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Binance Review 2020: Scam Or Legit? (Complete Guide)
CoinSutra » Exchanges » Binance Review 2020: Scam Or Legit? (Complete Guide)
Is Binance a reliable exchange or is it a scam?
Whats the story behind Binance?
Should You be using it?
Let’s find the answer to all these questions in our special edition of the Binance review.
Binance is currently the most popular cryptocurrency exchange in the world and this is a complete review of Binance exchange. I have also covered about BNB (Binance coin) which is one of the highest growing crypto coins.
It wouldn’t be wrong to say that many of us in the present, or at a certain point in the past, have come face to face with the paralyzing problem of too many choices. And needless to say, the crypto space today compliments that statement to the T!
With more than 2100+ cryptocurrencies and +200 cryptocurrency exchanges to choose from, it can get traumatizing to choose the right ones. The plethora of options on cryptocurrency exchanges can be a headache for both newbies and experienced crypto enthusiasts.
Apart from that, with most of the exchanges being centralized, there is always a looming fear of getting hacked.
However, amidst all the fears and difficult choices to make, one centralized exchange has stood out and certainly made life easier – Binance.
Disclaimer: I have used Binance on numerous occasions and in this post, I am going to tell you everything I have noticed and also the things you need to know before getting started.
What is Binance?
Binance is the world’s largest cryptocurrency exchange. Binance came into existence around 2020
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Binance means “Binary Finance”, and as an exchange, it aims to power the future of crypto finance.
It is a centralized exchange and they’re based out of China. It claims to be a better alternative to many other centralized exchanges because they have identified the most major pain points of centralized exchanges and are working rapidly to provide solutions.
Problems That Binance Is Aiming To Solve
These are the following problems that Binance is claiming to solve:
- Poor crypto trading technical architecture
- Insecure platform
- Poor market liquidity
- Poor customer service
- Poor internationalization and language support
Binance’s Answers To These Problems
Binance has introduced and is in the process of introducing, several features to counter these problems.
Some of the features that Binance has in place are:
- Matching Engine – Binance’s matching engine, as claimed in their whitepaper, is capable of handling 1,400,000 orders/second, making Binance one of the fastest exchanges in the market today. So there is no risk of being “stuck” due to matching issues on Binance.
- Device Coverage – They are providing cross-platform trading clients for:
● Web-based trading
● iOS and Mobile iOS app
● Mobile HTML5
● PC (Windows)
- Multilingual Support – In their white paper, they promised that they will launch Binance on all of their user interfaces in English, Chinese, Japanese, and Korean. They have already added support for their website in Japanese, Spanish, and Korean (along with English and Chinese). I would say this is a good start in just two months, and I am sure there will be more languages to come as adding full language support is explicitly mentioned in their whitepaper.
Features and Benefits of Binance:
Spot/Margin and Future trading:
Binance offers trading terminal for all kinds of traders. Be it a seasoned, hobbyist or pro traders. They started as a spot trading crypto exchange, and now they offer Margin and futures trading as well.
Binance offers crypto lending feature where you can earn interest on your crypto holding. They support many coins including Bitcoin, Binance, Stable coins to name a few.
Many of you may be aware of proof of stake coins and you would be surprised to know that Binance also offers crypto staking features. One benefit I see here is, you can also discover some interesting projects that offer staking feature.
Crypto Sub-account (manage account for your friends, family or clients)
How often you wish to have multiple accounts on the same exchange? Well, the Binance sub-account feature is exactly for you. You can use it for creating and managing the binance account of your friends, family, and clients. You can create up to 200 sub-accounts under a single Binance account which is something remarkable.
If you want to trade or use Binance exchange under a legal entity (Corporation, LLP, Pvt. limited) or any other, you can apply and open a corporate account as well.
Buy crypto assets using fiat currencies
Binance has started adding a lot of fiat payment options to enable users across the globe to be able to buy Crypto assets using their local bank account or credit card. The benefit that you get here is, they charge pretty low fees for the same and you can directly start trading or even earn interest.
Binance’s team members have been in both the finance and crypto industry for many years. The team has worked on and operated a number of exchanges, and they have accumulated a large network of partners in this space.
They are clearly not newbies trying to run a scam exchange; they understand the risks and challenges very well.
