Binance has become the greatest crypto exchange, 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 Review 2020 Intro
The exchange started out as any other ICO fundraising project, bent on providing superior financial services for its clients and investors. The offered token of trade is BNC, with over 100 million of the coins available for general public to trade. The platform started its operations in July 2017 by a CEO Zhao Changpeng in China.
The platform users several platforms on which interested parties investigate. The regular exchange is crypto-to-crypto oriented only while another platform is a lab, where ICO projects can present their whitepapers for funding.
Service is available globally, as long as you possess the coins needed for trade. Support and website offer multi-language platforms, including Chinese, English, Japanese and Korean. The support itself uses ticket system and FAQ section, as shown in the picture below.
Binance Registration Review
The account registration is usual business, as with all other exchange platforms, with slight difference being the captcha verification. You have to slide the puzzle piece to proceed towards verifying your email.
The captcha is not as easy as it seems since you really have little time to slide and confirm the exact word needed. You can see it in snapshot down from this text.
It takes time to figure out the process for many starters, thus the captcha, although effectively fighting bots, should be modified in future.
In case of verification requirements, to trade at Binance, it is not a must to have a verified account. You will have a right to withdraw two BTC per day, which is quite an amount, what with bitcoins price growth.
Should you wish to increase that limit towards 100 BTC per 24 hours, you need to submit ID document.
The available cryptocurrencies are all paired with bitcoins, with over 50 trading pairs (and currencies themselves) available to you.
You will find all major and popular coins in one place at Binance like Ethereum, Zcash, DASH, Litecoin and more. All of them are available for deposit and withdrawal, as shown in the picture below.
If you are interested in Cardano in particular, Binance can be the platform for you. Read more about Cardano exchanges, Best Cardano Exchange 2018.
Binance Deposit Methods
You can only deposit and withdraw cryptocurrencies since fiat money is not available for trade at Binance. The value might be presented in USD but the trade itself is conducted through cryptos only.
Depositing coins does not cost a thing while withdrawing them has a transaction fee that is different for each cryptocurrency.
Other exchanges such as LakeBTC or HitBTC offer both crypto and fiat currency deposits/withdrawals and thus have an upper hand over Binance in that aspect. Some of the digital coins can be suspended due to the small popularity. You should keep an eye on your favorite coin in terms of value and volume traded on daily basis.
Binance is offering staking for their customers. What this mean is simply that you deposit your cryptocurrencies into Binance staking and you will receive the staking rewards for the cryptocurrency. Read more about Binance staking in our Bitcoin passive income article.
Binance Fees and Exchange Rates
Other than withdrawal costs, while trading at Binance, you will need to pay additional 0.25% of the transaction fee when trading with pairs. The said costs grow to 0.5% as the year’s pass, since the discount level would drop for each consecutive year.
The exchange rate is narrow since the difference between by and sells price of coins is around 1%. The exchange rate in line with other rivaling exchanges such as LakeBTC and HitBTC.
In terms of fees, HitBTC has lower fees of 0.01% for long-term and 0.1% for immediate orders. LakeBTC also has lower market taker fees, ranging from 0% to 0.2%.
Liquidity largely depends on the coin itself, with more popular cryptos having a large rate of daily liquidity and volume. These are bitcoins, Ethereum, Litecoin, and bitcoin cash. Others might even be suspended or delisted due to the low trading volumes.
Binance Trade Functions
The trade widget is divided into basic and advanced platforms as shown below this paragraph. Both have same exact trading functions which are bought and sell and specified/limited value or at market price.
As you can see, support data is the same between each of the platforms, meaning that no real difference exists between them. The segregation of the “basic” and “advanced” trading is thus deemed as pointless.
The trade at Binance is somewhere in the middle between LakeBTC and HitBTC when it comes to available trade tools. LakeBTC is simple to buy and sells while HitBTC uses more margin trading functions than Binance.
If you have an ICO idea that is interesting, you can reach out to Binance for funds by providing the specification in their lab platform. The applications are checked on a daily basis, with offers depending on individual cases.
Many other exchanges, LakeBTC and HitBTC included, do not have this feature since ICOs are generally mistrusted.
Binance History Review
The exchange is fairly young to have a long history, unlike HitBTC and LakeBTC who have been a while in the market. As mentioned before, the Binance started out as ICO crowdfunding startup offering BNC in 2017. Following the sale of 100 million of new coins, the exchange started the regular exchange platform.
New coins were added on daily basis, while support included Japanese and Korean languages for the website as well.
Binance Security Review 2020 - Is Binance Legit?
Binance have two-factor authentication (2FA) and API private keys and tools to protect you. Nothing out of the line but not totally insecure as well.
Summary - Is Binance legit?
The company is 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.
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.