Binance Review – Top Features, Pros, Cons, and Safety Concerns

Pros & Cons Explained

Pros

Low Fees

One of the things that sets Binance apart from other exchanges is its fees. The low fees of Binance make it a desirable alternative to even the best crypto exchanges. 

Almost all trading activities are subject to a flat fee of 0.1%.

Not only this, you’ll get an additional 25% discount when you pay with their native token, BNB.

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Multiple Ways To Earn Passive Incomes

Binance offers multiple ways to earn passive incomes, including:

1. Staking –  Binance staking offers a great opportunity for investors to increase their cryptocurrency holdings. Staking on Binance involves holding certain cryptocurrencies on a specific wallet, as a way to support the network and earn rewards in return. 
2. Savings – You can open a Binance savings account for multiple cryptocurrencies to earn interest on your holdings.  Interest rate, however, depends on the cryptocurrency and the period of saving.
3. Launchpad –  Binance Launchpad is a unique platform for launching new cryptocurrency projects where everyone can participate using Binance’s native token (BNB). It is possible for investors to make significant returns by participating in launchpad sales.
4. Liquidity Provision – Binance offers a liquidity swap program called “Binance Liquidity Swap”, in which users can trade pairs with liquidity and receive a portion of trading fees.
5. Affiliate Program – Binance offers an amazing affiliate program with which you can earn commissions from every new user that you refer, with no referral limits, and spot referral attribution for life. Binance’s affiliate program can reward you with a bonus of up to $72,000 per month depending on the fees paid by Futures referrals.

Supports 350+ Cryptocurrencies 

It is possible to exchange, store, and invest in over 350 cryptocurrencies on Binance with just one account.

Advanced Trading Tools

Binance has a set of advanced trading tools for you to make the most of market trends and maximize your profits. You can analyze market trends, manage risks, and ultimately make informed trading decisions. 

Binance’s advanced trading tools include:

1. TradingView Chart – Binance has integrated TradingView Charts, an advanced technical analysis tool with different charts ranging from candlestick charts to depth charts, plus drawing tools and indicators. All of this is designed to assist traders in identifying market trends and patterns. 
2. Advanced Order Types – Binance supports a range of advanced order types including limit, market, stop-limit, and one-cancels-the-other (OCO) orders. Order types like these enable traders to set precise entry and exit points, limit losses, and manage risks.
3. Binance API Trading – With Binance API Trading, you can easily automate your trading strategies and execute them programmatically.  

Reliable Proof of Reserves

The term proof of reserves refers to those assets that Binance keeps in its possession for users.

For this, Binance uses a system to ensure that its cryptocurrency assets correspond to what it claims. Third-party auditors verify this, making the system more transparent and allowing users to trust the system.  

Binance proof of reserves is a valuable feature, as it aids in addressing both security and fraud concerns. 

Two-Factor Authentication

Binance has two-factor authentication as an added security measure. 

Currently, Binance offers 2 different types of authentication options to its users: 

1. Google Authenticator
2. SMS Authenticator

Digital Asset Cold Storage

Binance stores more than 90% of its digital assets in cold storage – an offline crypto wallet. 

Binance Digital Asset Cold Storage acts as a security measure to protect users’ cryptocurrency assets from security breaches.  

Multiple Deposit Options

Binance offers multiple deposit options to users who wish to fund their accounts in fiat currency.  Users can pick the deposit method that works best for them according to their location, preference, and so forth.

Easy Access To DeFi Services

Binance offers a convenient way to access decentralized finance (DeFi), providing access to a number of DeFi protocols and applications, including:

1. DeFi Staking
2. DeFi Savings
3. DeFi Trading
4. Binance Smart Chain

P2P trading option

One of the most loved features of Binance is its peer-to-peer (P2P) trading feature. This feature allows users to trade cryptocurrencies with each other via P2P platforms, exchanges, and marketplaces. Moreover, every completed order at Binance P2P is charged a transaction fee of 0-0.35%.

Support For Fiat-Crypto Acquisitions

Binance supports fiat-crypto acquisitions, allowing users to purchase cryptocurrencies with fiat currencies such as USD and EUR, directly from the exchange. 

