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Binance Exchange Review 2020 – Details, Trading Fees & Features

Binance is one of the leading cryptocurrency exchanges that provide a platform for trading various cryptocurrencies. Accordingly, it operates the largest Bitcoin and altcoin crypto exchanges in the world by trading volume. The crypto exchange gained prominence from crypto traders and enthusiasts by offering the most competitive trading fee rates across the globe.

Binance exchange also provides a vast ecosystem and products of services in the crypto and blockchain industry. As of August 2020, the exchange has more than 15 million users. The main site particularly offers support in various languages including English, Chinese, Korean, Japanese, Russian, Spanish, and French.

Currently, the exchange conducts over 1 million transactions per day and provides its users the ability to buy Bitcoin and altcoins with more than 40+ fiat currencies. Furthermore, it has an average daily volume of over USD 2 billion and margin trading with up to 125x leverage. Though users can buy crypto with fiat, Binance only offers crypto-to-crypto trades for now.

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Binance Exchange Details

Websitewww.binance.com
Available on mobileYes
Number of supported coins/tokens184
Number of supported trading pairs591
Native tokenBNB
Supported fiat currencyUSD, EUR, GBP, AUD, CND, AED, and many more
CEOChangpeng Zhao
HQ LocationMalta
Company OwnerBinance Holdings Ltd.

History Overview

Binance cryptocurrency exchange was launched in 2017 by its CEO Changpeng Zhao aka CZ and Yi Hi in Hong Kong. Due to China’s strict regulations on crypto exchange businesses,  Binance struggled to operate properly in the country.

As a result, in 2018, the company moved its headquarters to Malta, EU. Binance now has a team operating from 40+ countries and has incorporated various branches in the world including Cayman Islands and Seychelles.

Among these countries are California (US), Paris (France), Moscow (Russia), Istanbul (Turkey), Ho Chi Minh (Vietnam), Kampala (Uganda), Singapore, Berlin (Germany), New Delhi (India), and Manila (Philippines).

Notably, Binance conducted one of the most successful Initial Coin Offering (ICO) projects in the crypto industry. From July 1-20, 2017, the exchange raised USD 15,000,000 worth of crypto from investors. Apart from the money, the platform also acquired 20,000 registered seed users on that same event.

In addition, the investors received 100,000,000 Binance Coin (BNB) tokens issued on the Ethereum blockchain which have now been migrated onto Binance’s native chain. In this case, the ICO price for 1 BNB was USD 0.115 per coin.

Binance has experienced growth since its launch and this can be attributed to its user-friendly interface and capability to handle large transactions.

Platform Interface

Binance offers a user-friendly interface that is ideal for all crypto traders. The easy-to-use interface particularly makes it simple for Binance users to understand and navigate through the services being offered.

Binance trading interface
Binance trading interface

Key Features and Functions

Binance offers several features and functions for both amateur and professional crypto users. All these features are offered via Binance’s official website, mobile application, as well as clients and other options resulting from future technological developments.

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  • Binance Dex: An open-source, non-custodial, and decentralized exchange running on the Binance Chain blockchain
  • Binance Jex: Binance’s cryptocurrency futures and options trading network
  • Trust wallet: The official and decentralized wallet of Binance
  • Binance OTC: Over-the-counter trading platform for Binance
  • Binance US: A branch of Binance Chain that operates using the US crypto and blockchain regulations
  • P2P Trading: Binance’s peer-to-peer (P2P) crypto trading platform that supports payments via WeChat, AliPay, Bank Transfers, and QIWI
  • Binance Jersey: An exchange that permits users to buy crypto using fiat. They can use Euros (EUR) and Pound sterlings (GBP) to purchase Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Binance Coin (BNB), and Bitcoin Cash (BCH).
  • Crypto Loans: An ecosystem that allows users to borrow USDT or BUSD by securing a collateral amount of crypto within one’s account
  • Binance Chain and Binance Coin (BNB): A blockchain network that is powered by its own native token (BNB) and decentralized exchange (DEX)
  • Binance Staking: A feature that allows individuals to stake selected cryptocurrencies and get a reward of 16% annually. Supported cryptocurrencies include THETA, LOOM, Ark, TROY, EOS, ARPA, Lisk, KAVA, Tezos, and many others
  • Binance Savings: A crypto interest account that enables users to lend out their dormant coins to earn interest. Users can withdraw their funds at any given time
  • Binance USD (BUSD) and Binance GBP: Binance’s official stablecoins
  • Binance Card: A crypto payment card used to make payments for various purchases
  • Crypto Market Info: Offers the latest blockchain and cryptocurrency news, project updates, and other relevant industry-related information
  • Binance Cloud: A system designed to assist customers and partners to launch digital asset exchanges using Binance’s technology, security, and liquidity
  • Binance Labs: An infrastructure designed to invest and empower the blockchain and cryptocurrency society
  • Fiat Gateway: A platform that enables users to instantly buy Bitcoin and top cryptocurrencies. Crypto traders can use bank cards, cash balance, and other payment methods
  • Binance Research: Provides institutional-grade analysis for crypto traders and investors
  • Binance Academy: An educational portal that provides blockchain and cryptocurrency resources for free to anyone
  • Charity: A non-profit organization with a primary goal to advance blockchain-enabled philanthropy towards achieving global sustainable development around the globe
  • Binance Launchpad: A token launch platform for transformative blockchain projects
  • Binance Futures: Binance’s platform that lets users trade with 125x leverage

