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- Low fees for trading a large number of cryptocurrencies
- Frequently adds new coins and trading pairs
- Highest volume exchange, so good liquidity
- Customer support has slow response times
- Website can be somewhat laggy
What is Binance?
Binance is a cryptocurrency exchange. Its CEO is Changpeng Zhao. Zhao has made appearances on major TV stations like Bloomberg:
Its name is a play on words:
Binary + Finance = Binance.
Where is Binance Located?
Binance was initially based in Hong Kong and then moved to Tokyo. Now, however, it appears the exchange is relocating to Malta.
Does Binance Work for USA Customers?
Binance appears to accept users from any country.
How to Buy Trade & Buy Coins on Binance
The first step to buying coins on Binance is depositing bitcoin or ether.
Because most cryptocurrencies on Binance are traded against bitcoin (BTC) and ether (ETH). For example, in order to buy Ripple on Binance the easiest way is to first deposit bitcoins and then exchange BTC for Ripple.
So, once you make an account in Binance here is how you can deposit to start trading.
Once you login, in the right corner hover over the “person” icon and then you should see your balance (0.0000000 BTC, for now):
Now you should see a list of coins. On the right, you can see “deposit” buttons for each coin. Since we are depositing bitcoin (BTC) we will look for bitcoin on the list. Click on “Deposit” on the coin you want to send.
Now you get your deposit address:
Now, go into your Bitcoin wallet or exchange and send bitcoins to the address displayed on Binance.
That’s it! Now wait 2 confirmations (about 20 minutes) and you can start trading.
Even though we showed Bitcoin in the example above, the process is exactly the same for depositing ether or litecoin.
If you are still confused, here is a good video tutorial that may help:
There are no deposit limits for Binance.
If you are not verified, you can only withdrawal 2 BTC per 24 hours.
If you submit verification documents you can raise the limit to 100 BTC per 24 hours.
Binance offers good privacy for its users. Only an email address is required to sign up and start trading.
Binance has good speed. You can sign up and deposit instantly.
Binance is the world’s largest cryptocurrency exchange based on total trading volume. Its CEO, Changpeng Zhao, is well-known in the cryptocurrency space.
Binance charges 0.1% on all trades. If you choose to pay fees using BNB, Binance’s own coin, you can get a 50% discount. This makes the fees when using BNB just 0.05% per trade, which are some of the lowest in the world.
Binance Security - Can You Keep Coins on Binance?
You techincally can store coins on Binance however this is not recommended. If Binance gets hacked, you will lose money. Also, your own account can be hacked if someone figures out your password and logs in to withdrawal your funds.
Store your coins on a hardware wallet like the Ledger Nano X and only deposit to Binance when you want to make a trade.
Is Binance Decentralized?
No, Binance is not decentralized. The exchange has full control over any coins you deposit.
Does Binance Work with ERC20 Tokens?
Yes, many of the coins traded on Binance are ERC20 tokens. Binance fully supports deposits and withdrawals for all of these tokens.
Is Binance FDIC Insured?
No, Binance is not FDIC insured. They are not based in the USA.
Is Binance Hacked or Going to Close?
There were rumors Binance was hacked in March 2018. However, they actually were not hacked.
What happened was a 3rd party app was requesting API keys from users to make trades for the users. The 3rd party app then abused this privelege by market buying a Viacoin and pumping the price.
Binance ended up reversing all the trades and paying its users back, so not a single user lost any money in this incident.
How to Get the Binance iOS App
The Binance iOS app may be the biggest reason for Binance’s explosion to becoming the #1 cryptocurrency exchange in the world.
The iOS app has a great interface and is very easy to use and install.
Check out Binance’s site for info on how to download and set it up.
How to Get the Binance Android App
The Binance app is available for free download in the Google Play Store.
Is Binance Moving to Malta?
Yes, Binance is moving to Malta. The Prime Minister of Malta posted on Twitter to welcome Binance:
Welcome to #Malta 🇲🇹 @binance. We aim to be the global trailblazers in the regulation of blockchain-based businesses and the jurisdiction of quality and choice for world class fintech companies -JM @SilvioSchembri https://t.co/3qtAQjOpuQ— Joseph Muscat (@JosephMuscat_JM) March 23, 2018
Is Binance Open To New Registrations?
Binance has briefly paused new user registrations in January 2018, but now they are 100% open again.
Is Binance Publicly Traded?
No, Binance is a privately held company. It has received millions in funding from investors but is not publicly traded on any exchange. A public offering for Binance would likely receive lots of attention considering the exchange is pulling in billions in profits.
Is Binance Regulated by the SEC?
Binance is not registered in the USA so it is not registered with the SEC. The NY Attorney General recently sent an inquiry to Binance and ten other cryptocurrency exchanges. This, however, does not mean Binance did anything wrong but simply means the NY General would like more info on the practices that Binance uses for its customers.
Is Binance Taxable?
Tax law depends on your residency, although it’s very likely that using Binance will cause you to owe cryptocurrency taxes. It is best to consult a tax professional to better understand how using Binaince for cryptocurrency trading may affect your tax liability.
Is Binance Wallet a Smart Contract?
No, right now Binance is not a wallet and does not run with smart contracts. You should not treat Binance like a wallet but instead store your coins in a wallet you control like the Ledger Nano X.
Binance Decentralized Exchange
Binance recently announced that they are working on launching a decnetralized exchange. This would be an exchange that Binance does not control, but simply create the software for.
This would likely lead to lower fees for traders.
Payment Methods Accepted
Binance is a pure cryptocurrency exchange. Only cryptocurrencies can be deposited and traded. This means it is not possible to connect a bank account or credit card to fund your trading.
You will first need to buy cryptocurrency on a different exchange and then deposit into Binance to trade.
- What is Binance?
- Where is Binance Located?
- Does Binance Work for USA Customers?
- How to Buy Trade & Buy Coins on Binance
- Binance Security - Can You Keep Coins on Binance?
- Is Binance Decentralized?
- Does Binance Work with ERC20 Tokens?
- Is Binance FDIC Insured?
- Is Binance Hacked or Going to Close?
- How to Get the Binance iOS App
- How to Get the Binance Android App
- Is Binance Moving to Malta?
- Is Binance Open To New Registrations?
- Is Binance Publicly Traded?
- Is Binance Regulated by the SEC?
- Is Binance Taxable?
- Is Binance Wallet a Smart Contract?
- Binance Decentralized Exchange
- Payment Methods Accepted
- Customer Support
- Binance Verification
- Can You Use a Credit Card on Binance?
- Are there Binance Accounts for Sale?
- Is Binance Safe?
The main issue with Binance is its customer support. There are many people reporting that they are not receiving answers.
The verification process is very strict. You will be required to submit:
- Full name
- Picture of ID card
- Selfie with photo ID and note
Once this information is submitted and confirmed you can withdrawal up to 100 BTC per 24 hours. Only big traders need to do this verification.
Can You Use a Credit Card on Binance?
No, you cannot buy any coins on Binance using a credit card. You can only fund your account using cryptocurrency.
The best option is to buy bitcoins, litecoin or ether with your credit card and then deposit into Binance. Once you have bitcoin, litecoin or ether on Binance you can easily convert it into any of the other smaller coins.
Are there Binance Accounts for Sale?
No, Binance does not allow users to sell their Binance accounts.
Is Binance Safe?
Binance is only 3 months old but has taken many steps to become a trustworthy exchange. Still, it’s best to keep large amounts of cryptocurrency on exchanges for the smallest amount of time possible. Use Binance, and then get your money into cold storage.
Review by: Jordan Tuwiner
Rating: 4.5Visit binance.com