Even if you’re yet to buy your first ever cryptocurrency, there’s a good chance that you’ve heard of Binance.
Malta-based cryptocurrency exchange is often regarded as one of the
largest platforms for daily trading volumes, not least because users
have access to more than 540 individual crypto-to-crypto.
with the exchange now increasing its scope for deposits and withdrawals
via real-world fiat currency, it is likely that the platform will only
continue to grow.
If you’re thinking about joining Binance
for your cryptocurrency investing needs, then be sure to read our
comprehensive review first. We’ve covered everything that you need to
know, such as how Binance works, who is eligible to open an account,
what its fees are like, supported coins, and more.
What is Binance?
Launched as recently as late 2017, Binance is a third-party exchange platform
that allows users to buy, sell and trade cryptocurrencies such as
Bitcoin, Ethereum, Bitcoin Cash, and hundreds more. Although the company
now has its headquarters in the European Isle of Malta, the project was
founded by Chinese national Changpeng Zhao (CZ).
In less than two
years of trading, Binance has since become one of the largest
cryptocurrency exchanges in the industry. In fact, it is not uncommon
for the platform to facilitate more than $2 billion worth of trading activity each and every day.
until recently, Binance was primarily a crypto-to-crypto exchange,
meaning that it had no involvement in fiat deposits or withdrawals.
However – and as we will cover further down, the platform now offers a
limited amount of support for bank account and credit card deposits.
Binance has risen to fame for a number of reasons. Firstly, the
platform offers a hugely extensive lists of supported cryptocurrency
pairs. While this of course includes hallmark coins like Bitcoin and
Ethereum, this also includes small-to-micro cap tokens. Secondly,
trading fees are extremely low at Binance. While standard trading fees
average a very competitive 0.1%, this can be further reduced for those
holding the platform’s proprietary digital asset – the Binance Coin.
of its core exchange platform, Binance has its fingers in a number of
other pies. For example, it was announced last year that the company was
looking to launch the world’s first ever blockchain bank in Malta. The
platform also signed a Memorandum of Understanding with the Malta Stock
Exchange with the view of facilitating the trading of digital
Binance is also renowned for its dedication to helping those in need. Through its Binance Charity Foundation
initiative, the platform has spear-headed a number of charitable
projects. This includes a recent campaign to help females in Uganda who
suffer from period poverty.
So now that we’ve covered the basics,
in the next section of our review we are going to show you how Binance
works in more detail.
How Does Binance Work?
its most basic form, Binance allows you to buy, sell and trade digital
currencies like Bitcoin and Ethereum. In order to give you a birds-eye
view of how the platform works, we’ve broken down the main steps that
you will typically need to follow to get started.
Step 1: Open an account
Head over to the Binance homepage
and open an account. If you’re only planning to deposit and withdraw
funds using cryptocurrencies, then you’ll only need to provide an email
Step 2: Set up two-factor authentication
In order to secure your account, Binance will ask
you to set-up two-factor authentication (2FA). This means that you’ll
need to install an application like Google Authenticator on to your
phone. Subsequently, each and every time you want to log in – or perform
key account functions like a withdrawal request, you’ll need to enter a
unique code that can only be found on your phone.
Step 3: Deposit coins
a select number of nations can now use a credit card or bank account to
deposit funds, we’ll make the assumption that you’re looking to deposit
with a cryptocurrency.
If a fiat currency deposit is something
you want to explore, you’ll need head over to the ‘Funds’ section of
your account and follow on the on-screen instructions (if available).
on the deposit page, you’ll need to scroll through the long list of
coins that are supported, and click on the one that you want to deposit
into Binance. You can use this address to send funds to that you
purchased on another platform ie Coinbase.
Copy the unique wallet address that is provided to you, and use that to transfer the funds from your private wallet.
Step 4: Trade
your cryptocurrency deposit has been credited – which usually takes no
more than 10-20 minutes, you are then ready to start trading. Hover over
the ‘Exchange’ button at the top of the screen, and select whether you
want the ‘Basic’ or ‘Advanced’ trading platform. If you’re just starting
out, then go with the former.
now have access to over 540 individual trading pairs. If the coin that
you want to purchase is not directly paired against the cryptocurrency
you deposited with, you’ll need to make an additional trade.
example, if you deposited with Bitcoin Cash, but you’re looking to buy a
smaller cap ERC-20 token that isn’t paired with Bitcoin Cash, then you
might need to exchange it for Bitcoin or Ethereum first.
complete your trade, your newly purchased coin will now be available in
your Binance account. You can either keep it in your Binance account, or
withdraw it to an external wallet.
Binance also offers an API which allows you to connect your account to a number of Crypto Trading bots and allow them to trade on your behalf, automating your strategy and hopefully profiting from the bot’s trades.
So now that you know how Binance works, let’s explore what cryptocurrencies the platform supports.
