As cryptocurrency becomes increasingly popular, different exchange services are becoming more and more competitive in the hopes of staying ahead of their rivals. That means offering the most secure exchange services, making their systems user-friendly and customer-focused, and offering as many different coins as possible. Due to these factors, Binance is one of the leading cryptocurrency exchanges today.
Before we get into the details of what Binance is, how it works, and why it’s such a successful exchange, there are a few things you’ll want to know. Binance is a Hong-Kong based exchange that provides almost 100 different types of coins at competitive rates.
Originally a China-based cryptocurrency exchange service, Binance was founded in 2017 by a developer named Changpeng Zhao. Although relatively new to the exchange industry, Binance has proven that with a strong business plan, directed towards attracting and satisfying users, you can rise to the top very quickly. Zhao’s company, Beijie Technology, raised over $15 million to start the exchange after an extremely lucrative ICO (Initial Coin Offering), and Binance has been on the rise ever since.
Binance has its own coin, the Binance Coin (BNB), which can be used within the exchange for trading cryptocurrencies as well as paying fees. With increased popularity, the value of the coin has slowly risen over time. Even though it’s been just a few years since the initial launch of the exchange, Binance is now a household name to those in the business of trading cryptocurrency.
Building up one of the world’s strongest cryptocurrency exchanges was no easy task, and it wasn’t always such smooth sailing for Binance. China’s government regulations on cryptocurrency proved to be more than just a minor inconvenience for the Hong Kong-based company. They had to think creatively to operate more freely. They are now headquartered on the island of Malta and have other locations all over the world.
Being able to offer regulation-free cryptocurrency exchange services to a global market is Binance’s fundamental goal. This move proved to be a wise choice, as the newly-launched exchange has only grown since then. In the owner’s own words:
“Our vision is to increase the freedom of money globally. We believe that by spreading this freedom, we can significantly improve lives around the world.”
From its successful ICO to their decision to be as globally-accessible as possible, it’s no wonder that Binance has become a significant player among cryptocurrency exchanges. Their low fees and vast coin offerings are attractive selling points. Whether you’re new to the world of cryptocurrencies or you’re a seasoned veteran, you should keep your eye on this exchange.
One of the most attractive features about Binance as a cryptocurrency exchange is the sheer variety of coins that they offer. Whether you want a mainstream currency like Bitcoin (BTC), or an alternative coin such as Ripple (XRP), you’d be hard-pressed to find one that Binance doesn’t support. In total, their listing of coins stands around 100 different cryptocurrencies.
One important thing to know about Binance is that it only allows you to deposit cryptocurrencies into their system. However, you can still use their brokerage service to purchase these currencies using your credit card of any flat currency. From there, you’ll have cryptocurrency in your Binance wallet, and you’ll be able to deposit, withdraw, and exchange freely within their system.
Binance has an excellent track record for offering new coins quicker than many of its competitors, which entices users to use their exchange service. This way, they can get new currencies at favorable prices before it starts gaining traction in the market. Binance’s quick offerings are yet another stand-out feature of their services.
Fees and Limits
As with all cryptocurrency exchanges, you’ll have to pay fees to carry out specific actions. However, Binance has a serious edge on its competitors by making a consistent effort to minimize these fees for its users. If you’re big on avoiding fees, this platform may be the right one for you.
For instance, they generally charge a flat rate of 0.1% as a trading fee, a rate that is nearly unheard of in the exchange industry. Many companies charge twice that amount. If you plan to trade in high volumes frequently, this may be a money-saving advantage.
As with many similar exchanges, Binance evaluates their trading fees based on the user’s trading volume during the previous 30 days. With the exception of blockchain fees, deposits are free. As for withdrawals, you can find a detailed table on their website, highlighting the fees for each particular cryptocurrency.
Any time you trade using Binance Coin (BNB), you automatically receive 25% off your trade fee. This is a nice touch that encourages users to continue using the exchange and its currency while also rewarding them for doing so. Overall, Binance’s fees are quite fair and generally cheaper than those of most of its competitors.
Since the beginning, Binance has put customer support high up on its priority list, emphasizing user-friendly experiences. Their customer-centric attitude, low fees, and extensive service offerings have secured them as an industry leader. So, what can you expect out of Binance from a customer support perspective?
Most users seem to step away from Binance’s customer support system satisfied and without any complaints. The most common way that anyone with a problem or inquiry can reach customer service is via their site’s email contact form. Although the response time may not always be fast due to a high volume of inquiries, most customers have reported positive outcomes from this support channel.
Other than the email contact form, they also have a customer service chatbot. This resource is best reserved for inquiries or FAQs. For rare or specific problems, the chatbot won’t be helpful as it generates an automated response. Depending on the nature of your problem, you may be able to find the answer in their website’s FAQ section before submitting a request to their support center.
