Binance Exchange Review: Is It Worth Trading On?
Binance is one of the most liquid and popular online platforms in the world. It offers spot, 125x futures and margin trading in cryptocurrencies. The crypto exchange has been operating since 2017, and Binance Holding Limited is registered in the Cayman Islands but in 2018 moved to Malta.
The Binance Exchange has shown a very sharp development and a large inflow of new clients to the site, so in early 2018, registration of new accounts was closed for some time. Now, this ban has been lifted, so you can register and trade from most jurisdictions.
There is no need for verification, but after its completion, the restriction on output 2 BTC per day is removed. You can deposit funds to the balance of Binance cryptocurrency wallet or withdraw them not only in the cryptocurrency but also in fiat money.
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Binance Exchange works with currencies: USD, EUR, TRY and many others.
From 2019 it is possible to buy a cryptocurrency for fiat using verified accounts with bank cards. In 2020 you can buy cryptocurrency for Binance using a wallet in the payment system Payeer or fund your account with a wire transfer.
The Binance Exchange has issued its own coin – BNB (Binance Coin). Its value has risen from $0.1 to $20, while its market capitalisation has exceeded $3 billion. BNB is used to reduce trading fees. Now the commission is equal to 0.1% of the deal, and 0.075% when buying a token.
Binance is the world’s leading cryptocurrency exchange. Since its launch back in 2017, it has gained popularity with a wide range of traders and investors. In less than in a year, Binance managed to climb to the 1st place by trading volume among all crypto exchanges in the world.
Variety of cryptocurrencies and tokens, fiat gateway, margin and futures trading provided by an exchange. Binance not just kept the competitive edge, but has developed a large and evolving ecosystem of blockchain protocols and trading products. The trading engine is capable of processing over 1.4 million user commands per second. At the same time, it is notable for stability and security. In this complete Binance exchange review, we gathered everything is needed to know to start trading and making profits in this leading crypto exchange.
The CEO and founder of the Binance cryptocurrency exchange is Changpeng Zhao (CZ). He is a Chinese software developer who developed futures trading software for Bloomberg and established a system for the Tokyo Stock Exchange. After such extensive experience, he worked in prominent blockchain companies blockchain.info, OKcoin and OKEX crypto exchange.
With extensive experience, he has assembled a team of highly skilled professionals, which allowed the crypto exchange to enter the top 3 rankings for daily trading volume in less than five months since its launch! As of June 3, 2020, this figure is $6.7 billion.
Whitepaper of the Binance was focused on the crypto exchange native token BNB. Whitepaper described in details the exchange function of BNB token and the burning mechanism. Binance was first of the kind among exchanges issuing their native token. We believe that step was one of the keys to Binance success, and ofcourse the security standards and high liquidity played their role.
The ICO took place at the beginning of the last bull market in June 2017. Binance was able to raise $15 million within ten days as the ICO was launched. This was the largest fundraise in China at that time.
Binance coin (BNB)
Binanse’s internal money is BNB, issued on the basis of Ethereum blockchain ERC-20 standard is considered a promising stock exchange instrument. Later, BNB tokens were transferred to Binance Chain’s own blockchain.
The coins are used to pay the commission fee of the trading platform and give the user the opportunity to get various discounts when paying with BNB tokens. The developers of the exchange have released 200 million BNB native tokens and according to their own statements, will never release any additional tokens.
Now the price of one token ranges from $17 to $20. With a starting price of $3, the growth looks quite significant. In 2020, the capitalization of Binance coin equals $2.8 billion. The main feature of the token is the fact that the creators of the exchange uses 20% of its revenue quarterly to buy back and burn tokens. All buy-back transactions are recorded on a blockchain and are available to all exchange clients.
This process will continue until they are able to redeem exactly half of the total available volume (100 million). As the total supply of BNB decreases, the value of each BNB token should increase in the long run.
Binance has built a decentralised exchange where BNB are used as a key underlying asset. When using BNB in settlements with the exchange, you can get a significant discount: 50% for the first year, 25% for the second, 12.5% for the third, 6.75% for the fourth. These properties of the coin were introduced to give real value to this coin. It should be noted that its course reacted to the burning ambiguously: in some period it showed quite a serious growth of the same relative Bitcoin, and at some point, on the contrary, it sank.
Binance Crypto Exchange is optimized for trading on mobile devices. Applications can be downloaded on Android and IOS. Trading with a smartphone is undoubtedly convenient, as it is very difficult to be in front of your computer all day. Thanks to the mobile application Binance, you can always be aware of the current exchange situation and not miss profitable trades.
