Binance Review – Pros And Cons To Know Before Signing Up

This comprehensive Binance review and Binance US review will address all the crypto exchange platform features in a detailed manner. We’ll touch upon every aspect of deposit and withdrawal methods to trading fees, market spreads, security, and customer service.

Furthermore, we will also highlight the pros and cons of trading on Binance and answer questions such as Is Binance safe or legit, if it’s a trustworthy platform and more. With these, you will get an exhaustive understanding of the platform. 

So if you’re a cryptocurrency trader or an enthusiast interested in the platform or trading, this review is for you. 

Introduction

Binance comes from the words Bitcoin and finance. Founded in 2017 and led by CEO Changpeng Zhao, Binance is the world’s largest crypto exchange platform. Initially, the headquarters were based in China but then moved due to its regulations against cryptocurrency. 

Since its launch, Binance has been one of the highest performing exchanges in the crypto industry and boasts the world’s largest trading volume.

The crypto trading giant also has several other programs such as Binance Labs, Binance Academy, Binance Launchpad, and many more. These cater to a wide range of customers looking to understand crypto trading, build and launch their own blockchain projects, and more.

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Enlisted Cryptocurrencies

Binance supports over 500 cryptocurrencies, including popular ones such as Bitcoin, Ethereum, Litecoin, and many more. However, on Binance US, a meager 52 cryptocurrencies are supported. This is due to the regulations by the government and the strict restrictions. 

Binance supports about 19 fiat currencies on its platform. These include USD, INR, GBP, AUD, and more. Furthermore, the exchange offers around 50 to 591 trading pairs based on the country you live in. 

Furthermore, Binance has its own currency known as Binance Coin, which provides several benefits to the traders on the platform.

Deposit And Withdrawals

Before January 31, 2019, Binance allowed deposits and withdrawals of only cryptocurrencies, which means new traders wouldn’t be able to trade on this platform. 

However, after that, Binance partnered with Simplex – a payment service firm, and allowed users to deposit funds using their Visa and Master cards. However, this option was not available for several states in the US. 

After a while, Binance also partnered with Clear Junction to facilitate wire transfers of EUR, GBP via SEPA, and other faster payment methods. In the US, users of Binance US have to deposit fiat money using the ACH transfer. 

Currently, one can deposit fiat currencies through:

  • Credit/Debit Cards
  • Wire Transfer
  • Buying with Cash Balance

Binance charges zero fees for deposits of both fiat and cryptocurrencies.

However, a 3.5% payment processing fee will be charged for fiat currency.

For the withdrawal of fiat and cryptocurrencies, the charges vary depending upon the type of currency. 

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Trading Options And Fees

Instant Buy And Sell

Binance allows its traders to place market orders where they can instantly buy and sell their cryptos at the current price. The instant buy/sell fee is 0.5%. If your market order is purchased with fiat currency, a payment processing fee of 4.5% will be charged.

In market orders, if you place an order for a small amount of crypto, you will immediately buy it at the lowest possible price from the limit orders section. However, when you are looking to buy a large volume of crypto, you will buy it for a higher price. This is known as slippage. 

This is simply because having someone to sell a large volume of crypto that matches your requirement at that moment is rare. 

So instant buy is usually advisable when you’re trading in lower volumes, and the need for liquidity is more than the need to get the best price. 

Common Trading

Binance follows a VIP tier model to encourage users to trade more and also drive higher liquidity rates in the market. According to this model, your trading volumes of the last 30 days will be seen, and based on that, you will be assigned a VIP level. 

The higher your trading volume, the higher your VIP level and the lower your trading fee. The VIP levels range from 0-9 with a corresponding trading fee of 0.02% to 0.1% maker fee and 0.04% to 0.1% taker fee.

This model follows positive reinforcement psychology, where the customers will be rewarded every time they trade. This is an excellent way to keep the customers engaged with the platform for longer durations and reward them for their efforts. 

Above and beyond this, if you trade using Binance Coin (BNB), you’ll get an additional discount of 25%.

Binance Margin Trading

Customers can also avail the option of margin trading on Binance. Customers can avail of maximum leverage of up to 3x and 5x on the regular account and master account for cross trading. For isolated margin trading, the maximum leverage a user can avail is up to 10x.

The trading fee is charged based on the VIP level of the users. It is less for customers with higher VIP levels and more for customers with lower VIP levels.

Binance Futures

Binance Futures give users maximum leverage of up to 125x, which is relatively high compared to the industry standards. 

Customers can buy futures contracts and go long or short. If they believe that the prices would increase, later on, they go long. On the flip side, if they think that the prices would dip, later on, they go short. 

