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Best of Binance

• Low fees
• Several ways to earn passive income
• Wide range of cryptocurrencies
• Advanced trading tools

Diego G. Crypto Enthusiast

Updated: July 5, 2024

Binance cryptocurrency exchange Operate the worlds biggest bitcoin exchange and altcoin crypto exchange in the world by volume.

Binance Review 2023: An International Crypto Exchange for Advanced Traders

One of the biggest cryptocurrency exchanges in the world, Binance, provides a broad selection of cryptocurrencies, minimal trading costs, and cutting-edge features designed for seasoned investors. It offers a wide range of trading platforms, but the SEC has accused it of deceiving investors and trying to break American securities laws. Customers in the United States should utilise Binance.US instead.

We suggest reading our in-depth review to get an analysis of the platform and decide whether it is appropriate for traders.

Complete Review of Binance

This cryptocurrency exchange is ideal for experienced traders from all over the world who don’t care about regulatory issues and want access to a large variety of advanced features.

Pros:

Cons:

Key Benefits

Competitive Fees

Although Binance doesn’t offer fee-free trading, its low fees are competitive with those of other top cryptocurrency exchanges. Binance offers a cost-effective alternative when compared to platforms that charge over 5% for making deposits and buying cryptocurrencies, with spot trading fees as low as 0.1%.

Passive Income Opportunities

With varied degrees of risk, Binance offers a number of ways for you to generate passive income from your cryptocurrency holdings. You could be able to earn a high annual percentage rate (APR) of 30% or more on particular cryptocurrencies through its earn programme. A flexible crypto savings account is an alternative that provides lower but reliable interest rates. When compared to many other exchanges, Binance stands out by providing more varied ways to earn interest and greater rates. Before investing, it’s important to be aware of the hazards involved nevertheless, as some investors lost money in 2022 as a result of high-yield platforms taking undeclared risks with customers’ money.

Extensive Cryptocurrency Selection

Users of Binance, one of the biggest cryptocurrency marketplaces in the world, have access to a wide variety of choices. You can trade a variety of assets, including decentralised finance (DeFi) tokens, stablecoins, Bitcoin (BTC), and altcoins, with the over 375 tokens and thousands of trading pairings available.

Advanced Trading Tools

By providing a variety of tools, Binance serves traders of all skill levels. A handy “convert” option makes it simple for new users to buy and sell items at predetermined pricing. Advanced traders may successfully examine market movements by using Binance’s extensive trading interface, which includes charting tools. For speculating on the course of Bitcoin’s price, the platform also has a section for Bitcoin futures. Moreover, Binance provides leveraged tokens that enable users to increase the size of their investments in particular currencies. It’s crucial to remember that using leverage when trading comes with inherent hazards, such as possible losses and the danger of liquidation.

Areas for Improvement

Regulatory Scrutiny

Binance has faced regulatory scrutiny in multiple countries, including the United States. In June 2023, the Securities and Exchange Commission (SEC) filed charges against Binance, Binance.US, founder Changpeng Zhao, and related entities. SEC Chair Gary Gensler cautioned the public against investing their hard-earned assets on these platforms. Binance has stated its commitment to vigorously defending its platform against these allegations.

Limited Availability in the U.S.

The United States-specific platform that Binance runs has fewer capabilities and a more constrained range of cryptocurrencies. About 150 cryptocurrencies can be traded on Binance.US, although futures trading or leveraged tokens are not offered. Moreover, people who live in Hawaii, New York, Texas, or Vermont cannot access Binance.US accounts.

Not Beginner-Friendly

Experienced traders trying to maximise their earnings are the main target market for Binance. For those who are new to investing in cryptocurrencies, the platform’s broad market choices and complex dashboards might be confusing and difficult to use. If someone’s main objective is to buy Bitcoin for the first time, there are other more user-friendly platforms available even if Binance offers a simplified interface for novices and educational resources.

Although though Binance excels in several areas, such minimal costs, earning potential, and cutting-edge trading tools, these areas for development point to the need for better regulatory compliance, improved accessibility in the U.S., and a more user-friendly interface for newcomers.

Alternative Options to Consider:

• SoFi Active Investing: SoFi Active Investing is a viable option to take into account if you’re interested in broadening your investment portfolio to include both equities and cryptocurrencies. Together with fractional shares, ETFs, and other investment products, it provides a good range of cryptocurrencies.
• Gemini: Gemini is a great option for those who are new to investing in cryptocurrencies. It offers a simple platform with a variety of bitcoin products and in-depth learning materials. Gemini is well-known for emphasising security and is accessible across the United States.

Considering these alternatives can provide you with additional options that may better suit your specific needs and preferences, whether you’re looking for a diverse investment portfolio or a beginner-friendly cryptocurrency platform.

