Founded in 2017, Binance has quickly grown into the world’s largest cryptocurrency exchange by trading volume, serving millions of users globally. With its extensive coin offerings, discounted fees, and wide range of features, Binance provides one of the most compelling trading experiences in crypto.
However, Binance is not without controversies. It has faced regulatory crackdowns in multiple countries and was recently sued by the U.S. Securities and Exchange Commission (SEC) for allegedly operating illegally in the United States.
In this 2023 review, we’ll take an in-depth look at the key features of Binance, its pros and cons, fees structure, security practices, and more. We’ll also provide a step-by-step guide on how to get started trading crypto on Binance as a beginner.
What is Binance?
Binance is a cryptocurrency exchange platform that allows users to trade hundreds of different digital currencies. It was founded in 2017 by Changpeng Zhao and initially based in China before moving operations overseas.
Some key things to know about Binance:
- World’s largest crypto exchange with over $2 trillion in lifetime trading volume.
- Supports spot, margin, futures, options, NFT, and staking trading.
- Over 500 cryptocurrencies listed on the platform.
- Has own BNB token used to pay fees at a discount.
- Options for basic and advanced trading interfaces.
- Strong focus on altcoins and crypto-to-crypto trading.
- Targeted primarily at active crypto traders.
- Received F grade from Better Business Bureau due to customer complaints.
Binance is not available for use by U.S. residents. A separate exchange called Binance.US operates for the U.S. market with stricter regulations.
How Does Binance Work?
At a high level, here is how Binance functions as a cryptocurrency trading platform:
- Account Creation: Users sign up with an email address and password. Limited identity verification required initially.
- Funding Account: Users deposit cryptocurrency or fiat into their exchange wallet. A wide variety of deposit options available.
- Trading Interface: Choose basic or advanced trading interface. Place market, limit, and other order types.
- Make Trades: Buy and sell supported crypto pairs directly on the exchange. Leverage and derivatives trading also available.
- Secure Assets: Store crypto safely in insured hot or cold Binance wallets. Or withdraw to external wallets.
- Track Portfolio: Review trading history, portfolio performance, and balances across the platform.
By combining a trading venue with integrated wallet storage infrastructure, Binance provides a one-stop platform for crypto trading. However, Binance users are also free to withdraw assets to external crypto wallets for long term holding.
Supported Cryptocurrencies
With over 500 supported cryptocurrencies and trading pairs, Binance offers one of the most extensive selections of coins among major exchanges.
Some notable assets supported by Binance include:
Bitcoin (BTC): The original and most widely traded cryptocurrency. Extensive trading pairs against altcoins.
Ethereum (ETH): The second largest crypto asset. Also used in NFT and DeFi markets.
BNB (BNB): Binance’s own BNB token used to pay fees on the platform.
Cardano (ADA): Proof-of-stake blockchain that competes with Ethereum.
Ripple (XRP): Payment settlement cryptoproject with major bank partnerships.
Polkadot (DOT): Interoperable blockchain protocol connecting other chains.
Dogecoin (DOGE): A popular meme-inspired cryptocurrency with a large community.
– And over 490 more coins across DeFi, metaverse, gaming, storage, Web3, and other sectors.
New promising crypto assets are frequently added based on Binance’s Digital Asset Risk Assessment Framework (DARAF). Users can also submit coin listing requests.
Opening a Binance Account
Signing up for a Binance account only takes a few minutes. Follow these steps to get started:
- Go to binance.com and click “Register” to begin creating your account.
- Enter your email address and choose a strong password.
- Check your email inbox for a message from Binance and click to verify your email.
- Complete the captcha for further verification that you’re not a robot.
- Optionally enable two-factor authentication for enhanced account security.
Once your account is created, you can fully verify your identity by submitting government issued ID and start depositing funds to begin trading. Be sure to take advantage of 2FA to protect your account.
Funding Your Binance Account
Before trading crypto, you’ll need to fund your Binance account. Here are some of the main deposit methods available:
Cryptocurrency deposit Instantly deposit any supported crypto from an external wallet for free.
Credit/debit card Top up account with Visa or MasterCard. Fees of ~3.5% apply.
Bank transfer Link bank account to deposit USD, EUR or other fiat via SWIFT, SEPA or Faster Payments.
P2P trading Buy crypto directly from other users with over 300 payment methods supported.
Third-party payments Top up account with payment processors like Advcash, PayPal, or Gift Cards. Higher fees.
For the lowest deposit fees, a cryptocurrency or bank transfer is recommended. Debit/credit incurs higher fees but is quicker. P2P is also solid for flexibility.
Trading on Binance
Once funded, users can start trading on both the basic and advanced Binance interfaces. Some key trading features include:
Basic Trading
- Simple buy/sell interface for new traders.
- Limited charting tools and indicators.
- Easy purchasing with credit card or fiat balance.
- Higher fees than advanced trading.
Advanced Trading
- Advanced charting and order types like limit orders.
- Maker/taker fee model with discounted fee tiers.
- Margin, futures, options, and other trading types.
- Ability to trade crypto-to-crypto directly.
Other Trading Features
- P2P trading with flexible payment methods.
- Staking for earning rewards by holding coins.
- Lending and borrowing to earn interest.
- Dollar cost averaging automated buying tools.
The basic trading interface is easier for beginners while advanced trading offers more options for active traders. Both can be accessed in the same account.
Binance Fees and Limits
As a discount crypto exchange, Binance offers some of the lowest fees in the industry across its spot, margin, futures, and crypto derivatives trading platforms. However, the fee structure is quite complex with multiple variables affecting costs.
Spot Trading Fees
Binance spot trading fees range between 0.02% – 0.1% depending on 30 day trading volume and whether you are a maker or taker. Fees can be paid in BNB for an additional 25% discount. There is no fee to deposit crypto.
Limits
Unverified accounts have a 2 BTC daily withdrawal limit. Level 1 verified accounts can withdraw up to 100 BTC per day. Higher limits are available for more verified accounts.
Other Notes
Margin, futures, options, and other trading types have different fee schedules. Various payment methods also incur deposit/withdrawal fees. Check Binance fee page for full breakdown.
While fees are already quite low, high volume active traders can benefit the most from Binance’s discounted tiered fee structure and maximize savings.
Binance Security Features
As with all crypto exchanges, security should be a top priority for anyone looking to trade on Binance. Here are some of the main security measures they have in place:
- Mandatory 2-factor authentication (2FA) for account access and withdrawals.
- Crypto asset insurance fund with coverage up to $750 million.
- Most funds held in air-gapped cold storage for better protection against online attacks.
- Offering of cold wallet storage devices through Ledger partnership.
- Secure Asset Fund for Users (SAFU) emergency insurance reserve fund.
- Bug bounty program with rewards up to $1 million for critical issue reports.
- Anti-phishing code protection against secret key malware attacks.
- Optional IP whitelisting feature for account logins.
- Regulation in key jurisdictions with required KYC procedures.
Binance has maintained that no customer has ever lost funds due to a security breach. While no exchange has perfect security, Binance dedicates significant resources to protect user assets and data.
Getting Started on Binance as a Beginner
Here is a simple step-by-step guide to getting started trading crypto on Binance:
Step 1: Sign Up for a Binance Account
- Go to binance.com and click “Register” to create your account.
- Verify your email address to complete the signup process.
Step 2: Secure Your Account
- Enable two-factor authentication in account settings.
- Optional: Whitelist withdrawal addresses for added security.
Step 3: Complete Identity Verification
Complete KYC verification by submitting your government ID and personal details.
Step 4: Fund Your Account
From the homepage, click “Fiat” or “Buy Crypto” to deposit funds via bank, card, or P2P purchase.
Step 5: Access the Trading Interface
On the taskbar, click “Trade” then “Classic” or “Advanced” to access the trading screen.
Step 6: Make Your First Trade
Search for a trading pair such as BTC/USDT and enter your trade details.
Select “Market” to execute immediately or “Limit” to set a target price.
Review details then click “Buy” or “Sell” to complete your first crypto trade!
And that’s it! You can now explore the other features of Binance and continue trading as much or as little as you want. Always take security precautions and invest responsibly.
Storing Crypto on Binance
Binance gives users multiple options for storing cryptocurrencies on and off the platform. Each option has different security trade-offs:
Binance Wallet: Convenient to trade but higher counterparty risk. Covered by SAFU insurance fund.
Binance Vault: Provides extra login protections and time-delayed withdrawals for better security.
Trust Wallet: Official Binance owned mobile crypto wallet gives you full asset control.
Hardware Wallets: For highest security, withdraw to a Ledger or Trezor device. Stored offline.
External Wallet: Withdraw to wallets from MetaMask, Exodus, etc for independent storage.
DeFi protocols: Invest crypto in DeFi apps to earn yield rather than sit idle in storage.
For traders, storing assets on the Binance exchange is convenient. But use other options if holding for the long term or maximizing security.
Customer Support Options
As a primarily crypto-focused company, Binance takes more of a self-service approach to customer support compared to traditional financial institutions. Their main customer support options include:
Help Center: Searchable knowledge base and FAQ section with support articles.
Support Tickets: Submit support requests via web form and receive email responses. Slow turnaround.
Live Chat: Chat with agents in real-time via portal on Binance website. Usually quick responses.
Social Media: Large Telegram and Twitter communities for asking questions. Unofficial.
No Phone Support: Binance currently does not offer phone-based customer service. Support tickets are the official default channel.
Overall, Binance provides decent customer support coverage during business hours with multilingual agents available. But requests are handled primarily through written channels rather than phone.