Supported Cryptocurrencies

Binance supports over 1,300 cryptocurrencies including its own native token, Binance Coin (BNB). More so, the exchange supports 40+ fiat currencies. On this platform, traders can buy Bitcoin (BTC), Binance Coin (BNB), Binance USD (BUSD), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Basic Attention Token (BAT), and Dash (DASH).

Also included on the list are EOS (EOS), Litecoin (LTC), NANO (NANO), Paxos Standard (PAX), Tron (TRX), TrueUSD (TUSD), and Tether (USDT). Additionally, payments can be done using bank transfers, WeChat, Alipay, and QIWI.

As per CEO Zhao, as part of Binance’s goal in 2020, they aim to enable fiat-to-crypto trading for 180+ fiat currencies despite the challenging regulatory requirements. Currently, Binance users can carry out fiat-to-crypto purchases through the Binance P2P marketplace.

Buy Cryptocurrency on Binance
Buy Cryptocurrency on Binance

Supported fiat currencies on Binance

Binance crypto exchange is supporting 40+ fiat currencies on its platform. In detail, the currencies supported are included in the table below:

Currency               Buy                  Sell
United States Dollar (USD)✔️
Euro (EUR)✔️✔️
British Pound (GBP)✔️✔️
Australian dollar (AUD)✔️✔️
Chinese Yuan  (CAY)✔️✔️
Canadian Dollar (CND)✔️✔️
United Arab Emirates (AED)✔️
Argentine Peso (ARS)✔️✔️
Bulgarian Lev (BGN)✔️
Brazilian Real (BRL)✔️✔️
Swiss Franc (CHF)✔️
Colombian Peso (COP)✔️✔️
Czech Koruna (CZK)✔️
Danish Krone (DKK)✔️
Hong Kong Dollar (HKD)✔️✔️
Croatia Kuna (HRK)✔️
Hungarian Forint (HUF)✔️
Indonesian Rupiah (IDR)✔️
Israeli New Shekel (ILS)✔️
Indian Rupee (INR)✔️✔️
Japanese Yen (JPY)✔️
Kenyan Shilling (KES)✔️✔️
South Korean Won (KRW)✔️
Kazakhstani Tenge (KZT)✔️✔️
Mexican Peso (MXN)✔️✔️
Malaysian Ringgit (MYR)✔️✔️
Nigerian Naira (NGN)✔️✔️
Norwegian Krone (NOK)✔️
New Zealand Dollar (NOK)✔️
Peruvian Sol (PEN)✔️✔️
Poland Zloty (PLN)✔️
Romanian Leu (RON)✔️
Russian Ruble (RUB)✔️✔️
Swedish Krona (SEK)✔️
Thai Baht (THB)✔️
Taiwan Dollar (TWD)✔️
Turkish Lira (TRY)✔️✔️
Ukrainian Hryvnia (UAH)✔️✔️
Vietnamese Dong (VND)✔️✔️
South African Rand (ZAR)✔️✔️

 

Deposit/Withdrawal/Trading Fees

Binance Trading Fee Level
Binance Trading Fee Level

Binance offers cost-effective fees as compared to other cryptocurrency exchanges. The charged fees are very low making it a preferred choice for crypto traders and enthusiasts. By all means, deposits and withdrawals can be done on Binance.com and Binance US.