In this way, Binance makes cryptocurrency trading convenient and easy for its users by eliminating the need for them to acquire cryptocurrencies elsewhere and transfer them to the exchange.

Improved Liquidity Through Binance’s Swap Farming

Binance’s Swap Farming program is designed to increase liquidity in the Binance ecosystem. 

With it, users are rewarded in the form of tokens when they provide liquidity for different trading pairs. By doing this, Binance facilitates higher trade activity with tighter spreads, lower slippage, and better liquidity.

Cons

Might Be Complex For Beginners

With so many features and trading options, Binance may seem overwhelming to beginners. Fortunately, this problem is solved by the Lite mode.

Regulatory Issues

Binance, a global leader in crypto trading volume, is under constant regulatory scrutiny. To meet the requirements of local regulators, Binance has established compliance, anti-money laundering, and compliance teams. 

Overview

In the past, we used to rely exclusively on banks and financial institutions for our monetary needs. Now, with cryptocurrencies and decentralized financial systems, things have totally changed thanks to the decentralized model. 

You can carry out your monetary transactions securely and instantly, without any intermediaries, using cryptocurrency. 

Plus, this decentralized approach to finance offers more transparency and flexibility in terms of handling personal finances, with much lower transaction fees and faster processing.

Now, one might ask: what cryptocurrency exchange offers the best experience in this regard?

Well, the answer is pretty obvious. In a market flooded with cryptocurrency exchanges, Binance shines the brightest.  

Whether you’re a seasoned trader or a beginner eager to take the plunge into the world of crypto, Binance has enough options to meet your needs. 

In this review, we are going to take a closer look at what this popular exchange has to offer. Let’s get started. 

What is Binance?

Besides being one of the largest cryptocurrency exchanges by trading volume, Binance has also been recognized as one of the most innovative, forward-thinking platforms. 

Binance currently holds 350+ cryptocurrencies and virtual tokens that include notables, such as:

1. Bitcoin (BTC) 
2. Ethereum (ETH)
3. Dogecoin (DOGE)
4. Solana
5. Shibu Inu and its own coin (BNB) that users can buy, trade, or hold on Binance. 

Now let’s take a closer look at the history of Binance Exchange since it’s crucial in several ways. Like, you as an amateur or expert investor will be able to understand better the company’s values, goals, and priorities if you understand its history and origins. 

Knowing history will also help you make informed decisions about securing long-term investments or using cryptocurrency.

Binance Exchange: A Brief History

Binance was founded in 2017 by “Changpeng Zhao” a former employee of other notable cryptocurrency exchanges like OKCoin and Blockchain.info. However, this exchange was created by Zhao’s company “Beijie Technology” after raising $15 million in an initial coin offering (ICO). 

Those who participated in Binance’s ICO received Binance Coin (BNB), which could be used to trade digital assets and pay fees. 

Binance was initially based in China but relocated to the Cayman Islands (to avoid Chinese government control and regulations) in early 18 following regulations imposed by the Chinese government.

Despite having its headquarter in Malta, Binance operates worldwide with some major exceptions including the US. 

Those of you who live in the U.S. must register through Binance.US, which is a separate entity registered in SAN Francisco and fully compliant with SEC regulations. 

Later in 2020, Binance continued to build on its success by launching Binance Smart Chain (BSC). Simply put, BSC is a blockchain-based system that facilitates the execution of smart contract applications. 

Later in 2022, Binance offered to acquire rival FTX which is another major cryptocurrency exchange. On November 9, 2022, Binance withdrew its offer after examining FTX’s financial status.

With its high trading volume, this exchange has been the world’s leading exchange since its launch and currently ranks first on Coinmarketcap’s 24-hour trading volume list.

Services offered by Binance

1. Binance Exchange

With Binance, you can exchange your fiat currency for Bitcoin, Litecoin, and other cryptocurrencies. As Binance offers multiple ways to buy cryptocurrency.

2. Credit/Debit Card

Binance by partnering with Simplex, offers brokerage services. Both credit and debit cards are accepted by Binance, making it easy for users to buy cryptocurrencies. 

