Binance has become one of the greatest crypto exchanges, but is it legit? We will review Binance with regards to security features.
In addition, we will review the rest of Binance in terms of history, fees, trading features, staking and much more.
A lot more people are jumping the wagon of the cryptocurrency industry right now. Thus, exchanges like Binance look to increase their foothold by offering a wider range of services.
Binance is interesting as it offers regular exchange market but also lab platform. This article reviews both platforms, alongside with exchange’s registration & verification, fees and deposit methods. We conclude with pros and cons, followed by a quick summary of all findings that matter to interested traders.
Binance Company Review
Binance is the largest cryptocurrency exchange in terms of daily trading volume of cryptocurrencies. Binance was founded in 2017 by Changpeng Zhao and is registered in the Cayman Islands.
Binance Account Security Review
Binance supports standard account and login security features
- Two-factor authentication, including hardware, app-based, SMS and email methods
- Whitelisting IP or wallet addresses
- API access management
Binance Insurance Review
Many regulated, licensed and insured crypto exchanges holds their funds and insurances with a custodian partner.
However, Binance builds up $1 billion insurance fund themselves. The insurance fund will help Binance to compensate their customers in case of a hack.
Binance Regulations and Licenses Review
Binance is registered in the Cayman Islands.
Binance has chosen to go a different route compared to Coinbase and Kraken, for example.
While Coinbase and Kraken have worked very close to regulators since day one, Binance has chosen to avoid regulations to be able to offer more crypto trading features.
This have also created some problems with the US and UK authorities, for example.
In 2021 Binance was put under investigation by both the United States Department of Justice and Internal Revenue Service on allegations of money laundering and tax offenses. The UK’s Financial Conduct Authority ordered Binance to stop all regulated activity in the United Kingdom in June 2021.
Binance has created Binance US to be able to comply with the US regulations. Also, they work hard to get regulated in other countries as they see this is the right way forward.
Binance Team Review
Binance was foudned by Changpeng Zhao, a software developer who had previously founded Fusion Systems in 2005 in Shanghai.
Fusion Systems was a high frequency trading software for stock brokers.
He also worked for Blockchain.info and OKCoin which are two great cryptocurrency online platforms.
Binance History and Hacks Review
Binance was initially based in China, but later moved its headquarters out of China following the Chinese government’s increasing regulation of cryptocurrency.
Binance was hacked in May 2019 and the hackers stole 7.000 Bitcoin BTC worth $40 million at that time. Also, the hackers stole some user two-factor authentication codes and API tokens.
However, Binance could easily cover the losses out of its Secure Asset Fund for Users.
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Binance Deposit Methods
For fiat currencies, Binance is offering credit card deposits and SEPA transfers. In addition, Binance is offering crypto deposits in any supported crypto. They also supports most of the different blockchains.
Binance Withdrawal Methods
For fiat currencies, Binance supports SEPA and card withdrawals. For cryptocurrencies, Binance support withdrawals for any listed cryptocurrency.
What is Binance Earn? Get Passive Income
Binance Earn is an excellent feature on the Binance exchange platform. This feature will let you earn some of the best crypto APY interest rates from your idle cryptocurrencies.
There are several earning opportunities in the Binance Earn feature, and some of them are
- Flexible Saving
- Locked staking
- Liquidity farming
- Dual Investment
- BNB vault
- Launchpad
- Auto-Invest
We are covering flexible savings and locked staking. Read more below and see the additional links.
Binance Flexible Savings
With Binance flexible savings you can subscribe and redeem, your cryptocurrency holdings at any time. When you are subscribed you will earn an interest on your crypto holdings. Read more about Binance flexible savings.
Binance Locked Staking
With Binance flexible savings you can subscribe and redeem, your cryptocurrency holdings at any time. When you are subscribed you will earn an interest on your crypto holdings. Read more about Binance flexible savings.
Binance Earn Polkadot DOT Slot Auction
On Binance Earn, you can stake your Polkadot DOT for a parachain slot.
You stake your Polkadot DOT for a parachain slot to receive another cryptocurrency as a reward. The reason why you receive the reward is simply because you helped a project to secure a parachain slot.
A parachain slot is necessary to go live on the Polkadot network
Read more about Polkadot DOT parachain auctions on Kraken and Binance.
Binance Earn Locked Staking APY and Personal Quota
Binance Earn offers a dynamic APY range for each cryptocurrency interest rate.
It means there is
- Locked Staking for 30, 60, 90, or 120 days.
- APY interest rates are different for the periods.
- There is a maximum personal quota per period. Often the 120 days period giver a very high yield but its a very low personal quota. Vice versa, the 30 days period gives a decent yield and a very high personal quota.
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Binance Security Review 2022 Pros and Cons
Pros
- Largest Crypto Exchange
- High Trading Volumes
- Very Low Fees
- Many Crypto Pairs
Cons
- Limited Regulations
- Don't accept US customers
Summary - Is Binance legit?
The company is relatively new, with operations starting in 2017. It is always risky to invest money in one of the new players in the block, as they can close quite easily.
However, Binance has a solid track history and even compensated their customers when they were hacked. On top of that Binance has launched their own insurance fund which will compensate the customers if there are any hacks in the future.
The exchange itself has a good interface and tools for beginners, while experts might find the platform lacking in options for them. Overall, we would recommend you not to put a large quantity of coins just yet. Check them out and put some small trades happening but keep the bulk of your assets to yourself until some more time passes.
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