In my opinion, the Binance exchange and BNB tokens are here to stay.
- From a subjective economics point of view, Binance’s business model makes sense, and it is based on the simple law of supply and demand. So it wouldn’t be wrong to say that the price of BNB will continue to go up because people want to get a fee discount while trading on the Binance exchange.
- Another observation is that Binance is expanding very fast and is already in the top 10 cryptocurrency exchanges by volume – a feat worth mentioning for a 3-month old exchange.
- It’s clear from their business model that the price of BNB will be strictly driven by their business profits that will eventually be used to destroy 50% of all BNB tokens. To achieve this, they are doing a lot of innovative and creative stuff like the Binance Angel Program, the Community Coin Per Month, the Binance API Coding Competition, and various giveaways.
- Binance is the only exchange that gives NeoGAS to its NEO HODLers which is a good adoption sign for NEO and Binance investors.
- They are launching themselves in various international languages across all platforms which is a good strategy for mass adoption.
- And last but not least, the way Binance is expanding and its volume is growing day by day, I wouldn’t be surprised if they are among the top 5 exchanges in terms of volume in the next six months. In just 2 months, they have built a list of 50 cryptocurrencies that are being traded with a nominal 0.1% trading fee – far cheaper than most of its competition.
Binance Exchange Review 2020:
Binance started in China in mid-2020 but shifted base to Hong Kong and now in Malta after the China government banned cryptocurrency exchanges.
It is a centralized exchange but a reliable one because despite handling the volume it does on a regular basis, there have been no reports of it being hacked or going down.
Binance, being a centralized exchange like Bittrex and Poloniex, adopted a unique way of funding themselves through the ICO, which concluded in July 2020. And with the money raised, Binance has to an extent and continues to solve the pain points of centralized exchanges that they had identified and elucidated in their white paper.
Some more important points…
Binance offers both (Crypto-to-crypto) and (fiat-to-crypto) exchange, and you will find a very good market for these pairs with enormous volume and liquidity on Binance.
Currently, Binance is one of the top 3 exchanges in terms of volume on CoinGecko.
They have their native Binance tokens too which I will explain further in this article.
Binance Registration, Login and Security
Binance’s registration process is quite straightforward and your account gets activated immediately. To get started with Binance, you need to register using your email ID following which you will be granted the basic account in which you have a withdrawal limit of 2 BTC per day.
After you register, you can log in using your email ID and password to be able to see the screen below, where you can, and MUST, setup your 2FA and SMS authentication for extra security (highly recommended to do so).
You can also use this dashboard to submit additional KYC documents to increase your withdrawal limit from 2 BTC to 200 BTC.
After you log in and have set up all the security measures, go to Binance’s home page to see this dashboard.
On this dashboard, you can see markets for BTC, ETH, BNB, and USTD.
Binance’s dashboard also gives you access to both advanced and basic dashboard versions. The main difference between the advanced and basic version is that the former has more charting tools and compact UI with more parameters to analyze whereas the latter has a more open UI and less charting features.
The basic version looks like this:
Binance Mobile Apps
The Binance mobile app is absolutely fantastic, to say the least. I came across the Binance app when I was searching for options to trade on the go.
To reiterate, the Binance trading apps for both iOS and Android is the best you can find in the market.
To use the mobile app, you need to create an account on Binance for which you can register here. Once you are registered, you can download their iOS or Android app and start trading cryptos from your smartphone.
Do watch this video tutorial to get hold of how to use Binance mobile apps.
Binance Exchange Fees Structure
The fee structure on Binance is also very competitive compared to its peer exchanges.
The standard trading fee is 0.1%. However, to withdraw different currencies, this fee schedule is applicable.
Also, you can reduce your trading fee significantly if are a HODLer of Binance tokens (i.e. BNB). When you use BNB to pay for fees, you will receive a significant discount (as per below).
You can enable this feature of 50% trading fee reduction from their dashboard here.
Not just this, holding Binance tokens itself is rewarding because their price appreciation is almost certain in the long run considering Binance burns a decent amount of BNB tokens every quarter to economically reward its holders.
Here is the updated trading fees of Binance, as per March 2020:
Note: I have been a HODLer of BNB tokens ever since it was $2 per token.
