Binance launched their platform on July 25th 2017, and in a short time they’ve managed to become a top player in the cryptocurrency world. Their daily trading volume regularly exceeds 2.5 billion US dollars, and they have a membership in excess of 10 million users. The ICO they launched sold out in just three minutes, and their wild success is due in part to the wide array of assets which they allow to be traded, greatly increased transaction speeds, and their heavily reduced fees for high volume traders. These features have allowed them to quickly garner attention in a space where reliable exchanges are not always easy to find. Many traders who were frustrated with the way competitor Bittrex had treated them have jumped ship, and are now happily operating under the Binance flag.
This exchange offers a plethora of useful features that traders of all walks of life can take advantage of. They offer native platform support in multiple languages, their system is capable of handling over 1.4 million orders per second and trading fees as low as 0.1%. They also have their own native asset BNB, which investors can utilize to earn an additional 50% reduction in their trading fees on the platform.
Binance is based in China, but there does not appear to be registration blocks in place for any countries. They also allow trading by unverified accounts, which means that anyone can trade digital assets without fear of censorship or undue invasions of privacy. These accounts are limited to withdrawals of 2 Bitcoin per day in value.
These days, security must be a priority for any exchange to even be considered as usable. Theft in the world of crypto currency is rampant, and it’s important to know how your funds are being protected. Unfortunately, it seems Binance may be lacking on this front. This information is oddly absent from their documentation, and users who ask about it on social media are simply ignored.
While Binance has not as of yet been subject to any large scale attacks, it would be nice if they could disclose certain information to investors. For example, whether or not they use cold storage wallets for funds would be useful to know. However, they do offer investors some ways to secure their accounts themselves.
- 2FA SMS and Authenticator app security
- Anti-Phishing code to prevent attempts at account theft.
- Whitelisted withdrawal addresses
Binance allows for users to utilize Google Authenticator or SMS via mobile phones to protect their accounts (although we’d advise avoiding SMS 2 factor authentication). If you’d prefer an alternative to Google’s app, then Authy has a tutorial available that will help you do the same with their application.
By setting this code in your account settings you’ll receive a unique code. If you get an email from Binance you can check that this code matches the one in your account. If it does not then you have received a phishing email. Do not click on any links in these messages as someone is attempting to steal your account! Immediately report these messages, and the senders information to Binance support.
This feature allows you to save pre-approved wallet addresses in your Binance account. If a thief does happen to gain access to your account, they will not be able to withdraw your funds to their own address.
One of the most attractive draws of the Binance exchange is how many digital assets they have available for trading. They offer a wide array of coins and tokens that investors can exchange. Any coin looking to be added to this exchange must first apply, and then be approved by the exchange themselves as a reputable asset. New currencies are added everyday, and if your favorite coin isn’t here, be sure to keep checking back. If you’d like to keep up with these new listings you can follow their Twitter account to be alerted to exciting new cryptocurrency assets as they appear.
Banking at Binance
Using your Binance account is not a particularly difficult venture, and traders of all experience levels can quickly begin utilizing the many features of the platform. Before you begin, you’ll need to have a cryptocurrency wallet that already has some type of coin or token in it since Binance does not currently allow fiat purchases or withdrawals. In order to use Binance you’ll need to already have one of four currencies to use as a trading pair. These include: BTC, ETH, BNB and USDT. Please follow the below instructions and screenshots to register, and begin using your Binance account.
- Register an account
- Verify your email address
- Deposits funds
- Find the coin you’d like to purchase
- Make your buy order
Getting a Binance account is easy, and the amount of information needed is trivial. An email and password will suffice for creating your account. Approval is instantaneous.
After your account has been created, you’ll then need to verify your email address for security purposes. Binance’s system will send a message to the e-mail address that you supplied during your registration. You need only click this link, and the verification will be complete. If after a few minutes this message has not arrived in your inbox, you can click on ‘resend’ to try again. If you continue to have issues be sure to check your spam folder or whitelist the official Binance email account.
Before you can begin trading, you will need to deposit funds to your account. As previously stated, Binance does not currently allow their users to purchase cryptocurrencies using fiat currency. That means you must first purchase a base currency like Bitcoin or Ethereum from another source such as Coinbase. If you’ve already done so, then click the ‘balances’ section on the menu bar, and then select ‘deposits’.
After selecting the coin that you want to deposit you’ll be given a wallet address. This is the address for your exchange wallet. You’ll need to send the funds from your normal wallet to this one in order to trade. The amount of time that it takes for these funds to appear in your account will vary based on the currency used, and the current network traffic. Never type out your addresses, always copy and paste them to avoid errors, and double check that they are correct before sending.
After your funds have confirmed, you’ll be able to see in your balances that you have some coins or tokens available for trading. Once this happens you can visit the ‘exchange’ tab in the top menu to go to the main trading area of the Binance exchange. There’s a lot of information on this page, and for a new investor it can all be a little overwhelming, but don’t worry, it’s not as difficult to master as it looks.
If you look to the right of your screen then you’ll see a search box. If you know the ticker symbol for the asset that you’re looking for then you can type it in here. In our example we’ve searched for Neo. You should also make note of the squares above this area. These are related to the pair you will be trading against. If the base currency that you have deposited is Bitcoin, then you’ll need to make sure that BTC is highlighted.
Once you’ve selected an asset, it’s time to make a purchase! There are many options here depending on whether you want your tokens now, or if you’re okay with waiting to get a better price. Since we want our tokens immediately we will choose the “market price” option as seen in the below screenshot. However, if you’re willing to wait a while for a better price, then you could use the “limit” option to set a price, and then wait to see if anyone fills the order.
