Binance experiences - The crypto exchange review

Overall Rating: 
5/5 stars

Quality

speed

cost

The Binance platform has become increasingly popular in recent years. However, behind the crypto exchange is a very young company - Yi He and Changpeng Zhao only launched the portal in 2017.

Can such a young exchange really be serious and provide a good investment opportunity? We took a look at what Binance has to offer. In doing so, we look at the security, the fees and other services offered. This detailed Binance test shows whether the exchange is really worthwhile and what there is to consider.

Binance at a glance

Binance is a classic crypto exchange. Here you can trade digital currencies and then exchange them with each other. Binance is made up of the terms "binary" and "finance" and has been the largest crypto exchange in the world since the beginning of 2018 - the market value is around 1.3 billion US dollars. Binance also has its own cryptocurrency: Binance Coin.

Currently, there are between 250 and 500 people working for the Binance platform. The company is headquartered in Malta, which means that it has to comply with the rules and regulations of the European Union.

Currently, the platform has eight investors. In addition, Binance acquired Trust Wallet on 31 July 2018. A new learning platform was launched on 12 December 2018, so that investors as well as users can be taught about cryptocurrencies or even the technology behind the blockchain. The chairmen also invest in various cryptocurrencies - for example in Contentos, TravelbyBitt, Republic, MobileCoin and Zhidian.

characteristic

Binance

Seat

Shanghai

languages

7

Mobile app

Strong

Cryptocurrencies

80 tradable cryptos

fees

0.1% trading fee

service

simple

Users worldwide 

> 1 million

Demo account

None

Features

Lots

verification

No

security

Highly / SSL encrypted

The website deals with cryptocurrencies and the associated trade. You can buy digital currencies and subsequently transfer them to your wallet, sell cryptocurrencies again or bet on the price trend and thus on whether the price of a certain currency will go up or down.

Binance - reputable or to be treated with caution?

Anyone interested in digital currencies naturally wants to use a platform that is also secure. On the one hand, there is the question of how or where the customers' money is stored, and on the other hand, there is the question of how the data is encrypted. Binance works with SSL encryption and always tries to be at the cutting edge of security technology.

If you want to find out whether it is a serious provider or not, you should not only pay attention to any security precautions, but also always take a look behind the scenes. This means that you should look for an imprint on the homepage - if there are no contact details or indications of where the company is located, you should leave the provider alone.

Binance Coinl

Another aspect that should not be disregarded is the question of how the testimonials look that one finds on the World Wide Web. There are numerous forums in which various crypto exchanges are discussed; here you can find out relatively quickly whether it is a reputable and recommendable provider or not.

Anyone who believes that there are only reputable providers in the crypto world is mistaken - for this reason, one should be particularly careful before deciding on a certain platform.

How does Binance work?

In order to create an account, the name, residence and email address as well as date of birth and password are necessary. Anyone who does not provide the correct data here will cause problems with later deposits and withdrawals. Binance registration is possible for everyone without having to prove identity. However, Binance sends a confirmation link by email, which at least verifies the email address.

After confirming the email address, the user can log in to the Binance account and start trading cryptocurrencies. There is no demo account, but the platform provides tutorials. These should be studied, especially by inexperienced traders, before investing money or cryptos.

After setting up the account, money can be deposited from the wallet or trades can be made directly on the exchange. USD payments are possible via Paxos. Other currencies such as EUR, UAH, KZT or RUB are accepted in cooperation with Advcash since 2019.

Those who withdraw a maximum of 2 Bitcoins per day do not need an identity check. However, Binance provides two types of accounts. For larger balances, KYC verification is also mandatory with this provider.

Binance - The offer

Bitcoin hand take money

A big advantage of Biinance is that numerous coins are supported. There are no restrictions on the operating system or terminal device - that is, Binance can be accessed with any operating system and also via any terminal device. It is worth noting that the platform has the capacity to carry out 1.4 million transactions per second.

Currently, the services on the platform are available in 17 languages. This is also the reason why Binance offers multilingual support.