Binance Supported Cryptocurrencies
Binance supports a flurry of cryptocurrencies and has enormous volumes on it. Needless to say, you don’t need to worry about the liquidity of your funds.
You will find all the popular cryptocurrencies like BTC, ETH, DASH, LTC, NEO, ETC, XRP etc on Binance and also some rare gems like Dragon chain, Vechain, and Neblio.
The volume on this exchange that has more than 260 cryptocurrencies listed on it is 165,711 BTC ($ 1.4 billion), an impressive figure.
Binance Supported Countries
The Binance exchange is accessible to users all around the world. However, there are certain parts of the world that have a high concentration of their user base:
These are their latest traffic stats which show that Binance is accessible in most countries.
Update: Binance is no more available for U.S. Citizens. Check out Binance alternatives for U.S. Users.
The support is also exemplary if you compare it with its peer exchanges. To emphasize, Binance provides support in 7 languages!
As of now, there is no customer care number, but they do have a support portal where you can submit your requests. Expect the turnaround time to be 24-hours.
You can also use their live chat support option as shown here in the restricted operating hours.
Apart from that, their FAQ section is quite robust and if you go through it well, you may not really need to contact their support.
Additionally, the Binance exchange keeps on holding various competitions, prize distributions and other initiatives for its users, some of which are:
Now they have launched 3rd party project reports that are having insights of institutions to aid investors to make better decisions.
Binance coin: Everything You Need to Know
BNB Coin Total Supply & Business Model
The first question that came to my mind while reading Binance’s whitepaper was:
What’s the need of an ICO for an exchange?
The answer to this is based on their unique business model, which is self-sustaining and easy to understand without any complex mathematical formulas that you generally find in a whitepaper.
But before discussing their business model, it’s important to understand their token economics.
Binance Coin (i.e. BNB) is an ERC20 token with a fixed supply of 200 million. Out of this total supply, 100 million BNB tokens were distributed during the ICO.
Here is what the final allocation breakup looks like:
In my opinion, one of the reasons for having an ICO for Binance was to accelerate the development process while catalyzing its mass adoption through fee incentivization for its users. This puts everyone in a win-win situation.
This fee incentivization is made possible by BNB tokens which are an integral part of this exchange. You can use BNB to pay for any fees on the platform, including but not limited to:
- Exchange Fees
- Withdrawal fees
- Listing fees
- Any other fee
Apart from this, when you use BNB to pay for fees, you will receive a significant discount according to the below-shown schedule. You can see their fee structure in detail here.
And last but not least, to ensure that everyone participating with Binance ends up in a win-win situation, every quarter they will use 20% of their profits to buy back BNB and destroy them until they eventually buy 50% of all the BNB (100M) back.
They announce all buy-back transactions on the blockchain and will eventually destroy 100M BNB, leaving 100M BNB in circulation.
This is meant to drive up the price of BNB tokens.
How to buy BNB Coin (Binance coin)?
The best place to buy Binance coin is from Binance exchange itself.
Once you have registered an account, click on funds and deposit Bitcoin.
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- First, deposit BTC or other coins in Binance.
- Once the coins are deposited in your Binance account, go to the trade section and select BTC/BNB trading pair from the right-hand side of the dashboard.
- On the left-hand side, you will see the order book and the prices at which buying/selling is taking place. You can select your buy price accordingly from the left order book and place your order by putting the relevant amount of BNB coin you want to buy.
Below is a list of established cryptocurrency exchanges listing BNB:
- Binance (obviously) -Supported pairs are BNB/BTC, BNB/ETH
Conclusion: Is Binance Legit & Safe?
Keeping all these facts in mind and my experience, I can confidently say that no exchange even comes close to Binance in terms of security, volume, and community initiatives.
Also, as I said, their mobile apps are an absolute delight to use.
Even during the crypto mad rush in December 2020 when exchanges like Bittrex and Bitfinex closed their doors, Binance was the last exchange that stopped taking new registrations.
I’d say, to conclude, if you have not used Binance yet, you should start right away.
Have you used Binance for buying, selling, and/or trading BTC/ETH? How has your experience been? Let us know in the comments section below. Want me to review any other cryptocurrency exchange? Let me know in the comments.
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Binance Review: The Top Cryptocurrency Exchange?