Both Visa and Master cards are accepted by Binance. A variety of cryptocurrencies can be purchased with credit and debit cards, along with fiat currency deposits. For USD deposits made with a debit card, fees can reach as high as 4.5%.  

3. Wire Transfers/SEPA  

Not only this, but Binance also supports wire transfers and the Single Euro Payments Area (SEPA). Using this feature, users can deposit and withdraw funds directly from their Binance accounts in EUR and other currencies.

Binance requires users to submit a photo ID and personal information before they can use SEPA or wire transfers. Moreover, wire transfers can take up to 5 business days to complete, while SEPA transfers typically take 1 to 3.

Is Binance Safe?

Binance enjoys a strong reputation as a trustworthy exchange despite past hacking incidents mainly because it responded quickly and effectively after the incident. 

In response, Binance created an Insurance fund policy named “SAFU” to enhance the experience of its users. This fund is intended to compensate users for losses incurred by hacks and other security breaches. SAFU is funded by 10% of all trading fees collected by the exchange.

After that, a  new security audit program was announced by Binance on December 14, 2021, named “Project Shield”. This project is designed for Binance centralized exchange projects that use BEP-20 or ERC-20. 

Moreover, Binance will use Project Shield to tighten security on its exchange in conjunction with its Bulletproof Exchanger Project.

A number of other security features exist, such as IP address and device whitelisting, all of which make it safe for everyone. 

Importance of Binance In The Crypto World

Binance is one of the influential players in the crypto world. 

Here are some reasons why: 

1. Liquidity – There is no other crypto exchange with such high trading volumes and liquidity as Binance. For those trying to buy or sell large quantities of cryptocurrency, this is a good place to go.
2. Security – Binance has a reputation for robust security and has put a great deal of effort into safeguarding users’ money. The use of two-factor authentication and the storage of funds in cold storage are examples of such measures.
3. Community and education – Binance boasts an active user community and offers educational materials via its Academy and Research platforms. In turn, this promotes the acceptance and recognition of cryptocurrencies.
4. Innovative products and services –  Binance has a reputation for bringing innovation to the cryptocurrency industry through its products and services. Futures trading, staking, and lending are among these services.

Why Is Binance So Popular?

In the crypto world, there are several reasons why Binance is popular, and one of them is its reliability and commitment to technological advancements.

The platform’s popularity is also due to the wide variety of cryptocurrencies it offers for trading, allowing users to diversify their portfolios.

Binance’s attention to technological advancement is also a key factor in its popularity. With its new services and features, the company has helped accelerate the adoption and growth of cryptocurrencies around the world. 

Among them are new ICO launchpads, DeFi protocol support, and the launch of new trading products.

Cryptocurrencies Listed On Binance

With over 368 cryptocurrencies to choose from, Binance has something for everyone. As of today, 21 of the top cryptos are listed on Binance.

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Solana (SOL)
4. Shiba Inu (SHIB)
5. Dogecoin (DOGE)
6. Binance Coin (BNB)
7. Litecoin (LTC)
8. Cardano (ADA)
9. Binance USD (BUSD)
10. TRON (TRX)
11. Dai (DAI)
12. Tether (USDT)
13. XRP (XRP)
14. Polygon (MATIC)
15. USD Coin (USDC)
16. Polkadot (DOT)
17. Avalanche (AVAX)
18. Wrapped Bitcoin (WBTC)
19. Uniswap (UNI)
20. Dash (DASH)
21. Cosmos (ATOM)

Binance Trading Options

Binance supports 4 different types of trading options including:

1. Basic Trading 
2. Advanced Trading 
3. Futures Trading 
4. Margin Trading

Binance Brands

Binance operates under several brands. Some of the major brands are as follows: 

1. Binance Exchange
2. Binance Academy
3. Binance.US
4. Binance Singapore
5. Binance Research 
6. Binance Charity
7. Binance Labs
8. Binance Launchpad
9. Binance DEX
10. Binance NFT 

Binance Fees (Deposit & Withdrawal Fees)

Binance imposes no fee on depositing funds while fees on withdrawing funds may vary.