Nevertheless, low trading fees also apply to Binance Futures as basic level (VIP 0) accounts pay 0.02% maker fee and 0.04% taker fee.

Binance Futures
Binance Futures

Withdrawal fees

CoinMinimum WithdrawalMinimum Withdrawal
Bitcoin (BTC)0.001 BTC0.0004 BTC
Bitcoin (BTC) – BEP20.0000044 BTC0.0000022 BTC
Ethereum (ETH)0.02 ETH0.003 ETH
Ethereum (ETH) – BEP20.00018 ETH0.000092 ETH
Litecoin (LTC)0.002 LTC0.001 LTC
Litecoin (LTC) – BEP20.00074 LTC0.00037 LTC
Monero (XMR)0.0002 XMR0.0001 XMR
Ripple (XRP)0.5 XRP0.25 XRP
Ripple (XRP)- BEP20.17 XRP0.083 XRP

Moreover, deposit fees on Binance cryptocurrency exchange is relatively free. Binance users can withdraw either regular or Binance Chain Evolution Proposal 2 (BEP2) versions of their assets.

To clarify, BEP2 is a technical standard that defines a set of rules to manage and issue tokens on the Binance Chain network.

All BEP2 withdrawals do not use an actual crypto-asset but a pegged BEP2 version of it. For fiat transfers on Binance US, USD wire withdrawals cost USD15/USD35 for local and international withdrawals respectively. On the other hand, Automated Clearing House (ACH) withdrawals are free in USD.

Binance only provides crypto-to-crypto markets as all deposits and withdrawals involve moving funds to and from external crypto wallets. However, fiat-to-crypto purchases and deposits via third-party service providers can be done but users would be subjected to pay separate service fees that range from 1% up to 7%.

Fiat currencies like EUR deposits can be done using:

  • Simplex (VISA and MasterCard)
  • SEPA bank transfer
  • iDeal bank transfer
  • BANXA (bank cards and bank transfers)
  • Koinal (VISA, Mastercard, and other major car processors)
  • Paxful (300+ payment methods)

 Trading fees

Binance Trading Fees
Binance Trading Fees

Binance exchange provides the most compatible fees for crypto lovers. The exchange withdraws a 0.1% cut fee from both spot trading and margin trading conducted on its trading platform. Apart from that, Binance offers its users a 25% discount when trading with Binance Coin (BNB) and another 25% for friend referrals.

The crypto exchange has affordable trading fees as compared to other crypto exchanges that charge between 0.2% to 0.5% fee per trade. Moreover, exchanges like Poloniex and Kraken are more expensive too as they charge a 0.15%-0.16% maker fee and 0.25%-0.26% taker fee.

Binance Trading Rules
Binance Trading Rules

 

Accepted Payment Methods

Binance is a crypto-to-crypto exchange only. Crypto users must first buy cryptocurrencies using fiat before they trade on the platform. Thereafter they can easily trade their crypto with other cryptocurrencies. Payments can be done in different ways that the user prefers.

Payments on Binance can be done using a credit card (Visa and MasterCard), debit card, and cryptocurrency. Only USD or EUR is permitted when buying Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH/BCHABC), or Ripple (XRP)

Controversies & Issues

Cryptocurrency exchanges have been clouded in various controversies over the past years and Binance exchange is no exception. Incidents such as hacks or data breach tend to cause a lot of panic among traders and investors. Below are some of the controversies that Binance exchange has been exposed to.

7,000BTC hacked from Binance exchange accounts

Hackers stole 7,000 BTC in May 2019 from various Binance exchange accounts. At the same time, the malicious actors managed to access user API keys, 2FA codes, and other confidential information. Despite this, the large-scale security breach only affected the Binance hot wallets which roughly hold 2% of the exchange’s total BTC holdings.

The exchange used its Secure Asset Fund for Users (SAFU) to cover the loss. Hence, the fund was launched to protect Binance users in the event of any misfortune cases.

Binance KYC data breach

On August 7, 2019, the Binance exchange faced a hacking scandal that left the hacker in possession of large amounts of the firm’s Know Your Customer (KYC) data (10,000+ personal photos). The hacker demanded 300 BTC from the exchange which, at that time, was worth $3.5 million so as not to release the data. The hacker set up some Telegram groups that are alleged to have featured some sensitive material.