Even if you’re yet to buy your first ever cryptocurrency, there’s a good chance that you’ve heard of Binance.
The 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.
Moreover, 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 2020, 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.
Up 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.
Nevertheless, 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.
Outside 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 securities.
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?
In 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 address.
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
Although 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).
Nevertheless, 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
Once 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.
You 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.
For 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.
When you 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?
As 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?
Although 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.
At 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 0.02%.
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
If 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?
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 launched.
Deposits, Withdrawals and Payments
Although 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.
If 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
If 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.
To 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 the transfer.
KYC is Required for Fiat Deposits and Withdrawals
It 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 card.
Security at Binance
Binance offers 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.
Moreover, 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 withdrawals.
While 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
We really like the Secure Asset Fund for Users (SAFU) that Binance introduced in 2020. 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 significant amount.
As great as the security features are at Binance, it is important to note that the platform was actually hacked in May 2020. 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.
In 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 laundering obligations.
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 verification process.
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.
Customer Support at Binance
When the crypto-craze of late 2020 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.
The 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 BTC.
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 2020. 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 coming months.
In this review, we shall cover Binance.US as the American branch of the global cryptocurrency exchange Binance. Upon launching its registration and depositing features on September 18, 2020, the platform promises to establish itself as a secure marketplace for digital assets for customers in the United States. Offered features are described as being developed in line with the experience and technology its “parent” platform managed to fine-tune over the years, including the matching engine and wallet from Binance.
- Web address: Binance.US
- Support contact: Link
- Main location: United States
- Daily volume: ? BTC
- Mobile app available: No
- Is decentralized: No
- Parent Company: BAM Trading Services
- Transfer types: Bank Transfer, Crypto Transfer
- Supported fiat: USD
- Supported pairs: 7
- Has token:
- Fees: Very Low (Compare rates)
- Zero fees upon the launch
- Accessible trading interface
- Supported by tried & tested Binance technology
- Does not cover all of the US upon the initial launch
- A limited number of initially available trading pairs
- Currently no mobile app
Based in San Francisco, Binance.US is operated by the U.S.-registered company BAM Trading Services which acts as its official partner. Its relationship with the international Binance franchise is strong enough for Binance.US to be designated as its “arm”, yet the Binance CEO Changpeng Zhao claims that he has no “legal titles” or an “operational role” in it. Binance.US is headed by Catherine Coley, a former executive at Ripple.
While the platform has started accepting account registrations and deposits/withdrawals of cryptocurrencies, its services do not yet cover the entirety of the US market, as the following states have been excluded from its support as of the time of writing the review (September 19, 2020):
- New York
- North Carolina
At the moment, Binance.US officials promise that this gradual coverage is only the beginning, making it their mission to eventually include as many US states as possible.
Review of Supported Assets on Binance.US
At the time of writing this review, Binance.US has supported seven cryptocurrencies, including:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Binance Coin (BNB)
- Ethereum (ETH)
- Litecoin (LTC)
- Tether (USDT)
- Ripple (XRP)
This list by no means final, as Binance.US designates it as “Phase 1” digital asset offering, promising to support a wider range of cryptos down the line. The platform hopes to garner broader support in the US by enabling trading USD for popular cryptocurrencies.
Some experts have already expressed concern that the inclusion of the Binance Coin on the platform may prove controversial in the United States. While Binance.US is described as a subsidiary, its business model might draw attention from the U.S. Securities and Exchange Commission based on the fact that BNB token acts as both a security and a utility token. As such, it could pass the so-called Howey test for being security, thus potentially becoming a snag on the Binance’s path to establishing itself in the US.
As this platform does business as a separate entity from Binance, the users’ digital assets will be stored in Binance.US wallets only.
New Asset Addition Policy
Initially, Binance.US considered listing up to 30 crypto assets, with those deemed most important making it to the Phase 1 list. Some have noted the absence of high-profile Binance IEOs (initial exchange offerings) from this list as well as the lack of support for Tron (13th by market capitalization at the moment).
Thus, Binance.US will not initially support its projects such as BitTorrent (47th by market capitalization), Fetch.AI (207), Celer (180) and Matic Network (127), despite having these raise capital on the Binance Launchpad platform.
