Binance Exchange Review

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Binance was launched in June of 2017 and completed an Initial Coin Offering. It was founded in China by Changpeng Zhao (CZ) who himself has an extensive history in online trading systems.

CZ has himself also become quite a popular figure in the cryptocurrency space given his proactive approach. Although Binance was founded in China, it decided to move offshore last year in response to Chinese government regulations.

They subsequently moved to be jointly located in Hong Kong and Singapore and have more recently decided to make the move to Malta. This is still in in the works but there are many that see this as a great way for the exchange to gain exposure to the EU and their banking regulations.

The Binance team is split across the world and they have regional offices in numerous countries across the world with the bulk of their work force located in Asia.

Binance Review

Also Read : Bitsdaq Cryptocurrency Exchange Reward Program

How It Works

There are two options for trading platforms on Binance: Basic and Advanced. As the names imply, the Basic view has all you need to perform simple trades while the Advanced view is for more advanced traders. There aren’t many differences between the two views with the exception of being able to do more detailed technical analysis in the Advanced view.

Basic View Walkthrough

As a novice trader, you may even find the Basic view to be fairly complex. It’s clear that Binance was not created for the casual investor.

The main dashboard has several charts and graphs including the order books, a candlestick chart, as well as the trade history of the trading pair you’re viewing. There’s also a depth chart of the orders that you can view in a separate tab from the candlestick chart.

To begin trading, you first need to fund your account. To do so, click on the Deposits link under the Funds tab.

On the Deposits page, choose which cryptocurrency you’d like to fund your account. Binance provides you with a public wallet address to send your funds. We recommend that you fund your account using either Bitcoin or Ethereum because those are the two coins with the most trading pairs. Doing so gives you greater flexibility when trading.

Once your account has some funds, you can start investing. Navigate back to the exchange dashboard by clicking Basic under the Exchange tab in the upper left-hand corner.

On Binance, can make limit, market, and stop-limit orders. Previously, the platform only supported limit and market orders. So, you can expect that the team will add more advanced order types over time.

Advanced View

Other than a slightly different layout, the Binance exchange Advanced view is identical to the Basic view with a few more TA bells and whistles. It includes Fibonacci lines, moving averages, and everything in between. If your trading strategy involves a substantial amount of TA, the Advanced view will be your home base.

Binance Fees

One of the most important factors for traders when they are choosing an exchange is the amount of fees that they will have to pay. This is, after all, where the exchanges make their bread and butter so knowing the fee structure is indeed critical.

Trading Fees

When it comes to trading fees on Binance, they operate a standard 0.1% trading fee. If you hold funds in the exchanges BNB token then this will first be subtracted. Morevoer, if you place your trades in BNB, then your trading fees are reduced by 25%.

Hence, if you are trading BNB/BTC and are buying BTC then your trading fee will only be 0.075%.

Binance also has some more advanced trading fee structures that are helpful for those traders who trade more volume. These are based on the maker-taker model which is designed in order to incentivise traders to act more like market makers and provide the exchange some liquidity.

Below is the more detailed breakdown of the Binance fees that are based on the maker taker model. They are structured on different levels that are based on your trading volumes.

Level 30d BTC Volume BNB Holdings Maker Taker
Standard < 100 BTC ≥ 0 BNB 0.10% 0.10%
VIP 1 ≥ 100 BTC ≥ 50 BNB 0.09% 0.10%
VIP 2 ≥ 500 BTC ≥ 200 BNB 0.08% 0.10%
VIP 3 ≥ 4,500 BTC ≥ 1,000 BNB 0.07% 0.09%
VIP 4 ≥ 10,000 BTC ≥ 2,000 BNB 0.06% 0.08%
VIP 5 ≥ 20,000 BTC ≥ 3,500 BNB 0.05% 0.07%
VIP 6 ≥ 40,000 BTC ≥ 6,000 BNB 0.04% 0.06%
VIP 7 ≥ 80,000 BTC ≥ 9,000 BNB 0.03% 0.05%
VIP 8 ≥ 150,000 BTC ≥ 110,000 BNB 0.02% 0.04%

As you will notice, by providing liquidity to the Binance exchange order books, you are being rewarded with a lower trading fee. Conversely, if you are taking liquidity away from the order books then you will be charged a slightly higher fee.

Funding and Withdrawal Fees

Binance will not charge you any fees for incoming transactions. However, they do apply variable fees on the outgoing transactions. These are based on network fees that Binance will have to pay for miners to propagate your transactions.

As such, these fees are not fixed and they will vary day by day. Although Binance tries to reduce the costs of these fees by batching the withdrawal requests, they can be rather high in periods of network congestion.

You can see a complete list of the live withdrawal rates that will be applied on the Binance fees schedule.

Available Cryptocurrencies

Binance has a vast selection of coins with pairings to Bitcoin, Ethereum, Binance Coin, and Tether. Some of the available coins are:

  • Ark
  • Bitcoin Cash
  • Dash
  • EOS
  • Ethereum Classic
  • IOTA (Binance is one of the only exchanges where you can buy IOTA)
  • Litecoin
  • Neo
  • OmiseGo
  • Over 100 more coins

Many investors like Binance because they offer coins like IOTA and Waltonchain that often aren’t listed on many other exchanges.

Transfer Limits

Binance is strictly a cryptocurrency exchange, so you’re not able to fund your account with fiat currency.

You can only deposit cryptocurrency funds, but there’s no limit on the amount that you can deposit. There are also no fees on any of your deposits.

The amount that you can withdraw each day is determined by your verification tier. Without submitting any verification details, you’re placed at Level 1 and can withdraw up to 2 BTC worth of cryptocurrency a day.

To be classified as Level 2, you need to enable either two-factor authentication or Google Authenticator. Following that, you need to provide information for KYC purposes including:

  • First name
  • Last name
  • Address
  • Photo ID

With Level 2 verification, your daily withdrawal limit increases to 100 BTC. If you’re looking to withdrawal more than this amount in one day, you need to contact the customer support team.

Is Binance Safe?

Cryptocurrency exchange security is of paramount importance to most traders. There is a long history of exchange hacks and this is perhaps one of the biggest concerns for the exchanges themselves.

So how does Binance’s security stack up?

In terms of the Binance track record, they are indeed pretty strong. They have not suffered a hack of their servers or systems to this date. There have been co-ordinated phishing attacks but these have been down to user error.

Although Binance does not give any detailed information about their particular security protocols, we were able to gather the following information from other online sources.

Cold Storage and Server Safety

Binance no doubt practices with prudence when it comes to storing the vast majority of the exchange’s funds in cold storage. This is according to one of their support staff who commented on a reddit user’s question.

Cold storage is essentially where the exchange will store the wallet’s private keys in a secure offline location in order to protect them from hackers.

It is also well known that Binance tries to keep the location of their trading servers a secret. This is in order to protect them not only from digital intrusions but also from the risk of physical breaches.

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Final Words:

With low trading fees, a variety of available cryptocurrencies, and an enjoyable trading experience, it’s no wonder Binance has solidified itself as a dominant force in the crypto exchange industry. The platform has quickly become a favorite among novice and advanced traders alike. As long as Binance continues to do the things it has done to earn its stellar reputation, there’s no reason why you shouldn’t at least give it a try.

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