Simply input the amount of coins or tokens that you wish to buy, and then set the price. Once you click on the ‘buy’ button your order will be submitted. If you placed a market order then your order will be immediately filled with the next offer from the order book, and tokens will be issued to your account. If not, you may need to wait a while depending on how low your price is. If you’re having trouble, be sure to check that your account is funded. Your deposit must have all confirmations approved before you can trade. You can verify this by viewing the “BTC balance” area directly above the pricing box. This will tell you the amount of funds that you have available for trading, if any.
Other Binance Features
- Referral program
- Binance Labs
- Reduced trading fees by using BNB
- Multi-Language support
- Advanced trading options
- High performance and fast transaction times
- Trading APIs
If you run a blog or you have a lot of friends that may also be interested in trading cryptocurrencies, then you can have them sign up through your link for a kick back. Currently, the referral rate is 20% of that person’s trading fees. With enough referrals under your belt, these could really stack up fast. Especially as the platform itself continues to grow.
This faucet of the Binance platform is an incubator and funding platform for startups. They offer a particularly attractive option for potential ICOs. If the project is selected, not only will they get the full advice and marketing force of Binance, but also a priority exchange listing. This is a very valuable thing for a new coin or token believe it or not, as these listings can be quite expensive and take a long time to acquire.
BNB is Binance’s native currency, and if you don’t have a problem paying in this currency you can actually save an additional 50% on your trading fees. While this won’t be much for the casual trader, it could add up to a substantial amount of saved capital if you are a high volume trader. Especially those who are making consistent, yet very small profits on many trades every day.
Binance offers full native support for multiple languages. This makes them an excellent choice for traders in several different countries. At this time they support English, Japanese, Spanish, French, Chinese, Korean, Russian and German.
While the Binance platform is easy enough that any trader can use it, they also offer more advanced features for traders that are ready to move up in the ranks. Users can take advantage of features such as stop limit orders, and advanced charting tools to help them sort through important market trends and activities.
In a sector where a second of delay could cost you millions of dollars, professional traders demand an exchange that can keep up. Binance excels in this category, offering up a platform that has the ability to process over 1.4 million orders per second, ensuring that you will never miss out on a trade.
Binance offers plug and play API access to accounts. Traders can use these to take advantage of various trading softwares that can manage or even automate their activities on the platform for them.
The native token of the Binance platform, BNB is what investors were given for helping to fund the ICO. This token’s utility lies in that it is intertwined with the main Binance ecosystem. Investors will receive a discount on their trading fees simply for holding these in their accounts. This discount works on a declining scale. The first year is 50%, the second is 25%, and it will continue to half from there until it vanishes entirely in 5 years. These tokens are also an asset, and as such they grow in value for holders.
While it would seem that the usefulness of the BNB token ends there, they do have some future plans which will give it more usefulness. Eventually, Binance plans to become decentralized, and they will need these caches of tokens for staking. Presumably, investors will then be able to earn income from the staking of these assets. With Binance themselves issuing buy backs of the token and burning coins, it could become very valuable in the future to still be holding these.
Binance offers a fairly comprehensive FAQ to help users address their own issues. This document is easy to search, and in many cases the answer to your question has likely been answered here. However, if your problem is still not satisfied, then you can submit an email to their team using the “submit request’ option at the top. While they are quite active in their Reddit and Twitter accounts, it seems that many questions or requests go unanswered by staff there.
However, this may be due to them not having enough staff to cover every single area. Users who utilize their internal support system have reported having fast response times and quick solutions to their problems. Sometimes even going above and beyond to fix customer errors that may have resulted in a loss of funds, such as sending to the wrong wallet, even though they had no obligation to do so.
While they do not always respond to all requests on their social media accounts, they do make a great effort to keep investors updated on important issues there. It might be a good idea to follow them here to make sure that you are up to date on new procedures, coin listings, updates, and even to become aware of potential security threats such as phishing warnings.
Issues at Binance
Binance has not experienced any hacks or security threats. Though, they did have one issue regarding unauthorized access via account APIs. While many were quick to claim that the system was compromised, this was not true. The traders who lost money had in fact given their API access to an unscrupulous application that had taken control of their accounts.
You could equate this more to a phishing attack than a hack. Phishing is typically when a user willing turns over their account credentials to a thief for whatever reason, and it’s a more accurate description of what happened at Binance. For this reason it’s recommended that you do not offer your API to any applications. There are simply too many untrustworthy sources out there that would abuse this information, and if you are a new investor it may be difficult to identify these threats.
Frequently Asked Questions
Binance does offer excellent security to its investors, and it has never suffered any major breaches to its ecosystem. They also offer multiple security features that empowers investors to secure their own accounts. It would be wise for you to utilize most or all of these options to take the safety of your account into your own hands. Please keep in mind that even the best security measures are not foolproof. For that reason most cryptocurrency traders recommend that you do not keep a lot of funds on an exchange long term. It’s best to transfer these assets to a safe offline wallet, which greatly limits the possibility of theft.
No, they do not. At this time Binance only allows crypto to crypto trades. If you do not yet own any cryptocurrency then you will need to utilize another platform such as CoinBase to make your initial purchase via an ACH transfer or bank card purchase using your government issued currency.
Yes, Binance does adhere to KYC regulations. However, they also offer an unverified version of their account that will allow users to withdraw up to 2 Bitcoin per day without verifying. Keep in mind that this may change at any time, and these withdrawals could be fully restricted to verified accounts only. These more relaxed options are likely due to their lack of fiat trading, which would require more strict regulations.
Yes, as a Chinese company, Binance must adhere to any regulations imposed upon them by their home country. While they have agreed to work with the Chinese government, they have taken some precautions to mitigate this damage such as not revealing the location or their servers to make it questionable as to who actually has the right to attempt to regulate them.