Binance is an exciting new exchange that has come out of nowhere to dominate the market.
But if you want to get in on all of the rare altcoins, exciting giveaways, and lucrative trading action, you need to be aware of a few significant issues first. There’s some hidden fine print that could ruin your trading your experience.
This Binance review is the most up-to-date evaluation of the exchange. Don’t start trading before you read it.
What is Binance?
One unique feature is its giveaways and contests. Each month the community does everything from voting for the next new coin listing to entering to win a luxury sports car.
It’s easy to see why it went from an unknown quantity to market leader in just six short months.
As a cryptocurrency exchange, it facilitates the exchange of digital assets such as Bitcoin. Think of it just like a traditional stock exchange except users are trading online currencies instead of stocks (WARNING: Binance is not like most other exchanges. Please see below for important details).
Its liquid order book, trader-friendly fee structure, and fast execution make it a very popular exchange among professionals. It’s only recently that the tide has turned against it (just slightly).
By the end of this Binance review, you’ll be able to decide for yourself.
Which Coins Does Binance Support?
Binance has one of the most extensive coin catalogs of any exchange. If it’s a cryptocurrency, you can trade it here.
Note: You can ONLY TRADE CRYPTO on this platform. There are NO FIAT CURRENCIES.
All of the major names are on offer. Aside from BTC, there are:
Binance gives traders the ability to speculate on rare, borderline exotic altcoins that most people have probably never heard of. Even we had to look a few up.
** What is the Binance Coin (BNB) **: The exchange has its own cryptocurrency based on Ethereum. You can use your BNB to pay trading fees. In your first year, you will get a 50% discount if you pay with Binance Coin rather the crypto you are trading. Since the discount declines with each subsequent year, the value of BNB is expected to decline. To combat this, the exchange will destroy their tokens to constrict the supply. You can even use it to invest in certain ICOs from their launchpad.
Is Binance Safe?
Security should be your #1 concern with any Bitcoin exchange. We weren’t surprised to see so many question marks around the web in regards to the trading platform’s security. For one, it’s a new exchange. Another factor that gives new users hesitation is its base in Asia (and nobody really knows where in Asia).
While the company isn’t too open about their security systems, there are some very encouraging signs that point to high safety:
Verdict: Binance is still young but has built a very safe and stable reputation
The Binance login page even takes extra security precautions for you
What Are Binance Fees? | What is the Issue with Withdrawals?
Unlike many competitors (Bittrex, Poloniex, Gdax), their fees are flat. This makes trading very straightforward.
Trading Fee: .1%
There are no deviations from this fee based on volume or order execution. The low, trader-friendly fees are what attract high-volume traders here.
But there is a catch that has put a lot of traders off: withdrawal fees.
The exchange’s trading fees are low to encourage liquidity, but their withdrawal fees on certain coins (we cover which ones below) are very high by industry standards. The exchange claims this is due to high blockchain fees, but the community is in disagreement.
Tip: Since the Binance withdrawal fee is so high (depending on the coin), it isn’t worth your time to withdrawal small amounts of money. In fact, it is set this way to discourage users from withdrawing their altcoins. This is good for traders since it adds more liquidity to the market (more crypto on the exchange = more money to be traded).
Withdrawal Fees (3-18-18)
Binance Reviews | Is it Legit? How is Customer Support?
Based in Asia? Issues with the Chinese government? Rare altcoins for wild speculation?
It’s easy to see why Binance raises some red flags. However, despite all of that they have managed to build a very solid reputation in the community. Unlike many competitors, the crypto world loves this system. Trading is smooth, the giveaways and competitions keep everyone involved, and customer support does a solid job of keeping up with demand (that’s rare). Binance Twitter is very active, and users can regularly contact the platform via its social media accounts.
Despite being only a few months old, the CEO has been featured in Bloomberg, and the exchange continues to grow. Community sentiment is high. Check out the star ratings from community review sites:
The community most likes the low trading fees, the range of coins, and fast trade processing. Negative reviews focus almost solely on withdrawal fees, lack of fiat, and dust*.
What is Binance dust? - The Major Downside to Trading on it
Binance does not allow fractional trading, meaning small fractions of coins will become leftover in your account. There’s a minimum you are allowed to sell of each coin, meaning if you dip below that minimum, that amount will just sit there. The platform claims to be working on a solution, but the status is not known.
Verdict: Binance is a great exchange for serious traders but has a few downsides.
Verification and Withdrawal Limits
For Level 1 trading, there is no verification required. You will be limited to withdrawing “only” 2 BTC per day. If that is too paltry for you, you can “level up” and move to Level 2 (50 BTC limit). This requires only a photo ID. In a world where crypto verification is getting more invasive by the day, Binance is a breath of fresh air.
How to Use Binance – Sign up, Deposit, Trade, Referral Program, ETC.
This digital exchange isn’t the most beginner-friendly platform on the market, but signing up and getting started isn’t that hard either. The best part is you don’t need verification to make small trades. You can be up and running instantly (in crypto terms).
Here’s how to get started:
1.) Go to Binance.com and Register
Mosey over to Binance, and click Register in the top right corner.
Enter a few quick details and you’re ready to start exchanging the world.