Of course, on a platform through which digital currencies can be traded, it is primarily about which cryptocurrencies can be accessed. Currently, more than 170 digital currencies are available on Binance. The largest and best-known cryptocurrencies include:

  • Binance Coin
  • Bitcoin Cash ABC
  • Ripple
  • Cardano
  • Dash
  • EOS
  • Ethereum
  • Ethereum Classic
  • Litecoin
  • MIOTA
  • Monero
  • NEM
  • NEO
  • Stellar Lumens
  • Zcash
  • Binance - The fees

    Anyone who loads money onto their Binance account does not have to pay any fees; there are also no costs for storage. Moreover, only a small fee has to be paid for trading - this amounts to just 0.1 percent.

    If a withdrawal to an external address is requested, however, this is subject to a fee. The amount of the fee depends on the respective currency. However, the homepage provides a very good overview of the current fees.

    Fee type

    Fee amount

    Deposit

    Toll-free

    storage

    Toll-free

    trade

    0.1 percent

    Payment to an external address

    Fee is currency dependent

    The special feature: If you use the Binance Coin BNB to pay the transaction fees, you can look forward to discounts that should not be underestimated.

    In the first year, there is a discount of 50 percent; subsequently, the percentage is halved from year to year. This means that in the fourth year, the discount is 6.75 percent - with the fifth year, the platform no longer grants any discount at all. Those who are inactive do not have to fear fees either - Binance waives a so-called inactivity fee. Compared to other competitors, this is not a matter of course.

    year

    Discount amount

    1st year discount

    50 percent

    2nd year discount

    25 percent

    3rd year discount

    12.5 percent

    4th year discount

    6.75 percent

    Discount in the 5th year

    no discount

    fees either

    Comparison of fees with other providers


    Binance

    eToro

    Libertex

    Coinbase

    Deposit

    no

    free

    free

    3.99%

    Purchase fees

    0.1%

    1.9%

    3.08%

    1.49%

    Sales charges

    0.1%

    1.9%

    3.08%

    1.49%

    Holding fees

    no

    no

    no

    no

    Payout

    depending on the coin

    $ 5

    free

    $ 0.15

    The Binance fees for trading amount to a flat rate of 0.1%. With a higher VIP status, this can even be reduced and those who trade with Binance Coin receive a 25% discount on the trading fee.

    There are no deposit fees at Binance. However, apart from fiat currencies, the provider charges a fee on withdrawals, which can vary depending on the coin. There are also minimum withdrawal amounts and corresponding costs. It should also be noted that Binance does not allow trading with CFDs.

    Which deposit and withdrawal options are accepted?

    It should be noted that you cannot exchange euros or US dollars for cryptocurrencies. This means that before you want to buy cryptocurrencies, you have to exchange the US dollar, Swiss franc or even the euro in advance against Tether, Ethereum or also against the Bitcoin like against the Binance Coin, Binance's own cryptocurrency. This is a necessity that also exists with many other exchanges and is also repeatedly seen as a disadvantage.

    Binance registration: Step by step to cryptos

    The following guide is meant to be an aid on how to start trading on Binance:

    Step 1: Signing up

    Opening an account with Binance is relatively easy and can be done within a few minutes. All you have to do is enter your data such as name and email address in the registration form on the homepage.

    You will then receive an email with a confirmation link. After clicking on this link, the account can be used.

    There is no proof of identity here. Only if you want to withdraw more than 2 Bitcoins per day do you have to verify your personal data.

    Step 2: The deposit

    Probably the easiest way to purchase virtual currencies on the crypto exchange Binance is to make a deposit with the cryptocurrency Bitcoin. In this case, you have to click on the item "Funds" in the menu and then on "Deposits and withdrawals".

    Now a list appears with all those cryptocurrencies that are then available for selection - now you can click on Bitcoin and then select "Deposit".