Binance vs Coinbase
As two of the largest mainstream crypto exchanges, Binance and Coinbase cater to somewhat different types of users:
Binance
- Much wider selection of altcoins – 500+ vs 60 on Coinbase.
- Lower trading fees, especially for high volume traders.
- More advanced trading features and options.
- Primarily focused only on crypto trading.
- Geared more towards active crypto traders who trade multiple assets.
Coinbase
- Easier to use interface for complete beginners.
- Insured custodial wallets simplify storage.
- Stronger customer support via email, phone, chat.
- More beginner educational resources on crypto.
- Support for crypto debit cards, yields, and other services.
- Better for casual traders focused only on major coins like Bitcoin.
For large trading volumes across many cryptocurrencies, Binance generally offers lower fees. But Coinbase is simpler for brand new investors.
READ ALSO: Coinbase: A Beginner’s Guide to the Leading Cryptocurrency Exchange
Is Binance Safe and Regulated?
Binance has faced security breaches and regulatory restrictions raising questions around its overall reliability. Some key considerations:
- Has been banned or issued warnings in the UK, Japan, Canada, Cayman Islands, Thailand and other jurisdictions at times.
- Does not publish comprehensive transparency reports with full reserves disclosure.
- Founder Changpeng Zhao maintains an influential role, raising concerns over centralized leadership.
- The uninsured P2P trading platform has been used for major fraud amounting to millions.
- Lack of telephone support and slow turnaround times on support tickets frustrate some customers.
- Binance Smart Chain has suffered multiple flash loan exploits and theft incidents.
- Binance has historically taken steps to improve compliance, security, and insurance safeguards in response to issues.
While Binance is making progress, it does not yet offer the full level of maturity, institutional-grade policies, and regulatory approval found at the most trusted exchanges. Use added caution and security precautions if trading substantial value.
To Recap
Binance rightfully earned its place as the top crypto exchange based on trading volumes due to unrivaled coin selection, discounted fees, and a robust trading interface. It offers advanced traders all the tools they need while also maintaining an easy on-ramp for beginners.
However, the opaque corporate structure based in multiple offshore jurisdictions places limitations on its ability to gain widespread institutional adoption. And support for high risk products like extremely leveraged futures warrants caution for casual users as well.
For those comfortable with the additional diligence required when dealing with more lightly regulated exchanges, Binance provides a compelling trading experience. But make sure to turn on all available account security features and consider spreading holdings across multiple platforms.
This guide covers everything you need to get started responsibly trading crypto on Binance. Don’t hesitate to turn to official support channels for any help required along the way.
Frequently Asked Questions
Is Binance banned in the USA?
Binance is not formally banned in the USA but does not allow US users on its global site. US residents must use Binance.US which is a separate exchange operating in full compliance with US regulations.
How long do Binance withdrawals take?
Processing times vary by coin, but typical Binance withdrawal times are under 30 minutes for coins with low network congestion. More popular coins like Bitcoin can take over an hour during busy periods.
What is the minimum trade amount on Binance?
The minimum trade amount on Binance is generally $10 USD or 0.001 Bitcoin for crypto-crypto pairs. This minimum can be higher for buying crypto with fiat currencies due to transaction fees from payments providers.
Does Binance report to IRS?
While Binance itself does not report users to the IRS, Binance.US is required to collect IRS form 1099-K reporting for users exceeding annual $20,000 gross transactions. Always consult a tax professional for guidance on reporting crypto taxes.
How do I withdraw from Binance to bank account?
To withdraw funds from Binance to your bank account, go to your Fiat Wallet portal, select your bank account, enter the withdrawal amount in USD equivalent to withdraw, and submit the withdrawal request. Direct bank withdrawals are only available in certain countries.
Is Binance hacked? Has Binance ever been hacked?
While individual users have reported hacks of their personal Binance accounts, Binance itself has never been officially hacked. All customer crypto assets lost in individual account takeovers have been fully reimbursed by Binance through its Secure Asset Fund for Users (SAFU)
Is Binance legal in Canada?
Binance does not have an exchange license to directly operate in Canada. While using offshore Binance by Canadians is not officially illegal, regulatory guidance strongly discourages residents from accessing unlicensed exchanges with no investor protections.
Does Binance work in the UK?
Binance voluntarily discontinued certain activities and offerings to UK users in mid 2021 following guidance from the UK financial regulator. UK residents can still access various basic trading services but with limitations imposed on derivatives and stock tokens.
Is it safe to connect bank account to Binance?
Connecting your bank account to Binance carries heightened risk compared to regulated exchanges. Be extra cautious and use strong unique passwords and 2FA to reduce account takeover threats. Consider limiting transfers to only what you need for trading.
Can Binance be trusted? Is Binance trustworthy?
While Binance facilitates billions in crypto trading daily, it is not as institutional grade as regulated exchanges that publish full transparency reports and undergo routine auditing. Thorough technical and account security is a must. Avoid holding substantial crypto on Binance long term.
