Binance

Binance exchange has firmly established itself as a dominant force in the cryptocurrency world, boasting the highest trading volume and a massive user base of over 120 million users across 180 countries . Founded in 2017 by Changpeng Zhao, it rapidly ascended the ranks of crypto exchanges, attracting users with its low fees, extensive coin offerings, and user-friendly interface. This review delves into the core aspects of Binance, examining its features, fees, security measures, and unique offerings to provide a comprehensive overview of the platform.

Information You Need to Know about Binance

Founded in 2017, Binance quickly grew into a global leader in the cryptocurrency space. At its core, Binance is a cryptocurrency exchange where you can trade, buy, and sell various cryptocurrencies. Furthermore, it’s more than just a marketplace, it has evolved into an entire ecosystem that includes not only the Centralized Exchange but also services like Launchpad, the Academy, and even a charitable arm. 

With over 90 million users worldwide and daily trading volumes exceeding $76 billion as of 2022, the platform offers more than 350 cryptocurrencies and thousands of trading pairs. Whether you’re looking to trade popular assets like Bitcoin and Ethereum or explore lesser-known altcoins, Binance has it all.

Binance was co-founded by Changpeng Zhao, often referred to as “CZ,” and Yi He. CZ is a Chinese-Canadian entrepreneur with an extensive background in finance and technology, including roles at Bloomberg and Blockchain.com. Yi He is the Chief Marketing Officer and also leads Binance Labs, the venture capital arm of the company. Their leadership has propelled this organisation from a startup to a global powerhouse in less than half a decade.

It also operates its own blockchain, called Binance Smart Chain (BSC), which is designed to support smart contracts and decentralized applications (dApps). BSC is known for its low transaction fees and high-speed processing, making it a popular choice for developers and users alike.

At the heart of the Binance ecosystem is Binance Coin (BNB), the platform’s native token. Initially launched as an ERC-20 token on the Ethereum blockchain, BNB now operates on BSC and plays a crucial role in the ecosystem. BNB can be used to pay trading fees, participate in token sales on Binance Launchpad, and even pay for real-world services through the Binance Card.

Trading Products and Services

Binance offers a wide range of trading products and services designed to cater to both beginners and experienced traders in the cryptocurrency market, the key ones include:

Binance Exchange

The Exchange is the core of this ecosystem, providing users with access to a wide variety of cryptocurrencies. Whether you’re interested in Binance spot trading (buying and selling instantly at market price), margin trading (borrowing funds to trade), or Binance futures trading (speculating on the future price of assets), it has you covered. The platform also offers Peer-to-Peer (P2P) trading, allowing users to trade directly with each other, often at lower fees.

Binance Launchpad

For those interested in investing in new and upcoming cryptocurrency projects, Binance Launchpad is a unique platform that helps blockchain startups raise funds. Binance users can participate in token sales, often gaining early access to promising projects before they hit the broader market.

Binance Earn

If you’re more interested in passive income than active trading, Binance Earn is an excellent option. The platform offers various ways to earn interest on your crypto holdings, from flexible savings accounts to locked staking. Whether you’re holding Bitcoin or one of the hundreds of other cryptocurrencies available on the platform, it allows you to earn while you hold.

Binance NFT Marketplace

It is also tapping into the growing trend of digital art and collectibles with its NFT marketplace. Users can buy, sell, and trade Non-Fungible Tokens (NFTs) on its dedicated platform. This feature opens up new avenues for both creators and collectors to engage with digital art in a decentralized and secure environment.

Binance Fee Structure

One of the reasons this trading platform stands out is its low trading fees. If you’re considering this exchange, understanding its fee structure is key to maximizing your experience on the platform: 

Deposit Fees

Depositing cryptocurrency into Binance is generally free, with the exception of a few coins like Terra Classic and TerraUSD, which have a 0.5% tax burn fee. Minimum deposit amounts vary depending on the cryptocurrency and the network you use. For fiat deposits, many options are free or have minimal fees. For example:

• EUR via SEPA transfer: €1 flat fee
• USD via Al Salam Bank: Free
• Credit card deposits incur a 2% fee per transaction.

Withdrawal Fees

Fiat withdrawal fees and limits depend on the currency and transfer method. For example:

EUR withdrawals start at €1 with fees ranging from free to 0.12%.

Crypto withdrawals depend on the network’s activity and involve minimum amounts and flat fees. For example, Bitcoin withdrawals require a minimum of 0.0004 BTC with a fee of 0.0002 BTC.

Trading Fees

Binance exchange charges trading fees based on your 30-day trading volume and VIP level. For spot trading, the standard fee is 0.1%, but holding BNB token can give you a 25% discount. Makers (who add liquidity) typically enjoy lower fees than takers (who remove liquidity). Higher trading volumes unlock even lower fees.