    Subsequently, a field opens that shows the user a Bitcoin address - the coins will then be sent to this address. The transfer can take a few minutes or even hours, depending on the load on the network. Once the transaction has been confirmed, the funds will be credited to the Binance account.

    Step 3: Trading

    Once the account has been topped up, you can click on "Exchange" and then select "Basic".

    Now the Basic Trading page opens. On the upper right side there is a box where you can click on the digital currency you want to trade. Here you can also select the currency that acts as the counterpart - you can click on Bitcoin and then on Ethereum.

    The price trend of Ethereum against Bitcoin is now displayed. Below the chart, you can click on Ethereum "Buy" as well as "Sell".

    There are various buying options for both selling and buying. Here you can either click on "Limit Buy" or "Market Buy".

    Binance - Purchase options

    Users have the following options for trading cryptocurrencies on Binance:

    The Market Buy

    With this option, the purchase of the favoured cryptocurrency is automatically offered at the best possible price. The purchase is executed immediately - this also distinguishes the Market Buy variant from the Limit Buy. After the successful purchase, you can click on "funds" so that the digital currency is then also credited. Selling the digital currency is just as easy. Simply click on "Sell" and then fill in the fields.

    If you want to have the credit paid out, you don't have to be afraid that Binance will sometimes put obstacles in your way. Binance offers the possibility of exchanging digital currencies, such as bitcoin, for a popular fiat currency, such as the euro. The amount is then transferred to the specified bank account.

    The limit purchase

    The platform has the most important functions that you would expect from any reputable crypto exchange:
    • Here you specify the price at which you want to buy a certain cryptocurrency. It should be noted that the price always refers to a single unit.
    • So if you want to buy 10 coins of the cryptocurrency Bitcoin, you specify how much you want to pay for it in the first place. Only then, when the price corresponds to the asking price, will the purchase be carried out.

    Binance - The Platform

    Binance - The Platforms
    In the course of registration and authentication, Binance cooperates with the largest company in the world: Google. With the two-factor authentication, the customer's account is additionally protected, i.e. on another security level. In this case, the customer only needs a smartphone connected to a Google account.

    Thus, on the Binance page, one must not only enter the regular login data, but also a special code, which is then transmitted to the smartphone (or mobile device). So you have to enter your username, password and also your own code that was sent to your smartphone.

    This is a very simple step, which means a little extra work, but ensures that the assets are 100 per cent protected. In order for this additional protection to be activated, the aforementioned field in the registration area must be clicked on. This means that the first step is to install the Google Authenticator on the respective end device - the programme can be installed on an Android smartphone or also on an iOS device, but of course also on iOS as well as Android tablets.

    Now the QR code must be scanned; sometimes you can also - as an alternative - enter the 16-digit key. In the end, it depends on the preferences of the user.

    What features are available at Binance?

    Users have access to analysis and trading tools regardless of the account type. Advanced account users can of course access additional resources for more complex trading strategies. These are not made available to newcomers to prevent confusion or even intimidation.

    For beginners, Binance offers a learning platform with newsletters and articles that they can receive by email or read directly on the website. The information on the website is accessible to everyone; an account is not required.

    By the way, a Binance experience is even more practical with Binance's own cryptocurrency called Binance Coin. With Binance cryptocurrencies, this is naturally preferred by the platform and this brings discounts on fees.

    In addition, Binance has its own trust wallet in which the cryptocurrencies can be stored and used for trading. This Trust Wallet is available in the iOS and Google Play Store and can be downloaded. It functions as a Binance app and standalone wallet.

    The correct storage of the coins

    If you buy coins of a certain cryptocurrency via the Binance exchange, they are subsequently transferred to the platform's wallet. From here, you can then transfer the coins to your own wallet.

    At this point, it can be said that the coins can also remain in the Binance wallet - the credit that is stored here is in a so-called cold storage. This is an offline storage, so that one does not have to fear that the coins will be lost through a hacker attack.

    Since mid-2018, it has been possible for Binance users to store the funds on a mobile wallet and then manage them with a private key. This is because Binance has taken over Trust Wallet. All ERC223 and ERC20 cryptocurrencies can be stored here. The app is available for Android and iOS.

