What is Binance?
Binance is the largest cryptocurrency trading platform in the world. It was founded in 2017 by Chanpeng Zhao, and it is registered in the Cayman Islands. Binance offers many features such as spot, margin, and derivatives trading over more than 500 different digital assets.
Binance is a great option for new users. The platform is user-friendly and will help you learn how to use cryptocurrency. There are also many security features built-in to the exchange.
Is Binance Safe?
Most traders choose Binance due to its safety and reliability. It is a secure online cryptocurrency platform that provides two-factor authentication (2FA), withdrawal address restrictions, device linking, and even a decentralized wallet.
Binance is also one of the most liquid exchanges in the world. This means that traders can enter or exit their positions quickly. The exchange also supports multiple fiat currencies, including USD, JPY, EUR, GBP, and others. This makes it easy to deposit, trade, and withdraw funds.
Binance Pros & Cons
As a trader, you should consider the pros and cons of any exchange that you use. Binance has some pros and cons to keep in mind.
- Extremely low fees: Binance offers a competitive 0.1% standard fee for spot trading, 0.5% for instant buying and selling, while debit card transaction fees are 4.5% (Other fees may apply ). These low fees make Binance an excellent choice for trading cryptocurrencies.
- A wide variety of cryptocurrencies: Binance lists over 500 cryptocurrencies available in over 180 countries that you can buy, sell or trade. There are more than 100 cryptocurrency trading pairs on Binance.
- Suitable for all kinds of users: Binance has Advanced, Classic, and Basic trading interfaces to suit your needs, such as advanced charting and trading features.
- Non-fungible token (NFT) support: The Binance NFT marketplace makes buying and selling NFTs easier.
- P2P (Peer-to-peer exchange): Binance offers a P2P (peer-to-peer) exchange that allows users to trade crypto directly on their own terms in virtually any country.
- Trade Futures and Derivatives: Binance has a feature that allows its users to speculate on the price of cryptocurrencies. Users can make more money using this feature, taking advantage of the price rises/falls.
- Margin trading with up to 10x leverage: Margin trading is only available for a select few trading pairs, with users able to leverage up to 10x on some pairs. Cross margin trading is very risky as it risks your whole account, while isolated margin trading only risks the trading pair you are looking at in that instance.
- Binance Visa Card: Binance has its own visa card that offers as much as an 8% cashback on certain transactions. The card is free and does not have any administrative or processing fees.
- Binance Earn: You can grow your cryptocurrency portfolio by staking and earning more cryptocurrencies through Binance.
- Automated Buying and Selling: Binance offers many automatic features to make trading easier and more profitable such as Limit orders, Market orders, Stop limit orders, Stop market orders, Trailing stop orders, Post only orders and Limit TP/SL orders.
- Fast: Binance claims to process over 1.4 million orders per second.
- Fewer features and availability in the US: Binance.US has significantly less supported cryptocurrencies and crypto-to-crypto currency trading pairs and is not available in some US states.
- Some users have noted unsatisfactory customer service, but this is improving.
- Privacy concerns: All Binance users need to complete a KYC (Know your customer) verification.
Binance offers some of the most competitive fees compared to other platforms. Even though Binance offers a standard spot trading fee of just 0.1%, you can also get a 25% trading fee discount every time you pay with Binance Coin (BNB).
Moreover, Binance does not charge deposit fees, while withdrawal fees are based on the cryptocurrency. Other fees are also very modest, with 3% to 4.5% for debit card purchases or \$15 per US wire transfer, although more fees may apply depending on your location and your currency.
Binance for US users.
Binance was banned in the US on regulatory grounds in 2019. However, Binance has a US-based version (Binance.US) with some slight differences and fewer features. The good news for US customers is that Binance.US does offer the same low trading fees as its parent company, Binance, making it just as attractive for traders.
Notice: Binance.US is not available in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, or Vermont.
Binance Chain is the native blockchain of the Binance cryptocurrency exchange. It is a public blockchain built on a distributed consensus network with trust-free peer-to-peer trading and a decentralized matching engine. The Binance Chain allows for the creation of decentralized applications (dApps) and smart contracts with the BNB token at the center.
Binance Coin (BNB)
Binance Coin is the native currency of the Binance Chain. It is a utility token, and it has a few different uses. The token can be used to pay fees on the network, and it acts as ‘gas’ for the smart contracts. It can also be used for discounts and to pay for trading and other account-related fees.
Binance DEX is the native decentralized exchange (DEX) of the Binance network. It is built directly on top of Binance Chain, and it is designed as a peer-to-peer marketplace. Binance DEX is a fast platform that allows for the exchange of cryptocurrencies in a secure environment where users have complete control of their private keys.
Binance is a trustworthy and attractive cryptocurrency trading platform. It has a large selection of cryptocurrencies and is excellent for all types of traders. It is the go-to choice for altcoins due to the variety of altcoins featured on the platform. It is reliable and straightforward for new traders and professionals alike.