Advantages of Binance
- Binance is a leading international exchange with the highest trading volume.
- Fiat Gateway: you can buy cryptocurrency from Visa/Mastercard or bank account; using Advcash and Payeer wallets; via p2p platform Paxful.
- In addition to the spot market, there is a margin and futures trading platform for perpetual contracts, p2p platform. Adjustable leverage from 1:1 to 1:125 allows you to operate with volumes much larger than the original deposit.
- Commissions are below the industry average.
- Additional earnings on leasing and stacking cryptocurrency.
- User-friendly mobile and desktop application.
- The commission from profit is deducted in a special fund for covering possible losses.
- Promotions and contests are held for traders.
- OTC market.
- The round-the-clock support service, which operates without breaks and weekends, answers all requests as quickly as possible and solves problems.
- No verification is needed when outputting less than 2 BTC per day.
- The security system Binance is one of the most modern and reliable on the market. Client funds are stored on “cold” wallets, two-factor authentication and cryptographic password hashing are used.
- Binance Chain block network with decentralized DEX platform launched.
- Many promising cryptocurrencies supported.
List of available trading pairs and leverage
Currently, Binance offers leveraged trading from 1:1 on the spot market to 1:125 leverage on Binance futures.
The platform supports more than 174 coins: BTC (Bitcoin), ETH (Ethereum), LTC (Litecoin), Ripple (XRP), Neo, Chainlink, Ontology, Kava, NEO, Binance USD, WINk, Cosmos, Matic Network, Ravencoin, Algorand , Zilliqa (ZIL), XEM (NEM), Cardano (ADA), Stellar (XLM), IOTA, EOS, Dash, Monero (XMR), Bitcoin Gold (BTG), TRON (TRX), Ethereum Classic (ETC), Qtum (QTUM), Lisk (LSK) and many others. The main cryptocurrency pairs are Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Tether (USDT).
In total, you can trade over 500 currency pairs.
Trading on Binance exchange
When traders buy and sell real assets in the real-time market, the standard trading interface is also called “live trading”, which provides users with two modes: “basic” and “advanced”.
The basic mode provides a simple trading interface. Users can select trading pairs, set limit prices and market orders, set stop-loss limit prices and trade in a clean and easy-to-operate environment.
Choosing the advanced mode will enable traders to use various charting tools and technical indicators, including RSI, moving averages, Bollinger Bands, etc. Traders looking for technical analysis can also use chart tools to draw charts in advanced modes. The regular interface in the advanced mode is as user-friendly as Binance’s basic mode but has tools for experienced traders. The main thing to remember about Binance exchange is that you are trading real assets here, not contracts like futures exchanges.
Binance Margin Trading
In June 2019, the Binance cryptocurrency exchange introduced a new version of its platform supporting margin trading – Binance 2.0. Through margin, traders can borrow funds from an exchange to increase the size of their position, which allows them to increase potential profit (but at the same time increases the potential loss).
Margin trading is especially popular in markets with low volatility (for example, in the currency market). Because of the high volatility of the cryptographic market, this type of trading is associated with high risks, so margin trading is not recommended for absolute beginners in crypto trading.
To open a margin account, go to the Binance exchange and point your cursor at your profile. In the drop-down menu, click on “Wallet overview”.
Wallet overview navigation.
In the “Waller overview” section click on “Margin” and then confirm the agreement to open a margin account (the same way you open up a futures account).
Opening a margin account.
After activation of the margin account, you will be able to transfer funds from your exchange wallet to your wallet for margin trading. You can use these funds to secure your margin position. Your balance determines the amount of funds that you can borrow in relation to fixed leverage (3 to 1, 3x). For example, if you have one bitcoin, you can borrow another 2 BTC. Once you have selected a coin and the amount you want to borrow, confirm the loan.
Binance Futures: how to trade Bitcoin futures?
In September 2019, the Binance introduced its platform for trading BTC/USDT futures contracts – Binance Futures. On this platform, Binance offers perpetual futures on the BTC/USDT pair, which is an additional product for the BTC/USDT pair on the Binance spot exchange.
Binance Futures originally only served Bitcoin traders, and now offers contract options for 24 cryptocurrencies, such as Ethereum, Chainlink, Tron, BAT, etc. On the futures market, prices on the exchange are not “set instantly” (unlike the traditional spot market). Instead, two counterparties will make a transaction under a contract on a future date. Basically, futures is a derivative trading tool that allows both parties to the transaction to purchase assets at predetermined future data and prices.
