallets owing to its security features. Since Binance acquired TrustWallet in 2018, it has evolved into one of the most expansive cryptocurrency wallets available. Trust’s Viktor Radchenko, a former security consultant to banks, has expanded it into multi-currencies and multi-features.
What coins are supported by the Binance Trust wallet?
Cold storage and support for the top 20 cryptocurrencies globally are future add ons. The Binance TrustWallet app can be downloaded on Android or IOS.
Does Binance have an app?
Users of the Binance Basic trading set up will not have to compromise on any features when using the Binance app. Tap Funds and deposit any coins you desire into your account. When you are ready to trade, tap Markets and choose the coin you want to buy or sell. The candlestick pricing chart and moving averages display as normal. Choose a time period and the hi and lo are indicated with arrows. Go to the in-depth view to compare the level of buy and sell orders. Press Buy or Sell to place your order. Do not forget to go to Accounts and Referrals to see whether your referred friends are making you money by trading on Binance.
The Binance app is available on Android and IOS. To get access to the app, scan the QR-code, or on IOS, follow the download link in Safari. Then press Install. Once installed, go to Settings, click on the Binance app and click on “Trust”.
Is Binance’s customer service reliable?
Have a question on how to use Binance? Here are the best places to start.
📧 Email support – Binance has a large FAQ section at Support.binance.com. Subjects range from how to deposit coins and make your first trade to how to launch a token on Binance Launchpad. If you still have questions, contact Binance by email through Submit a request.
🎓Binance Academy – These is where Binancians learn about trading, risk management, security, and more. Do you want to know how to deposit or withdraw money or trade? Do you want to understand how the blockchain and the consensus mechanisms that process your cryptocurrency transactions work? Or learn more about the new blockchains adding new coins to your wallet? It’s all offered in Binance tutorials.
📲 Social media – Join Binance’s large social media community on Telegram, Medium, Instagram, Facebook, Twitter, Weibo, Steemit, and Reddit.
Binance Pros and Cons
Why We Recommend Binance
We recommend Binance because it offers a one-stop-shop for all your cryptocurrency needs. It is an exchange platform which supports the trading of at least 100 digital assets. It is accessible to users in almost every country in the world.
As one of the largest crypto platforms by trading volume, it is a common target for malicious actors. But interestingly, it has only recorded one successful hacking attempt since inception. In response to the hack, Binance promised to refund all losses to affected users. To a great extent, this reinforces user confidence in the platform and merits full recommendation.
Binance VS Skilling
As we’ve said earlier already, Binance certainly is a legit platform but we consider Skilling to be far more reliable and provide more advantages. The exchange in fact, offers a great asset variety, offering 30 cryptocurrency pairs and 104 stocks amongst many other products. It also has significantly reduced fees compared to other exchanges. To name one, Skilling requires a minimum deposit of $50 which is definitely one of the lowest minimum deposit requirements you can find.
These are just a few of the advantages offered by the exchange. To find out more about it, we recommend reading through our Skilling review. You will also find a step-by-step guide on how to get started with your trading experience on the platform.
Binance offers one of the lowest trading fees in the market, a good variety of digital assets to trade, varying trading options for beginners and experts and a user-friendly interface. For these reasons, it continues to be a favorite for many crypto users.
However, it is very liable to security risks. Skilling instead is a regulated platform which has sought to maintain transparency. Overall, we recommend Skilling and hope it will continue to enhance its services to meet client needs.
A trader is exposed to higher risks when trading on an unregulated exchange. If you lose money on an unregulated exchange due to fraud, it will be more difficult to seek remedy through a legal or insurance claim. In a regulated market such as the UK, the investor is protected. If the exchange you have deposited money with goes bankrupt, for example, the UK Financial Conduct Authority (FCA) provides deposit insurance up to $50,000.
A cryptocurrency wallet functions like a savings account (though most do not pay interest), but with a big difference. Your savings account with your bank has deposit insurance. The current trend is towards cryptocurrency wallets becoming licenses. Estonia has recently licensed 400 cryptocurrency wallets as part of a sweep to license cryptocurrency businesses.
A decentralized exchange does not use an intermediary to hold customer funds and accounts. Peers trade directly amongst each other (peer-to-peer) and funds are transferred between their cryptocurrency wallets. Trader money and ID is at lower risk of being hacked. A downside of DEXs is their current lack of liquidity.
A centralized exchange accepts and holds users’ deposits. Most exchanges also conduct ID verification to comply with know your customer (KYC) and anti-money laundering (AML) rules. As a repository of client money and personal identification information, exchanges are at a high risk of cyber hacking and theft. The current centralized exchange model provides more advanced features, such as margin trading and stop-loss accounts.
Hot (online) crypto assets do face risk from cyber hacking. Cold storage involves storing your crypto assets offline on a USB drive or paper wallet, for example. The following risk measures should be taken to protect your hot or cold crypto assets:
☑️ Generate and store your private keys offline
☑️ Use two factor authentication to access your wallet
☑️ Use biometric identification
Most cryptocurrency exchange’s offer rewards for referring friends. The reward may be a flat referral fee or a percentage of future revenues from your friends’ trading activity. On Binance, provide your friends with your Referral Link, Referral Code or QR-Code. You will receive 20 percent of the fee revenue on their trading activity, automatically deposited to your wallet, or 40 percent on accounts with more than 500 BNB.
Exchanges have different approaches to automated trading. MetaTrader, a top forex trading platform, is popular for its easy-to-use plug-and-play trading bots called Expert Advisors. Though still a small number in comparison, may trading bots have been developed for cryptocurrency trading. The most popular bots can be connected to Binance through an API, which takes a few minutes to configure.
- 1 Is Binance Recommended?
- 2 What is Binance?
- 3 How does the Binance exchange work?
- 4 What cryptocurrencies does Binance support?
- 5 Supported countries
- 6 Fees & limits
- 7 Binance Dashboard
- 8 How to Buy Cryptocurrency on Binance: Step by Step Tutorial
- 9 Is Binance regulated?
- 10 Is Binance safe?
- 11 Is the Binance wallet safe?
- 12 Does Binance have an app?
- 13 Is Binance’s customer service reliable?
- 14 Binance Pros and Cons
- 15 Why We Recommend Binance
- 16 Binance VS Skilling
- 17 Conclusion
- 18 FAQs