Binance is a popular cryptocurrency exchange founded in China but later moved its headquarters to Japan due to the Chinese regulation on Cryptocurrency. It was created to answer the question of “how to exchange a certain crypto for another” and also aims at creating an ideal platform where users from around the world can easily key into initial coin offerings (ICO’s) and seamlessly trade in digital currencies.
The company is relatively new in the crypto-exchange business but has gained a lot of popularity due to the wide variety of initial coin offerings it offers and its budget-friendly transaction fees. If you are into the cryptocurrency trading, you will notice that most users have moved from Bittrex and other trading platforms to Binance.
This review is aimed at providing you with all you need to know about Binance, the crypto pairs it supports, how it works, how much it charges per trade including trade limits, how secure it is, and a review of its customer support system.
How Binance Works
Binance offers two options for cryptocurrency trading, namely Basic and Advanced. However, neither the Basic nor advanced option was created to suit the first time trader. Despite the fact that both options are pretty advanced, they shouldn’t pose so much of a problem to users who have background knowledge on how cryptocurrency exchanges work.
The only distinguishing factor between the basic and advanced version is that, the advanced version will offer you a deeper insight into the technical analysis of your desired cryptocurrency’s value over a period of time, as against the basic version which only displays charts and graphs for your desired trading pairs including their trade history and order books.
Here is what both versions look like.
Getting Started With Binance
As is typical with several traditional cryptocurrency exchanges, new users are required to sign up and verify their account before being allowed to venture into trades for security reasons. Same happens to be the case in Binance, to use the platform you must create a user account.
Creating a user account in Binance is relatively easy and can be done even by an 8-year-old. Account verification is optional for level 1 which has a daily withdrawal limit of 2BTC. However, to be eligible for level 2, users are required to present a means of identity such as a valid photo ID which will be subject to approval by the Binance team.
Level 2 allows for the withdrawal of over 100BTC daily, although users can be allowed to withdraw more than the limits stipulated here, but will have to contact Binance directly to work that out. It will be rear to see a trader withdraws 100BTC daily
Here is how the signup page looks like…
After successfully signing up, you can go ahead to fund your Binance account, the platform offers a wide variety of cryptocurrencies, however, I strongly recommend you buy BTC or ETH to avoid ambiguity.
To fund your account
- Scroll to FUNDS at the top of the site and then click on DEPOSITS/WITHDRAWALS
- Find the currency you wish to send
- Click on the DEPOSIT button next to your desired currency. (At this point you will be given a wallet address)
- Send your funds to the designated wallet address and commence trading.
After funding your account with the steps provided above, you can start trading with your desired crypto’s as Binance supports all the major cryptocurrencies, you can also invest in numerous ICO’s and their tokens.
Some advanced traders have voiced their discontentment on the Binance platform due to the fact that it only allows for the generation of limit and market orders, as against their preference for more advanced trading options.
Basically, all users can do is place their orders and wait for them to be fulfilled according to laid down terms.
Trading On Binance
In this section, I will be walking you through the basics of trading on the Binance platform. Trading on Binance shouldn’t pose any difficulty to anyone with prior knowledge on how exchanges work. First off, before any trade, you must deposit funds (we already covered that in the previous section).
Assuming you have already funded your Binance account, purchased a cryptocurrency and are ready to trade. All you have to do is
- Click on EXCHANGE at the top right menu of your dashboard
- Choose between BASIC or ADVANCED trading view
For the purpose of this illustration, I will be making use of the Basic view.
To choose the currency to trade with, take a look at the right-hand side of your screen. There you will see cryptocurrencies like BTC, BNB, ETH and USDT all you have to do is choose one of them and a list of trading pairs will be displayed. At the point where the list is displayed, you can search for and choose your desired currency. To make the job of searching for your desired currency a lot easier, you can make use of the search field.
In order that you don’t login in and search every time, you can simply create a list of your favourite currencies by clicking on the “star” icon next to them.
After finding your desired currency and clicking on it, what you have to do next is turn your attention to the column on the left-hand side of your screen. This column displays the prices available for your desired currency, both the selling and buying price. The prices in red at the top section of the column refer to what people are willing to sell your currency at, while the prices in green at the bottom section refer to what people are willing to pay for the currency. The last sale price can be found in the middle.
