Trading cryptocurrencies has long been a successful venture for investors. The development of numerous reputable cryptocurrency exchanges has made this possible. One such cryptocurrency exchange for traders is Binance.
It provides consumers with the most cryptocurrency trading pairs compared to other exchanges. Binance was established in 2017 by Changpeng Zhao. It also offers its cryptocurrency, named Binance Coin. Users of Binance have the option to buy crypto assets instantly using fiat money or a debit card.
The exchange’s website, desktop, or smartphone application are all simple ways to interact with it. Today, we will discuss everything that Binance offers and list its pros and cons to help you decide whether it is a good option for trading cryptocurrencies.
Quick Overview of Binance
The decentralized cryptocurrency exchange Binance was based in China, but it rapidly left the nation as crypto regulations became more stringent. Following that, it established offices in Malta and Japan.
Because of its low costs, an extensive selection of cryptocurrencies, and cutting-edge products, Binance soon attracted a sizable base of users. At present, Binance provides every type of cryptocurrency product you can imagine, including an exchange, staking, earning, loan payments, derivatives, NFTs, bank cards, and much more. Additionally, Binance provides two unique tokens. A stablecoin named BUSD is the first, while the second is BNB, which has historically performed well due to its low costs.
Many Americans can access Binance.US, though not all of them can. It’s crucial to know that New York, Hawaii, Vermont, and Texas citizens cannot use this cryptocurrency exchange. It also continues to rank among the top 10 cryptocurrency exchanges in the world amid these restrictions.
Binance offers several trading options through its mobile or desktop interfaces, including various market graphs and dozens of cryptocurrencies. Moreover, traders can access different order types and multiple trading alternatives, such as options and futures.
Only 65+ coins are accessible to clients in the U.S., and many services and options are unavailable there. Binance offers detailed instructional platforms, an NFT platform, and several other features for its users. Customers can also access the NFT market to buy and sell crypto art.
Binance offers over 365 cryptocurrencies for trading. Other fiat currencies it supports are EUR, USD, AUD, HKD, GBP, and INR. Cryptocurrencies like Binance Coin, Matic Network, VeChain, Dogecoin, Harmony, and VeThor Token are some of those that are offered on Binance U.S. Furthermore, Binance accepts a variety of well-known cryptocurrencies, including:
- Cosmos
- Dash
- Bitcoin
- Cardano
- Ethereum
- Litecoin
Binance offers a peer-to-peer trading platform that enables direct interactions between sellers and buyers of crypto. Fiat payments are made easier thanks to the several payment methods available, all of which are based on consumers’ preferences.
Additionally, Binance teamed up with a licensed financial institution, Simplex, a few years ago to offer a brokerage service that accepts credit and debit cards. With this facility, you can use a debit or credit card to purchase several cryptocurrencies and to make deposits of fiat money into your account. However, the cost of this facility might reach a maximum of 4.5% in charges for USD deposits made with a debit card.
Moreover, Binance now enables its customers to purchase cryptocurrency immediately with fiat through SEPA and banking transfers, owing to partnerships with third-party suppliers. This choice is particularly appealing because no transaction fees are associated with SEPA or wire deposits. A Binance Widget for in-browser dealing has been implemented into Brave, a browser with a privacy-focused design. The widget enables users to monitor and manage their cryptocurrency portfolio and to purchase and trade cryptocurrency through Binance.
Binance also offers many options for spot trading. Users can choose from two main interfaces for spot trading. The intuitive interface, “Convert,” eliminates all the sophisticated features, including charts and other order types. This makes it simple and clear for beginners to switch between currencies at market prices.
A regular trading interface with standard exchange capabilities, including order books, charts, and various order types, is available for expert users. All of these are available through the spot trading interface by default.
According to Binance, most of the cash and assets belonging to its users are kept in offsite, cold storage locations. Although Binance.US offers no internal wallet, you can retain your coins inside your exchange account.
