A crypto exchange guide must provide reviews of all of the crypto exchanges out there, so that you can find the right one for you. This review of Binance consists of four parts: general info, fees, deposit methods and security.
Binance is an exchange previously based in Hong Kong and is one of the absolute giants in the industry. It launched in July 2017 and has then really developed into the market leader among cryptocurrency exchanges. The business department at Binance did however ask us to specify that the company was based in Malta, and not Hong Kong. Malta is together with Estonia and Gibraltar one of the few countries in Europe that has developed explicit license requirements for cryptocurrency exchanges.
Binance regularly places itself on no. 1 or at least top 3 in terms of 24 hour trading volume, meaning that it is regularly the most (or at least one of the most) trusted exchanges in the world. On the date of last updating this review (20 March 2020, right in the middle of the crisis with COVID-19), Binance had a 24 hour trading volume of USD 8.2 billion (the highest in the world) and a 30 day trading volume of USD 141.9 billion (also the highest in the world). Binance is the dragon among dragons when it comes to crypto exchanges
Trading Alternatives – Basic & Advanced
Binance-users have the opportunity to choose between two different trading alternatives. The first one is called basic, and does not cater as good to people interested in more detailed technical analysis as the advanced version does. None of them can really be considered extremely easy-to-use though. The basic version’s trading view looks like this:
As is evident from the picture, the basic trading view is quite straight-forward and inherently easy to understand. Most of the crucial information is included in one page. Prices are to the left, graphs in the middle (with buy and sell options), and the history to the right.
The advanced version’s trading view looks like this:
In the advanced version, the charts take up more space. As in the basic version, the trade history is on the far right. The buy and sell boxes however, are here in the low right corner (instead of in the bottom center as in the basic version). It is of course up to each individual to decide which trading view suits him/her best.
Binance Supported Cryptocurrencies
Binance supports a very large number of cryptocurrencies, several hundred of them. This makes it one of the exchanges in our Cryptocurrency Exchange List with the most supported cryptocurrencies overall. Apparently, the platform also has some form of quality assurance system. This system ensures that projects that have once qualified to be listed but later fails to meet such qualification requirements are delisted. For instance, on 15 February 2019, Binance decided to delist the following five cryptocurrencies: CloakCoin, Modum, SALT, Wings and Substratum.
Binance has for a long time accepted US-investors for trading at the exchange. However, on 13 June 2019, they announced that they will launch a an American version of the trading platform. The American version will be an all-out fiat-to-crypto centralized exchange. On 12 September 2019, they followed through on the announcement and restricted US-investors from using the main Binance-platform:
The CEO of Binance, Changpeng Zhao, tweeted about this and said “short term pains may be necessary for long term gains”.
Binance Lending Product
Binance also has so called “Binance Lending Products”. With the use of these, you can lock certain assets in for a certain period and then receive an interest on the locked in assets. On 19 September 2019, Binance released 14-day fixed term lending products, where you receive interest by locking in the assets for just 14 days. The following shows a few return figures with respect to locking in the BNB, BTC and USDT-tokens for 14 days:
On 17 September 2019, Binance officially launched their futures trading. Futures are also known as option contracts. An option contract is a contract that gives the holder of the option a right – but not an obligation (thus an “option”) – to buy (call option) or sell (put option) a certain asset at a certain price. Certain options give you the right to exercise the option whenever (before expiry of the contract), and other options are only permitted to exercise during a specific date. The former are known as American Options, and the latter are known as European Options.
Binance charges the following fees for their futures trading. The two columns to the right is the promotion discount running the first three months from launch, i.e. up until end of 2019.
This exchange has a very strong team in all possible aspects. The CEO of Binance is actually one of the forefront figures of the entire cryptocurrency industry (together with Satoshi Nakamoto and Vitalik Buterin).
The fees at any exchange are very important to consider. Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. We call makers “makers” because their orders make the liquidity in a market. Takers are the ones who remove this liquidity by matching makers’ orders with their own. The maker-taker model encourages market liquidity as the makers providing the liquidity often receives a fee discount compared to the takers.
There are also a number of top crypto exchanges who don’t charge different fees between takers and makers. Usually, we call such exchanges’ trading fees “flat”.
Binance Trading fees
Binance offers a flat trading fee of 0.10%. Accordingly, Binance does not care about whether you are a taker or a maker. For investors who prefer to pick-up existing orders from the order book, this might be an attractive trading fee model. Binance’s trading fees are far below the industry average which is arguably around 0.25%.
The trading fees are also reduced based on trading volume and holdings of Binance’s native token, the BNB, as set out in the below table:
Binance Withdrawal fees
Binance charges a withdrawal fee amounting to only 0.0004 BTC when you withdraw BTC. Also this fee is below the industry average.
Previously, Binance only accepted deposits of cryptocurrencies and it did not accept any deposits of fiat currency. New crypto investors could then not trade at Binance. However, the exchange announced on 31 January 2019 that credit card deposits are now possible under certain circumstances.
The exchange has joined forces with a payment service firm from Israel named Simplex. This makes it possible for Binance-users to purchase Bitcoin, Ethereum, Litecoin and Ripple with Visa or MasterCard-credit cards. This deposit method is however not possible for countries on Sanctions lists (such as Iraq, North Korea, Syria, Afghanistan, Lybia), nor residents of any of the following six US-states: New York, Connecticut, Washington, New Mexico, Georgia and Hawaii.
Simplex charges 3.5% per trade. So if you want to buy Bitcoin for USD 10,000, Simplex will take US 350 (plus a minium flat fee of USD 10) for enabling the purchase.
Furthermore, on 26 December 2019, Binance shared that they now allow users to bind Visa cards to their accounts and purchase crypto using this card, directly on the Binance platform (then presumably without having to use Simplex and pay the 3.5% Simplex-fees). For now, this only applies to VISA-cards issued in the EEA, and only for card holders in the following countries: United Kingdom, Germany, France, Netherlands, Poland, Sweden, Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Portugal, Romania, Slovakia, Slovenia, Spain, Iceland, Liechtenstein and Norway.
One might ask why security is even a feature that we at Cryptowisser have looked for at the different top crypto exchanges. The answer is two-fold:
- Exchanges store a massive amount of valuable personally identifiable information. From names to addresses, to government identification details, taxpayer identification number and a lot more; and
- Exchanges handle of course a lot of cash or coin deposits and withdrawals.
Examples of successful hacks are countless. The most famous is probably the Mt.Gox-hack that left thousands of users without a penny (worth $450 million at that time and x times more today). But many other exchanges have faced similar outcomes. We don’t want your exchange – and specifically not your funds at the exchange – to be subject of a cyber-attack! Our security score is the result of testing the webpage of each exchange at Observatory by Mozilla (https://observatory.mozilla.org/) which has helped over 125,000 websites by teaching developers, system administrators, and security professionals how configure their sites safely and securely.
Binance has a security score of B+. This is far above average when it comes to top crypto exchanges and could also be a factor making you conclude that Binance is the best cryptocurrency exchange site for you.
Liquidity is important for all exchanges, crypto exchanges but also regular stock market exchanges. The above exchange does indeed have great liquidity. However, the below exchanges are also regularly among the ones with the best liquidity in the world: