What is the Binance exchange?
Binance, the name, comes from the joining of Bitcoin with the world finance. It is a place where you can go buy and sell cryptocurrency. This is a site for crypto-to-crypto trading – where you can exchange one digital currency for another. It has gained a lot of popularity due to low trading fees and the wide range of coins and tokens available for exchange.
The company is located in Malta and was launched in 2017 via an ICO (Initial Coin. It hasn’t been around that long, but the Binance exchange is considered one of the better cryptocurrency exchanges on the internet.
The Binance exchange offers two trading platforms – one basic and one advanced. There is not a lot of difference between the two – just the level of data provided is more complex on one than the other.
How Binance works?
Before we get to the Binance review, let’s give some details about how the site works.
When you visit the site, you will be given options to view your order book, the trade history and a candlestick chart. All you need to do to begin trading is click on “Deposit Withdrawal” under the “Funds” tab and go from there.
Be aware that you will only be able to deposit with cryptocurrency, as the site does not accept fiat currency. This means that you will have to go to another cryptocurrency exchange to buy Bitcoin or Ethereum – before coming to the Binance exchange to enjoy a full range of coins and tokens. It is best to choose one of these cryptocurrencies because then you will have more choice when finding trading pairs. It is not possible to always trade one coin/ token with another.
The trading options on Binance, even on the advanced platform, are limited to market and limit orders.
Binance is also a place where you can store your cryptocurrency. It offers a public wallet address where you can send your funds. This is useful for anyone hoping to trade seriously. It is possible to keep the unique code of your cryptocurrency on a piece of paper – but in practical terms this is not ideal.
Key information about Binance
When using a cryptocurrency exchange there is information that you need to know, mostly how expensive, how safe the site is to use and what is available to buy and sell there. This key information underpins conclusions made in this Binance review.
The trading fees on Binance are simple and cheap. For each trade you will be charged a flat fee of 0.1%. This becomes even cheaper if you pay for these fees using your own token, with a 50% discount. It is unlikely that you will find a cheaper cryptocurrency exchange on the market.
The range of coin and tokens on Binance is also impressive. Most trading pairs link to Bitcoin, Ethereum and Tether – but these can be paired with Ark, Bitcoin, Bitcoin Cash, Bitcoin Gold, Dash, EOS, Ethereum, Ethereum Classic, IOTA, Litecoin, NEO and more than 30 others. Binance is only one of two exchanges to offer IOTA and Bitcoin Gold and Walton Coin cannot be found anywhere else.
Even though it is a bind that you cannot deposit with fiat currency, there are no other limits on the deposits you make. With a Level 1 verification with the site, you can only withdraw up to 2 Bitcoin worth of currency a day – somewhere in the region of $15000 to $20000. To withdraw more, you will need level 2 verification – with 2FA enabled. The issue here is that only Chinese numbers are supported in 2FA. You will also need to provide proof of identity for Level 2 – and this stops the process being anonymous. However, with Level 2 verification you can withdraw up to 100 Bitcoin worth of currency.
In terms of safety and security, there is little information available about the site on the Binance exchange itself. There is little comment on forums or review sites to suggest people have had a negative experience with Binance – and this has got to be seen as the biggest test of safety. The CEO of Binance, Changpen Zhao, has a long history in finance and in relationship to cryptocurrency – therefore, there is some trust to be gleaned from his association with Binance.
Your Binance Review
Positives
- The trading fees for the site are the lowest you are likely to find anywhere on the internet. The fee structure is also simple and transparent. Deposits are free and there is a fixed, flat fee for trading. This is unusual – as many platforms will offer different prices for different currencies and different amounts.
- There is the option to trade to quite a decent level before you need to do more than provide a verified email address. This honours the anonymity that is promised by the original inception of Bitcoin, as a decentralised peer-to-peer transaction tool.
- The 2FA and Google Authenticator security at Level 2 is also a positive – promising increased security from hacking. It is not surprising at this level you need to provide details of your identity and many other sites demand this much sooner.
- The number of coins and tokens available on the site is impressive – and you find some cryptocurrency on Binance that you are not going to find anywhere else.
Negatives
- You cannot deposit fiat currencies. This means you are going to have to go to another exchange to purchase Bitcoin and Ethereum before trading on Binance.
- This is not a site for beginners – even the basic platform is complex.
- Even though there is an advanced option – this is only in terms of technical, financial detail available. The number of trading options available on the site are particularly limited – and makes the site a strange middle ground between beginner and expert trader.
Overall
The Binance exchange is one of the leading cryptocurrency exchanges on the internet – mostly because of the trust inspired by the CEO and the exceptionally low trading fees. However, the site’s biggest draw is the choice available.