If you’re considering joining Binance for your cryptocurrency investing needs, make sure to first read our in-depth binance exchange review.
Even if you haven’t purchased your first cryptocurrency, you’ve probably heard of Binance.
The Malta-based cryptocurrency exchange is frequently regarded as one of the largest platforms in terms of daily trading volumes, not least because users have access to over 540 individual crypto-to-crypto trading pairs.
Furthermore, with the exchange now expanding its scope for deposits and withdrawals via real-world fiat currency, the platform is likely to expand further.
What is Binance?
Binance is a third-party exchange platform that allows users to buy, sell, and trade cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and hundreds more. It was launched in late 2017. Despite the fact that the company’s headquarters are now on the European island of Malta, the project was founded by Chinese national Changpeng Zhao (CZ).
Binance has grown to become one of the largest cryptocurrency exchanges in the industry in less than two years. It is not uncommon for the platform to facilitate more than $2 billion in trading activity every day.
Binance was previously primarily a crypto-to-crypto exchange, with no involvement in fiat deposits or withdrawals.
However, as we will see later, the platform now only supports bank account and credit card deposits in a limited capacity.
Nonetheless, Binance has gained prominence for a variety of reasons. To begin, the platform provides a massive list of supported cryptocurrency pairs. While this includes well-known coins such as Bitcoin and Ethereum, it also includes small-to-micro cap tokens. Second, Binance has extremely low trading fees. While standard trading fees average a very competitive 0.1%, those who hold the platform’s proprietary digital asset – the Binance Coin – can further reduce this.
Binance has its fingers in a variety of pies aside from its core exchange platform. For example, the company announced last year that it planned to open the world’s first blockchain bank in Malta.
In addition, the platform signed a Memorandum of Understanding with the Malta Stock Exchange to facilitate the trading of digital securities.
Binance is also well-known for its commitment to assisting those in need. The platform has spearheaded a number of charitable projects through its Binance Charity Foundation initiative. This includes a recent campaign to assist females in Uganda who are experiencing period poverty.
How Does Binance Work?
Binance, in its most basic form, allows you to buy, sell, and trade digital currencies such as Bitcoin and Ethereum. To give you a bird’s-eye view of how the platform works, we’ve broken down the main steps you’ll need to take to get started.
Step 1: Create an account.
Go to the Binance homepage and create an account. If you only intend to use cryptocurrencies to deposit and withdraw funds, you will only need to provide an email address.
Step 2: Configure two-factor authentication.
Binance will request that you set up two-factor authentication in order to secure your account (2FA). This means you’ll need to download an app like Google Authenticator to your phone. As a result, each time you log in – or perform key account functions like a withdrawal request – you’ll need to enter a unique code that can only be found on your phone.
Step 3: Make a coin deposit.
Although a limited number of countries can now deposit funds using a credit card or bank account, we’ll assume you’re looking to deposit with a cryptocurrency. If you want to experiment with a fiat currency deposit, go to your account’s ‘Funds’ section and follow the on-screen instructions (if available). Nonetheless, on the deposit page, you’ll need to scroll through the long list of supported coins and select the one you want to deposit into Binance. Copy the one-of-a-kind wallet address provided to you and use it to transfer funds from your private wallet.
Step 4: Make a trade.
You can begin trading once your cryptocurrency deposit has been credited, which usually takes no more than 10-20 minutes. Hover your mouse over the ‘Exchange’ button at the top of the screen and choose between the ‘Basic’ and ‘Advanced’ trading platforms. If you’re just getting started, go with the former. You can now trade over 540 different trading pairs. If the coin you want to buy isn’t directly paired with the cryptocurrency you deposited with, you’ll have to make another trade.
For example, if you deposited with Bitcoin Cash but want to purchase a smaller cap ERC-20 token that isn’t paired with Bitcoin Cash, you may need to first exchange it for Bitcoin or Ethereum.
When you finish your trade, your newly purchased coin will appear in your Binance account. You have the option of keeping it in your Binance account or withdrawing it to an external wallet.
Binance accepts which cryptocurrencies?
As previously stated, one of the main draws for ardent cryptocurrency traders is that the platform has one of the most extensive lists of supported coins. While the major players are supported, most notably Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and EOS, Binance is also good for much smaller, lower-cap tokens.
How Much Does Binance Trading Cost?
Although Binance does have a maker/taker fee structure, the standard trading fee is 0.1%. This fee will be assessed each time you buy and sell a coin. If you are a market taker, which means you simply use the existing liquidity on the platform, you can reduce this to 0.09% if you trade more than 500 BTC (or cryptocurrency equivalent) in a 30-day period.
The lowest fee available for market takers is 0.04%, but you must trade at least 150,000 BTC in a single month to qualify.
On the other end of the spectrum, market makers – who provide liquidity to the platform – also receive an initial fee of 0.1%. This can be reduced to 0.02% for trades of more than 150,000 BTC per month.
Regardless of how much you trade, Binance’s fees are among the lowest in the cryptocurrency exchange industry. Even better, by holding the Binance Coin, you will be able to further reduce these fees.
Security at Binance
Binance provides a number of security safeguards to keep your funds safe from the threat of external fraud. First and foremost, as we mentioned in our step-by-step account setup overview, you should install 2FA. This means that a hacker cannot gain access to your Binance account unless they have access to your mobile phone.
Furthermore, if you attempt to login from a device or IP address that has never been used on Binance before, you will be required to confirm this via your registered email account. You can also choose to receive email notifications when key account functions, such as withdrawals, are performed.
While we’re talking about withdrawals, Binance recently launched its ‘Address Whitelisting’ feature. Normally, you can withdraw your cryptocurrency funds to any wallet address. However, if you enable the address whitelisting feature from within your account, you can limit withdrawals to a single address. You can, of course, change this at any time, though you’ll have to go through a couple of extra security steps.
Which Crypto Exchange Is Right for You?
Binance vs etoro – the most significant distinction between the two platforms is that eToro is a cryptocurrency broker. It sells cryptocurrency alongside other investment products such as stocks, fractional shares, and exchange-traded funds (ETFs). Binance is a cryptocurrency exchange, which means it sells a variety of digital assets, such as cryptos and NFTs, as well as other services.
The Verdict?
To summarize, it’s easy to see why Binance has grown to become one of the industry’s largest cryptocurrency exchanges. Binance is an excellent choice if you’re looking for a new exchange to join, with super low trading fees, hundreds of crypto-to-crypto trading pairs to choose from, and enhanced security features.
In reality, it’s incredible how quickly the platform has grown since its inception in 2017. Binance, despite being less than two years old, is already responsible for billions of dollars in weekly trading volumes.
It’s also a good thing that the platform can now accept fiat currency deposits and withdrawals. While this is only available in a few countries at the time of writing, it is likely that Binance will continue to expand its credit card and bank transfer services in the coming months.
