A Binance Review for 2021
The number of crypto assets in the world has been steadily rising. Of late, that number crossed the mark of 11,000. According to the latest estimates, there are nearly 11,106 crypto assets worldwide.
Crypto exchanges facilitate these trades, with over 400 of these exchanges available. Yet, as applicable for any other market, not all these players have managed to capture crypto users’ attention so successfully like a selected few. Binance is one of them.
But, what are Binance’s strengths? Why do users prefer it over most of the players in the market? And, how does it work? These are the aspects we will address in this Binance review below.
Table of Contents
What is Binance?
Positioned as the world’s largest exchange, Binance is a platform for you to buy and sell cryptocurrencies. Changpeng Zhao and Yi He are its founders.
Binance came into the market in 2017, and, to date, it has raised funding of $35 million from ten funding rounds and a total of 13 investors.
While Karnika Yashwant and Vertex Ventures Southeast Asia and India are its most recent investors, Binance received funding from Chris McCann, Plutus21, Black Hole Capital, Funcity Capital, Sequoia Capital, and Limitless Crypto Investments as well. The last funding round happened on December 1st, 2020.
In a short span, Binance has made some vital acquisitions as well. It has acquired Swipe.io, CoinmarketCap, BxB, DappReview, WazirX, JEX, and Trust Wallet. It has also made 49 investments. As an investor, Binance has also made a successful exit from BxB, the company behind KRWb, a stable bridge from Korea to anywhere, backed by a globally accessible 1:1 stable coin supported by the Korean Won.
Binance’s product suite constitutes an entire crypto product ecosystem, including an exchange, an academy, the Binance Card, Binance Labs, Binance launchpad, Binance Research, Binance NFT, Binance NFT, Binance featured market, and Binance pay.
The Binance app is suitable for trading crypto from anywhere in the world. You can download the app from the iOS app store or Google Play Store. It also has an Android APK. The app is compatible with multiple operating systems and devices. It works both on macOS, Windows, and Linux. Moreover, you can also scan the QR code on the Binance website to download the app on your iOS or Android device.
The Binance exchange supports a host of assets for trade, including all the popular crypto-assets and high potential ones. The list of Binance-compatible crypto assets includes Bitcoin, Ethereum, Chiliz, Filecoin, Cardano ADA, and many more. Binance also has its own native token BNB that we will be discussing in a later segment.
Binance also has a full-fledged knowledge dissemination platform on its website, Binance Academy, where a newly initiated crypto trader can learn everything about mining. An experienced investor can leverage the academy to devise a new strategy.
Binance also has a Charity Foundation that explores the power of blockchain to address issues like poverty, inequality, and the health of the planet and its people.
To date, the charity has raised 2,352 BTC worth of donations, equivalent to $93,593,110 USD. The number of beneficiaries to receive the advantages of these donations is more than 937,000.
While most exchanges provide an avenue to buy and sell crypto assets, Binance goes a step further and makes arrangements for its users to seamlessly leverage their assets in the market.
With the help of the Binance Card, one can spend their favorite cryptocurrency at more than 60 million merchants across the world. All one needs to do is transfer their crypto assets from their spot wallet to the funding wallet. The Binance Visa card is completely free for use. It does not charge any administrative or processing fees. For successful purchases with the card, users qualify for up to 8% cashback. The funds enjoy the highest security standards available through Binance SAFU, Secure Asset Fund for Users.
Binance also invests in new technologies through Binance Labs in over 25 countries across more than five continents. Binance Labs has invested in over 100 projects which include blockchain entrepreneurs, startups, and communities. It aims to expand the larger blockchain ecosystem.
Binance also has its token launch platform where interested investors can buy or earn new tokens directly, and projects can launch their coins. To date, Binance has facilitated the launch of 48 projects, helping them raise more than $94.5 million.
The Binance Trust Wallet is one of the most well-known, trusted, and secure crypto wallets in the market. Users can buy, store and collect NFTs and exchange and earn crypto. More than 10 million people use Trust Wallet, available for download on the iOS app store, Google Play store, and Android APK.
Recently, Binance has also launched its Marketplace, which allows its users to buy NFTs with BUSD, BNB, ETH, and more.
BNB is the native token of the platform. It has a supply of more than 168 million tokens. The BNB coin attained its all-time high on May 10th, 2021 at $690.93.
How Does Binance Work?
To start trading on Binance, you'll first need to register by opening the Binance application and tap on login or register.
Next, you need to enter your email address and password and the referral ID, if applicable. The next step is to complete a security verification puzzle. After the successful completion of the puzzle, the exchange will send you an email and verification code, which are the final steps in the process of user registration. Binance offers two-factor authentication (2FA) features through Google and SMS 2FA.
Users do not incur any fees on Binance deposits. However, for each withdrawal, users need to pay a flat fee covering the transaction costs of moving the crypto out of their Binance account.
The blockchain network determines its withdrawal rates that may fluctuate due to congestion in the network.
For trades, the maker fees vary between 0.02% and 0.1%, and the taker fees between 0.04% and 0.1%. For trading with Binance’s native token BNB, there is a 25% discount on the spot trading fee and 10% on USDS-M futures trading.
Buying Crypto through Binance is possible using debit and/or Visa or Mastercard credit cards.
For peer-to-peer trading, the platform supports bank transfer and more than 100 such options. It is also compatible with third-party payment services, such as Simplex, Banxa, and Paxos.
Binance Pros & Cons
Pros: The Good Stuff
Binance supports a wide range of fiat currencies (USD, Euros, Pound Sterling, and more) and stablecoins (BUSD, USDC, PAXOS, USDT, and True USD) to buy crypto.
It has a simple and easy-to-use interface.
You can do both spot and margin trading in Binance.
The stock token feature allows trading stocks with crypto.
Offers a host of derivative trading features, including Binance Futures, USDS-M futures, Con-M futures, Vanilla options, and leveraged tokens.
You can get an instant loan with crypto assets as security.
Using Binance Swap, you can also become a liquidity provider and earn double.
Cons: The Not So Good Stuff
Service is not available in Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.
The global Binance site has more crypto pairs than its global site.
Our Final Thoughts
Binance has all the features and facilities you expect from a world-class crypto exchange. It supports a wide range of crypto assets, fiat currencies, and stable coins. It is convenient to use through its app or browser version. The exchange is compatible with almost all major operating systems, and it offers a vast variety of payment methods.
Frequently Asked Questions
Yes. It is absolutely safe. While features like two-factor authentication (2FA), both through mail and SMS, take care of the individual user’s account security, it also has a Secure Asset Fund for Users to protect the future interests of all its users.
According to the provisions of SAFU, 10% of all trading fees received goes into SAFU to offer protection to the users and their funds in extreme cases. The fund remains stored in a separate cold wallet.
Not entirely. We have already discussed Binance’s fee schedule. To recapitulate, the deposit of funds is free for Binance users. However, withdrawals are not free. Users pay a flat fee for each withdrawal, covering the transaction costs of moving the crypto out of their Binance account. The blockchain network determines its withdrawal rates. The rate fluctuates with the congestion in the network. The trading fees may go up to 0.1%, depending on the 30-days trade volume.
Binance operates within defined regulatory structures. An individual must be at least 18 or of legal age to participate in Binance trades. Some products and services are not available in certain countries or to certain users. For instance, USDⓈ-M Futures, Coin-M Futures, Margin, Binance Options, Vanilla Options, and Leveraged Tokens are not available to all users from the Netherlands, Germany, and Italy, and retail users from the U.K.
Binance also reserves the right to change, modify or impose additional restrictions as it thinks right at any time.