2.) Enable 2FA
Two-factor authentication is an extra step that will help secure your account. Any time you try to log in, it will send a code to your mobile phone. Google Authenticator is the app of choice for 2FA. You will need to enter that to proceed.
3.) Deposit Crypto - How to Deposit on Binance
Remember, this exchange only supports cryptocurrency. There are no fiat options. You must have some crypto in a wallet somewhere already and transfer it in. If you’re ready to deposit, here’s what to do:
Is Binance a Wallet, too?
Yes, you can store your BTC on Binance. The platform’s wallet has never been hacked, and the company takes security very seriously.
Security Tip: NEVER leave more currency in an exchange’s wallet than is necessary for trading. Think of it like your savings account and your wallet. Use your wallet just for some cash for the day. Use your savings account for everything else.
4.) Make Your First Trade
Now it’s time to exchange the world. Click Exchange in the top left corner and choose Basic or Advanced view. Advanced view is, well, advanced, so we recommend starting with Basic. Once you learn how to read Binance charts, you can move to Advanced.
WARNING: Even Basic view has 10 different sections to pay attention to. Get a feel for it before continuing.
To trade, just locate the trading pair you want and choose to buy or sell. From there, just enter the amount you want, and you’re ready to go.
Binance Referral Program
Think your friends might want to trade some Bitcoin? If you recruit more Binancians, the website will give you 50% of their trade fees as commission. Go to the support page, join the program, and get your referral code to distribute to friends. You could earn hundreds of dollars for doing nothing. Not bad.
Binance Margin Trading
Currently, the platform does not allow margin trading, but as of writing (March 18th, 2018), it is in the works. Margin trading allows you to leverage your assets to “borrow” funds and make larger trades. It is risky, but the potential payoffs are exponential.
Top 3 Alternatives to Binance for Fiat Currency
If you want to trade USD, EUR, or GBP, you’ll have to find a different exchange. There are some great Binance alternatives for trading fiat currency.
Gdax is the exchange affiliated with the largest Bitcoin broker in the world, Coinbase. It is an extremely secure, reputable, and trusted exchange that facilitates the exchange of fiat (USD, EUR, etc.) for crypto. You can only trade currencies available on Coinbase (BTC, LTC, ETH), but it offers some of the most advanced trading on the market. If you want to transfer from Gdax to Binance, it’s pretty easy. Get your deposit address from your Binance wallet and withdraw from Gdax by using the “withdraw to a BTC wallet” option. Enter your deposit address, and that’s it. It should take no time at all.
LocalBitcoins is like the Craigslist of Bitcoin. It’s 100% anonymous and allows you trade basically anything of value for Bitcoins. So you can use your local fiat currency to trade with someone in the area if you’d like. It’s one of the easiest ways to buy/sell crypto without using a middleman. You need to beware of scams though.
If you want to sail the high seas of Bitcoin by using some of the world’s most popular currencies, Kraken is the place to do it. It also isn’t very beginner friendly, but it has a smooth interface for trading USD, CAD, EUR, GBP, and JPY for a range of cryptocurrencies. It also has some of the most liquid markets around. It doesn’t have as many coins as Binance, though. When it comes to Kraken vs. Binance, definitely choose the latter if it’s just for crypto.
Q: Has Binance Been Hacked?
A: Technically, no. There was an attempt to hack the exchange that lasted roughly two minutes, but the platform was able to halt withdrawals, stop the hack, and save everyone’s currency. There is currently a bounty out to find the hackers. The platform is extremely safe and on top of their security.
Q: Is the Binance App High Quality?
A: Yes, it currently has a 4-star rating. It allows you manage your crypto and make trades at the touch of a button from anywhere. Ratings for iOS and Android have been great so far.
Q: What is the Binance Coin of the Month?
A: This is where users vote on which new coins they want the exchange to list.
Q: Does it Accept US Customers?
A: Yes, all are welcome!
Q: What is Binance API?
A: You can take advantage of API on the platform. Get your API key and then use a language such as Python to create customized features. Trading bots are allowed on the site.
Q: How Long Does the Verification Take?
A: It shouldn’t take too long. Normally Level 2 verification takes only a few days.
Q: Is it a Pump and Dump Scam?
A: While there have been accusations of groups of users doing it, the exchange in no way facilitates this.
Q: What is the Binance Launchpad?
A: The website also acts as an incubator for blockchain startups. If you think you’re part of the next generation of blockchain, Binance can help launch your idea!
Q: Is Keeping Coins on the exchange a Good Idea?
A: It’s never a good idea to keep more coins than necessary on any exchange. Binance is no different.
Q: Where is Binance Located?
A: After leaving China, the company is somewhat dispersed at this point. The company claims it is “based in Asia”.
Q: Is There a Login Problem?
A: The platform is rarely down for maintenance so there shouldn’t be any problems.
Lots of Coins
Community Competitions and Giveaways
High Withdrawal Fees
Good Reputation and Security
Not Beginner Friendly
No Verification to Start
Binance is one of the best crypto-only platforms out there for experienced traders. Its low fees, liquid market, and range of coins make it one of the best places to speculate and try to make big money on cryptocurrency. The only downsides are its withdrawal fees and lack of cryptocurrency.
So far, it has gained a good reputation among the community. Even if it isn’t beginner friendly, it is a great place to get in on the crypto action.