According to the Binance team, the images released were dated back to February 2018. At that moment the trading platform was making use of a third-party service provider to process its KYC verifications.

However, Binance offered a reward to anyone who identified and brought forward the hacker.  The exchange also offered lifetime VIP membership and preferential trading fees and services to the affected users.

Achievements

Besides the hiccups that Binance faced as a cryptocurrency exchange, it has also managed to acquire a number of achievements that made headlines in the crypto industry.

CEO Changpeng Zhao has repeatedly stated that their vision for cryptocurrency has a much wider reach than just an exchange — their goal is to disrupt and revolutionize the entire financial system.

Binance also provides multi-platform support. The exchange is not only accessible via its web platform and mobile apps for Android (including Android APK) and iOS, but also in desktop clients for macOS and Windows. Besides, users can make use of Binance API to integrate their trading application into the Binance platform.

In 2019 and 2020, Binance also acquired India’s largest cryptocurrency exchange WazirX and Chinese DApp analytics platform DappReview. It went further to acquire the most popular cryptocurrency market data aggregator platform CoinMarketCap.

CoinMarketCap
CoinMarketCap

 

Pros and Cons

Pros

    • Affordable fees
    • Ability to buy and sell crypto with 40+ fiat currencies
    • High liquidity
    • Trades over 1000+ cryptocurrencies
    • Fast trading times and transaction processing
    • Provides a range of services and products
    • Offers SAFU insurance against hacks

Cons

    • Does not provide fiat currency trading pairs
    • No privacy-preserving measures
    • Challenges experienced when using credit card
    • It takes longer to create a KYC verified account
    • Experienced security breaches in the past

 

Final Score

 

    • Services offered: 4/5
    • Cryptocurrency support: 4/5
    • Fees: 5/5
    • Security: 3/5
    • Review Score: 4/5

 

Summary

Though no exchange is 100% safe, Binance strives to provide a secure and exceptional trading experience for its users across the globe. Thus, the exchange aims to provide a multi-tier and multi-clustered architecture that will assist to deliver high processing throughput to process large orders.

As presented above, the Binance exchange has been labeled the world’s leading cryptocurrency exchange because of its unique features. These include low transaction fees, high liquidity, and additional discounts if users pay in the native BNB cryptocurrency tokens. It also offers extensive services with regards to trading, listing, fundraising, and withdrawal of cryptocurrencies.

FAQs

What is Binance?

Binance is one of the leading cryptocurrency exchanges that provide a platform for trading various crypto exchanges. It also operates the largest Bitcoin and altcoin crypto exchanges in the world by trading volume.

What is Binance’s Exchange-based token?

Binance Coin (BNB) is a cryptocurrency token created and used by Binance exchange since 2017. The token was created out of an Initial Coin Offering (ICO) conducted by Binance. Initially, the token was created on the Ethereum blockchain but already migrated to Binance Chain. BNB powers the Binance ecosystem and has multiple use cases such as paying trading fees, participate in token sales, and paying for goods.

Is Binance exchange safe for trading?

Binance exchange has also introduced a number of security measures and services that are reliable and convenient for crypto users. These include making use of 2FA, AI-risk control solutions, quick response to security threats, and SAFU insurance for covering extreme loss cases.

How do I open a Binance account?

Opening an account on Binance.com is certainly a straightforward process. First, go to https://www.binance.com then select Register and follow the simple instructions including their KYC onboarding requirements.

What are the payment methods accepted in Binance?

Payments on Binance can be done using a credit card (Visa and MasterCard), debit card, and cryptocurrency. Only USD and EUR are permitted when buying Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH/BCHABC), or Ripple (XRP.On Binance US, users can utilize their debit cards to directly transfer USD from their bank accounts into their exchange account via ACH or wire transfer.

Does Binance accept fiat-to-crypto trading?

As a matter of fact, Binance is a crypto-to-crypto trading exchange only. However, Binance users can buy cryptocurrencies using the supported fiat currencies on Binance. After that, they can trade their crypto to any other cryptocurrency of their choice.

 

Henceforth, get the latest news about Binance exclusively on CoinQuora’s Binance News section.

CoinQuora Staff

CoinQuora is an online publication that aims to educate about news, exchanges, and markets in the cryptocurrency and blockchain industry

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