What Cryptocurrencies Does Binance Support?
we noted earlier, one of the main attractions for avid cryptocurrency
traders is that the platform has one of the largest lists of supported
coins. While the main players – notably Bitcoin, Ethereum, Bitcoin Cash,
Litecoin and EOS, are of course supported, Binance is also good for
much smaller, lower-cap tokens.
Rather than listing each and every
trading pair available on Binance, we’ve instead listed the 164
individual cryptocurrencies that can be bought and sold on the platform
at the time of writing.
If you want to see what pairs are available against your chosen coin, you can view this at CoinMarketCap.
- Basic Attention Token
- Binance Coin
- Binance GBP Stable Coin
- Bitcoin BEP2
- Bitcoin Cash
- Bitcoin Diamond
- Bitcoin Gold
- BlockMason Credit Protocol
- Celer Network
- Dusk Network
- Enjin Coin
- Ethereum Classic
- Genesis Vision
- iExec RLC
- Kyber Network
- Loom Network
- Matic Network
- Moeda Loyalty Points
- Nucleus Vision
- Ontology Gas
- Paxos Standard Token
- POA Network
- Power Ledger
- Pundi X
- QLC Chain
- Raiden Network Token
- Red Pulse Phoenix
- Ripio Credit Network
- Streamr DATAcoin
- Theta Fuel
- Time New Bank
- USD Coin
How Much Does it Cost to Trade at Binance?
Binance does offer a maker/taker fee structure, the standard trading
fee that you will pay is 0.1%. This will be charged every time you buy
and sell a coin. If you are a market taker – meaning that you simply use
the liquidity that is already available on the platform, then you can
reduce this down to 0.09% if you trade more than 500 BTC (or
cryptocurrency equivalent) in a 30 day period.
The lowest fee available for market takers is 0.04%, albeit, you would need to trade at least 150,000 BTC in a single month.
the other end of the spectrum, market makers – which provide the
platform with liquidity, get an initial fee of 0.1%, too. However, for
trades of more than 150,000 BTC per month, this can be reduced down to
Irrespective of how much you trade, the fees charged by
Binance are some of the lowest available in the cryptocurrency exchange
arena. In even better news, you have the opportunity to reduce these
fees further by holding the Binance Coin.
Reduced Trading Fees via Binance Coin
you hold a balance in the platform’s native Binance Coin, then you can
use this to pay your trading fees. In doing so, you will be offered a
reduction of 25%. As such, your 0.1% standard trading fee is reduced
down to 0.075%.
The discounted fees available via the Binance Coin
will reduce over time. While this was previously 50%, the next
reduction will take the discount down to 12.5%.
Who is Eligible to Trade at Binance?
is a global cryptocurrency exchange that has traditionally accepted
users from all nation states. The main reason for this is that users are
trading crypto-to-crypto products and thus, regulations are somewhat
unclear. This is especially true when you consider that new users are
only required to provide an email address to get started.
However, the platform recently announced
that it would be restricting US passport holders from using its
exchange. The main reason for this is that Binance is looking to launch a
dedicated exchange for US citizens that complies with all regulatory
requirements. As such, if you’re from the US and you want to use
Binance, you’ll likely need to wait until the domestic exchange is
Deposits, Withdrawals and Payments
Binance has always been known as a cryptocurrency-only exchange, the
platform is now able to facilitate fiat currency deposits and
withdrawals. At the time of writing, this is available via credit cards
or a bank transfer. Not all locations are supported, so you are best
advised to check this first.
you’re looking to use a traditional credit card to purchase coins, you
can now do this directly from the Binance website. Both Visa and
MasterCard are accepted.
The platform notes
that while payments can be accepted from credit cards of all
currencies, if the native currency is anything other than USD or EUR,
then an additional charge might apply. In terms of the standard
processing fees, this comes at a cost of 3.5% ($10 minimum). This is
slightly lower than industry counterpart Coinbase, which charges 3.99%.
At the time of writing, you can use your credit card to purchase the following coins:
- Binance Coin
- Bitcoin Cash ABC
you’re looking to deposit and withdraw funds via a bank transfer, then
this can be facilitated via the platform’s Binance Jersey off-shoot. At
the time of writing, supported countries mainly consist of the UK and
Europe, alongside a number of other jurisdictions such as Turkey,
Singapore, Australia, New Zealand, and the United Arab Emirates.
get funds into your Binance account via a bank transfer, you need to
specify your desired currency and how much you want to deposit. Binance
will then provide you with details of the account you need to make the
transfer to, alongside the reference number you need to include within
KYC is Required for Fiat Deposits and Withdrawals
is important to remember that Binance will require you to go through a
simple KYC process before they can accept your fiat deposit request.
This is to ensure that Binance remains compliant with all respective
anti-money laundering laws. This is especially crucial for the exchange
at a time that they are looking to obtain the necessary regulatory
approval to launch an exchange in the US.