Binance’s customer support system is quite good and has received mostly positive reception from users. When you consider that there are a handful of exchanges out there that are notorious for delayed, low-quality customer support, this is an accomplishment. Even if Binance’s responses aren’t always as instantaneous as users might like, their support staff aims to provide solutions as quickly as possible.
Is Binance Safe to Use?
When it comes to safe trading and data protection, Binance makes user security a top priority. That’s why hundreds of people trust Binance with their currency trading every day. They may be relatively new to the exchange industry, but they’ve proven themselves by incorporating effective security features into every aspect of their system.
When creating your Binance account, you’ll have to wait for your identity to be verified if you want to gain level 2 access (up to 100 BTC withdrawal limit). Identity verification is a security measure that prevents scammers and money launderers from working through their exchange service. Once they’ve reviewed your photo ID, you’ll be verified and ready to begin trading.
Binance uses two-factor authentication to ensure that your financial assets, account, and data stay as safe as possible. A common security measure for financial accounts, two-factor authentication requires you to enter your password and an authentication code that is sent to a device of your choosing. That way, you have one more safety measure standing between your account and anybody who would try to gain unlawful access to it.
In March 2018, Binance was nearly the victim of an attempted hacking scandal that could have cost their users thousands of dollars and ruined the company’s reputation. Hackers used a phishing scam to collect user login information with the intent to trade currencies in a way that would raise the value of Viacoin. They were hoping to sell their own Viacoin for a huge profit when the currency was at its peak. Fortunately, Binance had systems in place to stop this crime before the hackers could get away with it.
In the end, their automated systems caught the trade activity in time, nobody had their money stolen, and the hackers ended up losing all the contents of their accounts. Binance’s quick retaliation underscored its reputation for excellent security. They additionally offered a $250,000 bounty to anyone who could help bring the criminals to justice. This would-be disaster was a great example of how Binance’s security systems keep users’ assets safe when the pressure is on.
Unfortunately, Binance did suffer a successful hack in May 2019. A skilled hacker managed to gain access to user information, bypass the security system, and withdraw over $40 million in cryptocurrencies. Binance responded by completely covering the losses via their security fund, serving as a testament of their integrity and honesty, despite the fact that their security measures were bested on that day.
Frequently Asked Questions
Here are a few of the most frequently asked questions about Binance.
Does Binance Have an App?
Yes. In the spirit of always striving to make their services sleeker, more efficient, and more user-friendly, Binance does have a mobile and desktop app. Once you’ve created a Binance account, download the app and link it to your account. After you have done those two things, you can start trading using the app.
The mobile version is available for Android from the Google Play store, but its status for iPhone users is more unclear. Though it was previously on the iOS App store, over time, it was occasionally removed for unknown reasons. In those past instances, an iOS version was always available from Binance’s website, but that’s not currently the case (as of August 2019).
Binance has been silent on this issue, so it’s unknown when and if the app for Apple users will return. You can also download the Android and desktop versions directly from Binance’s website here. The desktop app is available for both Windows and MAC users.
What Countries Are Supported by Binance?
Although Binance was originally based in China, they moved their headquarters to Malta along with establishing a handful of other locations around the world. Their relocation was the result of China’s imposition of restrictions that stifled their ability to provide their services worldwide freely. Binance disavowed China’s actions as a matter of principle.
Formerly, Binance was accessible to anyone around the world. However, beginning September 2019, users in 29 countries, including the United States, will be blocked from the platform on binance.org pending the upcoming launch of their new US-based platform, binance.US, for those users. This step is an effort to bring the company in compliance with US cryptocurrency regulations. No release date for the new platform has been given, but it will be in partnership with BAM Trading Services Inc.
While some users in the restricted countries are advocating accessing Binance via VPN or wallet without accessing binance.org, no passports from the banned countries will be accepted for verification purposes. Geo-based IP banning will also be in effect.
Does Binance Provide a Cryptocurrency Wallet?
Yes, Binance provides users with a cryptocurrency wallet which allows them to trade using various currencies of their choosing. You only need to use the wallet address when depositing funds to it. The funds will show up as soon as possible depending on which currency you’re using and how fast it can be transferred. Always be sure to double-check your wallet address when transferring any type of currency. Typing the wrong wallet address is one of the most common causes of a cryptocurrency transfer problem.
The Bottom Line
Since launching in July 2017, Binance has taken the cryptocurrency exchange industry by storm. Their strongest point is their commitment to iron-clad security along with making sure any security breaches don’t cost their clients. Their fees are fair, their customer support is helpful, and their app is convenient.
If you’re looking for an exchange that boasts low fees, dozens of different coins to choose from, and a customer-centric focus, be sure to give Binance a look (and if you’re looking for something else, we also built a resource around Binance alternatives).
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Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.