Binance Trading Fees

Binance’s main fee is the spot trading fee you pay when you buy and sell cryptocurrencies. The Binance platform operates on a maker/taker model, where transactions start at just 0.1%. Where holding a certain number of BNB tokens can even lead to a further 25% discount on spot trading fees. 

Futures trading is also available on Binance, with its own fee structure. The crypto exchange offers two types of futures: USD-margined and Coin-margined. 

USD-margined allows users to settle their contracts with assets pegged to the US dollar, such as USDT or BUSD. While the coin-margined facilitates users with the option to settle their contracts in cryptocurrencies. 

For example, for USD-marginated futures settlement on USDT, the highest maker/taker fee is 0.02%/0.04%. For Coin-Margined Futures, the highest maker/taker fee is 0.01%/0.05%. 

After these, only, BNB holdings are eligible for further discounts. 

Binance Non-Trading Fees

You should keep in mind that Binance has a few additional fees associated with trading. Plus, there are a few non-trading fees that traders may incur when buying assets. 

For example, Binance charges a 4.5% fee when you use a credit card to purchase crypto. ACH transfers, however, are fee-free. 

Moreover, Binance charges different withdrawal fees based on cryptocurrency. For example, those withdrawing BTC tokens from the BNB smart chain are required to pay 0.0002 BTC in fees. In other words, it only costs $5.79. 

Binance User Interface

Binance Exchange has an intuitive interface both on mobile and web apps, making it easy to use by anyone who has a basic understanding of crypto exchanges. 

Its navigation is designed in such a way that even newcomers would have no trouble finding their way around. When it comes to user-friendliness, Binance may be best suited for investors and traders with a little bit of experience. This is due to all the advanced features of the Binance app, which include multiple API keys and advanced charting options.

New users may also find Binance overwhelming at first. In part, this is due to the abundance of features available, such as staking capabilities, swap farming, crypto referrals, and margin trading. 

Finally, when compared to other cryptocurrencies, Binance’s user interface is quite fast, allowing requests to be processed quickly.

Trading Interface

For Spot trading, Binance offers classic and advanced trading interfaces. While both interfaces are quite similar, they also differ in a few ways. 

For users who are new to the crypto space and want to make straightforward trades, the Classic interface is ideal. Meanwhile, the Advanced version features more advanced tools aimed at professionals. 

Moreover, in an effort to make trading hassle-free, the exchange also offers an academy and tutorials to help new users get started.

User Experience

Binance’s biggest strength is its commitment to delivering exceptional user experience.

Known for its lightning-fast and reliable trading platform and responsive customer service, Binance has built a reputation as one of the most accessible and user-friendly cryptocurrency exchanges available today.

Trading Experience

Trading on Binance is fun with real-time charts that incorporate the moving average and exponential moving averages. 

You can place trades on the go using Binance’s mobile app, website, or desktop application. Besides offering order books, price charts, and portfolio access, Binance allows users to view their trade histories and portfolios. This is especially crucial to make informed decisions.  

Join Binance Exchange

Binance requires you to undergo a rigorous verification process ( usually an ID check ) prior to trading. In some cases, this can take quite a while. This isn’t surprising since Binance is committed to regulatory compliance and certification.

After reading this Binance review in its entirety, hopefully, you now understand what Binance is, how it works, and how it can benefit you. Now it’s time to show you how to use it. 

Let’s start with opening an account. 

Step 1: Visit the Binance website

Step 2: Sign up via email or phone. Gmail can also be used to register.

Step 3: Confirm your email and done!

Step 4: Now, enable two-factor authentication for added security. 

Step 5: Add a payment method. 

Step 6: Fund your account. 

Step 7: Start trading.  

Binance Customer Support

There are 3 basic options for customer support offered by Binance. 

1. Submit a ticket – go to the Binance website and complete the form to submit a ticket. 
2. Request assistance with general questions via chat – the Binance website has a chatbox in the bottom right corner. Users can use this method to solve nearly all issues easily and efficiently.
3. Use Twitter to get in touch – Binance encourages its users to tweet their complaints on their Twitter account. 

Final Verdict

With a wide range of trading options and coins to choose from, Binance is constantly evolving. Customer support is average. 

Overall, a good platform for beginners and seasoned traders alike.