This way, they have an option of making profits whether the prices increase or decrease. It is essential to understand that the higher the leverage, the higher the risk of liquidity. So be mindful before you experiment with this.

In the futures option as well, the trading fee follows a tiered structure. 

The trading fee ranges from 0.00% to 0.02% maker fee and 0.017% to 0.04% taker fee for USD-M futures. In addition to this, you’ll get a discount of 10% for the usage of Binance Coin.

The trading fee ranges from -0.009% to 0.01% maker fee and 0.024% to 0.05% taker fee for Coin-M futures.

Binance OTC Desk

Binance OTC desk allows the customers to exchange large volumes of cryptos, including Bitcoin and several other altcoins. The platform has got a rich diversity of trading pairs that include different kinds of cryptos and altcoins. 

The two primary advantages of using the Binance OTC desk are a simple process and faster settlement. The conversation can be had on a chat, and a trade can be confirmed within 1-2 minutes. 

Furthermore, the settlement process is executed within minutes. A duration that is relatively less when compared to several other exchange platforms that usually take 24 to 48 hours. 

The minimum trading amount must be 10,000 USD. It means that any cryptocurrency you buy must be worth 10,000 USD at the very least.

Binance Mobile App

The mobile app is very similar to the platform in terms of its functionality and UI. However, the mobile app has limited chart designs. 

Thus, its convenience differs from person to person. If a person is well-versed with the crypto market and has a deep understanding of it, they’ll be able to make decisions and trade on the go easily. 

However, the same cannot be said for beginners. They’ll need more elaborate charts to dig for learnings and make informed decisions. 

So overall, customers can use the app to monitor the price positions to make quick and simple trades. 

Security

Binance today is one of the most secure crypto exchange platforms in the industry. However, in 2019, a major security breach occurred where hackers stole 40 million USD worth of Bitcoins. 

Right after that, Binance took several measures to tighten their platform security and protect the users’ funds and data from nefarious attacks.

Furthermore, Binance went a step ahead in trying to make up for the damage caused to its reputation and the loss suffered by its users. 

They set up the SAFU (Secure Asset Fund for User), which are funds set aside for compensation if any more losses occur in the future. 

This was quite an impressionable action from Binance’s end, and if nothing else, it was a step towards amending things. This led to a renewed trust in the platform and its creators. 

A few other security measures Binance currently follows are two-factor authentication that adds an extra layer of security to user accounts. They use AI for their cybersecurity to monitor the transactions taking place on the platform. This is to ensure no unlawful or unusual activity is taking place. 

Besides this, Binance has been a largely independent organization that doesn’t follow any country’s regulations, with the exception of the US and UK. It’s following the regulations enforced by the two nations to operate there. 

However, there are several restrictions and limitations for the users living there, and they can’t make the best of the platform.

Customer Support

Binance’s customer support is quite inclusive. It provides support in over 15 languages which is a commendable gesture. The website has a live chat feature, and you can also drop queries if you have any. The return time is about 24 hours. 

Besides these, there’s a vast and detailed FAQ section that helps customers with a wide range of queries. The market terms and concepts are explained in a relatively simple manner that helps even a beginner understand how crypto trading works. 

Furthermore, the platform also houses blogs on different trading options, the best practices to follow, and comprehensive information that can help beginners make informed decisions. 

Having said all this, the platform has a rating of merely 2.1 on Trustpilot. Though this is low, it falls under the usual spectrum of ratings that major platforms have obtained. 

An important factor that could contribute to this is that the industry is in its nascent stages and still figuring how best to cater to its diverse customer base. At the same time, more new players are entering the industry every day, and understanding how the industry functions might take time. 

So these two factors would lead to a gap in the customer expectations and the support offered. Thus, as the industry grows, there’ll be better ways for platforms to support their customers. After all, the platforms’ worth is directly proportional to their user base. 

Other Features

Binance offers a string of other features such as

  • Binance Labs: This is an incubator for new and pathbreaking blockchain projects.
  • Binance Academy: This offers detailed material about the crypto market and its functioning, thus helping users make better investment decisions.
  • Binance DEX: Its own decentralized exchange platform that enables direct crypto transactions between two parties.
  • Binance Launchpad: This enables you to launch your own tokens.

Summary

To conclude this Binance review, here’s a quick summary of the pros and cons of the platform.

Pros

  • Zero deposit free & low withdrawal fee
  • Low trading fee
  • 500+ cryptocurrencies & 19 fiat currencies
  • Additional benefits of Binance Coin
  • Extended Features

Cons

  • Lack of customer support
  • Limited cryptocurrencies on Binance US
  • Limited features on the mobile app

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