Binance Futures allows users to open long and short positions in various cryptocurrency assets with a leverage ratio of up to 125 times.
Leverage involves the use of borrowed funds to open larger trading positions than the usual use of own funds. For example, a leverage ratio of 100 times allows users with only $100 of original funds to trade with $10,000-generating greater profits, but at the same time risking greater losses.
The interface of Binance Futures Exchange is similar to its “advanced trading” function, suitable for experienced traders with certain risk appetite. This is a good choice for people who want to take advantage of the daily fluctuations in the cryptocurrency market.
If you have a Binance account, you can already use the Binance Futures Exchange, just log in with your credentials and make sure you have some bitcoins in your account wallet.
Orders (such as Binance’s standard exchange) can use limit order placement to enter the time, or they can be opened at the current market price. Remember, when you “sell” on Binance futures, you are not actually selling assets, but “betting” that the price of your trading assets will fall. Likewise, you will never own the assets traded on Binance futures, just trade their contracts.
For users who want to invest in leveraged trading but want to be familiar with the platform, Binance Futures is a perfect choice.
Binance cryptocurrency exchange offers low commissions – 0.1% of the deal. There are no fees on deposits. Binance’s approach to withdrawals is very democratic: 0.001% for Bitcoin, 0.01% for Ethereum, 0.25% for Ripple, etc. Moreover, the commissions can be reduced by half and make up to 0.05% for taker and maker orders. In order to get such conditions, you need to purchase Binance coin tokens (BNB) and pay fees with them.
Registering on the platform takes no more than a minute. After that, you will have to make a deposit and proceed to trade. On Binance you need to pass through a verification procedure, to transfer more than 2 BTC daily. In order to buy crypto via fiat money verification also required. To register, you need just need to fill this registration form.
Registration form on Binance website.
In order to deposit and fund your account, complete the verification process (KYC). Probably they will ask to send a photo of you and your passport. Once KYC is done, you are ready to buy cryptocurrency. Just press “Buy crypto” button on the upper left corner.
Buying crypto on Binance.
If you already have cryptocurrencies, no matter BTC or altcoins, go to you account settings on the upper right corner. Where you should press the “Deposit” button, and you’ll be redirected to the following page. Depending on what cryptocurrency to deposit, just choose it on the list and copy deposit address.
Choose any preferred payment method, wire transfer or credit/debit card.
Binance provides a multi-layered security system that includes:
- SSL encryption;
- Two-factor authentication;
- Cryptographic password hashing;
- Storage of clients’ funds on “cold” wallets;
- Using MultiSig signatures and secure manual transfer of funds from cold wallets to the client’s account.
We running a test for all cryptocurrency exchange websites in Mozzila’s Observatory ( https://observatory.mozilla.org/ ). This is one of the many tools to test exchange security. Binance got a score C+. That mark is pretty high, and only secure exchanges got such score.
The Binance cryptocurrency exchange has a referral program that allows you to receive up to 40% of the trading commissions of invited users. In addition, under the updated rules, the inviting user can also encourage an invited user. Settlement rules:
If the average daily balance of a referral’s BNB is less than 500 BNB, then his referral interest rate is 20%, and he can give 0, 5% or 10% to referrals.
If the average daily balance of a BNB referrer is more than 500 BNB, then his referral interest rate is 40%, and he can give referrals 0, 5, 10, 15 or 20%.
All affiliate commissions are calculated in real-time and every hour are credited to BNB accounts. Referral rates are calculated at 0:00 UTC every day and are updated at 1:00 UTC.
In order to take advantage of the above-mentioned advantages, a referral must register at the required referral link or by scanning a QR code. If the registration at binance.com was carried out using the old identification code, then the referral will not be rejected.
Detailed rules of the affiliate program.
The Binance exchange, like any top-level project, provides high liquidity with extremely fast order closing. It is one of the largest international online cryptocurrency exchange services. Dozens of crypt currencies are exchanged both among themselves and for fiat money. Leverage trading, OTC market, lending platform solutions are one of the best on the market.
Clients are served 24-7, and the platform supports more than 11 languages! Reviews about Binance from most users are extremely positive. The platform works with an incredible number of cryptocurrencies takes a small commission on transactions, provides statistical data and analytical tools. In short, all that is necessary for successful trading is here.