How Binance works

Understanding How Binance Operates Binance operates as a fully functional cryptocurrency exchange, offering a wide range of services to its users. Here’s what you can do with Binance:

1. Buy, Sell, or Trade Cryptocurrency
2. Set Up Recurring Buys
3. Earn Passive Income
4. Access Advanced Features
5. Trade Non-Fungible Tokens (NFTs)
6. Participate in Binance Launchpad and Launchpool
7. Access Portfolio Insights and Tracking
8. Manage Tax Obligations

However, it’s important to note that Binance’s wide range of products and its tendency to act proactively, seeking forgiveness later, have resulted in regulatory scrutiny from several authorities worldwide. While Binance warns users about the risks involved, it ultimately provides access to high-risk products like margin trading. Thus, users must take responsibility for managing their risks appropriately.

Trust Wallet

In addition to its custodial wallet, Binance recommends Trust Wallet, which is a hot wallet (connected to the internet) supporting thousands of cryptocurrencies across major blockchains. It is easy to transfer assets from Binance to Trust Wallet or other external crypto wallets. Personally, I have found it convenient to withdraw from Binance to both my MetaMask and Trust wallets. Typically, unless there are issues with a particular blockchain, withdrawals are completed in under 10 minutes, with minimal costs.
Binance can be accessed through desktop applications, mobile apps, or its web-based platform. Since it is a centralized exchange, you will need to provide personal information for account verification before you can start using the platform.

Fees overview

Binance applies fees for various transactions, including trading, buying, selling, as well as certain withdrawals and deposits.

Deposit and Withdrawal Fees

The cost of deposits varies by currency and payment method. Debit card payments typically entail a fee, whereas bank transfers frequently don’t. In many nations, Binance accepts payments via bank transfers, credit or debit cards, and peer-to-peer exchanges.

Bank accounts in fiat currency or cryptocurrency wallets/exchanges can both accept withdrawals. Depending on the currency and withdrawal method, different minimum withdrawal amounts and costs apply. It’s crucial to remember that Binance stopped accepting deposits and withdrawals in GBP (British Pound) in May 2023 owing to regulatory reasons, as stated by its U.K. payment partner.

Trading Fees

Your trading fee % is determined by your 30-day trading volume and the amount of Binance Coin (BNB) you have in your account. Maker orders, which increase market liquidity, typically have lower fees than taker orders, which decrease liquidity.

Users can get a 25% discount on trading costs by paying with Binance Coin (BNB), the platform’s native cryptocurrency. All users may take advantage of this discount.

Please note that charge schedules and exact rates are subject to modification, therefore for the most up-to-date information on fees, please consult the Binance platform.

How Binance Works

Binance operates as a fully featured cryptocurrency exchange, offering a diverse range of services. Here are the key functionalities provided by Binance:

• Cryptocurrency Selection: Binance users have access to a vast selection of over 375 cryptocurrencies. This extensive range, including smaller cryptocurrencies, was particularly appealing to me when using the Binance platform. However, I discontinued using Binance for buying and selling cryptocurrencies due to its regulatory issues. Binance also has its own native cryptocurrency called Binance Coin (BNB) and a stablecoin named BUSD.
• Trading Pairs: Binance offers thousands of trading pairs, including various options for fiat-to-crypto trading. It supports all popular cryptocurrencies, including almost all of the top 50 cryptocurrencies by market capitalization, such as Bitcoin, Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA).
• New Cryptocurrencies: Binance is known for swiftly listing new cryptocurrencies. It also provides early access to new projects through its Launchpool feature. It’s important to exercise caution when dealing with newer cryptocurrencies as they tend to carry higher risks.

Is Your Cryptocurrency Safe with Binance?

Binance has faced allegations from the U.S. Securities and Exchange Commission (SEC) that go beyond trading unregistered securities. These accusations raise concerns about the safety of funds held on the platform. The SEC has accused Binance of engaging in wash trading, misleading investors, and creating an “extensive web of deception.” Additionally, it claims that Binance and its CEO, Changpeng Zhao, exercise control over customer assets, allowing for the commingling or diversion of these assets without their knowledge. In simpler terms, the SEC suggests that assets held in a custodial wallet on the Binance platform could potentially be sent to a third party without the user’s awareness. Binance asserts that all client assets are “safe and secure” and vows to vigorously defend against these allegations.

Security is of utmost importance when entrusting funds to a cryptocurrency exchange, especially considering the history of hacks in the industry. Binance claims to implement the following security measures:

• Majority of funds kept offline in cold storage.
• Creation of an insurance fund through the allocation of 10% of all trading fees. This fund is designed to cover potential losses resulting from hacking incidents. It’s important to note that this is not equivalent to third-party insurance but provides some level of protection.
• User-level features like two-factor authentication (2FA) and withdrawal address whitelisting. Whitelisting enables users to restrict withdrawals to pre-approved addresses only.

Binance is Suitable for You If:

• You are not concerned about the SEC allegations against Binance and Changpeng Zhao.
• You possess intermediate to advanced experience in crypto trading.
• You seek low fees, a wide variety of cryptocurrencies, and advanced trading features.
• You reside outside the United States.