To do this, you’ll
initially need to enter your full name, home address, country of
residence, and date of birth. You will then be redirected to the
platform’s third-party verification partner – NetVerify. To complete the
KYC process, you’ll need to upload a copy of your government issued ID.
This needs to either be a driver’s license, passport, or national ID
Security at Binance
a number of security safeguards to ensure your funds remain safe from
the threat of external malpractice. Firstly – and as we noted earlier in
our step-by-step account set-up overview, you are advised to install
2FA. This means that unless a hacker has access to your mobile phone,
they won’t be able to gain access to your Binance account.
if you attempt to login from a device or IP address that has not
previously been used on Binance, you will need to confirm this via your
registered email account. You can also choose to receive email
notifications when key account functions are performed, such as
we are on the topic of withdrawals, Binance recently introduced its
‘Address Whitelisting’ feature. Ordinarily, you have the option to
withdraw your cryptocurrency funds to any wallet address.
However, if you set-up the address whitelisting feature from within your
account, you can ensure that withdrawals can only be made to a single
address. You can of course amend this at any time, although you’ll need
to go through an extra couple of security steps.
SAFU Reserve Fund
really like the Secure Asset Fund for Users (SAFU) that Binance
introduced in 2018. The SAFU function acts like a reserve fund in the
event that the platform experiences a hack. The reserve SAFU pot is
funded by taking 10% of all trading fees that Binance generates. When
you take into account the multi-billion dollar trading volumes that the
platform is accustomed to, the fund could potentially grow to a
As great as the security features are at
Binance, it is important to note that the platform was actually hacked
in May 2019. The malicious actors were able to remotely steal
surplus of 7,000 Bitcoin, which at the time amounted to a market value
of just over $40 million. The good news is that the platform utilized
the aforementioned SAFU fund, meaning that Binance customers that were
affected did not lose any money.
terms of its regulatory status, Binance is regulated in Malta under its
newly enacted Virtual Financial Assets (VFA) act. Other than this,
Binance is not licensed by any other regulatory bodies. However, this
isn’t to say that the platform does not comply with its anti-money
On the contrary, Binance requires all
customers that plan to use fiat currencies to deposit and withdraw to go
through a KYC process. Moreover, if you attempt to withdraw more than 2
BTC in a 24 hour period, then you will also be required to go through a
It is also important to note that Binance
is in the process of applying for regulatory approval in the US to
launch a fully licensed exchange for US citizens. This means that it
will need to ensure its regulatory endeavours are water-tight if it is
to get the green light.
So now that we’ve covered account security
and regulation, in the next section of our review we are going to cover
Customer Support at Binance
the crypto-craze of late 2017 was in full force, Binance experienced a
significant wave of new account applications. The throughput was so high
that the platform had to temporarily suspend new registrations. With
that being said, Binance has since increased its customer support team
by a considerable amount.
If you do need to make contact with
somebody at Binance, you can submit a ticket request via your account
portal. Alternatively, if you are using Binance Jersey for your fiat
currency needs, then you can access a 24/7 live chat facility.
Unfortunately, Binance does not operate a telephone support hotline.
platform does have a good presence on social media though. This
includes Telegram and Twitter, so it’s well worth using these channels
if you are yet to receive a response.
Binance Margin Trading
The team at Binance recently introduced margin trading
to its platform. You will need to apply for a margin account if this is
something you’re interested in, which will include a disclaimer form
indicating that you understand the risks involved.
You will need
to transfer Binance Coins to your maring trading wallet, which is
essentially used as collateral against the funds you intend to borrow.
Binance will allow you to trade at a margin rate of 3:1, meaning that if
you have the Bitcoin equivalent of 1 BTC, you can effectively borrow 2
If you are engaged in margin trading and your margin balance
falls below 1.3, then Binance will get in touch to let you know that a
margin call is required to avoid liquidation. If your margin balance
then drops down to 1.1, Binance will be forced to liquidate your trade,
meaning you’ll lose your collateral.
As such, you should only trade on margin if you have a firm understanding of the underlying risks.
Binance Review: The Verdict?
In summary, it’s easy to see why Binance
is now one of the largest cryptocurrency exchanges in the industry.
With customers offered super low trading fees, hundreds of
crypto-to-crypto trading pairs to choose from, and enhanced security
features – Binance is an excellent choice if you’re looking for a new
exchange to join.
In reality, it’s amazing just how quickly the
platform has grown since it was launched in 2017. Although the exchange
is less than two years old, Binance is already responsible for billions
of dollars in weekly trading volumes.
It is also a good move that
the platform is now able to facilitate fiat currency deposits and
withdrawals. While at the time of writing this is only available in a
select number of nation states, it is likely that Binance will continue
to roll out it’s credit card and bank transfer facilities over the