- Yet, for the planned Phase 2 launch, the platform promises to give consideration to each new listing candidate asset, providing that they meet the following criteria from its Digital Asset Risk Assessment Framework:
- Whether trading the candidate asset will affect Binance U.S.’s ability to comply with applicable legal requirements, including, without limitation, U.S. AML/CFT and securities laws and their implementing regulations;
- Whether the candidate asset’s core team has a clear strategy to solve a real problem and make the world a more efficient place;
- Whether the candidate asset’s community has a record of reaching compromises and consensuses to move the project forward, and how well the asset’s core team interacts with the asset’s community members;
- Whether the candidate asset’s market supply and demand are reasonably fair and likely to meet Binance US’s quantitative standards; and
- Whether the candidate asset is technologically secure to transact and/or realistic to build.
While the current level of currency support leaves room for improvement, it is necessary to remember that it is still early to make the final judgment on the Binance’s policy, particularly regarding the outcomes of its initial implementation at the time of writing this Binance.US review. The platform advises holders of currently unsupported assets to use services of other custodians in any form (cold storage, hot wallet) while other currencies await approval.
Following the platform’s launch, up until November 1, 2020, the trading fees on the Binance.US will be kept at zero for all supported trading pairs. This move is described as a part of the company’s efforts to remove barriers to a broader adoption of crypto assets.
Once this initial interval expires, Binance.US will introduce a uniform fee schedule, with flat-fee amounting to 0.10% per trade for personal accounts. In other words, the purchase of 100 USD worth of BTC, for example, will take USD 0.10 out of your pocket. The fee schedule for corporate accounts will be adjusted based on the associated trading volume.
Binance.US currently supports desktop and mobile-based web access upon initial launch, with the promise to provide app version down the road. No matter what type of client is served, the platform guarantees access to the Binance’s matching engine which supports up to 1,400,000 orders per second.
Account Verification Requirements
Registering an account on Binance.US is a relatively straightforward affair and includes providing a user’s email address and password and interacting with a verification email.
Yet, trading on Binance.US obliges the customers to undergo the KYC (know your customer) procedure. First, the users are required to go through either of four types of verification available on the platform:
- Basic verification for personal accounts. This level requires the users to submit their name, gender, DOB, address and social security number information, with deposit/withdrawal services catering to digital assets only and daily withdrawal limit amounting to USD 5,000 equivalent in crypto.
- Advanced verification for personal accounts. In addition to what is required for basic verification, the users will be required to submit their U.S. driver’s license/passport/green card/state I.D. card in addition to a proof of address in the form of a bank statement or utility bill. The daily withdrawal limit is capped at USD 1 million equivalent in crypto.
- Fiat account verification. This level combines requirements from both basic and advanced verification levels in addition to submitting a completed questionnaire. Depositing fiat with the platform is supported by two options: deposits via an automated clearing house (ACH) account ACH and via wire. In addition to added support for USD deposits/withdrawals, the users can withdraw up to USD 1,000 with ACH or 1,000,000 USD with wire.
- Corporate verification.
Depositing and Withdrawing Fiat and Crypto on Binance.US
Depositing fiat and digital assets on Binance.US depends on a user’s account verification level described above. Depositing/withdrawing is done quickly and entails going to the Binance.US homepage and clicking on a customer’s profile and selecting an appropriate option from the dropdown menu in the provided dashboard.
Customers’ digital assets held on other trading platforms are not automatically transferred to Binance.US. Transferring a cryptocurrency from other wallets requires the customers to use the deposit address on the Binance.US account as the target address. Upon selecting the desired crypto, the user can either copy the address or scan the appropriate QR deposit code. Wallets also support insights into deposit and withdrawal history.
Binance.US claims to have undertaken appropriate measures dedicated to protecting its customers from theft and hacking, in line with its policy of prioritizing security.
At the moment, it is too early to say if Binance.US will employ security technologies from the global Binance platform which are usually described as being solid, despite a major hack this platform suffered in May 2020. Yet, the platform also responded to this incident in a generally well-received and timely manner.
Immediately after the platform went live, Binance.US also launched its Referral Program with a range of rewards being available to the customers and their referees under certain requirements.
Upon logging in to their user accounts, the customers will find unique invite links, with their friends being required to sign up using the referral link to become eligible for rewards.
The program offers the following benefits and is limited to personal account owners on the platform:
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