But the Chinese government's decision to crack down on cryptocurrencies in 2017--effectively banning them--spurred Binance's founders to relocate, first to Japan and later Malta. In 2018, Binance added offices in Taiwan and abroad.
The name Binance represents an amalgamation of the two words "binary" and "finance." Today, the exchange has more than 1.5 million users. On an average day of trading, it sees more than $2 billion in transactions.
Want to know more about this fast-growing crypto exchange? Check out our Binance review below for the platform's ins and outs and to determine whether it's right for you.
Binance Exchange Review: What Is Binance?
A leading cryptocurrency exchange, Binance provides an affordable way to buy and sell many diverse coins, including some very rare ones. Binance places great focus on offering currencies traded primarily in China.
Their choice to focus on lesser-known coins has helped them secure powerful positioning in the market. After all, there's plenty of potential (and risk) trading in some of the less popular and more volatile coins.
Today, Binance coin (BNB) is used as a discount, permitting users to explore the digital asset exchange. There's a 50 percent discount on fees to use Binance.
But this discount comes with diminishing returns. After your fifth year on the exchange, you'll see no discount using BNB. Nonetheless, when you start on the platform, BNB's deep discounts pay your user fees.
These deep discounts come with an interesting question. Will BNB lose value over time due to the way the exchange is giving away these coins? The exchange already has a firm plan in place to avoid this while further establishing a decentralized exchange.
The History of Binance
Binance's founders, Changpeng Zhao and Yi He, previously worked at OKCoin exchange. Despite its relative newness (just over three years old), Binance has established itself as one of the most open-minded and innovative hubs of crypto.
This success stems, at least in part, from the fine crypto pedigree that Zhao and He bring to the mix. After all, Zhao has remained a member of the Blockchain.com wallet team since 2013.
Why did Zhao and He found Binance? With the objective of becoming the simplest, fastest, and most robust cryptocurrency trading interface on the market. Coupled with the platform's user-friendly setup, Binance has already gone a long way towards achieving these goals.
When we talk Binance, it's important to remember that this can refer to either the platform or the native coin of Binance Chain. How is the currency used? In many ways, including:
- To pay for trading fees on the Binance Exchange
- To participate in token sales that take place on Binance Launchpad
- As a payment method accepted by more and more vendors
- To power the Binance Decentralized Exchange (DEX)
How did it all start? Binance launched during the summer of 2017. It began with an initial coin offering (ICO) 11 days before the centralized exchange officially opened.
BNB premiered as an ERC-20 token that ran on the Ethereum network with 200 million coins. On the ICO, 100 million more BNBs got offered. The current number of BNBs has already dropped due to periodic burning events.
Find out more about coin burning and why Binance permanently destroys BNB following buybacks.
Binance: Moving Out of China
Although a Chinese company, Binance now operates out of Malta. However, in 2020, Malta Financial Services Authority (MFSA) announced the platform was not officially regulated or registered in the country.
Despite this announcement, Malta remains the de factor headquarters of Binance. It's worth noting, though, that the company's also incorporated in the Cayman Islands and Seychelles.
What's more, Binance teams are located all over the world. These locations include:
- California, USA
- London, UK
- Paris, France
- Moscow, Russia
- Berlin, Germany
- Istanbul, Turkey
- New Delhi, India
- Kampala, Uganda
- Manila Philippines
- Ho Chi Minh, Vietnam
- Other locations across Asia
As you can see, Binance proves a truly international enterprise with people all over the globe. What's more, it's an exchange with an ambitious vision of the future and the game plan to get there.
The Future of Binance
What defines this exchange as compared to others? In a nutshell:
- New features
- Ability to buy bitcoin and altcoins with more than 40 fiat currencies
- Proactive community
- Their native coin Binance (BNB)
- Binance Chain
Binance is an exchange with an extended business plan. Their current buyback schedule underscores this fact.
They've committed to buying back 20 percent of their profits in BNB every quarter until they've reacquired 50 percent of their tokens. They burn these coins, only leaving 100 million in the pool.
Why do this? To support the decentralized autonomous organization (DAO) they've created. This decentralized exchange (DEX) is powered by BNB.
What to Know Before Using Binance
The first time you visit Binance's website, you'll notice a couple of things about the platform. First, it offers two choices for digital currency trading. These options are:
Despite the term "basic," don't expect Binance's platform to be easy-to-use for newbies. However, for those with experience in digital currencies, you'll find the platform reasonably intuitive.
What sets Binance's basic level apart from the advanced level? The advanced version of the platform offers more in-depth technical analysis. In other words, you gain more tools and resources when it comes to digital currency value over time.
If you find you like trading on this exchange, we recommend moving up to the advanced or pro feature. It offers easy-to-read visual representations.
Binance is a high-performance trading platform capable of handling upwards of 1.4 million orders per second. And it can do this without suffering significant slowdowns.
