Binance is one of the largest and most comprehensive cryptocurrency exchanges in the world. We explore what it offers, pros and cons, fees and more in our review.
- Offers over 500 different cryptocurrencies and a wide selection of investment tools
- Plagued by regulatory legal disputes around the globe
|Product Name||Binance Cryptocurrency Exchange|
|Fiat Currencies||USD, AUD, GBP, EUR, RUB, TRY, NGN, UAH, PHP, CZK & 20+ more|
|Cryptocurrencies||BTC, ETH, XRP, LTC, BCH, EOS, XMR, TRX, XLM, LUNC & 360+ more|
Bank transfer (ACH)
|Withdrawal Fees||Fees vary|
Binance cryptocurrency exchange was launched in 2017. In the years since its launch, it has become the number one exchange in the world by trading volume. In 2020, Binance built on its success and launched the Binance Smart Chain (BSC). The BSC operates as a blockchain network that enables the running of smart contract applications. The network is powered by the native BNB cryptocurrency token, and there is a Binance Wallet browser extension available that can easily be used with the BSC, giving users access to decentralized finance (DeFi).
Binance offers users an array of financial instruments they can take advantage of on top of functioning as an exchange for a huge number of cryptocurrencies and trading pairs.
Despite the enormous success of Binance, it has found itself dealing with regulators across the globe. This has resulted in it being banned from operating in several countries including the UK, Thailand, Malaysia and China, as well as coming under increased scrutiny in the US, EU and province of Ontario in Canada.
- If this is your first exchange: Binance can be a very intimidating exchange if you are new to cryptocurrency, but if you can familiarize yourself with its tools it can be extremely rewarding. There are simple buy and sell options for newcomers.
- If you’re switching exchanges: Binance offers a wider selection of cryptocurrencies than most other exchanges. It offers the ability to lend, borrow and trade cryptocurrencies through a wide selection of financial and trading instruments unavailable on other exchanges.
Binance pros and cons
- Over 500 cryptocurrencies offered and over 1,000 trading pairs
- A wide selection of trading tools and DeFi instruments for users to take advantage of
- Over 90% of Binance’s holdings are held in offline cold storage
- Difficult to navigate for new users
- Regulatory legal challenges around the globe
- A history of successful hacks on the exchange
What to know about Binance
Binance is an advanced cryptocurrency exchange that offers experienced traders the tools to lend, borrow or trade cryptocurrencies on a level few other exchanges can offer. Binance has one of the largest offerings of cryptocurrencies with over 500 assets and tokens available, and exponentially more trading pairs. It offers many different services to help users earn extra crypto and trade in a variety of ways. Binance has its own blockchain which can be accessed using its own Binance Wallet browser extension or a wallet like MetaMask.
Binance was hacked in 2019 by a team that made off with 7,000 Bitcoin, 2-factor user codes and API tokens from the Binance exchange. The funds were covered under Binance’s emergency insurance fund. The exchange has no live support but offers a ton of knowledge bases for users to use if they run into an issue. Users can also send an email.
Finder ratings for Binance
|Transferring money or assets|
|Fees and costs|
|Ease of use|
|Staking / earn rating|
|Trustworthiness / security|
Binance supported cryptocurrencies
Binance offers one of the widest selections of cryptocurrencies and altcoins on the market with over 500 including BTC, ETH, BNB, USDT, SOL, ADA, USDC, XRP, DOT, DOGE, SHIB and MATIC. There are more trading pairs available than any other exchange and they are frequently updated.
Transferring fiat and cryptocurrency with Binance
Binance accepts 15 fiat currencies for deposits and all supported crypto assets. There are no deposit fees for crypto assets, with deposit times varying by blockchain network and congestion. There are a few different ways to deposit fiat including bank deposit, SWIFT and some third-party options, with deposits time and fees varying by method.
Binance fees and costs
One of the main attractions of Binance is that it has some of the lowest fees among cryptocurrency exchanges. The deposit fees are low or non-existent for fiat, with none for crypto. Withdrawal fees are low for fiat, and crypto withdrawal fees vary by network congestion and asset. Trading fees are some of the lowest in the market, with the highest fee being 0.1% for both maker and taker trades.
Fiat withdraw and deposit fees
Binance does not require deposit fees for many fiat currencies, but it depends on currency and method. A full accounting of its deposit fees can be found on its fee page. There are withdrawal fees for fiat currencies but these vary depending on which fiat currency and the method of withdrawal; typically they are between US$1 and US$15.
Binance fees: Crypto withdrawal and deposit
Binance does not require deposit fees on any of its cryptocurrencies. You will still need to pay the network transaction fee, as is always the case. For withdrawals, the fee for withdrawing varies. The withdrawal rates are determined by the blockchain network and asset, with varying rates across tokens and coins.
|None||Depends on cryptocurrency|
What is it like to use Binance?
The Binance user interface is easy to understand but difficult to master. The home page layout has a series of dropdown tabs along the top bar with a dashboard tab for additional services. The dropdown tabs are broken down into Buy Crypto, Markets, Trade, Derivatives, Earn, Finance and NFTs, with each tab hosting a variety of options in each. The site offers plenty of services for every level of investor. Below are some of the services that Binance offers that appeal to different experience levels.
Binance Academy was launched a year after the Binance exchange in 2018. It is the education arm of Binance. It has articles for every experience level of investor and its goal is to offer a consolidated, easy-to-use and reliable source of information.
Binance acquired CoinMarketCap in April 2020. Coinmarketcap.com has been one of the most reliable independent tracking indexes for cryptocurrency since its launch in 2013. Binance’s acquisition allows CoinMarketCap to integrate its over 500 cryptocurrencies into an easy-to-use, trusted format.
