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Summary of Binance
Binance is one of the world’s largest and must trusted cryptocurrency exchanges today.
Binance recently celebrated their 2 year anniversary (July 2019). They were founded after successfully and impressively, raising more than $15 Million in public funding within just 24 hours of announcement.
Even more impressive was their shot to fame, as they become a top 5 crypto exchange within just a few months after opening. Binance’s founder, Changpeng Zhao, was already well-known in the Bitcoin community in 2017, as he had helped to establish another big cryptocurrency exchange before he went on to start Binance.
Last Updated: 07/19/2019
What Cryptos can you Trade on Binance?
Binance has more than 120 of the most popular and most traded cryptocurrencies on the market. It is one of the most established and trusted crypto exchange operators. While being aggressive on launching new cryptos, they are also very aware of their ethical responsibility in ensuring that only the best make it onto their exchange. That way, they protect their customers’ interests.
To see some of their most recently launched cryptos, have a look at our most recent article on The Binance Effect
Binance’s Deposit & Withdrawal Methods
Binance (Q1 2019) enabled the option to buy Bitcoin directly via a credit card or debit card (Visa and Mastercard accepted). For most beginners, this option will meet most of their needs. For the more experienced traders, this option still leaves much to be desired. Many of Binance’s competitors offer better solutions. Their option does not allow you to deposit money (USD and EUR) directly onto the crypto exchange. Nor does it allow you to buy Bitcoins at the best available price. Any Bitcoin you buy using your credit card on Binance will be above market price (~5%+). This is fairly standard across most platforms that only offer the option to buy Bitcoin directly via Credit Card. While this option certainly will be just fine for beginners, or those looking to buy and hold for the long term, it adds no value at all to the more experienced traders, who will want more control. Fiat (EUR or USD for instance) withdrawals are still not possible. Therefore, in order to get your money out of the exchange, you are forced to send your cryptocurrencies to another exchange, sell there and then request a withdrawal. Needless to say, that is not the smoothest journey.
Binance has recently launched a new service, branded Binance Jersey. It allows users to deposit EUR or GBP currencies to buy Bitcoin at your exact desired market price. At this point in time, just 2 cryptos are being offered: Bitcoin and Ethereum. To be able to use this service, a KYC is required. You must upload your ID and Proof of Address to Binance for verification before you can use this service. This is a requirement the company must fulfill in order to be compliant with AML (anti-money laundering) regulations. This is very standard across any financial institution in the world. Deposit and withdrawals are limited to 10,000 EUR/USD/GBP per day. Deposits are free and withdrawals are charged at 0.15% of the value of your transaction. So if you are to withdraw $100 they will charge you $0.15 for the transaction
Binance's Transaction & Trading Fees
Trading fees are by default set to 0.1% for every trade that you complete. Regardless of whether you are buying or selling cryptos. Binance offers reduced trading fees if you hold their Binance Coin in your account. This reduces the transaction fee by 25%, from 0.1% to 0.075%. This will not have any significant bearing for the occasional trader but may offer some value to high volume day traders.
If you want to do recurrent, frequent, high volume crypto trades, you may also be able to benefit from further reduced fees. The discount will depend on your 30-day trading volume and the number of Binance Coins (BNB) that you hold in your account.
Supported & Restricted Countries at Binance
Up until June 2019, Binance only had restrictions on 16 countries and 6 US states. In June 2016, they updated their terms and conditions to also exclude an US-based person, from being able to trade on their platform. This will come into full effect from the 19th September 2019. We can happily inform you though, that Binance is currently working with a partner on opening up a sister-brand for US-based customers. This supports their company vision to be a globally available crypto exchange.
Restricted Countries and US states (June 2019):
- Congo (Brazzaville)
- Congo (Kinshasa)
- Democratic People’s Republic of Korea
- Ivory Coast
- South Sudan
Binance has regulated under the recently created Maltese VFA (Virtual Financial Assets) regulatory framework. The Maltese frameworks give some level of comfort and protection for cryptocurrency traders as the level of scrutiny, auditing and transparency is increased. It also gives Binance a safe base and almost endless access to European based traders. Among others, Binance is subject to give full transparency of its business operations and senior level of staff to the Maltese regulator. Something which can often across many other exchanges be missing completely.