    The customer support of Binance

    Binance employees are available 24 hours a day, seven days a week; contact can be made in various languages. If you click on "Contact" on the website, you will be redirected to a help page. Here, the user is advised to visit the FAQ section and search for answers before making contact.

    The FAQ section covers numerous topics - for example, the platform, the various deposit methods or trading. If you do not find an answer to your question in the FAQ section, you can contact a Binance employee.

    It should be noted, however, that contact is only possible via a predefined form - there is no telephone information and no live chat.

    Binance - What do the testimonials look like?

    Binances

    If you are looking for testimonials, you will quickly notice that the majority of reports are positive - there is hardly any criticism of the offer. Moreover, there are no reports that would suggest that one should be afraid of possible fraudulent schemes.

    Here are a few positive reviews on Trustpilot:

    alihweh wrote the following review on 10/07/2020:

    "Great app for trading, lots of activity and community specials. Still stay alert and don't get too carried away with the trading contests if you don't have that much experience and capital available. The new ETF product based on BTC is a good investment for all inexperienced crypto investors. Very informative info and facts about the individual currencies make it much easier for laymen to get started! Thick +"

    And Chris wrote on 29/05/2020:

    "For me super geeinet to trade cryptocurrencies. A huge offer and many traders on the platform. I also find the fees ok, only the deposit fee is a bit high. But they have to earn something somewhere.

    I have never had any technical problems and the site seems very clear to me. Compared to other brokers, it's great! I can't really judge the service that others complain about, since I've fortunately never needed it.

    The advantages and disadvantages of Binance at a glance

    Pros

    • More than 170 cryptocurrencies are available on Binance.
    • The extensive FAQ section is an advantage.
    • In addition, users can save fees if they opt for the in-house cryptocurrency Binance Coin.
    • Binance is also convincing in the area of security - for example with the 2-factor authentication.

    Cons

    • It should be noted that you cannot use real currencies here.
    • In addition, Ripple is not available.

    Binance - Secure crypto exchange for everyone

    In conclusion, it can be said that there is probably no broker or exchange where more digital currencies are available - there are currently around 170 cryptocurrencies that can be bought, sold or exchanged. Security is also a top priority here. You also don't need to be afraid that fraudulent activities will be pursued here.

    Binance is licensed; the company is based in Malta. This means that you can be sure that this is a serious offer - due to the fact that Malta is part of the European Union, the EU guidelines must also be adhered to.

    In addition, the platform was revised by numerous programmers and changed again and again over time - this means that the offer was adapted to the needs of the users.

    Binances

    The only aspect that can actually be criticised here is the lack of customer support. Even though the employees are - in theory - available 24 hours a day, there is only a contact form.

    Cryptoscene

    FAQ

    Is Binance trustworthy as an exchange?

    Definitely. Next to eToro, Binance is the market leader in the field of crypto exchanges. The provider is reputable and secure. The exchange enjoys a network of over 1 million customers worldwide.

    What are the fees at Binance?

    The trading fee is 0.1% of the transaction value. This does not apply to BNB tokens, where the fee is 0.05%. Deposits are free and fees on withdrawals depend on the cryptocurrency. Moreover, this fee can be even lower with a higher VIP status.

    Are profits and transactions on Binance taxable?

    Unfortunately, there is no general answer to this question. Normally, profits from trading with cryptocurrencies are also taxable. However, there are exceptions with regard to the duration between incoming and outgoing payments. A tax expert can provide precise information on this.

    Hi, my name is Benzion. I have twelve years of experience in the Forex industry, and I have launched two successful crypto trading services. I have in-depth experience on several blockchain networks like Bitcoin, Etheruem, EOS, Cardano, Hyperledger, ICON, Komado, etc. I also have in-depth knowledge of blockchain techniques, including various consensus mechanisms, DLT, smart contracts, security, and privacy measures. Benzion Friedman