Binance NFT IGOs
Binance expanded on its NFT marketplace by launching NFT IGOs in November 2021. NFT IGOs are initial game offerings (IGOs) that offer non-fungible token (NFT) assets from top gaming projects exclusively on Binance exchange.
Binance Earn is the section of the exchange that offers a variety of earning tools for investors. It is the easiest section for new users to grasp outside of the traditional buy/sell features but offers just as much value for experienced users as new.
Binance Labs is Binance’s venture capital arm and innovation incubator. The goal is to support blockchain start-ups and communities that are building the foundation for the decentralized web and Web 3.0 infrastructure. It does this through global hackathons and funding grant opportunities. While not an investing tool, it offers a good look into the wider projects Binance is supporting in the industry.
Does Binance have good customer support?
Binance’s main customer support tool is a referral to its FAQ help center. The exchange does have a customer service tab in the bottom right of every screen, but this only offers you the solution through its FAQ. Users can submit questions that will be answered via email if they type in a question at the bottom. There is no live chat.
This process is designed to be a catch-all and a way to easily and efficiently solve most problems that users are encountering. Customers can submit a request, but again this is done through automated FAQ answers; otherwise you have to wait for an email response. Email is the best bet if the answer isn’t found in the FAQ.
List of services on Binance
Earning on Binance
Binance offers a variety of services for earning users extra crypto. These services include staking, savings, the Binance launchpad and the BNB vault. Check out Finder’s Earning on Binance piece for more information.
Borrowing on Binance
Borrowing on Binance is calculated on an hourly and daily interest rate. This varies depending on the cryptocurrency you wish to borrow and the term of the loan. Borrowing is calculated on an LTV (loan to value ratio) based on collateral supplied. If your LTV is higher than the margin call LTV, Binance will contact you to add more collateral or repay your loan. If your LTV is ever higher than the liquidation LTV, Binance will liquidate your collateral to repay your loan.
Trade is the main feature of the exchange. The spot market includes buying and selling with options such as stop loss, limit order and market buy. There are advanced trading options and in certain jurisdictions there are futures and derivative options.
The Binance Wallet is a non-custodial wallet that is available as a browser extension. It allows users to connect to the Binance Smart Chain (BSC) and access DeFi services directly. Crypto withdrawals from Binance exchange to a BSC address have significantly lower fees than other destinations. The Binance Wallet allows Binance exchange users to store their assets in a safer manner than leaving them on the exchange, as they control the private keys.
Is Binance safe: Trust rating
Despite some issues of hacks in the past, Binance has a good reputation for trust because of its response to the incident, its insurance fund and the use of security audits and continued focus on improving site security.
In 2019 a group of hackers was able to steal US$40 million worth of Bitcoin (7,000 BTC) along with 2-factor user codes and API tokens from the Binance exchange. The hack was successful in targeting the Bitcoin that was being stored on the Binance hot wallet (connected to the Internet) which accounted for around 2% of the total Bitcoin held by Binance. The other 98% remained protected in a cold storage wallet offline. The hack used phishing techniques and viruses to bypass the existing security on Binance.
Fortunately, Binance was able to cover the losses out of its Secure Asset Fund for Users (SAFU) and the affected users had their funds returned. The fact that the hackers were only able to access 2% of the Bitcoin reserves on Binance because the remaining 98% is secured in cold storage should offer comfort to users.
Binance announced on December 14, 2021 its new security audit program called “Project Shield”. Project Shield is for BEP-20 and ERC-20 based projects listed on the Binance centralized exchange.
Project Shield will operate alongside its Bulletproof Exchanger Project and user-accessible security tools projects designed to tighten security on the Binance exchange.
On July 3, 2018 Binance announced the creation of its Secure Asset Fund for Users (SAFU). This has been used to pay back users who were affected by the hacks on the exchange. SAFU is funded with portions of trading fees collected by the exchange.
Signing up on Binance
Signing up to Binance can either be done through email or a mobile number. The following is an example of signing up via email, but the mobile number process is almost the same.
Step 1: How to register on Binance
Go to the Binance.com website by clicking on the green button here:
Then click the “Register” tab in the top right corner next to the “Log In” tab.
Step 2: Enter details
On the registration page, enter your email address and create a password for your account. Read the Terms of Service agreement and then click “Create Account”. Your password will need to be a combination of numbers and letters. It will need to contain at least 8 characters, 1 upper case letter and 1 number.
Step 3: Solve puzzle
You will then need to solve the Security Verification puzzle.
Step 4: Verify email address
You will receive an email verification 6-digit code to the email address you registered with which will be valid for 30 minutes.
Step 5: Done, complete KYC
You have completed basic registration. For an additional layer of account security click on the “Go to Dashboard” tab and enable 2-factor authentication (2FA) which can be done through phone verification and Google verification. You will then need to do KYC identity verification to use the exchange depending on your location. Here is Finder’s KYC Guide.
Compare Binance against other exchanges
Verdict: Is Binance any good?
There is a reason why Binance has over 13.5 million users and is the number one exchange for trading volume. Binance provides a plethora of tools for lending, borrowing and trading that its users can take advantage of. Binance offers these tools with low fees, comprehensive charting and over 500 different cryptocurrencies. It is constantly developing new services and tools for users to take advantage of while bolstering its security. However, trying to navigate through all these tools and services can be daunting for even experienced users. New users can feel intimidated when they sign up, but there is a lot of helpful information available.
Binance has a proven track record as a leading cryptocurrency exchange. Binance learned from its security weaknesses and responded with a more robust system. Barring some new regulatory issues, Binance is going to keep its place as one of the world’s top crypto exchanges by trading volume.