Is Binance Safe?
Binance has been operating since July 2017 and up until May 2019, Binance had never been compromised or hacked before. In May 2019, Binance announced on their official Twitter page that they had been hacked and that $40 Million worth of cryptos were stolen. Binance was quick to act and calm their customers, by promising that all customers that were affected by the hack, would be fully reimbursed by the company. You can read more about the Binance hack in May here.
Binance has extensive features designed to help protect your account against anyone gaining unlawful access. There are features that can help you safeguard your general Binance account, such as enabling 2FA (2-factor authentication). With 2FA enabled, you will need an extra code from your phone, whenever you want to log in to your account. While this safeguards the funds on your end, it does however not guarantee that Binance cannot be breached in another way. What is encouraging to know though is that Binance has historically been quick to act and that they have made sure to pay back customers that have been affected by previous incidents.
How is Binance's Customer Support Service?
Finally, as of July 2019, Binance can now be contacted in real-time instantly, using their Live Chat Support service on their website. This is a much sought after feature, as it ensures that if you do run into any problems while being a customer with them and using their crypto exchange, that you can instantly get help if needed. Having to wait for hours or days to get a reply by email, can be very frustrating when you encounter problems. Live chat greatly enhance the overall level of service, as it reduces the resolution time on the most urgent matters.
Binance offers its website in English, German, Spanish, French, Italian, Portuguese, Chinese, Russian, Korean, Turkish, Dutch, Polish and Taiwanese.
Binance Trading Liquidity
Binance is one of the largest exchanges on the market. At its daily peak, its trading volume is in the region of $3-4 Billion per day. On a calm average day however, their volume may drop into the $1 Billion daily trading volume region. With this large trading volume, you will never have to worry about whether you can find buyers or sellers for your trades. On smaller, less-known exchanges, trading liquidity can often be an issue, resulting in delayed trades, and you, therefore, losing out on a buy or sell opportunity. With Binance, you have nothing to fear, there is always available trading liquidity, so you can sell and buy cryptos whenever you want, at the best price possible.
What is Binance Coin (BNB)?
Binance Coin is a cryptocurrency that is owned and issued by the Binance crypto exchange. This was the coin they used to raise funds for the startup of their exchange in July 2017.
It’s currently ranked 6th in the world, based on marketcap, in close competition with Bitcoin Cash taking up rank 5 in the world.
The current BNB supply is 189,000,000 coins. The Binance team, uses a percentage of their revenues generated from each quarter, to buy back Binance Coins (BNB) and burn (destroy). This was stated as part of their commitment to investors in July 2017. You can read more about their quarterly burn in Binance’s official blog here. In July 2019, the team burned 808,888 BNB, worth $23,838,000. Binance announced in July (2019), that all the BNBs that were originally given to the team (40%), will all be burned. As of July 2019, Binance has in total burned 8,192,155 BNBs. An additional 89,000,000 BNBs is still to be burned. The final number of coins will be capped at 100 million.
Binance Coins can be used to pay for trading fees, with an applied discount. They may also be used to invest in projects that launch on their Binance launchpad program.
Is Binance easy to use? Do I need to be a Professional Trader?
Binance has created an exchange that is perfect for everyone, regardless of your level of trading experience. They have both a simple and advanced crypto exchange interface. This ensures that both the most advanced trader, as well as the casual trader or new trader, can easily buy and sell Bitcoin and other cryptocurrencies.
If you are new to crypto trading, and just looking to buy Bitcoins, we recommend you to use their option to buy Bitcoins directly with your Credit Card or Debit card. It requires absolutely no technical know-how and allows you to buy your Bitcoins without any problems or a steep learning curve.