Additionally, it collaborates with Trust Wallet, a third-party hot wallet choice. You can always take your coins out of your account and store them on your cold or hot storage options. Two-factor authentication (2FA) through the Google Authenticator application or SMS, location whitelisting, and the capability to control device access are just a few of the unique security protocols offered by Binance. Additionally, the Binance.us platform offers FDIC protection on all accounts in U.S. dollars.
Margin trading is also actively provided for a few trading pairs on Binance. Users can now trade various coins using leverage of up to 10x. Cross margin puts your whole margin account balance at stake, while isolated margin limits your possible losses to just one trading pair. Unfortunately, customers of Binance.US cannot engage in margin trading on Binance.
One of the best possibilities for everyone who cherishes crypto is futures trading. The worth of a certain asset is represented by derivatives contracts, which traders can purchase or sell at a predefined price at a fixed time. Traders frequently use futures trading as a buffer for spot markets. The Binance Futures feature, launched in 2019, allows investors to engage in futures trading. Since traders can obtain a great return profile without taking on massive capital danger, futures contracts are quite capital-efficient.
Over 28.6 million users choose Binance Futures as their crypto derivatives exchange due to the wide variety of trading pairings and massive trading activity. Even beginner traders are using Binance Futures as a learning tool. It provides customers with a unique simulated trading environment where they can practice trading without risk.
Key Features
- Wide variety of cryptocurrencies
- Binance Savings feature for cutting down costs
- Offers a Binance Visa Card
- Allows to deposit USD directly into accounts
- Binance Smart pool is provided for miners
- The staking service allows users to earn rewards on DeFi applications
- Binance academy provides educational materials
Pros
Binance offers major advantages for all its users. The simplicity of this platform’s sign-up process is its main benefit. On the Binance homepage, you can pick between two different account types and complete all of your transactions.
Click the Register button on the Binance homepage and fill out the other fields, including your email address. You must select an I.D. type, like a driver’s license or passport, and a photo I.D. to prove your identification. You will be emailed once your account has been verified, and you can start exchanging on the world’s leading crypto exchange platform!
Moreover, the fees charged by Binance are the lowest in the market. Although U.S. customers on Binance.us will pay a little bit extra, its charges are still cheaper than those on other top platforms. The maker-and-taker pricing structure that Binance uses makes use of different rates that depend on the volume of trades and the balance of Binance Coin (BNB). Trades with bigger volumes typically have cheaper fees. Users may also qualify for the following discounts:
- Trading with Binance (BNB) cryptocurrencies
- Referral rewards
- Trading a minimum quantity of assets to become a VIP
Even casual users will typically be able to exchange Bitcoin for no fee on Binance US. Spot trading costs for cryptocurrencies typically range from 0% – 0.6%.
Cons
The lack of phone assistance for its consumers is one potential disadvantage of Binance. Users of Binance.US cannot contact the company by phone for assistance; they must utilize the company’s ticketing system or mail. For the majority of queries a user might have, this is not a problem. Nevertheless, there are better options than this if the consumer requires quick assistance or has a very complex query.
Security is another concern with Binance. According to the global Binance website, hackers stole 7,000 billion Bitcoins in 2019, which were worth $40 million at that time. The company paid the losses to affected users in full but it should the vulnerability of Binance. Binance does not provide information about whether it has private information for crypto deposits made by traders on its platform. It is also not protected by the Securities Investor Protection Corporation. It means that in the event of a breach, you might lose all your crypto deposits.
Final Verdict
Overall, Binance has much more advantages than disadvantages. The Binance exchange continues to be the top option for most cryptocurrency traders thanks to its broad selection, affordable fees, and state-of-the-art trading interface.
It also continuously improves and broadens the range of services, growing its technical options and configurations and upholding the most recent changes and shifts in the market. It follows that Binance dominates the field in terms of daily trading volume, maintaining its position as the most popular crypto exchange globally.
