In 2019, the company had placed restrictions for US-based citizens and US passport holders due to lack of SEC Regulations. However, 60 percent of its customers are US-based which led Binance to launch a US-based service in September to cater to this large demographic change.
What’s Different about Binance?
Binance brings unique value to its customers with the lowest transaction fees in the industry and more than 100 different cryptocurrencies to choose from. Despite its recent inception in 2017, the company has achieved the status of the most popular exchange to buy, sell and trade in cryptocurrencies. This results in a high trade volume and ensures that sellers can easily find opportunities to sell cryptocurrencies.
Beyond just providing an exchange, Binance has also created its own blockchain called Binance chain and a token Binance coin (BNB) that can be used as a trading pair for an immediate discount of 25%.
In February 2019, Binance made an announcement for the release of Binance DEX. Binance DEX is a decentralized order-matching engine based on the Binance Chain and also acts as an extension to the Binance.com exchange.
How to Sign Up on Binance?
The process of creating an account on Binance is quite straight forward and the verification depends on the level of membership. Here are some levels of membership:
• No verification needed.
• Withdrawal limit of 2BTC per day.
• Photo ID needed for verification.
• Withdrawal limit 100BTC per day.
For setting up higher limits, you can contact Binance to find out more details.
Once you are verified, you can add funds to your Binance account. While there are more than 100 options of cryptocurrencies available on the platform, it is recommended to use Bitcoin or Ethereum for this step.
To add funds to your account:
• Go to Funds and then Deposits/Withdrawals.
• Choose your currency and click the deposit button beside it. This will give you a wallet address.
• Send your funds to the given wallet address.
With your new funds you can begin trading and exchanging on Binance.
How to Buy on Binance and the Supported Payment Methods?
Trading in Binance is quite intuitive and simple. Follow the steps below to get started:
1. Ensure that you have some funds in your wallet.
2. Select Exchange from the top left menu and then click Basic or Advanced to load your desired trading screen. Basic is ideal for beginners and advanced offers an in-depth look for veterans.
3. From the right-hand side, select a tab for the currency you wish to trade in.
4. Once you have chosen your desired currency, take a look at the left column which shows selling prices in red and buying prices in green. The middle number represents the last sale price.
Underneath the graphs you will find a green Buy box.
You can either manually enter your price or click a number on the left-hand column. Now you will enter the amount of the currency you want to buy or select the percentage option to fulfill your order.
5. Once you have placed an order, it can be seen under the Open Orders section until it is received.
When you receive your currency, it will be available under “Deposits/Withdrawals” from where you can withdraw it to your external wallet.
Binance Trading Fees & Charges
Binance charges an average fee of 0.1% per trade for makers and takers but BNB holders get to enjoy a 25% discount. While Binance uses BNB by default, its usage can be turned off through settings. Binance plans to slowly eliminate this discount over the years by dropping it to 12.5% in the next year, 6.75% in the year after and then finally 0.
Another important factor that affects your overall fees is your trading volume. Binance has 8 levels of fee discounts (VIP 1 – VIP8) that depend on your 30-day trading volume measured in bitcoins. To qualify for each level, you are required to hold a certain amount of BNB. Here are some levels to give you a basic idea:
|Level||30d trade Volume|
|&||BNB Balance||Maker / Taker||Maker / Taker BNB 25% off||Maker / Taker BNBxReferral 25% off x Kickback 20%|
|VIP 0||< 50 BTC||or||≥ 0 BNB||0.1000% / 0.1000%||0.0750% / 0.0750%||0.0600% / 0.0600%|
|VIP 1||≥ 50 BTC||&||≥ 50 BNB||0.0900% / 0.1000%||0.0675% / 0.0750%||0.5400% / 0.0600%|
|VIP 2||≥ 500 BTC||&||≥ 200 BNB||0.0800% / 0.1000%||0.0600% / 0.0750%||0.4800% / 0.0600%|
|VIP 3||≥ 1500 BTC||&||≥ 500 BNB||0.0700% / 0.1000%||0.0525% / 0.0750%||0.0420% / 0.0600%|
|VIP 4||≥ 4500 BTC||&||≥ 1000 BNB||0.0700% / 0.0900%||0.0525% / 0.0675%||0.0420% / 0.0540%|
|VIP 5||≥ 10000 BTC||&||≥ 2000 BNB||0.0600% / 0.0800%||0.0450% / 0.0600%||0.0360% / 0.0480%|
|VIP 6||≥ 20000 BTC||&||≥ 3500 BNB||0.0500% / 0.0700%||0.0375% / 0.0525%||0.0300% / 0.0420%|
|VIP 7||≥ 40000 BTC||&||≥ 6000 BNB||0.0400% / 0.0600%||0.0300% / 0.0450%||0.0240% / 0.0360%|
|VIP 8||≥ 80000 BTC||&||≥ 9000 BNB||0.0300% / 0.0500%||0.0225% / 0.0375%||0.0180% / 0.0300%|
|VIP 9||≥ 150000 BTC||&||≥ 11000 BNB||0.0200% / 0.0400%||0.0150% / 0.0300%||0.0120% / 0.0240%|
Binance puts no transfer limits on the number of coins you can deposit. However, without verification users have limited withdrawal capabilities that are lifted once verification is completed.
How Secure is Binance?
Binance might have been around for a short while, but the trust they have garnered from users around the world is truly exceptional. In 2018, Binance managed to discover a large-scale breach on the system. This was done through its advanced automated systems that caught the attempt before any damage was done. Through this incident Binance has proved its security process to its loyal users. Here are some other ways in which Binance ensures user security:
• Two-factor authentication is available.
• Binance uses the latest technology including artificial intelligence, facial recognition and big data analysis to thwart any attempts of security breaches and frauds.
• Binance closely monitors all activity on the platform with its risk control system that can catch suspicious activity or irregular trades.
With the largest trade volume and a strong customer base, Binance is without a doubt the fastest growing cryptocurrency exchange in the world.
|Pros of Binance||Cons of Binance|
|• Low fees of 0.1% per trade.||• U.S. Customers not allowed|
|• Good security mechanisms.|
|• More than 100 cryptocurrency options.|
|• 2 types of layouts, Basic and Advanced for a user-friendly experience.|