Now that you understand this, the next thing you will want to do is place a buy order. To do this, you will have to scroll to the section directly under the graphs, there you will see the buy and sell boxes. The ‘buy box’ as its title implies can be used to place a buy order, you can input the price you wish to buy at, but I advise you simply click on a figure on the left-hand column as this will afford you the luxury of either filling the amount of currency you are willing to buy or click on any of the percentage buttons which will auto-fill an amount based on the funds you have available.
Upon successfully placing your order, you can view it in the open orders section. It will be in the ‘open orders’ section until it is fulfilled and made available for withdrawal to your desired wallet through the “deposit/withdrawal” menu.
Currencies Supported On Binance
The plus side of this platform is its support for a wide variety of digital currencies, users are not limited to major currencies like Bitcoin, Ethereum, and Litecoin like is the case with most exchanges. Binance supports altcoins such as NEO, DASH, RIPPLE, GAS and so much more, it also supports a multitude of tokens in its bid to promote ICO’s. Users are allowed to trade in these tokens as well which is quite profitable.
The speed at which Binance adds tokens and coins after their ICO is another plus side to this platform, users are afforded the opportunity of getting in early and buying at a much cheaper price for maximum profit.
The various tokens are available for trade with BTC, ETH, USDT and BNB.
Consider Buying The Binance Coin
Binance did an ICO and in the process launched its own coin; this coin can be used to pay transaction fees in the binance platform, and I strongly suggest you consider buying them as well because paying trade fees with them is a lot cheaper than paying with mainstream digital currencies. Binance is currently planning on creating a decentralized exchange and the Binance token is set to feature in it as an important base currency. When this happens, the coin’s value will likely grow.
The Binance team had this to say about its coin
“Every quarter, we will use 20% of our profit to buy 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.
This is aimed at decreasing the currency’s supply and ensuring it remains valuable to its holders.
Fees charged by Binance are pretty competitive; the platform charges its users a 0.1% fee on average per trade and paying with BNB (Binance token) attracts a 50% discount on your first year and 25% in subsequent years which makes the platform a great choice for anyone battling with high transaction fees.
Furthermore, withdrawal fees tend to differ from one currency to another, for Bitcoin withdrawals you will be charged 0.001BTC and 0.01ETH for withdrawing Ethereum. At the moment this article was written, Binance charged the following withdrawal fees.
Binance imposes no limits on the number of coins a user can deposit, it only places limits on the amount users can withdraw depending on their level of verification. Verified users in level 2 are allowed more freedom to withdraw as many currencies as they wish. The verification process involves the update of a user’s bio-data i.e full name, gender, country and photograph of passport or any government issued form of identity.
Not enough has been disclosed regarding the various security measures used by Binance to secure its trading platform. However, its users seem content in the knowledge that their funds are secured since there hasn’t been any report of a security breach or cyber attack. The common consensus is that the platform has a multi-tier security framework, and with the presence of two-factor authentication users can trade without fear of losing their funds to cybercriminals.
Binance Customer Support
It is no longer news that the cryptocurrency world is rapidly growing in its human and AI population, and for an exchange to be effective and attractive for investors it needs to provide a working customer team to attend to its customer’s needs and queries. Binance has a responsive customer service team and is open to improvement as time goes on; users have reported having their queries promptly attended to.
To contact customer support, users are to fill in a support form present on the website and receive responses via email. Binance customer service (as at the time of writing this article) does not support live chat or phone calls. However, it features a comprehensive FAQ section with articles to get new users up and running within the shortest possible time.
Binance is considered to be one of the best exchanges available and here is why
- Binance supports a wide variety of digital currencies and Tokens
- It is one of the fastest exchanges due to its ability to process over 1.4 million orders every second
- It works virtually on all modern devices, ranging from web to Android, HTML5 and WeChat
- Supports multiple languages from Korean to English, Japanese and Chinese
- Its fees are relatively affordable
- Binance has abundant partners and resources and is set to grow rapidly over the next couple of years.
The most common drawbacks to this platform lie in the fact that it has no fiat payment option and its interface is not the most user-friendly I have ever seen. Besides that, if you take safety precautions like activating two-factor authentication, creating a strong password when signing up and not keeping large amounts of currencies in the exchange you should expect a nice trading experience with Binance. You can also connect Binance to Charting website like coinigy for better user experience.
Also read: Binance Vs Bittrex – which is better?
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