However, it offers several ways to reduce your fees:

1. BNB Discounts: Binance users who hold BNB can use it to pay trading fees at a discounted rate. This can save you up to 25% on fees, making it a smart choice for frequent traders.
2. Zero-Fee Trading: The platform has introduced zero-fee trading for certain pairs, like BTC/USDT and ETH/BUSD, making it even more cost-effective for users.

P2P Trading Option

If your preferred currency isn’t supported for deposits or withdrawals, Binance P2P lets you trade directly with others, often with lower or even zero fees.

Simple Guide to Getting Started with Binance

To trade on this crypto exchange, you need to sign up for an account. Use your email, set a strong password, and complete identity verification (KYC). For extra security, enable two-factor authentication (2FA).

Once your account is ready, you can deposit cryptocurrency, buy with a bank card, or transfer fiat currency via bank transfer. After your funds are available, you can start trading popular cryptocurrencies like Bitcoin or Ethereum.

How to Create a Binance Account

1. Visit the official Binance page.
2. Click “Register” and choose to sign up with your email or phone number.
3. Provide your email, create a strong password, and choose your country of residence.
4. Read and accept the platform’s terms.
5. Check your email and confirm your account.
6. Add two-factor authentication for extra security.
7. Upload a photo ID and a selfie to verify your identity.

Verification usually takes 24-48 hours, though delays can occur.

Depositing Funds on Binance

• For Cryptocurrencies: Copy your Binance wallet address and paste it on the platform you’re sending funds from. Double-check the network and wallet address to avoid errors.
• For Fiat Currency: Go to “Buy Crypto,” select your fiat currency and payment method (bank card or transfer), enter the amount, and follow the steps to complete the payment.

Pro Tip: Bank transfers often have lower fees compared to using credit/debit cards.

Placing Your First Trade

To trade, go to the trading section:

• Convert Feature: Quickly swap one cryptocurrency for another without advanced options.
• Spot Trading: Access a detailed interface where you can buy or sell crypto using market or limit orders. For example, select the BNB/BTC pair, set your trade amount, and place the order.

Tips for Safe Investing on Binance

Investing in cryptocurrency can be exciting, but it’s essential to manage your risk effectively. Here are a few tips for safe investing on Binance:

Start Small

If you’re new to cryptocurrency trading, it’s wise to begin with a small investment. This helps you minimize risks while gaining hands-on experience. Starting small allows you to learn the platform’s features, trading mechanics, and market behaviors without the stress of losing significant amounts of money. Once you build confidence and understand the market better, you can gradually increase your investment.

Learn Risk Management

Risk management is crucial for protecting your funds. A key technique is setting stop-loss orders, which automatically sell your asset when the price drops to a certain level, preventing larger losses. For example, if you buy Bitcoin at $30,000, you could set a stop-loss at $28,000 to cap your potential loss at $2,000.
Another approach is the 1-2% rule, where you never risk more than 1-2% of your total trading capital on a single trade. Diversifying your portfolio and avoiding emotional decisions are also essential aspects of managing risk effectively.

Stay Informed

The cryptocurrency market is highly volatile and influenced by news, regulations, and global trends. Stay updated by following reputable crypto news platforms, podcasts, and community channels like Telegram or Twitter. For example:

• Positive news about Bitcoin adoption might push its price up.
• Regulatory announcements, like bans or restrictions, could cause sudden drops.
• Being aware of these developments helps you make informed decisions and anticipate market movements.

Understand Technical Analysis

Technical analysis is a method to predict price movements by studying past market data, such as price charts, trading volumes, and trends. Focus on learning:

• Price Action: Analyze how prices move and form trends.
• Support and Resistance Levels: Identify price points where the asset is likely to reverse direction.
• Candlestick Patterns: Study common patterns that signal bullish or bearish trends.

For beginners, start with basic indicators like Moving Averages, Relative Strength Index (RSI), or Bollinger Bands. These tools can help you spot entry and exit points for trades. Remember, technical analysis isn’t foolproof but gives you an edge in understanding market behavior.

By combining these tips, you can build a strong foundation in trading while minimizing risks and maximizing your learning experience.

FAQs

1. How to create an account on Binance?

To create an account, you need to visit the website, enter your email or phone number, and complete identity verification (KYC).

2. Is this exchange safe?

It implements strict security measures such as two-factor authentication (2FA) and SAFU insurance fund to protect user assets.

3. What cryptocurrencies does Binance support?

It supports over 350 cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and many other altcoins.

4. Does Binance exchange have withdrawal limits?

Depending on the account verification level, the exchange applies different withdrawal limits. KYC verified accounts can withdraw more.

5. Why can’t I access this exchange from my country?

Binance is restricted in some countries such as the United States, Singapore, and Ontario (Canada) due to regulatory requirements. Morevover, Binance US is a private platform for US users.