Still, it has also experienced its share of technical issues. These have included security vulnerabilities and unexpected maintenance needs.
Binance's trade volume is also nowhere near the levels of Bittrex or international exchanges. It'll be fascinating to see how Binance maintains its current growth while expanding over the coming months and years.
Are you new to crypto? If so, check out our article on how to earn cryptocurrencies for free to help you get started.
Binance's Key Features
Binance has many compelling features that make it well worth your time. They include:
- Trade over 180 cryptocurrencies
- Low trading fees
- The Binance Fiat Gateway
- Multi-platform support
- Binance Futures
- 24/7 customer service
- Binance Launchpad
- Binance Finance
Let's take a closer look at each of these features so that you get a better feel for what it's like to use this platform.
Trade Over 180 Cryptocurrencies
We've already touched on the fact that Binance trades in some rare coins used primarily in China. But you probably didn't realize just how many coins they exchange.
Binance dominates when it comes to altcoins. They have distinguished themselves by having one of the best selections of tradable assets on the market. Expect them to continue cornering the market with their unique offerings.
Low Trading Fees
What's another factor that sets Binance apart from competitors? Trading on this exchange comes with some of the lowest fees in the industry.
We're talking 0.1% trading fees on all transactions as compared to 0.25% commissions taken out by Bittrex. No wonder people are flocking to this exchange.
The Binance Fiat Gateway
Binance allows you to buy bitcoin and 15 other top cryptocurrencies using 40 popular fiat currencies. What's more, they accept cash, bank cards, and other payment methods.
What about selling coins? You can do so using some of the most popular national currencies.
There are many different ways to keep track of your investments in Binance. The exchange is accessible by its web platform. But you can also use its mobile apps for iOS and Android.
What if you prefer to sit at a desktop and check out your trades? The platform is also supported on macOS and Windows. You've got the option of relying on Binance API, too.
Let's talk about Binance Futures for a moment. Binance Futures come with up to 125 times the leverage. They offer up to three times the leverage with margin trading.
How can you maximize your returns? By trading cryptocurrency assets and contracts with leveraged positions.
24/7 Customer Service
When you're dealing with finances, you need the assurance of around-the-clock customer support. You get this with Binance.
Their dedicated Help Center team is ready to speak 24/7. The support team can walk you through various issues, from newbie startup questions to more in-depth explanations of the exchange's many functions, features, and products.
Every customer on the platform can participate in Binance's initial exchange offerings (IEOs). The platform offers some of the most profitable IEOs in the industry, which represents another compelling reason to explore the exchange.
But what about other ways of earning passive income from your crypto assets? Does Binance support crypto lending, staking, or other forms of revenue? Absolutely.
When it's all said and done, Binance remains one of the more innovative cryptocurrency exchanges today. What's more, the platform's team works hard to popularize cryptocurrencies and to improve the overall crypto ecosystem.
Whether you're a first-timer or an experienced user, Binance is a platform worth your time.
Why You Should Consider Binance
Since it's launch, Binance has emerged as the largest exchange based on global trading. Shockingly, the platform achieved this status in little more than six months' time.
Today, it remains near the top. Why? Because of its overall ease-of-use, global approach to business, and multi-lingual platform accessibility.
How many languages does Binance operate in? Their ever-expanding list includes:
Like the list of languages above, to meet the varied needs of customers worldwide, Binance has developed an extensive list of products.
Binance boasts a suite of related products, which enhance the customer experience. Besides some of the things we've already discussed (e.g., the DEX, Binance Futures, the Binance Fiat Gateway, and Binance Launchpad), other products include:
- Binance JEX: the futures and options trading platform for Binance cryptocurrency.
- Binance P2P trading: This peer-to-peer crypto trading platform works like LocalCryptos or LocalBitcoins. It supports payments via AliPay, WeChat, QIWI, and bank transfers.
- Binance Crypto Loans: This feature lets you take out crypto loans secured by your cryptocurrency holdings.
- Binance OTC: This feature represents an over-the-counter trading desk for large-volume traders.
- Binance Savings: Savings lets you lend cryptocurrency assets to earn interest, permitting withdrawals at any time.
- Binance Staking: Staking allows you to stake some cryptocurrencies. In the process, you'll reap up to a 16 percent annual yield.
- Binance Chain and Binance Coin (BNB): This community-driven blockchain ecosystem relies on BNB and the DEX.
- Binance USD (BUSD) and Binance GBP stablecoin: Binance released these regulated stablecoins in partnership with Paxos Trust Company.
- Binance Charity: This charity remains dedicated to advancing sustainable global development and blockchain philanthropy.
- Binance Labs: This initiative empowers blockchain projects and has an infrastructure impact fund.
- Trust Wallet: Trust Wallet is the official, decentralized, secure Binance wallet.
- Binance Cloud: Cloud is an enterprise cryptocurrency exchange solution for cryptocurrency ventures.
- Binance Card: This crypto payment card comes with the flexibility of being used as a payment option for everyday purchases.
- Binance Jersey: This fiat-to-crypto exchange is located in Europe to facilitate trade for euros and pound sterlings with BTC, BNB, LTC, etc.
- Binance US and other localized versions of Binance exchange: This exchange is dedicated to markets with varying regulatory climates.
Besides the rich selection of options above, you can continue to expand your crypto fluency with Binance Academy, a comprehensive, open-access learning hub providing crypto education resources and information about blockchain.
There's also Binance Info, an open-source encyclopedia of all things crypto. Finally, Binance Research provides an institutional-grade research platform for conducting investor analysis in the crypto space.
Benefits of Binance
One of the most impressive things about Binance? Its focus on cutting edge innovation. Despite the myriad products listed above, the exchange has even loftier goals.
These objectives include forging ahead into a decentralized autonomous organization. Why this new direction? Because it'll permit the platform to engage in fiat-to-crypto trading for more than 180 fiat currencies.
What's more, it plans on fully open-source Binance Chain and its native BNB.
Drawbacks to the Binance: New to the Game
As you can see, Binance comes with numerous features and products and a healthy business plan moving forward. It still remains a relatively new player in the game, though.
Without access to a crystal ball, it's hard to know how long Binance will prove capable of sustaining their current growth. With only three years under its belt, the trick for Binance will be maintaining current growth while extending further.
That said, they remain relentless in advertising and getting the word out about their platform. Want to learn more? Explore other cryptocurrency platforms.
Which cryptocurrencies does Binance support?
Binance supports the following cryptocurrencies.
- Aave (“LEND”)
- BAT (“Basic Attention Token”)
- Binance Coin (“BNB”)
- Binance USD (“BUSD”)
- Bitcoin (“BTC”)
- Bitcoin Cash (“BCH”)
- BitTorrent (“BTT”)
- Compound (“COMP”)
- Cosmos (“ATOM”)
- COTI (“COTI”)
- Dash (“DASH”)
- Dogecoin (“DOGE”)
- EOS (“EOS”)
- Ethereum (“ETH”)
- Hedera Hashgraph (“HBAR”)
- ChainLink (“LINK”)
- Litecoin (“LTC”)
- Maker (“MKR”)
- MATIC Network (“MATIC”)
- NANO (“NANO”)
- Paxos Standard (“PAX”)
- Qtum (“QTUM”)
- Stellar’s Lumen (“XLM”)
- Synthetic Network Token (“SNX”)
- TomoChain (“TOMO”)
- Tron’s TRX (“TRX”)
- TrueUSD (“TUSD”)
- USD Tether (“USDT”)
- VeCHain (“VET”)
- Zilliqa (“ZIL”)
Is Binance insured?
Yes, Binance is insured against security breaches through the Secure Asset Fund for Users (SAFU). Binance began contributing 10% of all trading fees received to this fund in July 2018 in order to offer insurance in the event of security breaches.
Pros and cons of Binance
- One of the most trusted brands in crypto
- Best-in-class features with everything an advanced trader could want
- Significant advantages when using the native Binance tokens BNB such as decreased trading fees
- Very fast, easy to use interface
- Binance offers extremely low transaction fees, particularly when using with their native BNB tokens
- Assets are insured in case of security breaches. Except for breaches from personal security issues
- Can be overwhelming for people who are new to crypto or trading
- Much of its functionality is being disrupted by decentralised options like Uniswap
- The platform doesn’t support most traditional payment methods
- Currently, Binance US does not offer services in New York, Alaska, Alabama, Connecticut, Georgia, Florida, Hawaii, Louisiana, North Carolina, Idaho, Vermont, Washington, and Texas due to missing regulatory requirements
- Binance does not give comprehensive daily market analysis
Frequently asked questions about Binance
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
Does Binance have a storage wallet?
Binance has a stand-alone wallet called the Binance Trust Wallet, that allows users to store cryptocurrency outside of Binance.
How effective is Binance’s customer support?
Binance support staff is receptive and willing to provide detailed advice to traders in need. Help tickets are submitted via the web site’s online form, and answers are sent back via email.
How much Are Binance transaction fees?
Binance charges a transaction fee of 0.1% for all trades. It also offers a 50% discount on fees for trades made using Binance Coin.
What payment methods are accepted on Binance?
Binance supports the following payment methods:
Binance Review: Is Binance Right for You?
Binance is an up and coming platform that's made incredible strides over the past three years. It also remains keenly focused on experimenting and pushing the envelope when it comes to cryptocurrency services.
You'll enjoy some of the industry's lowest trading fees when using Binance, and it provides fiat-to-currency market pairs. As for the longevity of the platform's success? That remains to be seen.
Ready to begin your foray into cryptocurrency? Check out our crypto interest rate calculator now.